MCQs (BCOM H 603)
BCOM H 603
Corporate Tax Planning and
Management
MCQs [SET 1]
NOTE: The Highlighted and
Bold Options are the correct one.
Q. 1:
U/s 44AB the audit of accounts is
compulsory if total sales exceed:
(a)
Rs. 50 lakh
(b)
Rs. 70 lakh
(c)
Rs. 80 lakh
(d)
Rs. One crore
Q. 2:
Out of the following, which expense is
not an admissible expense:
(a)
Bad debts
(b)
Value added tax
(c)
Income tax
(d)
Excise duty
Q. 3:
While calculating business income,
disallowed portion of preliminary expense is:
(a)
1/2
(b)
1/5
(c)
4/5
(d)
3/5
Q. 4:
Depreciation is allowed on:
(a)
Animals
(b)
Tea bushes
(c)
Goodwill of a business
(d)
Patents
Q. 5:
For how many assessment years unabsorbed
depreciation can be carried forward for set off?
(a)
5 years
(b)
7 years
(c)
8 years
(d)
Unspecified period
Q. 6:
U/s 44 AB ‘specified date’ means:
(a)
30th June
(b)
31st July
(c)
30th September
(d)
30th November
Q. 7:
Which of the following expense/loss is
not admissible as deduction while computing income from business and
profession?
(a)
Stock in trade lost in fire Rs. 20,000
(b)
Entertainment expenses Rs. 10,000
(c)
Commission of Rs. 2,000 paid in order to receive business
(d)
Gift on the marriage of an employee
Q. 8:
Capital gain is classified in to how
many types:
(a)
Two
(b)
Three
(c)
Four
(d)
Five
Q. 9:
Which of the following is not a capital
assets?
(a)
Goodwill of a business
(b)
Jewellery
(c)
Stock-in-trade
(d)
Agricultural land in Delhi
Q. 10:
The income tax rate on long term capital
gain for a company is:
(a)
10%
(b)
20%
(c)
15%
(d)
30%
Q. 11:
Cost inflation index number for the
financial year 2017-18 is:
(a)
1024
(b)
858
(c)
1081
(d)
272
Q. 12:
For capital gain being long term capital
gain, an assessee should retain the asset for a period of:
(a)
24 months
(b)
36 months
(c)
More than 36 months
(d)
12 months
Q. 13:
Which of the following would attract
capital gains tax?
(a)
Special Bearer Bond, 1991
(b)
6½ % Gold Bond, 1977
(c)
Stock in Trade
(d)
None of the above
Q. 14:
A company sold a residential house.
Under which section the Company can get exemption on Long Term Capital Gains:
(a)
Sec. 54
(b)
Sec. 54D
(c)
Sec. 54EC
(d)
Sec. 54F
Q. 15:
During the previous year X company earns
a profit of Rs. 50,000 by selling a piece of land in Lucknow on which
Vegetables were being grown and which was purchased on 30.12.98. The profit
would be taxable as:
(a)
Short Term Capital Gains
(b)
Long Term Capital Gains
(c)
Not Taxable, being profit on sale on agricultural land
(d)
Business Gains
Q. 16:
Interest on Govt. Securities is:
(a)
Grossed up
(b)
Not grossed up
(c)
Exempt
(d)
None of the above
Q. 17:
Income from subletting of a House
Property is:
(a)
Income from other sources
(b)
Property Income
(c)
Exempted
(d)
Capital Gains
Q. 18:
Which of the following is not chargeable
to tax under the head ‘Income from Other Sources’?
