Taxation - 11

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question Monetory Limit for deduction for royalty income of authors under Section
80QQB is Rs.________.
Correct Answer 300000
Your Answer 300000
Multiple Choice Single Answer
Question Income from winning from lotteries / crossword puzzles/ horse races is
taxed at flat rate of :-
Correct Answer 0.3
Your Answer 0.3
Multiple Choice Single Answer
Question Income earned in previous year is subjected to tax in :-
Correct Answer Assessment year
Your Answer Assessment year
Multiple Choice Single Answer
Question Mediclaim premium u/s Section 80D should be paid by
Correct Answer Cheque
Your Answer Cheque or Cash
True/False
Question Any sum payable by the assessee by way of tax, duty, cess or fee is
allowed as deduction even though they are not actually paid.
Correct Answer False
Your Answer True
True/False
Question As per section 2(11) of the Income Tax Act, Block of Assets includes both
tangible as well as intangible assets.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What is the tax treatment of Statutory Provident Fund?
Correct Answer Employer's Contribution to PF is not liable for any tax payment ,
Interest credited to the employee's account is not liable for any tax payment. , The lump
sum received at the time of retirement or resignation or death is also exempt under
section 10(11) and 10(12).
Your Answer Employer's Contribution to PF is not liable for any tax payment ,
Interest credited to the employee's account is not liable for any tax payment. , The lump
sum received at the time of retirement or resignation or death is also exempt under
section 10(11) and 10(12).
Select The Blank
Question The aggregate amount of all the expenditure falling under the head
preliminary expenses incurred under section 3________, for an Indian company the
aggregate of all the expenditure can be 5% of the cost of project or 5% of capital
employed whichever is higher.
Correct Answer 5% of the cost of project or 5% of capital employed
Your Answer 5% of the cost of project or 7% of capital employed
Multiple Choice Single Answer
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Your Answer Gross total income
Multiple Choice Single Answer
Question Previous year always ends on :-
Correct Answer 31st March
Your Answer 31st March
Multiple Choice Single Answer
Question Rates of income tax are prescribed by :-
Correct Answer The Finance Act
Your Answer Ordinance
Select The Blank
Question If assessee owns more than one house properties, he can get benefit of nil
annual value for any one house property ________.
Correct Answer As per his choice
Your Answer House which is first purchased
Multiple Choice Single Answer
Question Tax liability of a person is based on :-
Correct Answer Residential status
Your Answer Gross total income
Multiple Choice Multiple Answer
Question Choose capital expenditure from the following list :-
Correct Answer Purchase of Building , Purchase of machinery
Your Answer Purchase of Building , Construction of temporary structures ,
Purchase of machinery
Multiple Choice Multiple Answer
Question Rebate is allowed on any subscription made to National Saving Scheme
by :-
Correct Answer An individual , A HUF
Your Answer An individual , A HUF
Multiple Choice Single Answer
Question In respect of leave travel concession If Mr. A has availed the exemption
only once or has not availed any exemption at all, in the block of four years i.e. 1998-
2001 then :-
Correct Answer He can carry over the exemption to the next block of four years i.e.
2002-2005 provided that he avails the exemption of LTC in the first calendar year of the
next block i.e. 2002.
Your Answer He can carry over the exemption to the next block of four years i.e.
2002-2005 provided that he avails the exemption of LTC in the first calendar year of the
next block i.e. 2002.
True/False
Question Loss under the head Profits from Business or Profession can be adjusted
against the Income from Salaries.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question The amount paid by the employer to the employee on his retirement is
taxed as :-
Correct Answer Income from Salaries
Your Answer Income from Salaries
Select The Blank
Question For an individual as a citizen of India who leaves India in the relevant
previous year for the purpose of employment has to be in India for ________ days or
more during previous year.
Correct Answer 182
Your Answer 182
True/False
Question Bad Debts recovered not allowed as deduction in earlier years is not
taxable in any year.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Long term Capital Gains , Short Term Capital Gains.
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees before
15th March of Previous year is :-
Correct Answer 100% of advance tax payable
Your Answer 100% of advance tax payable
Multiple Choice Multiple Answer
Question An assessee can claim deduction under section 35 in relation to the
expenditure incurred on scientific research in the field of natural gas or applied sciences
if :-
Correct Answer Any revenue expenses incurred by the assessee for carrying out the
scientific research provided that such research is related to his business , Any capital
expenses incurred by the assesse himself for carrying out the scientific research provided
that such research is related to his business , The assesse is a company engaged in the
business of bio-technology or any other notified product a weighted deduction of 150% is
allowed in respect of in-house research and development expensed, till 31st March, 2005
Your Answer Any revenue expenses incurred by the assessee for carrying out the
scientific research provided that such research is related to his business , The assesse is a
company engaged in the business of bio-technology or any other notified product a
weighted deduction of 150% is allowed in respect of in-house research and development
expensed, till 31st March, 2005
Select The Blank
Question Registration charges in connection with the increasing of ________ share
capital of the company is not allowed as revenue expenditure.
