CA Final Direct Tax Laws and International Taxation MTP May 2025: Question Paper and Solutions

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44 indexed questions. Open a question to read its full statement and available answer.

1. Jandhan co-operative bank provides the following information relating to cash withdrawals by its two customers during the P.Y.2024-25: Date of cash…
2. Xylo Pvt. Ltd.(Xylo) is an Indian company. Yen Inc., (Yen) is a private company incorporated in the USA and its income is not chargeable to tax in…
3. Wave Inc., a corporation incorporated in Country T, specializes in the manufacturing of computer hardware components and also owns the online social…
4. Thunder Ltd., an Indian company, had taken on lease a commercial premises for its operations, with an initial security deposit of 4.2 crores paid to…
5. Vishwas Trust, a public charitable trust registered under section 12AB of the Income-tax Act, 1961, operates a hospital offering medical treatment…
6. Mr. Veer, a resident individual aged 45 years, has a total income of 4,05,00,000 for A.Y. 2025-26. His income includes a computed salary of…
7. Narmada Ltd. is engaged in the business of manufacturing car spare parts since 1 st April 2021. Its statement of profit and loss shows a net profit…
8. PNG LLP, a limited liability partnership in India, is involved in the development of software and providing IT-enabled services through two distinct…
9. Lokesh, who is 50 years old, has been serving as the CEO of Platinum India Ltd. since April 1, 2019. His total income in India is derived from…
10. "Feed the People," a charitable trust registered under section 12AB of the Income-tax Act, merged with another entity on 1st April 2024, which is…
11. FASHION Inc., a notified Foreign Institutional Investor (FII), derived the following incomes during the financial year 2024-25:- (1) Dividend from…
12. Examine the liability for tax deduction at source in the following cases for the assessment year 2025-26: (i) On 21st July 2024, Mr. Anuj, a…
13. ASHA (P) Ltd., located in Cochi, is engaged in the manufacturing of toys and exports them to various associated and other enterprises across…
14. Attempt any two out the following three sub-parts: (i) An Income-tax authority did not file an appeal to the Income-tax Appellate Tribunal against…
15. What does a hybrid mismatch mean, and how is it different from a branch mismatch? Describe briefly the reasons of hybrid mismatch arrangements.…
16. The Assessing Officer conducted a survey at 9:30 p.m. at a well-known gym under his jurisdiction called "Silver" for collecting information which…
17. Determine if the following practices fall under the categories of (i) tax planning, (ii) tax management, or (iii) tax evasion. Briefly explain your…
18. A foreign national hockey player who is a non-resident in India, Mr. Robert Jonson, won 45 lakhs by competing in hockey competitions in India. In…
19. Mr. Saiyyam, a non-resident, made an application to the Authority for Advance Rulings on 15.6.2024 in relation to a transaction proposed to be…
20. Anantam Highways Trust, a business trust, registered under SEBI (Real Estate Investment Trusts) Regulations, 2014, has generated an interest income…
21. Mr. Badri, a professional interior decorator, also conducts online lectures on interior decoration through the e-commerce platform Pathshala. The…
22. Fiserv Inc., a company headquartered in Country F, operates an online platform that provides end-user computer software under an End-User License…
23. A Ltd., an Indian company, borrowed money from B Inc. in Country B, C Ltd. in Country C, D Inc. in Country D and E Ltd. in Country E, the details of…
24. Under which of the following cases, will arm's length price be determined by considering the median of the dataset? Case Most Appropriate Method No.…
25. Mr. Raghav, a resident, and Mr. John, an American citizen and a non-resident in India, are both sports commentators deriving income of 5 lakh from…
26. M/s Suraj Industries Ltd., an Indian company, is engaged in manufacturing and assembling of automobiles and auto components in Pune, Maharashtra.…
27. Pigeon Limited was amalgamated with Laksh Limited on 01.04.2024. All the conditions of section 2(1B) were satisfied. Pigeon Limited has the…
28. Mrs. Urvashi, aged 56 years, a resident individual acquired a residential house at Ayodhya on 01.04.1993 for 45,00,000. The Fair market value of the…
29. Mr. Pradhyuman, aged 48 years, a resident individual has furnished the following details of income earned during the previous year 2024-25: India…
30. A not-for-profit trust, engaged in philanthropic activities, operates both an educational institution and a hospital. During P.Y. 2024-25, the trust…
31. A public charitable trust, registered under section 12AB, earned a gross income of 21 lakhs during the previous year ending 31st March 2025,…
32. Laurus Labs Limited specializes in providing scientific research services to various non-resident clients, including Meta Inc. A key aspect of this…
33. Without prejudice to the answer to (i) above, if transfer pricing provisions are applicable and the Assessing Officer has made a primary adjustment…
34. Vijaya Bank credited - 65,50,000 as interest on deposits into a separate account for macro-monitoring purposes using its Core-branch Banking…
35. Examine in the context of provisions contained in Chapter XVII of the Act and also work out the amount of tax to be deducted by the payer of income…
36. Tekken Ltd., an Indian company engaged in the manufacturing and trading of video games under the brand name "TIMETODIE", undertook a large-scale…
37. The Board for Advance Rulings has the powers of issuing commissions – Examine the correctness or otherwise of this statement.
38. Examine whether the following persons are required to file return of income for A.Y.2025-26, giving brief reasons for your answer – (I) Mr. Govind,…
39. Examine the correctness or otherwise of the following propositions in the context of the Income-tax Act, 1961: (I) At the time of hearing of…
40. Determine the penalty leviable under section 270A of the Income-tax Act, 1961, in the case of Alibaba Ltd., an Indian company, considering that none…
41. Explain the following terms in the context of interpretation of tax treaties: (i) Principle of Contemporanea Expositio (ii) Teleological…
42. In a search operation conducted under section 132 of the Income-tax Act on 31.10.2024, the department seized cash amounting to 25 lakhs. The…
43. Under the tax treaty between India and Country X, capital gains from the sale of shares of Red Chilies Ltd., an Indian company, are taxable only in…
44. Mischief Ltd. is a company incorporated in Maldives and 55% of its shares are held by Kaveri (P) Ltd., an Indian company. Mischief Ltd. has its…