(a)
Dividend from a Co-operative Society
(b)
Prize on crossword puzzles
(c)
Profit on sale of Goodwill of a business
(d)
Interest from bank
Q. 19:
A non speculative business was
discontinued in P.Y. 2015-16. The brought forward loss can be set-off against
income from:
(a)
Non Speculative Business
(b)
Capital Gains
(c)
Under any Head of Income
(d)
Cannot be set-off
Q. 20:
Loss from speculation business can be
set-off from:
(a)
Income from speculative business
(b)
Income from non speculative business
(c)
Income from any head
(d)
Not from any income
Q. 21:
A domestic company declared the
dividends on 10.03.2018. It is liable to pay tax:
(a)
@ 11.3%
(b)
@ 22.6%
(c)
@ 20.4%
(d)
@ 17.304%
Q. 22:
A Money Market Mutual Fund distributed
income on 1.10.2017 to a unit holder (company0. It is liable to pay tax:
(a)
@ 11.3%
(b)
@ 22.6%
(c)
@ 20.4%
(d)
@ 34.608%
Q. 23:
Surcharge of 10 per
cent is payable by an individual where the total income exceeds:
(a) Rs.7,50,000
(b) Rs.8,50,000
(c) Rs.10,00,000
(c) None of the three
Q. 24:
Additional surcharge
(education cess) of 3% per cent is payable on
(a) Income tax
(b) Income tax plus surcharge
Surcharge
(d) None of the Above
Q. 25:
Family pension received by a widow of a member of the armed forces where the
death of the
member has occurred in the course of the operational duties, is
(a) Exempt up to Rs.3,00,000
(b) Exempt up to Rs. 3,50,000
(c) Totally exempt under section 10(19)
d) Totally chargeable to tax
Q. 26:
In respect of shares
held as investment, while computing the capital gains, securities transaction
tax paid in respect of sale of listed shares sold in a recognized stock
exchange,
(a) Is deductible up to Rs.1,00,000
(b) Is deductible up to Rs.2,00,000
(c) Is deductible if C.G.’s is < 5,00,000
(d) Is not deductible at all
Q. 27:
Gift of Rs 5,00,000
received on 10 July, 2008 through account payee cheque from a non-relative regularly
assessed to income-tax, is
(a) A capital receipt not chargeable to tax
(b) Chargeable as other sources
(c) Chargeable to tax as business income
(d) Exempt up to Rs.50,000 and balance chargeable to tax as income from other
source
Q. 28:
The rate of tax that
is leivable on STCG arising from transfer of Equity shares of a Company or units
of an Equity oriented fund is
(a) 10%
(b) 15%
(c) 20%
(d) None of the Above
Q. 29:
For an employee in
receipt of hostel expenditure allowance for his three children, the maximum annual
allowance exempt under section 10(14) is
(a) Rs.10, 800
(b) Rs.7,200
(c) Rs.9,600
Q. 30:
(d) Rs.3,600
For an industrial undertaking fulfilling the conditions, additional
depreciation in respect of a
machinery costing Rs.10 lakh acquired and installed on October 3, 2005 is
(a) Rs.75,000
(b) Rs.1,50,000
(c) Rs.1,00,000
(d) None of the above
Q. 31:
A.O.P should consist
of :
(a) Individual only
(b) Persons other than individual only
(c) Both the above
(d) None of the Above
Q. 32:
Body of individual should consist of :
(a) Individual only
(b) Persons other than individual only
(c) Both the above
(d) None of the Above
Q. 33:
A new business
was set up on15-11-2008 and it commenced its business from 1-12-2008.The
first previous year in this case shall be:
(a) 15-11-2008 to 31-3-2009
(b) 1-12-2008 to 31-3-2009
(c) 2008-2009
(d) None of the Above
Q. 34:
A person leaves
India permanently on 15-11-2008.The assessment year for income earned till
15-11-2008 in this case shall be:
(a) 2007-08
(b) 2008-09
(c) 2009-10
(d) None of the Above
Q. 35:
Income tax is
collected on all types of income except _______________.
(a) Agricultural Income
(b) Industrial Income
(c) Capital Gain
(d) Household Property
Q. 36:
The Income Tax Act came into force from
_______________.
(a) 1st March 1971
(b) 1st April 1971
(c) 1st March 1961
(d) 1st April 1961
Q. 37:
The Income Tax Act
came into force all over India except _______________.
(a) Andaman & Nicobar
(b) Maldives
(c) Jammu & Kashmir
(d) None of the above
Q. 38:
As per Income Tax
Act, 1961, income tax is charged on the income of _______________ at a
rates which are prescribed by the Finance Act of relevant
assessment year.
(a) Current year
(b) One year before previous year
(c) Previous year
(d) None of the above
Q. 39:
The tax payer
liability is determined with reference to his or her _______________.
(a) Financial Status
(b) Residential Status
(c) All of the above
(d) None of the above
Q. 40:
As per the
definition of Income, the income includes the following _______________.
(a) Profits and gains
(b) Dividend declared
(c) Voluntary contribution received by a trust created
(d) All of the above
Q. 41:
The period of 12
months commencing on the first day of April every year and ending on 31st
March is called as _______________.
