CTEP Chartered Trust & Estate Planner® (CTEP®) Certification Examination Question and Answers

X owns a piece of land situated in Varanasi (Date of acquisition : March 1, 1983, Cost of acquisition Rs. 20,000/- value adopted by Stamp duty authority at the time of purchase Rs. 45,000/-).On March 30, 2012 the piece of land is transferred for 4 lakh. Find out the capital gains chargeable to tax if the value adopted by the Stamp duty authority is 5.5 lakh. X does not dispute it. [CII-12-13: 852,11-12: 785,10-11:711]

Which of the following statement(s) about ‘Knock for Knock Agreement’ is/are correct?

There are ______________ sources of Muslim Law. As per Muslim Law, a marriage that is unlawful from it’s beginning is called ____________.

As per the Ancient Hindu Law, there are ____________ Vedas. Scholars have determined that ___________ is the oldest of the Vedas.

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

Pushkar completed the construction of a house property on 14.8.2008 with borrowed capital of Rs.8,00,000 @ 12%. The loan was taken on 1.4.2006 and is still outstanding. The house was used for his own residence during the entire FY 2012-13. Deduction U/S 24(B) for interest on borrowed capital for PY shall be

Money laundering Process has ____________ stages. The Financial Action Task Force on Money Laundering was formed in __________ by the G7 countries.

__________________ is spoken rather than dictated or written.

The Inland Revenue Authority of Singapore (IRAS) was established on ___________, by legislation as a statutory board under the Ministry of Finance.

_________ means the amount of _________or its equivalent value in money payable under the Muslim law annually by a Muslim during the month of Ramadan to be used for religious or charitable purposes recognized by the Muslim law.

A Hindu coparcenary consists of a common male ancestor and his linear descendants in the male line within _______ degrees. ___________ is the state in which HUF is not recognized.

Which one of the above statement(s) is/are correct?

For inheritance tax purposes, even if the individual was not at the time of transfer domiciled in the UK, he or she will be treated as domiciled in the UK if, at the time a transfer of value was made:

Madras Marumakkattayam Act was enacted in __________.

Singapore corporate tax rate is capped at ___________

What is the full form of CLT?

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

Which of the following statement(s) about FDAP Income is/are correct?

As per ______________ of Income Tax Act every member of the HUF before partition shall be jointly and severally liable for the tax on the income assessed of the HUF.

Which of the following statement(s) about Tax Lease is/are correct?

What is the full form of PET?

In US, in the case of an individual the tax is ______________ of the lesser of net investment income or the excess of modified adjusted gross income over the threshold amount.

For 2012-2013 the annual exclusion amount sheltered from estate tax in US is ____________.

Under the provisions of _________of the Hindu Succession Act, 1956 where a Hindu male dies intestate on or after __________, having at the time of his death an interest in a Mitakshara coparcenary property leaving behind a female heir of the Class I category, then his interest in the coparcenary property shall devolve by succession under that Act and not by survivorship.

The Hire Purchase System is regulated by the Hire Purchase Act ________

A trust created under the Married Woman Property Act, is an example of ________________.

The accounts of the Trust should be audited where the income (including corpus donations) exceeds ______________. One of the essential condition for obtaining exemption of the income of a Charitable Trust is that at least _______ of the income should be applied to charitable purposes in India.

Which of the following statements about Discretionary Family Trust is/are correct?

Which of the following is an essential condition for obtaining exemption of the income of a Charitable Trust?

As per ______________ of the Indian Trust Act, the subject matter of a trust must be properly transferable to the beneficiary.

A member is defined under ___________ of the Societies Registration Act and a Governing body is defined under_______________ of the Societies Registration Act.

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

An Oral Trust is deemed to be a written trust if a statement in writing is forwarded to the Assessing Officer within _________________ from the date of declaration of the trust.

Wealth Tax is charged at _________ the amount by which the net amount exceeds Rs. ____________________

_____________ of the Income Tax Act, 1961 provides that where a trustee receives or is entitled to receive any income on behalf of or for the benefit of any person under an Oral Trust, tax is to be charged on such income at the maximum marginal rate.

Is there any default for not/late filling of wealth tax returns?

Which of the following statement(s) about Exemption Trust is/are correct?

Which of the following statement(s) about Socities Registration Act is/are correct?

A Public charitable or religious institution can be formed either as a Trust or as a Society or as a Company registered under _____________ of the Companies Act.

What is the full form of DFT?

______________ of the Income Tax Act provides for the registration of a Charitable Trust. _____________ of the Income Tax Act contains the provision that the profits and gains of the business carried on by a charitable trust would be fully exempt from tax if it is attains the objects of the trust.

Which of the following statement(s) about UTMA 529 is/are correct?

A Diety is entitled to initial exemption of __________________ in respect of its income.

The goals of Estate Planning can be broadly divided into_______ categories.

Which of the following is/are benefit(s) of Business Succession Planning?

______________ does not divest the policy holder of his rights in the policy and he retains disposing power over it.

There are ______ steps in Selling process. The last step in Selling Process is ____________.

What does ‘T’ in ‘SWOT’ stands for?

Estate Planning is ________ process.

A__________ can bring significant gift and estate tax savings.

Failure to create an Estate Plan leads to __________

What is a ‘CestuquieTrust’?

In case of Amputation through shoulder joint, what is the Percentage of Compensation given (as per Workmen’s Compensation Act)?

The selling/ planning process has __________ steps.

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

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

Which of the following statement(s) about Ancillary Probate is/are false?

Registration of Power of Attorney is __________in India. If Power of Attorney is in respect of immovable property of value more than __________ it must be registered.

According to ___________ of the Registration Act, 1908 the registration of a Will is not compulsory. A suit can only be filed within ___________days after the refusal of registration by the Registrar. An oral will made by a soldier above 18 years of age will be valid for __________ while a written will be valid for ___________.

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

Which of the following is a way to Revoke a Will?

Lokesh purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 for Rs. 25,00,000/-. As a CTEP calculate the Indexed Cost of Acquisition on which capital gain would be calculated. (The CII of year 1995-96 is 281, for year 1996-97 is 305, for year 2005-06 is 497 and for year 2006-07 is 519).

The legal heir of the deceased who receives family pension is allowed a standard deduction from such family pension received to the extent of:

As per Payment of Gratuity Act, Employees are entitled to ___________ terminal wages as gratuity for each year of completed service or part thereof in excess of 6 months. Seasonal employees are entitled to __________ terminal salary for each season of service.

Employees Provident Fund is applicable to firms employing over _______________ employees

An assessee was allowed deduction of unrealized rent to the extent of Rs. 40,000 in the past although the total unrealized rent was Rs. 60,000. He is able to recover from the tenant Rs.45,000 during the previous year on account of such unrealized rent. He shall be liable to tax to the extent of:

__________ is a arrangement wherein lessee and lessor agree to a payment schedule where for a set period of time, there is no payment and penalty.