Correct Answer Authorized
Your Answer Issued
True/False
Question If a person is required to quote the PAN and he quotes or intimates a false
number then he may be liable to pay a penalty of Rs. 25000.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What is the tax treatment of the Lump sum received from unrecognized
provident fund on the retirement or resignation or death of the employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest on
employee's contribution is taxable as "Income from Other Sources" , Employer's
Contribution to PF and interest thereon is taxable as "Income from salaries"
Your Answer Employee's contribution to PF is exempt from tax , Interest on
employee's contribution is taxable as "Income from Other Sources"
Select The Blank
Question If the person responsible for deducting the tax at source and paying the
same to the credit of Central Government has not been allotted the Tax Deduction
Account Number (TAN), he shall within ________ from the end of the month in which
the tax was deducted, apply for the allotment of TAN Number.
Correct Answer One month
Your Answer Fifteen days
Match The Following
Question Correct Answer Your Answer
Deduction in case of permanent physical disability Section 80U Section 80U
Deductions for Donations Paid Section 80G Section 80G
Deduction for Rent Paid Section 80GG Section 80GG
Deduction in respect of Interest on Bank Deposits Section 80L Section 80L
True/False
Question If the capital asset becomes the property of the assessee by virtue of gift or
will, the period for which the capital asset is held by the previous owner should be
excluded while deciding the holding period.
Correct Answer False
Your Answer True
True/False
Question Amount paid by the employer in respect of any leave standing to the credit
of the employee after the date of furnishing return of income, this sum was payable in the
previous year is allowed as deduction.
Correct Answer False
Your Answer False
Select The Blank
Question Under section 43B, Clause N0-21 provides that the details of various
payments are allowed as deductions only if they are actually paid but, where if the
assessee follows the ________, the payments can be claimed on due basis.
Correct Answer Mercantile system of accounting
Your Answer Cash system of accounting
True/False
Question A woman assessee below the age of 65 years is also entitled to rebate u/s
88.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Income received by following assesses is taxable in India :-
Correct Answer Resident , Non resident , Resident but not ordinary resident
Your Answer Resident , Resident but not ordinary resident
Multiple Choice Single Answer
Question Any premium paid by the assessee by Cheque as an employer to effect or
keep in force an insurance on the health of his employees is :-
Correct Answer Allowed as expenses while calculating profits from business and
profession
Your Answer Is allowed as a deduction under Section 80G
Select The Blank
Question Where an assessee files or submits the returns as per provisions of section
139 or in response to the notice under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Your Answer Scrutiny Assessment
Multiple Choice Multiple Answer
Question Assessee gets deduction of interest paid on borrowed capital even if he :-
Correct Answer Takes possession later on , Acquires later on
Your Answer Takes possession later on , Acquires later on
Match The Following
Question Correct Answer Your Answer
Perquisites Indicate benefits or amenities provided by the employer to the employee,
either free of cost or at the concessional rate Indicate benefits or amenities provided by
the employer to the employee, either free of cost or at the concessional rate
House Rent Allowance This indicates the amount paid by the employer to the
employee to meet the expenditure for residential accommodation occupied by the
employee This indicates the amount paid by the employer to the employee to meet
the expenditure for residential accommodation occupied by the employee
Retrenchment Compensation Compensation received by a worker at the time of
retrenchment Compensation received by a worker at the time of retrenchment
Traveling Allowance Any allowance granted to meet the cost of travel on tour or on
transfer of duty. Any allowance granted to meet the cost of travel on tour or on
transfer of duty.
Select The Blank
Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim tax
rebate of ________u/s 88C of the IT Act.
Correct Answer Rs. 5,000
Your Answer Rs. 20,000
Multiple Choice Single Answer
Question Assessment year is the period of 12 months starting from :-
Correct Answer 1st April to 31st March
Your Answer 1st April to 31st March
Multiple Choice Single Answer
Question If notified news agency distributes its income amongst its members then :-
Correct Answer Whole of its income will be taxable
Your Answer It will have to pay tax on distributed profits
Multiple Choice Single Answer
Question Deduction in respect of Contribution to certain pension funds u/s 80CCC
is available to :-
Correct Answer Individuals
Your Answer Individuals
True/False
Question Income from subletting is treated as income from house property.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question In case of Payment of Interest on Securities no tax is required to be
deducted under the following circumstances :-
Correct Answer If the debentures are issued by a widely held company and the
debentures are listed on a stock exchange and if the amount of interest does not exceed
Rs. 2,500 during the financial year. , If the interest paid is on State or Central
Government Securities, If the debentures are issued by an institution, authority, Public
Sector Company or cooperative society as the Central Government may notify.
Your Answer If the interest paid is on State or Central Government Securities , If
the debentures are issued by a widely held company and the debentures are listed on a
stock exchange and if the amount of interest does not exceed Rs.5,000 during the
financial year.
Select The Blank
Question Expenditure incurred by an assessee on advertisement in any brochure,
tract, pamphlet or like published by a ________shall not be allowed as business
expenditure.
Correct Answer Political party
Your Answer Company