(a) Previous Year
(b) Assessment year
(c) Accounting Year
(d) Financial Year
Q. 42:
Previous year means
the financial year immediately preceding the _______________.
(a) Accounting Year
(b) Assessment Year
(c) All of the
above
(d) None of the
above
Q. 43:
Under Income Tax
Act, the income liable for tax is classified on the basis of___________.
(a) Income from Salaries
(b) Income from House Property
(c) Agricultural Income
(d) Both (a) and (b)
Q. 44:
Agricultural income
is completely exempted for assessment year _______________.
(a) 1974-75
(b) 1985-86
(c) 1975-76
(d) 1978-79
Q. 45:
The income from
foreign companies by providing the services in project connected with
security of India is _______________ from tax liability.
(a) 50% exempted
(b) 20% exempted
(c) 100% exempted
(d) 55% exempted
Q. 46:
An individual is
said to be resident in India if _______________.
(a) It is in India in the previous year for a period of
182 days or more
(b) It is in India for period of 60 days or more during
the previous and 365 days or more
during the four years immediately proceeding previous
year
(c) All of the above
(d) None of the above
Q. 47:
The HUF is said to
be resident in India if _______________.
(a) The control and management of its affairs is wholly
or partly situated in India
(b) The control and management of its affairs is
partially situated out of India
(c) The control and management of its affairs is wholly
or partly in out of India
(d) None of the above
Q. 48:
The awards and
rewards are exempted from Income Tax if _______________.
(a) Payment is in cash
(b) Payment is in kind
(c) Payment is in cash or in kind
(d) None of the above
Q. 49:
Income received in
India whether occurred in India or outside India, the tax incidence in case
of resident is _______________.
(a) Taxable as per slabs
(b) Exempted from tax
(c) Partly exempted
(d) None of the above
Q. 50:
Income received in
India whether occurred in India or outside India, the tax incidence in case
of resident but not ordinarily resident is
_______________.
(a) Taxable as per slabs
(b) Exempted from tax
(c) Partly exempted
(d) None of the above
Q. 51:
Income received in
India whether occurred in India or outside India, the tax incidence in case
of non-resident is _______________.
(a) Taxable as per slabs
(b) Exempted from slab
(c) Partly exempted
(d) None of the
above
Q. 52:
Income deemed to be
received in India whether occurred in India or outside India, the tax
Q. 53:
incidence in case
of resident is _______________.
(a) Taxable as per slabs
(b) Exempted from slab
(c) Partly exempted
(d) None of the above
Q. 54:
The income received
and accrued outside India from a business controlled or profession set
up in India, the tax incidence in case of resident is
_______________.
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above
Q. 55:
The income received
and accrued outside India from a business controlled or profession set
up in India, the tax incidence in case of non-resident is
_______________.
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above
Q. 56:
The tax incidence
for company or firm in which income received in India and company is
resident is _______________.
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above
Q. 57:
The tax incidence
for company or firm in which income received in India and company for
non-resident is _______________.
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above
Q. 58:
The tax incidence
for company or firm in which income received outside India from a source
controlled from India for resident is _______________.
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above
Q. 59:
The tax incidence
for company or firm in which income received outside India from a source
controlled from India for non-resident is
_______________.
(a) Non-taxable
(b) Taxable
(c) Partly taxable
(d) None of the above
Q. 60:
_______________ is
exempted from income tax.
(a) Interest from Indian company
(b) Dividend from foreign company
(a) Cooperative dividend
(d) Dividend from Indian company
Q. 61:
Which section of
the Income Tax Act exempted incomes have been mentioned?
(a) Section 80C
(b) Section 80DD
(c) Section 10
(d) Section 2
Q. 62:
_______________ of
Income Tax Act is related to residential status.
(a) Section 2
(b) Section 6
(c) Section 5
(d) Section 4
Q. 63:
Resident of India
includes _______________.
(a) Ordinarily resident
(b) Not ordinarily resident
(c) NRI
(d) Both (a) and
(b)
Q. 64:
The Company may
have the residential status as _______________.
(a) Resident or Non-resident
(b) Not ordinarily resident
(c) Non-resident
(d) Resident
Q. 65:
The meaning of
exempted income is _______________.
(a) Not included in total income
(b) Agricultural income
(c) Not taxable under income tax
(d) All of the above
Q. 66:
The number of
income source for a person are _______________.
(a) One head
(b) Two heads
(c) Various heads
(d) Any of the above
Q. 67:
The sum of various
heads is called as _______________.
