MCQs (BCOM 604)
BCOM 604
INCOME TAX
MCQs [SET 1]
Note: The BOLD HIGHLIGHTED options are the correct answers.
MCQs [SET 1]
Note: The BOLD HIGHLIGHTED options are the correct answers.
Q. 1:
The Income
from House Property is taxable in the hands of the individual even if property
is not registered in his name ______________.
(a) When the property has been transferred to spouse for
inadequate consideration
(b) Where the property is transferred to a minor child
for inadequate consideration
(c) Where the individual holds on importable estate
(d) All of the above
Q. 2:
Under the Head
Income from House Property, the basis of charge is the ______________ of property.
(a) Annual value
(b) Quarterly value
(c) Half-quarterly value
(d) None of the above
Q. 3:
The following
conditions must be satisfied to charge the rental income under the head Income of
House Property:
(a) The property should consist of any buildings or lands
(b) The asssessee should be one of the property
(c) The property should not be used by the owner for the
purpose of business or professional purpose
(d) All of the above
Q. 4:
Mr. Ram owns a
house property. He lent it to Laxman at Rs. 10,000 p.m. Laxman sublet it to
Mr. Maruti on monthly rent of Rs. 20,000 p.m. Rental
income of Ram is taxable under the head
______________.
(a) Income from Salary
(b) Income from Other Sources
(c) Income from House Property
(d) Income from Business
Q. 5:
Mr. Ram owns a
house property. He lent it to Laxman at Rs. 10,000 p.m. Laxman sublet it to Mr.
Maruti on monthly rent of Rs. 20,000 p.m. Rental income of Laxman is taxable
under the head ______________.
(a) Income from Salary
(b) Income from Other Sources
(c) Income from House Property
(d) Income from Business
Q. 6:
An individual
who transfers house property without an adequate consideration to his owner spouse
or to minor child is called as ______________.
(a) Co-owner
(b) Deemed Owner
(c) Owner Himself
(d) None of the above
Q. 7:
An individual
is considered as a owner of the house property for the purpose of charging tax to
______________.
(a) A member of cooperative society, company or AOP to
whom a building or a part thereof is allotted or leased under a house building
scheme of the society.
(b) An individual who transfers house property without an
adequate consideration to his owner spouse or to minor child
(c) The holder of importable estate
(d) All of the
above
Q. 8:
The rental
income of person who is resident of Ladakh is ______________ taxable under Income
from House Property.
(a) Fully taxable
(b) Not taxable
(c) Partially taxable
(d) None of the above
Q. 9:
If the
individual using the property for the business or professional purpose the
income taxable under the _____________ head.
(a) Income from House property
(b) Income from HUF
(c) Income from Other
(d) Income from Business or Proprietorship
Q. 10:
If the
assesses let out the building or staff quarters to the employee of business,
the rent collected from such employees is assessable as income from
______________.
(a) Business
(b) House Property
(c) Other Sources
(d) None of the above
Q. 11:
The Gross
annual value of the property is depends upon the ______________.
(a) Standard rent
(b) Municipal Valuation
(c) Fair rent
(d) All of the above
Q. 12:
If Anil is
entitled to basic salary of Rs. 50,000 p.m. and dearness allowance of Rs.
10,000 p.m., 40% of which forms part of retirement benefits. He is also
entitled to HRA of Rs. 20,000 p.m. He actually lives with his parents in Mumbai
and does not pay any rent. Market rent of that house is Rs. 20,000 p.m. in
Mumbai, then calculate the exempt HRA for Mr. Anil.
(a) Nil
(b) Rs. 64,800
(c) Rs. 2,40,000
(d) Rs. 1,75,200
Q. 13:
Calculate the
Gross Annual Value from the following details:
Municipal Value Rs. 45,000
Fair rental value Rs. 50,000
Standard Rent Rs. 48,000
Actual Rent Rs. 42,000
(a) Rs. 50,000
(b) Rs. 48,000
(c) Rs. 45,000
(d) Rs. 42,000
Q. 14:
Which of the
following is not a case of deemed ownership of house property?
(a) Transfer to a spouse for inadequate consideration
(b) Transfer to a minor child for inadequate
consideration
(c) Holder of an importable estate
(d) Co-owner of a property
Q. 15:
Interest on
capital borrowed for acquisition or construction of property is deductible
subject to limit of _______________ per year, if capital is borrowed on or
after 1-04-1999. This is allowable if acquisition or construction is completed
within 3 years from end of financial year in which loan was taken.
(a) Rs. 1,50,000
(b) Rs. 2,00,000
(c) Rs. 1,80,000
(d) Rs. 2,50,000
Q. 16:
For a
self-occupied house property occupied on 1.7.2016, for which housing loan was
availed, if the interest up to 31.3.2016 is Rs. 90,000 and thereafter the
interest payable is Rs. 3,000 p.m., the deduction available under section 24 in
respect of interest for the year ended 31.3.2017 is _______________.
