CFP: Certified Financial Planner

CFP: Certified Financial Planner practice questions, page 9 of 12, with answer review and explanations.

Question 41

X is a property dealer who buys and sells housing property. He received some rent from a housing property held as stock-in-trade in the assessment year 2008-2009. This rental income would come under the head:

  1. Income from house property.
  2. Income under the head capital gains.
  3. Income from other sources.
  4. Business income.

Question 42

An immovable property will be termed as a short-term capital asset if it is held by the assesse for _______.

  1. not more than 36 months
  2. more than 36 months
  3. exactly twelve months
  4. more than 12 months

Question 43

If an employer has made contribution to an unrecognized provident fund of an employee, then such contribution in the hands of employee ____________.

  1. is not treated as income of the year in which contribution is made
  2. contributions in excess of 12% is treated as income
  3. is treated as income of the year in which contribution is made
  4. None of the above

Question 44

Nihal, a salaried employee, receives medical allowance of Rs. 25,000 from his employer which is fully spent by Nihal in meeting medical expenses for himself. Determine the taxable amount of the medical allowance.

  1. Rs. 10,000.
  2. Rs. 25,000.
  3. NIL
  4. Rs. 15,000.

Question 45

If a new issue was offered to the public at 15 times earnings but the market was pricing similar shares at 19 times, this would be_______.

  1. an example of low gearing
  2. a situation where the investor cannot take a position
  3. an appalling proposition to the investor
  4. a bargain not to be missed