(a) Taxable income
(b) Total income
(c) Gross total income
(d) Adjusted income
Q. 68:
The agricultural
income includes _______________.
(a) Income from sale of crop
(b) Income from preparation of crop
(c) Income from nursery
(d) All of the above
Q. 69:
_______________
comes under agricultural income.
(a) Tea garden
(b) Commodity farming
(c) All of the above
(d) None of the above
Q. 70:
If the agricultural
income is _______________, then the agricultural income is considered for
calculating tax.
(a) More than ` 5,000 and total income is exceeding
exemption limit
(b) More than ` 5,000
(c) More than ` 10,000
(d) Any amount
Q. 71:
The Income Tax Act,
1961 broadly covers _______________.
(a) Basic charging income
(b) Rebates and reliefs
(c) Incomes exempted from income tax
(d) All of the above
Q. 72:
The capital gain is
chargeable under _______________ of Income Tax Act.
(a) Section 45
(b) Section 55
(c) Section 56
(d) Section 40
Q. 73:
The definition of
the person includes _______________.
(a) An individual
(b) A company
(c) A Hindu undivided family
(d) All of the above
Q. 74:
Any rent or revenue
derived from land which is situated in India and is used for agricultural
purpose is _______________.
(a) Partially taxable
(b) Fully taxable
(c) Exempted from
tax
(d) None of the
above
Q. 75:
Residential Status
of an assesses can be _______________.
(a) Different for different previous year in the same
assessment year
(b) Different for different assessment year
(c) None of the above
(d) All of the above
Q. 76:
The income of
previous year is chargeable to tax in the _______________.
(a) Immediately succeeding assessment year
(b) Same previous year
(c) Immediately preceding academic year
(d) None of the above
Q. 77:
The interest on
loan paid by the Government of India to a non-resident outside India is
_______________ in India.
(a) Not taxable
(b) Partially taxable
(c) Taxable
(d) Can’t say
Q. 78:
An individual is
resident and ordinarily resident of India if _______________.
(a) Person had been resident in India at least 2 out of
10 previous years immediately
preceding the relevant previous year
(b) Person been in India for a period of 730 days or more
during 7 years immediately
preceding the relevant previous year
(c) All of the above
(d) None of the above
Q. 79:
The Resident HUF is
ordinarily resident in India, if _______________.
(a) He has been resident in India at least 2 years out of
10 previous years immediately
(b) He has been resident in India at least 3 years out of
10 previous years immediately
(c) He has been resident in India at least 2 years out of
5 previous years immediately
(d) None of the above
Q. 80:
Basic condition
will be for a person who leaves India for employment _______________.
(a) At least 182 days in India
(b) At least 60 days in previous year and 365 days in
preceding 4 years
(c) At least 730 days in preceding 7 years
(d) All of the above
Q. 81:
Which of the
following is not included in the term Income under the Income Tax Act, 1961?
(a) Reimbursement of travelling expenses
(b) Profits and gains of business or profession
(c) Dividend
(d) Profit in lieu of salary
Q. 82:
The term income
includes the following types of incomes.
(a) Illegal
(b) Legal income from India only
(c) Legal
(d) Legal and
illegal both
Q. 83:
_______________ is
the casual income.
(a) Interest received
(b) Dividend income
(c) Pension received
(d) Winning from lotteries
Q. 84:
The way of tax
liability by taking full advantage provided by the Act is _______________.
(a) Tax management
(b) Tax avoidance
(c) Tax planning
(d) Tax evasion
Q. 85:
Mr. A, partner of
M/s ABC, is assessable as _______________.
(a) Firm
(b) An individual
(c) Body of
individual
(d) HUF
Q. 86:
The income is
chargeable under the head of salary under _______________ of Income Tax Act,
1961.
(a) Section 15
(b) Section 20
(c) Section 14
(d) Section 16
Q. 87:
Pension is
_______________ under the salary head.
(a) Fully taxable
(b) Partially taxable
(c) Not taxable
(d) None of the above
Q. 88:
The salary of
Member of Parliament is taxable under the head _______________.
(a) Salary
(b) Income from Other Sources
(c) Income from Business
(d) All of the above
Q. 89:
The salary,
remuneration or compensation received by the partners is taxable under the head
_______________.
(a) Income from Other Sources
(b) Income from Business
(c) Salary
(d) None of the above
Q. 90:
The
death-cum-retirement gratuity received by the Government Employee or employee
of
local authority is _______________.