(a) Rs. 50,000
(b) Rs. 45,000
(c) Rs. 54,000
(d) None of the above
Q. 17:
If an assesses
earns rent from a sub-tenant in respect to tenanted property let out as a residence,
the said rent is _______________.
(a) Exempted under Section 10
(b) Taxable under the head income from house property
(c) Taxable as business income, as the letting out is a
commercial activity
(d) Taxable as income from other sources
Q. 18:
An assesses,
after sale of house property, receiving arrears of rent (is/is not) chargeable
to tax; the same computed in the stipulated manner, is chargeable to tax as
_______________..
(a) Income from House Property
(b) Income from Other Sources
(c) Either (a) or (b)
(d) Neither (a) nor (b)
Q. 19:
Arrear rent is
taxable after deducting _______________ as per Section 25B of the Income Tax
Act, 1961.
(a) 30%
(b) 35%
(c) 10%
(d) 20%
Q. 20:
Monish took a
loan of Rs. 6,00,000 on 1.4.2014 from a bank for construction of a house. The loan
carries an interest @ 10% p.a. The construction is completed on 15.6.2016. The
entire loan is still outstanding. Compute the interest allowable for the
assessment year 2016-17.
(a) Rs. 60,000
(b) Rs. 1,80,000
(c) Rs. 84,000
(d) Rs. 24,000
Q. 21:
The value of
interest-free concessional loans to employees is determined on the basis of lending
rates of _______________ for the same purpose.
(a) SBI
(b) RBI
(c) Central Government
(d) State Government
Q. 22:
Value of
rent-free accommodation in case of Government employee shall be taxable up to
_______________.
(a) 15% of employee’s salary
(b) 8% of employee’s salary
(c) License fee fixed by Government
(d) 10% of employee’s salary
Q. 23:
Value of
rent-free accommodation or a house owned by employer in case of non-government employees
with above 25 lakh population is _______________.
(a) 15% of employee salary
(b) 7.5% of employee salary
(c) 20% of employee salary
(d) 10% of employee salary
Q. 24:
Deduction for
other expenses except interest in the computation of income from house property
is allowable to the extent of _______________.
(a) 25% of annual value
(b) 10% of annual value
(c) 30% of annual
value
(d) 20% of annual
value
Q. 25:
Rate of
depreciation on residential building is _______________.
(a) 10%
(b) 20%
(c) 25%
(d) 5%
Q. 26:
House property
held for less than 36 months is _______________.
(a) Short-term capital asset
(b) Projected capital asset
(c) Exempted capital asset
(d) Long-term capital asset
Q. 27:
Mr. Shushant
is the owner of a house, the details of which are given below the gross annual value
would be _______________.
Municipal value Rs. 36,000
Actual rent Rs. 32,000
Fair Rent Rs. 36,000
Standard Rent Rs. 40,000
(a) Rs. 36,000
(b) Rs. 35,000
(c) Rs. 30,000
(d) Rs. 40,000
Q. 28:
Sunil
purchased a house for his residential purpose after taking a loan in January,
2016.
During the previous year 2016-17, he paid interest on
loan Rs. 1,67,000. While computing income from house property, the deduction is
allowable to the extent of _______________.
(a) Rs. 30,000
(b) Rs. 1,00,000
(c) Rs. 1,67,000
(d) Rs. 1,50,000
Q. 29:
Expected rent
shall be higher of ______________.
(a) Municipal value and standard rent
(b) Fair rent and actual rent received
(c) Standard rent and fair rent
(d) Municipal value and fair rent
Q. 30:
Municipal
Value Rs. 14,000, Fair rent Rs. 14,500, Standard Rent Rs. 14,200, Actual rent
as property let out throughout the previous year Rs. 16,800 and Unrealized rent
of the previous year Rs. 7,000. The annual value of the house property shall be
______________.
(a) Rs. 9,800
(b) Rs. 14,200
(c) Rs. 7,200
(d) Rs. 7,500
Q. 31:
Interest on
capital, borrowed on 10.10.2000, for self-occupied property is deductible up to
a maximum amount of ______________.
(a) Rs. 50,000
(b) Rs. 1,50,000
(c) Rs. 5,000
(d) None of the above
Q. 32:
Deduction from
annual value is allowed under ______________.
(a) Section 24
(b) Section 25
(c) Section 27
(d) Section 28
Q. 33:
______________
standard deduction from annual value is allowed.
(a) 10%
(b) 20%
(c) 30%
(d) 15%
Q. 34:
Interest on
loan for self-occupied house taken before 1st April, 1999 will be allowed up to
______________.
(a) Rs. 30,000
(b) Rs. 1,50,000
(c) Rs. 10,000
(d) Rs. 50,000
Q. 35:
Deduction
allowed from annual value is ______________.
(a) Interest on loan for constitution
(b) Interest on loan for repair
(c) Statutory deduction
(d) All of the above
Q. 36:
An individual
assesses can show maximum loss of ______________ from a self-occupied residential
house property.
