Taxation - 8

Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages, Dearness
Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
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 As per his choice
True/False
Question Any recreational facility provided by the employer to a group of
employees (not being restricted to a select few employees) is not
exempt from tax.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the types of Provident Fund?
Correct Answer Statutory Provident Fund , Recognized Provident Fund ,
Unrecognized Provident Fund
Your Answer Statutory Provident Fund , Recognized Provident Fund ,
Unrecognized Provident Fund
Multiple Choice Multiple Answer
Question The least of the following is the exemption available to an employee if
he is in receipt of house rent allowance :-
Correct Answer 50% of the Salary where such accommodation is situated in Mumbai,
Kolkata, Chennai and Delhi and 40% of the Salary when the
accommodation is situated at any other place. , Actual amount of
HRA received by the employee. , Excess of rent paid over 10% of the
Salary.
Your Answer 50% of the Salary where such accommodation is situated in Mumbai,
Kolkata, Chennai and Delhi and 40% of the Salary when the
accommodation is situated at any other place. , Actual amount of
HRA received by the employee. , Excess of rent paid over 10%of the
Salary.
Multiple Choice Multiple Answer
Question To get deduction of Rs 150000/- as interest on borrowed capital
assessee needs to satisfy conditions i.e. :-
Correct Answer Borrowal is after 1st April 1999 , Construction is completed in 3 years
Your Answer Borrowal is after 1st April 1999 , Construction is completed in 3 years
Multiple Choice Multiple Answer
Question The entertainment allowance received by the Government employees
is included in their salaries and the deduction is allowed to the extent
of least of the following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.
Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.
Select The Blank
Question Section 35AC of the Act applies to any sum paid by the assessee to
a public sector company or a local authority or an association
approved by the national committee for ________ for carrying out
any project in upliftment of public.
Correct Answer Promotion of social and economic welfare
Your Answer Promotion of social and economic welfare
Multiple Choice Single Answer
Question The provisions under section 44AB of the Act, is applicable to the
person carrying on the profession and whose gross receipts in
profession :-
Correct Answer Exceeds Rs.10 lakhs in any previous year
Your Answer Exceeds Rs.40 lakhs in any previous year
Multiple Choice Multiple Answer
Question As per the provision of section 143(2) and 143(3) scrutiny
assessment made by assessing officer in order to ensure that :-
Correct Answer Assessee has not understated the income , Assessee has not
overstated the loss , Assessee has under paid the taxes
Your Answer Assessee has not understated the income , Assessee has not
overstated the loss , Assessee has under paid the taxes , Assessee
has not been allotted the PAN
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt
Your Answer Exempt
True/False
Question Interest paid on the loan for acquiring a capital asset will not be
considered to be a part of cost of acquisition.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question Previous year always ends on :-
Correct Answer 31st March
Your Answer 31st March
Multiple Choice Multiple Answer
Question Perquisites which are taxable only in the hands of specified employee
include the following categories of perquisites :-
Correct Answer Motor Car , Services of sweeper, gardener, watchman or personal
attendant , Gas, electricity and water provided for personal
consumption
Your Answer Motor Car , Services of sweeper, gardener, watchman or personal
attendant , Gas, electricity and water provided for personal
consumption
Select The Blank
Question Short term Capital Gains is taxed at ________.
Correct Answer Normal Tax rates
Your Answer Normal Tax rates
Multiple Choice Single Answer
Question Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of news
Your Answer They apply their income for collection & distribution of news
True/False
Question Clause N0-30 of the Tax Audit requires that, if the cost Audit of the
company carried out, the report of such audit should be enclosed to
the Tax Audit Report.
Correct Answer True
Your Answer True
True/False
Question If an assessee gets the salary from more than one employer during
an Assessment Year, Salary received from all the employers will be
aggregated and then the Standard Deduction will be allowed.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The amount accumulated to the credit of the employee's provident
fund account is paid at the time of :-
Correct Answer Retirement , Resignation
Your Answer Retirement , Resignation
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees
before 15th September of Previous year is :-
Correct Answer 30% of advance tax payable
Your Answer 30% of advance tax payable
Multiple Choice Multiple Answer
Question Any loans or deposits borrowed or repaid under section 269SS of the
Act provides that the said provisions will not apply to the loans or
deposits accepted by :-
Correct Answer Government , Government company , Banking company including
cooperative bank and post office savings bank
Your Answer Government , Government company , Banking company including
cooperative bank and post office savings bank
Multiple Choice Single Answer
Question The amount of advance tax payable by 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 Single Answer
Question The due date prescribed for filing the returns of income in Form No.