(a) Partially exempted
(b) Fully exempted
(c) Half taxable
(d) None of the above
Q. 91:
Under Section 15 of
Income Tax Act, the salary due in previous years and even if it is not
received is _______________.
(a) Taxable
(b) Not taxable
(c) Partially taxable
(d) None of the above
Q. 92:
The assesses can
claim relief under _______________ for arrears or advance salary.
(a) Section 89(1)
(b) Section 89(2)
(c) Section 89(3)
(d) Section 89(4)
Q. 93:
The Payment of
Gratuity Act came into force in _______________.
(a) 1973
(b) 1980
(c) 1991
(d) 1972
Q. 94:
Which of the
following is not taxable under the head Salary?
(a) Remuneration paid to the lecturer of a college for
setting a question paper
(b) Salary received
by a member of parliament
(c) Commission received by an employee director of a company
(d) Both (a) and (b)
Q. 95:
In accordance with
the provisions of Section 17(1) of Income Tax Act, 1961, the term salary
includes _______________.
(a) Any annuity or pension
(b) Any gratuity
(c) Any fees, commission, perquisite or profits in lieu
of or in addition to any salary or wages
(d) All of the above
Q. 96:
The children
education allowance, the amount exempted from taxable income is limited to
______________.
(a) Rs. 100 per month per child upto 3 children
(b) Rs. 1,000 per year per child upto 2 children
(c) Rs. 100 per year per child upto 2 children
(d) None of the above
Q. 97:
If the employee
receives retirement gratuity from more than one employer, he can claim
exemption in respect of _______________.
(a) Current employer
(b) Previous employer
(c) Both employer
(d) Not from single employer
Q. 98:
The family pension
received by the family members of armed forces after death of employee is
_______________.
(a) Exempt fully
(b) Exempted after fulfilling of certain conditions
(c) Not exempted
(d) None of the above
Q. 99:
The entertainment
allowance is applicable to _______________.
(a) Private sector employees
(b) Public sector employees
(c) Government employees
(d) All of the above
Q. 100:
The entertainment
tax allowed as a deduction under Section 16 of Income Tax Act is the least of
_______________.
(a) Actual amount of entertainment allowance received
(b) 20% of basic salary of the individual
(c) Rs. 50,00
(d) All of the above
Q. 101:
The assessment
period for income tax on salary is _______________.
(a) Only more than 12 months
(b) 12 months and less than 12 months
(c) Only 12 months
(d) 12 months and more than 12 months
Q. 102:
Total income is to
be rounded off to nearest multiple of _______________ and tax is to be rounded
off to nearest multiple of _______________.
(a) Ten rupee
(b) Hundred, ten
(c) Ten, ten
(d) Rupee, rupee
Q. 103:
Income accrued
outside India and received outside India is taxable in case of________.
(a) Resident and ordinary resident (ROR) only
(b) Resident but not ordinary resident (RNOR) only
(c) Non-resident only
(d) ROR, RNOR and Non-resident
Q. 104:
Salary of S (Rs.
40,000 per month) becomes due on the last day of the month but is paid on 7th
of next month. Also, salary of April, 2017 and May, 2017 is received in advance
in March, 2017. What will be his gross income for Assessment Year 2017-18?
(a) Rs. 5,60,000
(b) Rs. 4,80,000
(c) Rs. 4,40,000
(d) Rs. 5,20,000
Q. 105:
Deduction under
section 80C to 80U cannot exceed ______________.
(a) Gross Total Income
(b) Total Income
(c) Income from Business or Profession
(d) Income from House Property
Q. 106:
Employer provides a
car (below 1.6 ltr capacity) along with a driver to X partly for official and
partly for personal purpose. The expenses incurred by the company are: running
and maintenance expenses – Rs. 32,000 and driver’s salary – Rs. 36,000 .Taxable
value of perquisite is ______________.
(a) Rs. 21,600
(b) Rs. 10,800
(c) Rs. 32,400
(d) Rs. 39,600
Q. 107:
The maximum limit
for the claim of deduction under salary head Contributions to certain
pension funds of LIC or any other insurer is ______________.
(a) Up to Rs. 2,00,000
(b) Up to Rs. 1,50,000
(c) Up to Rs.
1,75,000
(d) None of the
above
Q. 108:
Encashment of
earned leave is given by ______________ of Income Tax Act, 1961.