(a) Rs. 1,50,000
(b) Rs. 30,000
(c) Rs. 20,000
(d) Rs. 5,00,000
Q. 37:
The Annual
Value has been defined under ______________ of Income Tax Act, 1961.
(a) Section 20
(b) Section 22
(c) Section 23(1)
(d) Section 23
Q. 38:
Mr. Rupesh
owns a house property. Municipal value Rs. 1,50,000, Fair Rent Rs. 1,25,000 and
Standard Rent Rs. 1,45,000. It is let out throughout the
previous year for Rs. 10,000 p.m. up to
December 31, 2015 and Rs. 1,45,000 p.m. thereafter. Find
out the Gross Annual Value for the
Assessment Year 2016-17.
(a) Rs. 1,45,000
(b) Rs. 1,25,000
(c) Rs. 1,50,000
(d) Rs. 1,33,000
Q. 39:
When the
portion of the house is self-occupied for the full year and portion is
self-occupied for the whole year, the annual value of the house shall be
determined by ______________.
(a) The full annual value of the house the proportionate
annual value of self-occupied portion for
the whole year shall be deducted
(b) Its present standard value
(c) All of the above
(d) None of the above
Q. 40:
Mr. R owns a
house. The Municipal value of the house is Rs. 50,000. He paid Rs. 8,000 as
local taxes during the year. He uses this house for his residential purposes
but lets out half of the house @ Rs. 3,000 p.m. The annual value of the house
is ______________.
(a) Rs. 15,000
(b) Rs. 16,000
(c) Rs. 17,000
(d) Rs. 18,000
Q. 41:
If fair rent
is not gives, then assume ______________ as fair rent.
(a) Actual rent
(b) Standard rent
(c) Average rent
(d) None of the above
Q. 42:
Rent received
by original tenant from sub-tenant is taxable under the head _______________.
(a) Income from House Property
(b) Income from Other Sources
(c) Income from
Capital Gain
(d) None of the
above
Q. 43:
The net annual
value of house let out is Rs. 1,00,000 and actual amount spent by the assessee
on repairs and insurance premium is Rs. 20,000. The amount of deduction allowed
under Section 24(a) shall be _______________.
(a) Rs. 35,000
(b) Rs. 45,000
(c) Rs. 30,000
(d) Rs. 25,000
Q. 44:
Rent from
House Property let out by an assessee to his employees when such letting is incidental
to his main business will be chargeable to tax under head _______________.
(a) Profit and Gain from Business and Profession
(b) Income from Capital Gain
(c) Income from House Property
(d) All of the above
Q. 45:
When annual
value of one-self occupied house is nil, the assesses will be entitled to the standard
deduction of _______________.
(a) 10%
(b) 20%
(c) Nil
(d) None of the above
Q. 46:
Gross annual
value shall be higher of _______________.
(a) Expected rent
(b) Actual rent received or receivable
(c) All of the above
(d) None of the above
Q. 47:
Income from
property held under trust for charitable or religious purposes is
______________.
(a) Exempted from tax
(b) Taxable @ 10%
(c) Taxable @ 20%
(d) None of the above
Q. 48:
Mr. Anup owns
a house property. Municipal value Rs. 1,80,000, Fair Rent Rs. 1,35,000 and
Standard Rent Rs. 1,65,000. It is let out throughout the
previous year for Rs. 10,000 p.m. up to December 31, 2015 and Rs. 1,65,000 p.m.
thereafter. Find out the Gross Annual Value for the Assessment Year 2016-17.
(a) 1,80,000
(b) 1,65,000
(c) 1,55,500
(d) None of the above
Q. 49:
The assessee
lets on hire machinery, plant or furniture belonging to him and also building
and the letting of the buildings is inseparable from the letting of the said
machinery, plant and furniture, the income from such letting is chargeable to
tax under the head _______________.
(a) Income from Business
(b) Income from Capital Gain
(c) Income from Other Sources
(d) Profit and Gain from Business or Profession
Q. 50:
For
computation of Gross Annual Value, if actual rent is more than expected rent,
then we select the ______________.
(a) Actual rent
(b) Expected rent
(c) Any of the
above
(d) None of the
above
Q. 51:
Under the
Income Tax Act, 1961, depreciation on machinery is charged on _______________.
(a) Purchase price of the machinery
(b) Written down value of the machinery
(c) Market price of the machinery
(d) All of the above
Q. 52:
The
Depreciation allowance is charged of written down value on intangible assets at
the rate of _______________.
(a) 25%
(b) 15%
(c) 20%
(d) 30%
Q. 53:
Sunil
contributed Rs. 3,00,000 to an approved institution for research in social
science, which is not related to his business. The amount of deduction eligible
under section 35 would be
_______________.
(a) Rs. 37,500
(b) Rs. 30,000
(c) Rs. 45,000
(d) Rs. 30,500
Q. 54:
Income of a
business commenced on 1st Feb 2016 will be assessed during the assessment
year _______________.
