CAIIB 2020 Retail Banking Mock Tests Set 5

[Old Regime] In respect of Loan taken for Purchase/Construction of a Residential Unit, the borrower can avail benefit of


Options are :

  • payment of interest.
  • repayment of principal.
  • Both A and B
  • Either A or B

Answer :Both A and B

CAIIB 2020 Retail Banking Mock Tests Set 6

Under Old Regime, Tax deduction on payment  of home loan interest is given under -


Options are :

  • Section 24
  • Section 80C
  • Section 80EE
  • Section 16A

Answer :Section 24

Tax deduction on principal repayment of housing loan is given under -


Options are :

  • Section 24
  • Section 80C
  • Section 80EE
  • Section 16A

Answer :Section 80C

Tax deduction for first time home buyer is given under -


Options are :

  • Section 24
  • Section 80C
  • Section 80EE
  • Section 16A

Answer :Section 80EE

CAIIB 2020 Bank Financial Management Mock Tests Set 1

Under Old regime, Interest on housing loan can be claimed as a deduction from income from property, salary, business/profession, capital gains, or any other source upto a maximum of _______ under section 24(b) of the Income-tax Act, 1961 every year.


Options are :

  • ?50,000
  • ?1,00,000
  • ?1,50,000
  • ?2,00,000

Answer :?2,00,000

Under the new income tax regime proposed in Budget 2020, the interest paid on housing loan is not available for deduction for -


Options are :

  • self-occupied houses.
  • rented houses
  • Both A and B
  • Either A or B

Answer :self-occupied houses.

Mr. Tambe , owns two properties both have on-going home loans. One house is used by Mr. Tambe for own living purpose and another house is given on rent. In such a scenario, which of the following statement is true under New Tax Regime?


Options are :

  • The house in which Mr. Tambe is living will not be eligible for deduction in the new tax regime.
  • He can claim deduction on the housing loan interest paid and standard deduction from rental income from the second house.
  • Both A and B
  • None of the above

Answer :Both A and B

CAIIB 2020 Bank Financial Management Mock Tests Set 10

Under Old Tax Regime, Interest on housing loan can be claimed as a deduction from income from property, salary, business/profession, capital gains, or any other source upto a maximum of ? 2,00,000 subject to which of the following conditions?

I) Loan has been taken on or after 1st April 1999.

II) Loan is for purchase or construction of a residential property or as re-finance (takeover) of the principal amount outstanding under a loan taken earlier for purchase or construction of a residential property. 

III) The lender issues a certificate at the end of the financial year mentioning therein the interest and principal paid during the year in respect of that loan.

IV) Interest payment of home loan taken for a self-occupied property.


Options are :

  • Only II,III
  • Only III,IV
  • Only I,II,III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

Under Old Tax Regime, In case the property for which the home loan has been taken is not self-occupied, i.e., Rented or deemed to be rented, __________ limit for tax deduction has been prescribed and the taxpayer can take the deduction of the whole interest amount under section 24.


Options are :

  • ?50,000
  • ?1,00,000
  • ?1,50,000
  • No maximum limit

Answer :No maximum limit

The tax benefit under section 24 is reduced from ? 2 lakh to _______ , if the property is not acquired or construction is not completed within 5 years from the end of Financial Year in which the loan was taken.


Options are :

  • ?10,000
  • ?20,000
  • ?30,000
  • ?40,000

Answer :?30,000

CAIIB 2020 Bank Financial Management Mock Tests Set 11

Raghav lives in a rented house in Noida since his own office, sons school and his wifes office are in Noida, He has his own house on the outskirts of Delhi which is quite small and also lying vacant. He is paying interest on the loan on his own house. [Solve under Old Tax Regime] Raghav can claim -


Options are :

  • HRA for rent he pays for the house in Noida
  • Deduction on interest up to ? 2,00,000 on the home loan.
  • Both A and B
  • Either A or B

Answer :Both A and B

Neha recently bought a flat in Indore, though she lives and works in Bangalore. She has no plans of returning to Indore in the next five years so she gives that flat on rent. She lives on rent in Bangalore. Neha can claim -


Options are :

  • HRA for the rent she pays for the house in Bangalore
  • Claim the entire interest she pays during the year on the home loan
  • Both A and B
  • Either A or B

Answer :Both A and B

Maximum tax benefit on Home Loan Principal Repayment under section 80C is _ [Under Old Tax Regime]


Options are :

  • ?50,000
  • ?1,00,000
  • ?1,50,000
  • No maximum limit

Answer :?1,50,000

CAIIB 2020 Bank Financial Management Mock Tests Set 12

Which of the following conditions must be satisfied to claim deduction under section 80C for principal repayment of home loan [Under Old Tax Regime]

I) Only if the construction of property is complete and have received a completion certificate for the same.

II) No deduction would be allowed under his section for repayment of principal for those years during which the property was under construction.

III) Deduction is also available whether the property is self-occupied or let out.

IV) The benefit can also be claimed for more than 1 house property.


Options are :

  • Only II,III
  • Only III,IV
  • Only I,II,III
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

If a house property for which tax benefit was availed under section 80C, is sold within a period of 5 years from the end of the financial year in which the property has been received in possession, then-


Options are :

  • Tax benefit under 80C will not be eligible for claim in that financial year.
  • The total amount of tax deduction already claimed in respect of earlier years shall be deemed to be income of such year in which the property has been sold and will be liable to pay tax on that income.
  • Both A and B
  • Neither A nor B

Answer :Both A and B

Under Old Tax Regime, Tax benefit under Section 80EE is given to -


Options are :

  • First Time Home Buyers.
  • first and second time home buyers
  • Joint home buyers
  • None of the above.