(a) Section 10(10AA)
(b) Section 12(10A)
(c) Section 15(10B)
(d) None of the above
Q. 109:
Compensation
received on voluntary retirement is given by ______________ of Income Tax Act,
1961.
(a) Section 10(10D)
(b) Section 10(10C)
(c) Section 10(10E)
(d) Section 11(10D)
Q. 110:
The house rent
allowance (HRA) under the salary head of Income Tax Act is given by
______________.
(a) Section 10
(b) Sec 10(13A)
(c) Section 11(13B)
(d) Section 11
Q. 111:
______________ of
Income Tax Act defines the perquisites and their valuation.
(a) Section 18
(b) Section17
(c) Section 18(C)
(d) Section 17(C)
Q. 112:
The Income tax rate
for the financial year 2016-17 for individual is ______________.
(a) Rs. 5,00,000 to Rs. 10,00,000 is 20%
(b) Rs. 5,50,000 to Rs. 1,50,000 is 20%
(c) Rs. 5,00,000 to Rs. 10,00,000 is 30%
(d) Rs. 5,00,000 to Rs. 10,00,000 is 10%
Q. 113:
Income tax rate for
the senior citizens for year 2016-17 is ______________.
(a) Upto Rs. 5 lakh is Nil
(b) Upto Rs. 10 lakh is 10%
(c) Upto Rs. 5 lakh is 10%
(d) None of the above
Q. 114:
For computation for
Income tax liability for individual, the Education Cess is
______________.
(a) 3%
(b) 4%
(c) 2.5%
(d) 2%
Q. 115:
The rate of tax for
the financial year 2016-17 for the foreign companies is ______________.
(a) 45%
(b) 30%
(c) 40% flat
(d) None of the above
Q. 116:
Which of the
following are true regarding taxing the rich?
(a) Additional 10% tax on dividends in excess of Rs. 10
lakh per annum
(b) Surcharge on persons decreased to 12% from 15%
(c) TDS at 1% on purchase of luxury cars exceeding value
of Rs. 10 lakh
(d) All of the above
Q. 117:
The Secondary and
Education Cess on the computation of Income Tax for 2016-17 is
______________.
(a) 1% of Income Tax
(b) 2% of Income Tax
(c) 0.5% of Income
Tax
(d) None of the
above
Q. 118:
Surcharge is levied
at the rate ______________ if the income exceeds Rs. 1 crore of the financial
year 2016-17.
(a) 10%
(b) 12%
(c) 15%
(d) 20%
Q. 119:
Tax Liability for
the individual for 2016-17 who is not the resident of the India whose income
Rs. 2,50,000 to Rs. 5,00,000 is ______________.
(a) 10% of total income minus Rs. 2,00,000
(b) 10% of total income minus Rs. 1,00,000
(c) 15% of total income minus Rs. 1,00,000
(d) None of the above
Q. 120:
If an employer
transfers second hand motor car to the employee, the perquisite is valued at
______________.
(a) Actual cost less depreciation @ 30% for every
completed year under straight line method
(b) Actual cost less depreciation @ 20% for every
completed year under WDV method
(c) Actual cost less depreciation @ 30% for every
completed year under WDV method
(d) Actual cost less depreciation @ 20% for every
completed year under SLM method
Q. 121:
The following is
not taxable as income under the head “Salaries”:
(a) Commission received by a full-time director
(b) Remuneration received by a partner
(c) Allowances received by an employee
(d) Free accommodation given to an employee
Q. 122:
The following is exempt
income from Income Tax:.
(a) Travel concession to employee
(b) Remuneration received for valuation of answer scripts
(c) Encashment of leave salary whilst in service
(d) Perquisites in India
Q. 123:
Advance salary is
taxable and advance against salary is ______________.
(a) Fully taxable
(b) Partially taxable
(c) Not taxable
(d) None of the above
Q. 124:
If loan granted by
employer to employee does not exceed ______________, it is not treated as
perquisite to employee for purpose of income tax.
(a) Rs. 20,000
(b) Rs. 40,000
(c) Rs. 30,000
(d) Rs. 25,000
Q. 125:
Death-cum-retirement
gratuity received by an employee of Central Government is wholly
exempt up to ______________.
(a) Rs. 2.5 lakh
(b) Rs. 4.5 lakh
(c) Rs. 3.5 lakh
(d) None of the
above
Q. 126:
Gift to employee up
to ______________ p.a. will not be treated as perquisite taxable in the hands
of employee.