(a) 2014-15
(b) 2015-16
(c) 2016-17
(d) 2015-17
Q. 55:
The amount of
additional depreciation in respect of new building constructed in financial
year 2015-16 at a cost of Rs. 25 lakh for manufacturing garments will be Rs.
_______________.
(a) Nil
(b) Rs. 10,000
(c) Rs. 15,000
(d) Rs. 50,000
Q. 56:
If an asset is
put to use for less than 180 days in the previous year, the depreciation is
charged at _______________ rate.
(a) 30%
(b) 50%
(c) 25%
(d) Nil
Q. 57:
Deduction for
bad debt is allowed to assessees carrying on business in the year in which the debt
is _______________ as bad.
(a) Accrual Basis
(b) Written Basis
(c) All of the above
(d) None of the above
Q. 58:
Under Section
44AB, specified date means _______________ of the assessment year.
(a) 31st March
(b) 1st April
(c) 30th September
(d) None of the above
Q. 59:
Income
chargeable under the head ‘Profits and Gains from Business or Profession’ is
covered under _______________.
(a) Section 23
(b) Section 28
(c) Section 25
(d) Section 24
Q. 60:
The income
charged under the head Business/Profession are _______________.
(a) The profit and gain of any business or profession
which was carried on by the assessee at any time during the previous year
(b) Export incentives available to the exporters under
any scheme of Government
(c) Any compensation or other payment due to or received
by any person specified by the
Section 28(ii)
(d) All of the above
Q. 61:
The
depreciation on the assets in case of new plant and machinery is
_______________.
(a) Depreciation sum equal to 20% of the actual cost of
new plant and machinery
(b) Depreciation sum equal to 50% of the actual cost of
new plant and machinery
(c) Depreciation sum equal to 30% of the actual cost of
new plant and machinery
(d) Depreciation sum equal to 10% of the actual cost of
new plant and machinery
Q. 62:
If the asset
is put to use for less than 180 days in the year in which it is acquired, the
rate of depreciation will be _______________.
(a) 20%
(b) 30%
(c) 25%
(d) 50%
Q. 63:
If the assets
falling within a block of assets is acquired during the previous year and it is
put to use for a period of less than 180 day, _______________.
(a) Depreciation should be restricted to 30%
(b) Depreciation should be restricted to 40%
(c) Depreciation should be restricted to 50%
(d) Depreciation should be restricted to 20%
Q. 64:
The
depreciation is allowable expenditure subject to _______________.
(a) The asset must be tangible asset
(b) The asset is used for the business purposes
(c) The assesses is the owner of the assets
(d) All of the above
Q. 65:
The revenue
expenditure on research incurred by the assesses himself is allowed for deduction
only if _______________.
(a) Research is related to business only
(b) Research is related to personal purpose
(c) Research is related the HUI
(d) None of the
above
Q. 66:
Profits of Rs.
2,00,000 are earned from a business in USA which is controlled in India. Half
of the profit is being received in India. How much amount is taxable in India
of a non-resident individual?
(a) Nil
(b) Rs. 2,00,000
(c) Rs. 1,00,000
(d) Rs. 3,00,000
Q. 67:
Which of the
following income is not chargeable as income of business or profession?
(a) Profits and gains of business carried by an assessee
during the previous year
(b) Income derived by a trade, professional or similar
association from specific services performed for its members
(c) Income from the activity of owning and maintaining
race horse
(d) Salary received by a partner of a firm from the firm
in which he is a partner.
Q. 68:
If any
expenditure is incurred by an Indian company wholly and exclusively for the
purpose of amalgamation or demerger, the said expenditure is _______________.
(a) Not allowable as a deduction in computing profits and
gains of business or profession
(b) Fully deductible as revenue expenditure in the year
in which it is incurred
(c) Not deductible but is eligible to be treated as a
intangible asset in respect of which depreciation can be claimed
(d) Allowed as a deduction over five successive previous
year in which amalgamation or demerger takes place
Q. 69:
The transfer
of old movable assets will be tax-free if it is used for _______________.
(a) 1 year
(b) 5 years
(c) 10 years
(d) 15 years
Q. 70:
The rate of
depression on machinery is allowed upto _______________.
(a) 10%
(b) 15%
(c) 2%
(d) 8%
Q. 71:
Section 45 of
Income Tax Act, 1961 is related to _______________.
(a) Capital assets
(b) Assets
(c) Capital expenses
(d) Capital gain
Q. 72:
Sections 28 to
44D of Income Tax Act, 1961 related to _______________.
(a) Income from House Property
(b) Profit and Loss from Business or Profession
(c) Income from Salary
(d) Income of HUF
Q. 73:
If any sum of
money, the aggregate value of which exceeds fifty thousand rupees, is received without
consideration, by an individual or a Hindu undivided family, in any previous
year from any person or persons on or after the 1st day of April, 2006 but
before 1st of October 2009, the whole sum is taxable under the head
_______________.
(a) Income from Other Sources
(b) Income from Business and Profession
(c) Income from Capital Gain
(d) None of the above
Q. 74:
If a money
gift is received from _______________, it is not taxable under any head.
