Free AAFM CTEP Exam Questions

Become AAFM Certified with updated CTEP exam questions and correct answers

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Total 475 Questions | Updated On: Dec 17, 2025

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Question 1

As per Section 164(1) a trust for the benefit of an unborn person is liable to income tax at maximum rate of Income Tax, currently_________.

A : 30%

B : 40%

C : 50%

D : pends on the value of Trust

Answer: A

Question 2

Deduction u/s 80-IC regarding special provisions for enterprices in special catogries states is allowed to the extent of

A : 100% of profits and gains for ten assessment years

B : 100% of profits and gains for ten assessment years in case of any undertaking or enterprise in the States of Sikkim or North Eastern Region and 50% in case of undertaking in Uttaranchal and Himachal Pradesh

C : 100% of profits and gains for ten assessment years in case of any undertaking or enterprise in the States of Sikkim or North Eastern States and 100% of profits and gains for the first 5 assessment years and 25% (30% in case of companies) for next 5 assessment years.

D : ne of the these

Answer: C

Question 3

Which of the following is/are the neccessary contents of a will?

A : II and III

B : III and IV

C : I, II and IV

D : l of these

Answer: B

Question 4

The defined period for fraudulent transfers under the Bankruptcy Code was formerly ____________prior to the debtor’s filing for bankruptcy. This period was ____________ by the Bankruptcy Abuse Prevention and Consumer Protection Act of ___________.Transfers to self-settled trusts may be recaptured if made within _________ of the debtor’s filing for bankruptcy if the transfer in trust was made with the intent to hinder, delay or defraud present or future creditors.

A : year ; Extended to two years; 2005; 10 years

B : o years; Reduced by one year; 2005; 10 years

C : year; Extended to two years; 2008; 15 years

D : o years; Reduced by one year; 2008; 15 years

Answer: A

Question 5

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

A : th (i) and (ii)

B : ly (i)

C : ly (ii)

D : ither (i) nor (ii)

Answer: A

Page: 1 / 95

Total 475 Questions | Updated On: Dec 17, 2025

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