(a) Rs. 4,000
(b) Rs. 5,000
(c) Rs. 10,000
(d) Rs. 2,500
Q. 127:
Expenditure on free
meals to employee in excess of ______________ per meal will be treated as
perquisite of employee.
(a) Rs. 25
(b) Rs. 50
(c) Rs. 100
(d) Rs. 55
Q. 128:
Any commission due
or received by a partner of a firm from the firm shall not be regarded as
salary income under ______________.
(a) Section 15
(b) Section 20
(c) Section 17
(d) Section 19
Q. 129:
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 section 80C to 80U
Q. 130:
Calculate the exempt
HRA from the following details:
A 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.
(a) Nil
(b) Rs. 1,75,200
(c) Rs. 64,800
(d) Rs. 2,40,000
Q.
131:
Capital gain is classified into how many types?
(a)Four
(b)Three
(c)Two
(d)Five
Q.
132:
Which of the following is not a Capital Asset?
(a)Goodwill
of business
(b)Jewellery
(c)Stock-in-trade
(d)Agricultural
land in Delhi
Q.
133:
The income tax rate on long term capital gain for a company is:
(a)10%
(b)15%
(c)20%
(d)30%
Q.
134:
The rate of corporation tax, levied on companies having annual
turnover of Rs. 200 crore, is:
(a)20%
(b)30%
(c)25%
(d)28
Q.
135:
The rate of Surcharge, levied on companies having income of Rs. 12
Crore, is:
(a)07%
(b)15%
(c)12%
(d)18.5%
Q.
136:
MAT stands for:
(a)Alternate
Mandatory Tax
(b)Marginal
Alternate Tax
(c)Maximum
Alternate Tax
(d)Minimum
Alternate Tax
Q.
137:
A domestic company declared the dividends on 10.03.2018. it is
liable to pay tax @:
(a)11.3%
(b)22.3%
(c)20.4%
(d)17.304%
Q.
138:
Which house property is not charged to tax?
(a)Farmhouse
(b)Palace
of an Ex-ruler
(c)Business
building
(d)All
of these
Q.
139:
A money market Mutual Fund distributed income on 01.10.2017 to a
unit holder (Company). It is liable to pay tax @:
(a)11.3%
(b)22.6%
(c)20.4%
(d)34.608%
Q.
140:
The rate of MAT is @:
(a)15.5%
(b)20.24%
(c)20.25%
(d)18.5%
Q.
141:
Which of the following cannot be a Not Ordinary Resident?
(a)Individual
(b)Company
(c)Firm
(d)HUF
Q.
142:
Percentage of income from the sale of coffee grown and cured in
India is considered as agricultural income:
(a)50%
(b)75%
(c)70%
(d)60%
Q.
143:
Interest on capital paid by the firm to its partners is allowed:
(a)up
to 15%
(b)up
to 12%
(c)up
to 18%
(d)up
to 16%
Q.
144:
Long Term Capital Loss can be set-off from:
(a)Short
term capital gains
(b)Long
term capital gains
(c)Capital
gains
(d)Any
income
Q.
145:
Dividend from domestic company is taxable in the hand of
shareholder, if it:
(a)Exceeds
Rs. 1,000
(b)Exceeds
Rs. 10,00,000
(c)Exceeds
Rs. 5,00,000
(d)Exceeds
Rs. 8,00,000
Q.
146:
A company sold a residential house. Under which section the company
can get exemption on Long Term Capital Gains:
(a)Section
54EC
(b)Section
54
(c)Section
54D
(d)Section
54F
Q.
147:
For capital gain being long germ capital gain, an assessee should
retain the assets for a period of:
(a)More
than 36 months
(b)24
months
(c)36
months
(d)12
months
Q.
148:
Cost inflation index number for the financial year 2017-18 is:
(a)272
(b)1024
(c)852
(d)1081
Q.
149:
Reducing the tax liability by making false claims or withholding
information, is known as:
(a)Tax
evasion
(b)Tax
avoidance
(c)Tax
planning
(d)None
of these
Q.
150:
DDT stands for:
(a)Dividend
Distribution Tax
(b)Dividend
Disposable Tax
(c)Dynamic
Divided Test
(d)None
of these
MCQs [SET 2]
(a)
Capital gain is
classified into how many types?