(a) From any relatives
(b) On the occasion
of the marriage of the individual
(c) Under a will or by way of inheritance
(d) All of the above
Q. 75:
The provision
relating to clubbing of income where transfer of income is done without transferring
the assets is given under _______________.
(a) Section 60
(b) Section 62
(c) Section 61
(d) None of the above
Q. 76:
The income
from the asset would be taxable in the hands of the transferor if
_______________.
(a) The taxpayer owns an asset
(b) The ownership of asset is not transferred by him
(c) The income from the asset is transferred to any
person under a settlement or agreement
(d) All of the above
Q. 77:
The examples
of revocable transfers are _______________.
(a) If there is an express clause of revocation in the
instrument of transfer
(b) If there is a sale with a condition of repurchase
(c) If the trustees are empowered in sole discretion to
revoke the transfer
(d) All of the above
Q. 78:
The provision
for the set off and carry forward of losses in Income Tax Act, 1961 is given under
_______________.
(a) Sections 65-75
(b) Sections 70-80
(c) Sections 80-90
(d) Sections 75-80
Q. 79:
Mr. Rakesh has
two properties one occupied by him and the other let out. Mr. Rakesh pays interest
on loan of Rs. 1.40 lakh on the property occupied and derives net rental income
of Rs. 1.40 lakh from the let-out property. In this case, the income chargeable
under the head “House Property” will be _______________.
(a) Rs. 1,40,000
(b) Rs. 2,80,000
(c) Rs. 70,000
(d) Nil
Q. 80:
Loss from
speculation business cannot be set off against profit from any non-speculation business,
however _______________.
(a) Loss from non-speculative business can be set off
against speculation income
(b) Loss from non-speculative business cannot be set off
against speculation income
(c) Profit from non-speculative business can be set off
against speculation income
(d) None of the above
Q. 81:
Long-term
Capital Loss can only be set off against _______________.
(a) Long-term capital loss
(b) Short-term capital loss
(c) Long-term capital gain
(d) All of the above
Q. 82:
Mr. Anil has
only one property, which is occupied by him and the loss is Rs. 1.50 lakh. He derives
salary of Rs. 10 lakh during the year. Here, he can set off the loss of Rs.
1.50 lakh against his salary income by making appropriate declarations to his
employer thereby making his net taxable income _______________.
(a) Rs. 10 lakh
(b) Rs. 8.50 lakh
(c) Rs. 9 lakh
(d) None of the above
Q. 83:
The provision
for the set off loss from one head against income from another head is given under
_______________ of Income Tax Act, 1961.
(a) Section 70
(b) Section 72
(c) Section 71
(d) Section 73
Q. 84:
The carry
forward of losses is permissible if the return of income for the year in which
loss incurred is _______________.
(a) Filled on time
(b) Not filled on time
(c) Filed in advance
(d) None of the above
Q. 85:
All income
which arises to the minor child shall be clubbed in the income of his/her
_______________.
(a) Parents
(b) Siblings
(c) Friends
(d) Neighbours
Q. 86:
What are the
incomes are considered as an agricultural income?
(a) Any rent received from land which is used for
agricultural purpose
(b) Any income derived from such land by agricultural
operations
(c) Income attributable to farm house
(d) All of the above
Q. 87:
_______________
are not treated as a agricultural income.
(a) Income from poultry farming
(b) Income from bee heaving
(c) Purchase of standing crop
(d) All of the above
Q. 88:
The
agricultural income is fully exempt from tax from _______________.
(a) Finance Act, 1973
(b) Income Tax Act, 1961
(c) Agricultural Act, 1981
(d) None of the above
Q. 89:
If the coffee
is grown and cured, then the tax liability on the agricultural income is
_______________.
(a) 75% agricultural and 25% non-agricultural income
(b) 65% agricultural and 35% non-agricultural income
(c) 55% agricultural and 45% non-agricultural income
(d) 35%
agricultural and 65% non-agricultural income
Q. 90:
The coffee is
grown, cured and further processed, then the tax liability for the agricultural
income is _______________.
(a) 60% agricultural and 40% non-agricultural
(b) 50% agricultural and 50% non-agricultural
(c) 40% agricultural and 60% non-agricultural
(d) 65% agricultural and 35% non-agricultural
Q. 91:
If the
agricultural land is used for tea plantation, then the tax liability is
_______________.
(a) 65% agricultural and 35% non-agricultural
(b) 50% agricultural and 50% non-agricultural
(c) 70% agricultural and 30% non-agricultural
(d) 60% agricultural and 40% non-agricultural
Q. 92:
A income by
way of rent of agricultural land is _______________.
(a) Business income
(b) Agricultural Income
(c) Income from Other Sources
(d) Casual Income
Q. 93:
Salary
received by the manager of an agricultural farm is _______________.
(a) An agricultural income
(b) A business income
(c) A salary income
(d) A capital income
Q. 94:
Income from a
farm house is _______________.
