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

Demo: 70 questions
Total 472 questions

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

Question 1

Goods and Services Tax (GST) was introduced in Singapore in ____________

Options:

A.

2002

B.

2012

C.

1992

D.

1994

Question 2

There are ____________ possible ways of Transferring Property.

Options:

A.

Three

B.

Four

C.

Five

D.

Six

Question 3

___________________ is not entitled to the intestate’s property.

Options:

A.

Full Brother

B.

Half Brother

C.

Uterine brother

D.

Both b and c

Question 4

Which of the following are the rights of the beneficiaries?

Options:

A.

(i) & (ii)

B.

(ii) & (iii)

C.

(i) & (iii)

D.

All of the above

Question 5

Which of the following statement(s) about Nil Rate Band is/are correct?

Options:

A.

Both (i) and (ii)

B.

Only (i)

C.

Only (ii)

D.

Neither (i) nor (ii)

Question 6

In US, GST exemption limit for 2013 is _______________ and the Estate and Gift tax for the same year is __________.

Options:

A.

$5,000,000 ; 35%

B.

$5,250,000 ; 40%

C.

Nil as Estate Tax is repealed; 35% for Gift tax only

D.

$5,250,000 ; 40% for Gift Tax only

Question 7

A trust not created by a will can be revoked only

Options:

A.

(i) & (ii)

B.

(ii) & (iii)

C.

(i) & (iii)

D.

All of the above

Question 8

Which of the following transaction /transactions is/are an example of the Layering Stage of Money Laundering?

Options:

A.

Only II

B.

II, III and IV

C.

I, II and III

D.

II and IV

Question 9

US citizens or permanent resident who has established a foreign tax home and has met certain qualifications can elect to exclude annual foreign earned income up to _________from taxable income in 2013.

Options:

A.

$95,000

B.

$97,600

C.

$98,000

D.

$98,600

Question 10

A _______________ is written in the Will-maker’s own handwriting.

Options:

A.

Mirror Will

B.

Holographic Will

C.

Nuncupative Will

D.

Simple Will

Question 11

Shri Ganjarwala Charitable Trust (Regd.) submits the particulars of its income/outgoing for the previous year 2009-2010 as below:

The trust spends Rs. 2,77,500 during the previous year 2009-2010 for charitable purposes. In respect of Rs. 5,20,000, it has exercised its option to spend it within the permissible time-limit in the year of receipt or in the year, immediately following the year of receipt.

The trust spends Rs. 2,00,000 during the previous year 2009-2010 and Rs. 1,00,000 during the previous year 2010-2011.

Compute the tax payable on the income of the trust.

Options:

A.

Rs.2,080

B.

Rs.2,160

C.

Rs.2,060

D.

Rs.2,200

Question 12

In UK, if the donor survives for _______ years after making the gift, it becomes exempt from Inheritance Taxes.

Options:

A.

Seven

B.

Five

C.

Seventeen

D.

Eighteen

Question 13

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

Options:

A.

All of the above

B.

Only (i)

C.

Only (ii)

D.

Only (iii)

Question 14

Mr. Shikar wants to invest his savings in an account that pays an interest rate of 9.25% p.a. compounded annually at different ages of his son whose current age is 4 years. Please calculate for him the Future Value of these investments when his son turns 18.

Options:

A.

Rs. 21,77,626

B.

Rs. 23,79,057

C.

Rs. 27,97,057

D.

Rs. 33,79,057

Question 15

In Singapore, the deadline for filing personal tax return is _________.

Options:

A.

31-Mar

B.

15-Apr

C.

31-Dec

D.

15-Sep

Question 16

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

Options:

A.

Both (i) and (ii)

B.

Neither (i) nor (ii)

C.

Only (i)

D.

Only (ii)

Question 17

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

Options:

A.

1972

B.

1982

C.

1962

D.

1952

Question 18

A father and his _________________ can also form an HUF.

Options:

A.

Married Daughters

B.

Unmarried Daughters

C.

Married Sons

D.

Unmarried Sons

Question 19

Which of the following incomes are not included for computation of taxable income of a Trust/ Society?

Options:

A.

All except (i)

B.

All except (iv)

C.

All except (ii)

D.

All of the above

Question 20

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

Options:

A.

Both (i) and (ii)

B.

Only (i)

C.

Only (ii)

D.

Neither (i) nor (ii)

Question 21

Which of the following trusts is considered invalid by the courts?

Options:

A.

Purpose Trust

B.

Spendthrift Trust

C.

Pour-Over Trust

D.

Unit Trust

Question 22

As per the Societies Registration Act, no society shall be dissolved unless ______________ of the members shall have expressed a wish for their votes delivered in person or by proxy, at a general meeting convened for the purpose.

Options:

A.

One-third

B.

Two-Thirds

C.

Two-fifths

D.

Three-Fifths

Question 23

________________ is a popular mode of transfer of property to God or Almighty, under the Mohammedean Law.

Options:

A.

SheBaitsor Trust

B.

Mutawali Trust

C.

Dedicated Trust

D.

Waqf

Question 24

A person purchased certain property in the name of his minor son and subsequently resold it while the son was minor. This sale is ___________________

Options:

A.

Not void, if the consent of the minor was taken.

B.

Is valid if the court permission was taken under Section 8 of the Hindu Minority and Guardianship Act,1956

C.

Is valid if the court permission was taken under Section 18 of the Hindu Minority and Guardianship Act,1956

D.

Not void, as the Person who is selling is the caretaker of the property.

Question 25

______________ of Income Tax Act,1961 provides for the Registration of a Charitable Trust.

Options:

A.

Section 12A

B.

Section 13A

C.

Section 64A

D.

Section 65A

Question 26

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.

Options:

A.

Section 25

B.

Section 2

C.

Section 5

D.

Section 15

Question 27

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

Options:

A.

Only (i)

B.

Only (ii)

C.

Neither (i) or (ii)

D.

Both (i) and (ii)

Question 28

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

Options:

A.

InterVivos Trust

B.

Express Trust

C.

Either of the above

D.

None of the above

Question 29

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

Options:

A.

All of the above

B.

Only (iv)

C.

Both (ii) and (iv)

D.

None of the above

Question 30

Under _______________ of the Transfer of Property Act, a transfer of property can legally be made for the benefit of an unborn person.

Options:

A.

Section 5

B.

Section 8

C.

Section 13

D.

None of the above

Question 31

To be qualified as a Simple Trust which of the following conditions has to be met?

Options:

A.

All of the above

B.

All except (i)

C.

All except (ii)

D.

All except (iii)

Question 32

For Registration of Charitable Trust an application should be submitted with Covering Letter, Court Stamp of ___________ and Certified True Copy of Trust Deed. The application should be made within _________ of creation of Trust. The application should be in Form as specified in _____________ under ____________ and duly notarized.

Options:

A.

Rs.1, 1 month, Schedule I, Rule 1

B.

Rs.10, 1 month, Schedule II, Rule 1

C.

Rs.2, 3 months, Schedule II, Rule 6

D.

Rs.100, 3 months, Schedule I, Rule 2

Question 33

According to ________________ of the Indian Trusts Act, a Trust may be created for any lawful purpose.

Options:

A.

Section 4

B.

Section 3

C.

Section 2

D.

Section 1

Question 34

Under provisions of _________________ it is provided that the profits and gains of business of a private trust is chargeable to income tax at the maximum marginal rate with effect from Assessment Year 1985-1986.

Options:

A.

Section 161 (4A)

B.

Section 164 (4A)

C.

Section 161 (1A)

D.

Section 164 (1A)

Question 35

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

Options:

A.

Neither (i) or (ii)

B.

Only (i)

C.

Only (ii)

D.

Both (i) and (ii)

Question 36

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

Options:

A.

Both (i) and (ii)

B.

Neither (i) or (ii)

C.

Only (i)

D.

Only (ii)

Question 37

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

Options:

A.

Only (i)

B.

Only (ii)

C.

Both (i) and (ii)

D.

Neither (i) nor (ii)

Question 38

Who needs an Estate Plan?

Options:

A.

Everyone

B.

HNI

C.

Terminally ill

D.

Elderly

Question 39

What is the ultimate goal of Estate Planning?

Options:

A.

To reduce estate taxes to minimum

B.

To fulfill the estate owner’s wishes as closely as possible

C.

Increase the value of client’s assets

D.

Conserve the existing assets of client

Question 40

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

Options:

A.

Both (i) and (ii)

B.

Neither (i) nor (ii)

C.

Only (i)

D.

Only (ii)

Question 41

Which of the following events does not require a Estate Planner to revise his plan?

Options:

A.

Divorce

B.

Donation of Asset

C.

Birth of grandchildren

D.

None of the above

Question 42

While preparing a Will, the person who is making the Will must declare ________ that he is making the Will in his full senses and free from any kind of pressure. Once the testator completes writing the Will, he must the sign the Will very carefully in presence of at least __________independent witnesses.

Options:

A.

At the end, Two

B.

In the Beginning, Two

C.

At the end, One

D.

In the Beginning, One

Question 43

A will can be made by anyone above _____ years of age in India.

Options:

A.

15

B.

16

C.

18

D.

21

Question 44

You are an Estate Planner. Mr. Arun Mittal, a HNI client asks you to explain him the number of ways to dispose of his wealth. You explain to him about the three ways of disposing wealth. He further asks you to give ranking to the methods-from most preferred to least preferred. You tell Mr. Arun that the correct order is _________________.

Options:

A.

Consumption, Inheritance, Philanthropy

B.

Inheritance, Consumption, Philanthropy

C.

Philanthropy, Inheritance, Consumption

D.

None as he can dispose his wealth in any order.

Question 45

__________ is an influential person who knows you favorably and agrees to introduce or recommend you to others.

Options:

A.

Centre of Influence

B.

Attorney

C.

Commercial Bank Officer

D.

Property Agent

Question 46

________ plan involves only Business assets.

Options:

A.

Financial

B.

Succession

C.

Estate

D.

Contingency

Question 47

Incase of Policies issued by the LIC, _______________ days of grace are allowed for monthly premiums.

Options:

A.

7 days

B.

10 days

C.

15 days

D.

20 days

Question 48

In case one wants to sell his/her business interest __________ and __________ are not appropriate.

Options:

A.

Lifetime Gifts, Bequest

B.

Lifetime Sale, Bequest

C.

Estate Sale, Buy-Sell Agreement

D.

Buy Sell Agreement, Bequest

Question 49

There are__________ methods of Business valuation.Out of these methods,___________ method applies discount rate to determine the valuation of the business.

Options:

A.

Two, Discounted Cash Flow

B.

Three, Discounted Cash Flow

C.

Two, Income method

D.

Three, Income method

Question 50

Which of the following statement(s) about ‘Whole Life Insurance’ is/are correct?

Options:

A.

Both (i) and (ii)

B.

Only(i)

C.

Only (ii)

D.

Neither (i) nor (ii)

Question 51

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

Options:

A.

Both (i) and (ii)

B.

Neither (i) nor (ii)

C.

Only (i)

D.

Only (ii)

Question 52

Which of the following statement is true?

Exhibit:

Options:

A.

Only (i)

B.

Only (ii)

C.

Both (i) and (ii)

D.

Neither (i) nor (ii)

Question 53

Estate planning as a process includes?

Options:

A.

Accumulation of an estate

B.

Conservation of an estate

C.

Distribution of an estate

D.

All of the above

Question 54

You have just started your Estate Planning firm. Your friend who is into Estate Planning since 5 years explains you that an Ideal Estate Planning Prospect is one who is aged ___ or over and are _______________.

Options:

A.

30, Married with Children

B.

30, Married with no children

C.

35, Married with Children

D.

35, Married with no Children

Question 55

Saptarshi acquired shares of G Ltd. on 15.12.98 for Rs. 5 lacs which were sold on 14.6.11 for Rs. 19 lacs.

Expenses on transfer of shares Rs. 40,000. He invests 8 lacs in the bonds of Rural Electrification. Corporation Ltd. on 16.10.2011. Compute capital gain for the assessment year 2012-13.