Answer :First Time Home Buyers.

CAIIB 2020 Bank Financial Management Mock Tests Set 13

Under Old Tax Regime, Just like deduction under section 24, the deduction under section _____ is also available on the interest paid on the home loan by taxpayer or assesse.


Options are :

  • 80C
  • 80EE
  • 80D
  • None of the above.

Answer :80EE

Under Old Tax Regime, The quantum of deduction under section 80EE is _____ for interest paid on the home loan.


Options are :

  • ?50,000
  • ?1,00,000
  • ?1,50,000
  • No maximum limit

Answer :?50,000

Under old Tax Regime, Conditions Necessary for Claiming Deduction under Section 80EE are

I) The deduction can be availed on home loans sanctioned only between 1st April to 31st March in the financial year.

II) The value of property for which the loan has been taken should be less than ?. 50 lakh.

III) The home loan amount should not exceed ?. 35 lakh.

IV) The tax benefit here can be claimed till the time repayment of loan continues.


Options are :

  • Only II,III,IV
  • Only III
  • Only I,II
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

CAIIB 2020 Bank Financial Management Mock Tests Set 14

Eligibility for Claiming Section 80EE Deductions is/are -


Options are :

  • The deductions under this section can be claimed only by individual taxpayers on properties purchased either singly or jointly.
  • Section 80EE is applicable on a per person basis instead of a per property basis. So, suppose you have purchased property jointly with your spouse and you both are paying the installments of loan then you both can individually claim this deduction.
  • It is not necessary to reside in the property for which you want to claim this deduction. So, borrowers staying in a rented accommodation can also claim this deduction.
  • All of the above

Answer :All of the above

_____is the reasonable expected rent which the property can fetch. It can be determined on the basis of rent fetched by a similar property in the same or similar locality.


Options are :

  • Fair Rent
  • Standard Rent
  • Municipal Value
  • All of the above.

Answer :Fair Rent

_______ is the maximum rent which a person can legally recover from his tenant under the Rent Control Act. It is applicable only in case of properties covered under Rent Control Act.


Options are :

  • Fair Rent
  • Standard Rent
  • Municipal Value
  • All of the above.

Answer :Standard Rent

CAIIB 2020 Bank Financial Management Mock Tests Set 2

Which of the following statement is corrct w.r.t Home loans in Joint Names?[Under Old Tax Regime]


Options are :

  • The very first condition is the house property has to be bought by the individuals jointly and this should be in their joint names.
  • The share of each holder should be clearly mentioned so that there is absolute clarity on the percentage ownership of each co-owner.
  • Benefit, if available, under 80EE can also be claimed individually.
  • All of the above

Answer :All of the above

An Individual took a Loan of ?. 25 Lakh for purchasing a flat for self-occupation on 30/03/2018 & paid ?. 2,20,000 towards Interest during F.Y. 2019-20. The maximum amount of Interest which he can claim as a deduction would be ______.


Options are :

  • ?. 1,50,000
  • ?. 1,20,000
  • ?. 2,00,000
  • ?. 30,000

Answer :?. 2,00,000

Husband & Wife jointly raise a loan in April 2014 for constructing a house for self-occupation. The construction was completed in July 2015. They have been paying the housing loan instalments on 50:50 basis from their respective Incomes. During F.Y.2016-17 they paid Interest of ?. 4,25,000. The maximum interest which each of them can claim as deduction is __________________.


Options are :

  • ?. 1,00,000
  • ?. 2,00,000
  • ?. 1,50,000
  • ?. 1,75,000

Answer :?. 2,00,000

CAIIB 2020 Bank Financial Management Mock Tests Set 3

An individual took a loan of ?. 10 Lakh for purchasing a plot of land during F.Y. 2010-11 and has paid around ?. 1,10,000 towards Interest and around ?. 57,000 towards principal during F.Y. 2016-17. He has not made any other contribution under Section 80C, 80CCC, or 80CCD. He will be able to claim deduction of ______.


Options are :

  • ?. 1,50,000
  • ?. 57,000
  • ?. 2,07,000
  • ?. 0 (NIL)

Answer :?. 0 (NIL)

A __________ is a variable interest rate which can change over the duration of the loan / credit facility. The applicable interest rate on the loan moves up and down with the market rates or along an index.


Options are :

  • Moving Interest Rate
  • Floating Interest Rate
  • MCLR Interest Rate
  • Free Flowing Interest Rate

Answer :Floating Interest Rate

What would a retail customer require to know if one opts for a floating interest rate on loans?

I)The Base / Reference rate of the bank to which the floating rate of interest is linked;

II)Whether the spread / margin can change during the tenure of the loan;

III)Whether the agreement specifies a 'minimum interest rate' clause. 

IV) Conditions for OTS if account becomes NPA.


Options are :

  • Only I,II
  • Only I,II,III
  • Only I,IV
  • All of the above viz. I,II,III,IV

Answer :Only I,II,III

CAIIB 2020 Bank Financial Management Mock Tests Set 4

An _________clause allows a bank to review and reset rates at the end of a specified period of time based on interest rates prevailing at that time.


Options are :

  • interest rate re-set
  • interest review
  • interest modification
  • floating interest

Answer :interest rate re-set

With respect to loan documentation , MITC stands for -


Options are :

  • Most Important Transactional Clauses
  • Most Important Terms and Conditions.
  • Modified Interest terms and Conditions.
  • Modified Interest Transactional Clauses.

Answer :Most Important Terms and Conditions.

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