(a) Agricultural Income
(b) Income from Other Sources
(c) Income from House Property
(d) Income from Business
Q. 95:
Income from
sale of rural agricultural land is _______________.
(a) Taxable capital gain
(b) Taxable income
(c) Exempted capital gain
(d) None of these
Q. 96:
Maximum limit
for the deduction of Life insurance premia from the gross total income is
_______________.
(a) Rs. 2,00,000
(b) Rs. 1,50,000
(c) Rs. 1,00,000
(d) Rs. 1,25,000
Q. 97:
The deduction
of life insurance premia, contribution to provident fund, etc. will is done
under _______________ of Income Tax Act, 1961.
(a) Section 80C
(b) Section 80U
(c) Section 80D
(d) Section 80E
Q. 98:
Gross Total
Income is arrived after _______________.
(a) Only adding Income under five heads of Income
(b) Adding Income under five heads of Income excluding
losses
(c) Adding Income under five heads of Income, after
applying clubbing provisions and making adjustment of set off and carry forward
of losses
(d) Adding Income under five heads of Income, after
applying clubbing provisions and making adjustment of set off and carry forward
of losses and after allowing deduction under sections 80C to 80U
Q. 99:
In Income Tax
Act, 1961, deduction under sections 80C to 80U cannot exceed _______________.
(a) Gross total income
(b) Total income
(c) Income from business or profession
(d) Income from house property
Q. 100:
The maximum
aggregate amount of deduction under sections 80C, 80CCC and 80CCD cannot exceed
_______________.
(a) Rs. 1,10,000
(b) Rs. 2,00,000
(c) Rs. 1,50,000
(d) Nil
Q. 101:
Deduction in
respect of contribution to political party will _______________.
(a) Be allowed in respect of sum paid by way of cash
(b) Not be allowed if payment made in cash
(c) This type of deduction is not allowed whether payment
is in cash or not
(d) Be allowed if payment made in cash, subject to
certain conditions
Q. 102:
Maximum amount
of deduction in case of a person with severe disability under section 80U will
be _______________.
(a) Rs. 50,000
(b) Rs. 75,000
(c) Rs. 80,000
(d) Rs. 1,00,000
Q. 103:
Government’s
contribution to the new pension scheme referred to in Section 80CCD is
_______________.
(a) An exempt income
(b) Income chargeable to tax as salaries in full
(c) 50% thereof is income chargeable to tax as Salaries
(d) Income chargeable to tax as income from other sources
in full
Q. 104:
In case of a
hospital built in specified area after 31.3.2008 fulfilling the required
conditions laid down in Section 80IB-(11C), the profits and gains derived from
running the hospital are
_______________.
(a) Deductible in full
(b) Deduction up to 50%
(c) Taxable in full
(d) Deductible up to 75%
Q. 105:
Deduction in
respect of contribution to pension scheme of central government comes under _______________
of Income Tax Act, 1961.
(a) Section 80CCD
(b) Section 80U
(c) Section 80EE
(d) Section 80G
Q. 106:
In case of
assessees other than companies, the following is advance tax rate to be payable
on or before of 15th September:
(a) 45%
(b) 30%
(c) 15%
(d) 10%
Q. 107:
Deduction
under Section 80C can be claimed for fixed deposit made in any scheduled bank,
if the minimum period of deposit is _______________.
(a) 10 Years
(b) 5 Years
(c) 12 Years
(d) 8 Years
Q. 108:
Which of the
following is covered under section 80D of the Income Tax Act, 1961?
(a) Medical treatment of handicapped dependent
(b) Medical insurance premium
(c) Reimbursement of medical expenses
(d) Repayment of loan taken for higher education
Q. 109:
The deduction
available under section 80QQB in respect of royalty income of authors shall not
exceed _______________ in previous year.
(a) Rs. 1,50,000
(b) Rs. 2,50,000
(c) Rs. 3,00,000
(d) Rs. 1,00,000
Q. 110:
Clubbing of
income means _______________.
(a) Addition income of two partners
(b) Inclusion of
income of other person in assessee income
(c) Total of income of various heads
(d) Collection of income
Q. 111:
Minors income
is clubbed to _______________ .
(a) Father’s income
(b) Mother’s income
(c) Father’s income or mother’s income whichever is
greater
(d) Both mother’s and father’s income
Q. 112:
The income of
minor is not clubbed to the following limit:
(a) Rs. 1,500
(b) Rs. 10,000
(c) Rs. 1,000
(d) Whole amount
Q. 113:
_______________
is a section related to clubbing of income
(a) Sections 60-63
(b) Sections 60-69
(c) Sections 60-64
(d) None of the above
Q. 114:
Deduction in
respect of medical insurance premium is allowed under _______________.
(a) Section 80C
(b) Section 80D
(c) Section 80DD
(d) Section 80U
Q. 115:
Maximum
deduction allowed for senior citizen under Section 80D is _______________.
(a) Rs. 5,000
(b) Rs. 15,000
(c) Rs. 20,000
(d) Rs. 25,000
Q. 116:
Person with
disability is allowed a fixed deduction of _______________.
(a) Rs. 50,000
(b) Rs. 20,000
(c) Rs. 30,000
(d) Rs. 1,00,000
Q. 117:
Expenditure on
severe disease under section 80DDB is allowed upto _______________.
(a) Rs. 40,000
(b) Rs. 20,000
(c) Rs. 25,000
(d) Rs. 30,000
Q. 118:
Which of the
following donations is eligible for 100% deduction?
(a) Rajeev Gandhi Foundation
(b) J.L. Nehru Memorial Fund
(c) National Children Fund
(d) National Sports Fund
Q. 119:
Mr. Sharma
contributed to a political party, he can avail deduction under _______________.
(a) Section 80G
(b) Section 80GGB
(c) Section 80GGC
(d) Section 80GGD
Q. 120:
Rate of
education cess on total income is _______________.
(a) 2%
(b) 3%
(c) 4%
(d) 0.3%
Q. 121:
The deduction
for donation to National Foundation for Communal Harmony is
_______________.
(a) 50%
(b) 100%
(c) 100% Qualifying
Amount
(d) None of the
above
Q. 122:
Under which
section HUF is not entitled to deduction from GTI?
(a) Section 80C
(b) Section 80D
(c) Section 80G
(d) Section 80E
Q. 123:
The provision
regarding TDS is given under _______________ of income tax.
(a) Section 195
(b) Sections 192-206
(c) Sections 190-230
(d) Sections 185-205
Q. 124:
_______________
is related to self-assessment.
(a) Section 140
(b) Section 140(A)
(c) Section 140(B)
(d) Section 140(C)
Q. 125:
_______________
deals with PAN.
(a) Section 140
(b) Section 139A
(c) Section 139
(d) Section 154
Q. 126:
Surcharge on
tax on firm’s total income is _______________.
(a) Applicable
(b) Not applicable
(c) Applicable if total income crosses Rs. 1 crore
(d) Applicable if there is capital gain
Q. 127:
Interest is
paid to partners under _______________.
(a) Section 40A
(b) Section 40B
(c) Section 40C
(d) Section 40D
Q. 128:
The provision
of Section 56(2)(vii) is applicable to _______________.
(a) All assessees
(b) An individual and HUF
(c) Aan individual only
(d) An HUF only
Q. 129:
On the
occasion of marriage of Mr. Rahul, he received a gift of Rs. 75,000 from a
relative. Such an amount shall be _______________.
(a) Taxable
(b) Non-taxable
(c) Taxable subject to standard deduction of 50%
(d) None of the above
Q. 130:
In case of
winning from horse races, payment exceeding _______________ are subject to tax deduction
at source.
(a) Rs. 2,000
(b) Rs. 3,000
(c) Rs. 5,000
(d) Rs. 10,000
Q. 131:
Exemption
under section 10(37) is available to _______________.
(a) An individual or an HUF
(b) An individual
(c) HUF
(d) None of the
above
Q. 132:
Generally,
long-term capital gain is charged to tax @ _______________ (plus surcharge and cess
as applicable).
(a) 10%
(b) 15%
(c) 20%
(d) 30%
Q. 133:
The exemption
under section 54 shall be available _______________.
(a) To the extent of capital gain invested in the house
property
(b) Proportionate to the net consideration price invested
(c) To the extent of amount actually invested
(d) None
Q. 134:
For the purpose
of deduction under section 80DD, which of the following statements is/are true?
(a) Assessee is either and individual or a HUF
(b) Assessee is resident of India
(c) Assessee has a dependent disable relative
(d) All of the above
Q. 135:
The maximum
deduction one can clam under section 80D is _______________.
(a) Rs. 30,000
(b) Rs. 50,000
(c) Rs. 40,000
(d) Rs. 60,000
Q. 136:
Amount of
deduction in case of a person with severe disability under section 80U will be
_______________.
(a) Rs. 75,000
(b) Rs. 85,000
(c) Rs. 1,50,000
(d) Rs. 1,25,000
Q. 137:
Aggregate
amount of deduction under 80C, 80CCC and 80CCD cannot exceed
_______________.
(a) Rs. 1,10,000
(b) Rs. 1,20,000
(c) Rs. 1,30,000
(d) Rs. 1,50,000
Q. 138:
In the case of
every senior citizen resident in India, tax rebate under section 87A is
_______________.
(a) Rs. 5,000
(b) Rs. 2,000
(c) Rs. 1,000
(d) Nil
Q. 139:
The provisions
regarding TDS on Salaries are contained in _______________.
(a) Section 190
(b) Section 191
(c) Section 192
(d) Section 193
Q. 140:
If the payee
does not furnish PAN and TDS under section 194, dividends shall be made @ _______________.
(a) 20%
(b) 15%
(c) 10%
(d) Nil
Q. 141:
Deduction of
tax at source for insurance commission is @ _______________.