Options:

A.

Rs 7,41,766

B.

Nil

C.

Rs 11,18,234

D.

Rs 12,45,745

Question 56

In_________ type of arrangement, the mortgagor binds himself to repay the mortgage money on a certain date.

Options:

A.

Simple Mortgage

B.

English Mortgage

C.

Usufructuary Mortgage

D.

Balloon Mortgage

Question 57

In case of non-resident, who is carrying on shipping business, his Indian income shall be presumed to be:

Options:

A.

5% of certain amount received

B.

7.5% of certain amount received

C.

10% of certain amount received

D.

8.5% of certain amount received

Question 58

Which of the following statement(s) about Hindu Adoption and Maintenance Act, 1956 is/are correct?

Options:

A.

Only (i)

B.

Only (ii)

C.

Both (i) and (ii)

D.

Neither (i) nor (ii)

Question 59

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).

Options:

A.

Rs.17,01,639

B.

Rs.18,46,975

C.

Rs.17,68,683

D.

Rs.16,29,508

Question 60

Deduction under section 80QQB is allowed in respect of royalty income to:

Options:

A.

an individual who is an author of a book

B.

an individual who is resident in India and who is an author of a book

C.

an individual who is resident in India and who is either an author of a book or a joint author of the book

D.

None of these

Question 61

In case of self occupied property, higher deduction u/s24(b) for interest on loan for construction can be claimed if borrowing was made

Options:

A.

After 1/4/99

B.

on or after 1/4/99

C.

Before 1/4/99

D.

On or after 1/9/2004

Question 62

As per Muslim Law, if the husband is missing for _________ the wife may file a petition for the dissolution of her marriage. __________ of Dissolution of Muslim Marriages Act provides that that where a wife files petition for divorce under this ground, she is required to give the names and addresses of all persons who would have been the legal heirs of the husband on his death.

Options:

A.

7 years, Section 3

B.

7 years, Section 5

C.

4 years, Section 3

D.

4 years, Section 5

Question 63

If the adoption is by a male and the person to be adopted is a female, the adoptive father should be at least _______________ older than the person to be adopted. In case, the adoption is by female and the person to be adopted is a male, the adoptive mother should be at least_________ older than the person to be adopted.

Options:

A.

21 years, 21 years

B.

18 years, 18 years

C.

21 years, 18 years

D.

18 years, 21 years

Question 64

For claiming exemption u/s 54G, the assessed shall acquire the new asset within:

Options:

A.

2 years from the date of transfer

B.

3 years from the date of transfer

C.

one year before or 2 years after the date of transfer

D.

one year before or 3 years from the date of transfer

Question 65

In context of Hindu Adoptions and Maintenance Act,1956 if a person has more than one wife living at the time of adoption

Options:

A.

The person cannot make the adoption

B.

The consent of only the first wife is necessary

C.

The consent of only the last wife is necessary

D.

The consent of all the wives is necessary unless the consent of any of them is unnecessary

Question 66

Compulsory maintenance of account is required u/s 44AA of IT, if the gross receipt/ total sales exceed _______

Options:

A.

Rs. 5,00,000

B.

Rs 10,00,000

C.

Rs 15,00,000

D.

Rs 40,00,000

Question 67

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

Options:

A.

Only (i)

B.

Only (ii)

C.

Neither (i) nor (ii)

D.

Both (i) and (ii)

Question 68

Which of the following statement(s) about Employee Provident fund is/are correct?

Options:

A.

Only (i) and (iii)

B.

Only (ii) and (iv)

C.

None of the above

D.

All of the above

Question 69

____________ means excess, increase or addition according to Sharia’ah Terminology. Bahrain has over _________ financial institutions with a wide range of activities including Islamic Insurance.

Options:

A.

Riba, 30

B.

Riba,39

C.

Ijarah,30

D.

Ijarah,39

Question 70

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

Options:

A.

fully allowable as a business expenditure

B.

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

C.

allowable to the extent of 50%;

D.

none of the above

Demo: 70 questions
Total 472 questions