(i)
Four
(ii)
Three
(iii)
Two
(iv)
Five
(b)
Which of the following
is not a Capital Asset?
(i)
Goodwill of business
(ii)
Jewellery
(iii)
Stock-in-trade
(iv)
Agricultural land in Delhi
(c)
The income tax rate on
long term capital gain for a company is:
(i)
10%
(ii)
15%
(iii)
20%
(iv)
30%
(d)
The rate of corporation
tax, levied on companies having annual turnover of Rs. 200 crore, is:
(i)
20%
(ii)
30%
(iii)
25%
(iv)
28
(e)
The rate of Surcharge,
levied on companies having income of Rs. 12 Crore, is:
(i)
07%
(ii)
15%
(iii)
12%
(iv)
18.5%
(f)
MAT stands for:
(i)
Alternate Mandatory Tax
(ii)
Marginal Alternate Tax
(iii)
Maximum Alternate Tax
(iv)
Minimum Alternate Tax
(g)
A domestic company
declared the dividends on 10.03.2018. it is liable to pay tax @:
(i)
11.3%
(ii)
22.3%
(iii)
20.4%
(iv)
17.304%
(h)
Which house property is
not charged to tax?
(i)
Farmhouse
(ii)
Palace of an Ex-ruler
(iii)
Business building
(iv)
All of these
(i)
A money market Mutual
Fund distributed income on 01.10.2017 to a unit holder (Company). It is liable
to pay tax @:
(i)
11.3%
(ii)
22.6%
(iii)
20.4%
(iv)
34.608%
(j)
The rate of MAT is @:
(i)
15.5%
(ii)
20.24%
(iii)
20.25%
(iv)
18.5%
(k)
Which of the following
cannot be a Not Ordinary Resident?
(i)
Individual
(ii)
Company
(iii)
Firm
(iv)
HUF
(l)
Percentage of income
from the sale of coffee grown and cured in India is considered as agricultural
income:
(i)
50%
(ii)
75%
(iii)
70%
(iv)
60%
(m) Interest
on capital paid by the firm to its partners is allowed:
(i)
up to 15%
(ii)
up to 12%
(iii)
up to 18%
(iv)
up to 16%
(n)
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
(o)
Dividend from domestic
company is taxable in the hand of shareholder, if it:
(i)
Exceeds Rs. 1,000
(ii)
Exceeds Rs. 10,00,000
(iii)
Exceeds Rs. 5,00,000
(iv)
Exceeds Rs. 8,00,000
(p)
A company sold a
residential house. Under which section the company can get exemption on Long
Term Capital Gains:
(i)
Section 54EC
(ii)
Section 54
(iii)
Section 54D
(iv)
Section 54F
(q)
For capital gain being
long germ capital gain, an assessee should retain the assets for a period of:
(i)
More than 36 months
(ii)
24 months
(iii)
36 months
(iv)
12 months
(r)
Cost inflation index
number for the financial year 2017-18 is:
(i)
272
(ii)
1024
(iii)
852
(iv)
1081
(s)
Reducing the tax
liability by making false claims or withholding information, is known as:
(i)
Tax evasion
(ii)
Tax avoidance
(iii)
Tax planning
(iv)
None of these
(t)
DDT stands for:
(i)
Dividend Distribution Tax
(ii)
Dividend Disposable Tax
(iii)
Dynamic Divided Test
(iv)
None of these
KEY
TO MCQs [SET 2]
Question No.
|
Answer
|
(a)
|
(iii)
Two
|
(b)
|
(iii)
Stock-in-trade
|
(c)
|
(iii)
20%
|
(d)
|
(iii)
25%
|
(e)
|
(iii)
12%
|
(f)
|
(iv)
Minimum Alternate Tax
|
(g)
|
(iv)
17.304%
|
(h)
|
(iv)
All of these
|
(i)
|
(iv)
34.608%
|
(j)
|
(iv)
18.5%
|
(k)
|
(ii)
Company
|
(l)
|
(ii)
75%
|
(m)
|
(ii)
up to 12%
|
(n)
|
(ii)
Long term capital gains
|
(o)
|
(ii)
Exceeds Rs. 10,00,000
|
(p)
|
(i)
Section 54EC
|
(q)
|
(i)
More than 36 months
|
(r)
|
(i)
272
|
(s)
|
(i)
Tax evasion
|
(t)
|
(i)
Dividend Distribution Tax
|
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