(a) 10%
(b) 15%
(c) 20%
(d) 12%
Q. 142:
Deduction of
tax at source under section 1941 is @ _______________.
(a) 10%
(b) 12%
(c) 15%
(d) 5%
Q. 143:
As per Section
207, _______________ not having any income from business or profession is not
liable to pay advance tax.
(a) A resident individual who is of the age of below 60
years
(b) A resident HUF
(c) A nonresident individual
(d) A resident senior citizen
MCQs SET 2:
(a)
Income from rent of
agricultural land is:
(i)
Agricultural income
(ii)
Casual income
(iii)
Business income
(iv)
Professional income
(b)
Percentage of income
from the sale of coffee grown and cured in India is considered as agricultural
income:
(i)
50%
(ii)
60%
(iii)
70%
(iv)
75%
(c)
Rate of income tax is
fixed under:
(i)
The Income tax Act
(ii)
The Finance Act
(iii)
An Ordinance
(iv)
Notification of C.B.D.T.
(d)
Income tax was levied
in India first by the following:
(i)
Sir James Wilson
(ii)
Sir James
(iii)
Sir Newton
(iv)
Sir Lucas Paciolo
(e)
Exemption limit for the
Assessment Year 2019-20 for a Super Senior Citizen resident in India is:
(i)
Rs. 2,50,000
(ii)
Rs. 3,00,000
(iii)
Rs. 4,00,000
(iv)
Rs. 5,00,000
(f)
Who may not be an
ordinary resident from the following?
(i)
Partnership Firm
(ii)
Company
(iii)
Association of Person
(iv)
Hindu Undivided Family
(g)
On the basis of
residence, the assessees are divided into how many categories:
(i)
Two
(ii)
Three
(iii)
Four
(iv)
Five
(h)
State which of the
following income are exempted?
(i)
Dearness allowance
(ii)
City compensatory allowance
(iii)
Foreign allowance
(iv)
Medical allowance
(i)
Deduction for
entertainment allowance is availed by:
(i)
Government servant
(ii)
Non government servant
(iii)
Both (i) and (ii)
(iv)
None of the above
(j)
Which house property is
not charged to tax?
(i)
Farmhouse
(ii)
Palace of an Ex-ruler
(iii)
Business building
(iv)
All of these
(k)
The annual value
of house property is Rs. 1,20,000. B and
C are equal co-owners of the house. B’s income from the house property shall
be:
(i)
Rs. 42,000
(ii)
Rs. 60,000
(iii)
Rs. 80,000
(iv)
Rs. 1,20,000
(l)
Interest on capital
paid by the firm to its partners is allowed:
(i)
up to 15%
(ii)
up to 16%
(iii)
up to 18%
(iv)
up to 12%
(m) Under
which of the work of a doctor is covered?
(i)
Trade
(ii)
Business
(iii)
Profession
(iv)
None of these
(n)
Capital gain is
classified into how many types?
(i)
Two
(ii)
Three
(iii)
Four
(iv)
Five
(o)
The income tax rate on
a long term capital gain for an individual is:
(i)
10%
(ii)
20%
(iii)
15%
(iv)
30%
(p)
Under which head the
pension is taxable?
(i)
Salaries
(ii)
Income from other sources
(iii)
Capital gains
(iv)
None of these
(q)
Income from sub letting
of house property is:
(i)
Income from other sources
(ii)
Property income
(iii)
Exempted
(iv)
Capital gains
(r)
Losses of Speculation
Business can be set-off :
(i)
4 Years
(ii)
8 Years
(iii)
3 Years
(iv)
6 Years
(s)
Long Term Capital Loss
can be set-off from:
(i)
Short term capital gains
(ii)
Long term capital gains
(iii)
Capital gains
(iv)
Any income
(t)
For the Assessment Year
2019-20 the maximum permissible deduction u/s 80C is:
(i)
Rs. 79,000
(ii)
Rs. 1,12,000
(iii)
Rs. 1,50,000
(iv)
Rs. 80,000
KEY
TO MCQs [SET 2]
Question No.
|
Answer
|
(a)
|
(i)
Agricultural income
|
(b)
|
(iv)
75%
|
(c)
|
(ii)
The Finance Act
|
(d)
|
(i)
Sir James Wilson
|
(e)
|
(iv)
Rs. 5,00,000
|
(f)
|
(iv)
Hindu Undivided Family
|
(g)
|
(ii)
Three
|
(h)
|
(iii)
Foreign allowance
|
(i)
|
(i)
Government servant
|
(j)
|
(iv)
All of these
|
(k)
|
(i)
Rs. 42,000
|
(l)
|
(iv)
up to 12%
|
(m)
|
(iii)
Profession
|
(n)
|
(i)
Two
|
(o)
|
(ii)
20%
|
(p)
|
(i)
Salaries
|
(q)
|
(i)
Income from other sources
|
(r)
|
(i)
4 Years
|
(s)
|
(ii)
Long term capital gains
|
(t)
|
(iii)
Rs. 1,50,000
|
80ee deduction for ay 2021-22
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