Chartered Trust & Estate Planner (CTEP) Certification Examination (CTEP) Free Practice Test

Question 1

Which of the following statement(s) about Offshore Investment Bond is/are correct?

A. Only (i)

B. Only (ii)

C. Both (i) and (ii)

D. Neither (i) nor (ii)

Correct Answer: A

Question 2

A trust which is created and operating during the Grantors lifetime is called________________

A. None of the above

B. InterVivos Trust

C. Express Trust

D. Either of the above

Correct Answer: B

Question 3

_____________ of Income Tax Act,1961 defines the Right of an Executor to recover tax paid.

A. Section 162

B. Section 169

C. Section 62

D. Section 69

Correct Answer: B

Question 4

___________ is appropriate for donors who want to see their charitable dollars at work during their lifetimes.

A. Charitable Remainder Trust

B. Family Foundation

C. Outright gift

D. Bequest

Correct Answer: C

Question 5

Which of the following statement(s) about Wakfis/are correct?

A. All except (ii)

B. Both (i) and (iii)

C. Both (ii) and (iv)

D. All of the above

Correct Answer: D

Question 6

As per Payment of Gratuity Act, Gratuity shall be payable to an employee after he has rendered continuous service for not less than __________

A. 5 years

B. 15 years

C. 2 years

D. 10 years

Correct Answer: A

Question 7

Two persons are said to be __________ when they are descended from a common ancestress but by different husbands.

A. Cognate of each other

B. Related by Uterine blood

C. Related by Half blood

D. Agnate of each other

Correct Answer: B

Question 8

In UK, the nil rate band for the 2012/2013 tax year is ____________

A. (GBP)350,000

B. (GBP)250,000

C. (GBP)225,000

D. (GBP)325,000

Correct Answer: D

Question 9

Which of the following is another name for "True Lease"?

A. Sub-Lease

B. Operating Lease

C. Pre-Paid Purchase Lease

D. Skip Lease

Correct Answer: B

Question 10

Which of the following is/are disadvantage(s) of Trust?

A. Only (i)

B. Only (ii)

C. Neither (i) or (ii)

D. Both (i) and (ii)

Correct Answer: D

Question 11

Dharampal has let out his house property at monthly rate of Rs. 12000. He has paid Rs.3500 as annual municipal tax. He wants to know the Net Annual value of his house at Bhuj for AY 2011-12. The Municipal value of the house is Rs. 90,000, Fair rent Rs. 1,40,000, Standard rent Rs. 1,20,000. The house was vacant for one month during the previous year 2010-11 and the rent has not changed since then.

A. Rs. 1,36,500

B. Rs. 1,32,000

C. Rs. 1,40,500

D. Rs. 1,28,500

Correct Answer: D

Question 12

Which of the following statement(s) about Money Laundering is/are correct?

A. All (i),(ii),(iii) and (iv)

B. Only (ii) and (iv)

C. All except (iv)

D. All except (i)

Correct Answer: B

Question 13

Deduction under section 80RRB is allowed to the extent of:

A. 50% of royalty or Rs. 3,00,000 whichever is less

B. 100% of royalty or Rs. 2,00,000 whichever is less

C. 100% royalty or Rs. 5,00,000 whichever is less

D. 100% of royalty or Rs. 3,00,000 whichever is less

Correct Answer: D

Question 14

X Ltd. has failed to remit the tax deducted at source from annual rent of Rs. 6,60,000 paid to Mr. A for its office building. The said rent is

A. allowable to the extent of 50%;

B. fully allowable as a business expenditure

C. not allowable in view of Section 40(a)(I)

D. none of the above

Correct Answer: C

Question 15

A Henson Trust in Canadian law, is a type of trust to benefit _________________

A. None of the above

B. Widows

C. Orphaned Child

D. Disabled Person

Correct Answer: D

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AAFM Chartered Trust & Estate Planner (CTEP) Certification Examination (CTEP) Free Practice Test