2C is
Correct Answer 31st October of the respective Assessment year
Your Answer 31st October of the respective Previous year
True/False
Question The amount of expenses including membership fees and annual fees
incurred by the employee on credit card and which are paid by the
employer shall be added as the perquisites unless the said expenses
are incurred wholly and exclusively for official purposes.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Which of the following expenses should be debited to P & L Account,
but disallowed for Income tax purpose?
Correct Answer Wealth Tax , Personal expenditure , Income Tax
Your Answer Wealth Tax , Revenue expenditure , Personal expenditure
Multiple Choice Single Answer
Question The provisions regarding set off and carry forward of loses are
contained in :-
Correct Answer Sections 70 to 80 of the Income Tax Act, 1961.
Your Answer Sections 70 to 80 of the Income Tax Act, 1961.
Multiple Choice Single Answer
Question A partnership firm is an agreement between not more than :-
Correct Answer 20 persons
Your Answer 20 persons
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54B is for Capital Gains
arising from transfer of :-
Correct Answer Agricultural Land
Your Answer Long Term Capital Asset other than House Property
Select The Blank
Question To acquire PAN, a person shall apply in ________ to the assessing
officer.
Correct Answer Form No. 49A
Your Answer Form No. 49A
Multiple Choice Multiple Answer
Question Any amount deposited by an Individual or a HUF in 10 year or 15
year account under the Post Office Saving Bank (CTD) Rules, 1959.
The account can be in the name of :-
Correct Answer The individual himself , A minor of whom he is the guardian.
Your Answer The individual himself , A minor of whom he is the guardian. , Spouse
of individual
True/False
Question While computing the profits from Business and profession, the
business or profession must be carried out during the previous year.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Following news agencies are specified by the Central Government as
specified news agencies :-
Correct Answer UNI , PTI
Your Answer PTI , NDTV
Select The Blank
Question Any expenditure incurred by the assessee for any purpose which is
________ or which is prohibited by law shall not be allowed as
business expenditure
Correct Answer Offence
Your Answer Anti social
True/False
Question If assessee owns more than one house properties, annual value of
any one of the house property can be treated as nil, and such option
can be changed year on year basis.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Superannuation Fund It is an employee welfare
scheme
It is an employee welfare
scheme
Statutory Provident Fund This is set up as per the
provisions of Provident
Fund Act, 1925.
This is set up as per the
provisions of Provident Fund
Act, 1925.
Recognized Provident Fund the provisions of
Employees Provident Fund
and Miscellaneous
Provisions Act, 1952 apply
to this fund.
the provisions of Employees
Provident Fund and
Miscellaneous Provisions
Act, 1952 apply to this fund.
Unrecognized Provident
Fund
The provident fund which is
not recognized by the
income tax authorities .
The provident fund which is
not recognized by the
income tax authorities .
Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard Deduction will be
Rs.________.
Correct Answer 20000
Your Answer 20000
Select The Blank
Question Mr. Ram is employed by the Central Government as accountant
whose gross salary income is Rs 6,00,000. He can claim standard
deduction of Rs ________ u/s 16(i) of the IT Act.
Correct Answer Rs 20,000
Your Answer Rs 20,000
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 The consideration for transfer of Capital Asset is received by the
transferor is not material while Capital gain chargeable to tax.
Correct Answer True
Your Answer True
True/False
Question The payments for claiming the tax rebate u/s 88 of the IT Act should
be made out of the income chargeable to tax.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question In case of any contribution made by an individual or a HUF to notified
units of any approved mutual fund or of Unit Trust of India in
accordance with a notified scheme (Equity Linked Savings Scheme)
:-
Correct Answer The maximum allowable limit is Rs. 10,000
Your Answer Qualifies for tax rebate under section 88D.
True/False
Question Dividend received from domestic company to its shareholders is
taxable in the hands of the shareholder.
Correct Answer False
Your Answer False
Select The Blank
Question Loss from the activity of owning and maintaining the race horses can
be carried forward and set off in the subsequent Assessment Years
subject to the limit of ________ Assessment years.
Correct Answer 4
Your Answer 4
Select The Blank
Question If the property becomes the property of the assessee before
________, the Fair Market Value of the property of the capital asset
on that date will be considered to be the cost of acquisition
Correct Answer 1st April 1981
Your Answer 1st April 1991
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
Select The Blank
Question After deducting interest on capital & remuneration to partners, firm is
required to pay tax @ ________
Correct Answer Tax 35% + 2% SC +2% EC
Your Answer Tax 35% + 2% SC +2% EC
Multiple Choice Multiple Answer
Question Under the clause No-32 of the Act, in the Tax Audit Report, the
Auditor is required to give the accounting calculation in ratios of :-
Correct Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnover
Your Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnover