Income Tax And Corporate Tax MCQ

Test your knowledge with important Income Tax And Corporate Tax MCQ and their applications. These MCQs are beneficial for competitive exams too. Explore 30 + more Income Tax And Corporate Tax MCQs at Bissoy

• Match the following items of List-I and List-II and select the correct answer:<br>
  ক

  <table class="table-style-1"> <tr> <td><strong>List I (Sections)</strong></td> <td><strong>List II (Maximum Deduction)</strong></td> </tr> <tr> <td>a. Section 80C of I. T. Act</td> <td>1. Rs. 10,000</td> </tr> <tr> <td>b. Section 80D of I. T. Act</td> <td>2. Rs. 40,000</td> </tr> <tr> <td>c. Section 80 DDB of I. T. Act</td> <td>3. Rs. 1,00,000</td> </tr> <tr> <td>d. Section 80 TTA of I. T. Act</td> <td>4. Rs. 15,000</td> </tr></table> a-3, b-1, c-4, d-2

  খ

  a-3, b-4, c-2, d-1

  গ

  a-4, b-3, c-2, d-1

  ঘ

  a-2, b-3, c-1, d-4
• Which of the following part is not taxable as income under the head 'Salaries'?
  ক

  Commission received by a full-time clirector

  খ

  Remuneration received by a partner

  গ

  Allowances received by an employee

  ঘ

  Free accommodation given to an employee
• Gratuity received by a government employee is
  ক

  Exempted upto Rs. 3,50,000

  খ

  Exempted upto Rs. 10,00,000

  গ

  Fully exempted

  ঘ

  Fully taxable
• Which of the following statement/s is/are true?
  ক

  A firm or an individual or a Hindu Undivided Family (HUF) whose books of account are required to be audited under section 44AB shall furnish the return of income electronically under digital signature

  খ

  A resident and ordinarily resident individual/HUF having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India shall furnish the return of income electronically with digital signature

  গ

  Both are true

  ঘ

  A is true while B is false
• First income tax act was enacted in independent India
  ক

  1956

  খ

  1962

  গ

  1961

  ঘ

  1990
• Minimum Alternative Tax (MAT) under Section 115 JB of the Income Tax Act is applicable on
  ক

  Partnership firm

  খ

  Association of persons

  গ

  Certain companies

  ঘ

  All types of companies
• Which of the following are true in tax planning?<br>1. It is futuristic in its approach.<br>2. It has limited scope compared to tax management.<br>3. The benefits arising from it are limited particularly in the short-run.<br>4. Its main objective is to reduce the tax liability.
  ক

  1, 2 and 3

  খ

  Both 1 and 2

  গ

  Both 1 and 4

  ঘ

  2, 3 and 4
• Find out the assessment year for the following previous year House property Income for which the previous year is April, 2013 to March, 2014?
  ক

  2013-14

  খ

  2014-15

  গ

  2015-16

  ঘ

  2012-13

  ঙ

  2013-15
• If an assessee is engagedin the business of growing and manufacturing tea in India, the portion of agricultural income in that case shall be
  ক

  100%

  খ

  60%

  গ

  50%

  ঘ

  40%
• According to the income tax act, a person means
  ক

  A person/an individual

  খ

  HUF (Hindu Undivided Family)

  গ

  Firm

  ঘ

  All of these
• ADEN Rules, 1953 is related to which of the following?
  ক

  Tax exemption

  খ

  Residential status

  গ

  Double taxation relief

  ঘ

  Assessment of corporate entity
• Under which of the following categories, a partner of partnership firm will be assessed?
  ক

  An individual

  খ

  HUF

  গ

  Firm

  ঘ

  Body of an Individual
• If the payee does not furnish PAN and TDS under section 194, dividends shall be made at:
  ক

  20%

  খ

  15%

  গ

  10%

  ঘ

  Nil
• The following methods as per section 92C are used in determination of arm's length prices from international transactions and specified domestic transaction except:
  ক

  Comparable uncontrolled price method

  খ

  Resale price method

  গ

  Cost method

  ঘ

  Transactional net margin method
• Assertion (A): Revenue from indirect taxes was the major source of tax revenue till tax reforms were taken during nineties.<br>Reason (R): Traditionally India's tax regime relied heavily on indirect taxes including customs and excise.
  ক

  Both (A) and (R) are correct, but (R) is not the correct explanation of (A)

  খ

  (A) is correct, but (R) is not correct

  গ

  Both (A) and (R) are correct and (R) is the correct explanation of (A)

  ঘ

  Both (A) and (R) are incorrect
• Given is the information related to a house<br>Municipal Value (M.V.) Rs. 1,50,000<br>Fair Rent Rs. 1,80,000<br>Standard Rent Rs. 1,60,000<br>Actual Rent Rs. 20000<br>Municipal tax paid by owner is 20% of M. V. Unrealised rent 40,000 (conditions of rule 4 satisfied). What is the annual value of the house?
  ক

  Rs. 1,60,000

  খ

  Rs. 1,50,000

  গ

  Rs. 2,10,000

  ঘ

  Rs. 1,70,000
• As per transfer pricing provisions, an advance pricing agreement is valid for
  ক

  Such period as specified in the APA, but not exceeding 3 consecutive years

  খ

  Such period as specified in the APA, but not exceeding 5 consecutive years

  গ

  2 years

  ঘ

  none of the above
• Property income is exempt from tax in which of the following case(s)?
  ক

  Income from farm house

  খ

  Property income of political party

  গ

  Property income of trade union

  ঘ

  All of the above
• Dividend received from Hindalco will be taxable
  ক

  For resident

  খ

  For Not ordinary resident

  গ

  None of these

  ঘ

  For all of these
• The order of the Assessing Officer under section 210(3) requiring the taxpayer to pay advance tax on his current year's income may be passed during the financial year, but not later than:
  ক

  15^th March

  খ

  Last day of January

  গ

  Last day of February

  ঘ

  15^th September
• Interest on excess refund is not payable if the amount of refund is :
  ক

  Less than Rs. 10,000

  খ

  More than Rs. 10,000

  গ

  More than Rs. 11,000

  ঘ

  More than Rs. 15,000
• Which of the following statements is correct in regards to health and education cess?<br>1. Amount of income tax shall be increased by health and education cess.<br>2. Amount of income tax and surcharge shall be increased by health and education cess.<br>Select the correct answer:
  ক

  1 only

  খ

  2 only

  গ

  Both 1 and 2

  ঘ

  Neither 1 nor 2
• Under Sec. 194 1B of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited u/s 44 AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds:
  ক

  50,000 per month

  খ

  15,000 per month

  গ

  25,000 per month

  ঘ

  40,000 per month
• In own or leasean asset, which of the following point/s is/are important?
  ক

  The assessee should follow such a method for obtaining an asset which reduces his tax liability and profits after tax are greater

  খ

  Own funds should not be used in purchase of an asset because interest on owned fund is not deductible in computing total income, whereas interest on borrowed funds is deductible

  গ

  We can invest the own fund outside the business and the interest earned will offset the interest payment of outside loan

  ঘ

  All of the above
• Which of the following components are true about tax planning?<br>1. Tax planning is the process of analyzing a financial plan or a situation from a tax perspective.<br>2. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency.<br>3. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success.<br>4. Tax planning comprises various considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures.<br>5. The chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome.
  ক

  1, 2 and 3

  খ

  2, 3 and 4

  গ

  3, 4 and 5

  ঘ

  All of the above
• Assertion (A): If the interest is payable outside India, tax must be deducted at source.<br>Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.<br>Select the correct answer:
  ক

  Both (A) and (R) are correct and (R) is the correct explanation of (A)

  খ

  Both (A) and (R) are correct, but (R) is not the correct explanation of (A)

  গ

  (A) is correct, but (R) is wrong

  ঘ

  (A) is wrong, but (R) is correct
• Agriculture income is exempted from income tax under the following section of Income Tax Act, 1961
  ক

  2 (1A)

  খ

  10 (1)

  গ

  10 (2)

  ঘ

  10 (4)
• Which of the following amount of penalty is imposable under section 272BB?
  ক

  Rs. 50,000

  খ

  Rs. 25,000

  গ

  Rs. 10,000

  ঘ

  Rs. 5,000
• Which of the following will be considered as tax planning effort?<br>1. Mr. A purchased a house for self-residence of Rs. 8 lakh by taking a loan of Rs. 60 lakh from SBI at 10% interest, instead of using his own funds.<br>2. Mr. A made investment in purchasing 12% redeemable debentures of TISCO worth Rs. 1.50 lakh.<br>3. Mr. A purchased 100 gm gold biscuits of Rs. 2.5 lakh from SBI on the occasion of Diwali.<br>4. Mr. A invested Rs. 1 crore in purchasing 5 acres of agricultural land in his native village in Gaya.
  ক

  Both 1 and 2

  খ

  Both 2 and 3

  গ

  Both 1 and 4

  ঘ

  Both 3 and 4
• Which of the following is not a head of Income as prescribed by the Income Tax Act?
  ক

  Income from Salary

  খ

  Income from House Property

  গ

  Income from Foreign Earnings

  ঘ

  Income from Business and Profession

  ঙ

  Income from Capital Gains