McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 151. |
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 |
| Answer» A. Annual value | |
| 152. |
Mr. Ram owns a house property. He lent it to Laxman at`10,000 p.m. Laxman sublet it to Mr. Maruti on monthly rent of`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 |
| Answer» C. Income from House Property | |
| 153. |
Deduction from annual value is allowed under ______________. |
| A. | Section 24 |
| B. | Section 25 |
| C. | Section 27 |
| D. | Section 28 |
| Answer» A. Section 24 | |
| 154. |
………………………….% standard deduction is allowed on annual value. |
| A. | 20 |
| B. | 30 |
| C. | 40 |
| D. | 50 |
| Answer» B. 30 | |
| 155. |
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 |
| Answer» A. Actual rent | |
| 156. |
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 |
| Answer» B. Written down value of the machinery | |
| 157. |
Income chargeable under the head ‘Profits and Gains from Business or Profession’ is covered under _______________. |
| A. | Section 23 |
| B. | Section 24 |
| C. | Section 28 |
| D. | Section 27 |
| Answer» C. Section 28 | |
| 158. |
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 |
| Answer» A. Gross Total Income | |
| 159. |
Mr. X made payment to Mr. Y on which Mr. X failed to deduct the TDS. Mr. Y (Resident) fulfilled the following requirements so that Mr. X should not be deemed to be an assesses in default. Which of the following was wrongly complied by Mr.Y because of which Mr. X was treated as assesses in default? |
| A. | Furnished his return u/s 139. |
| B. | Offered the income in return on which TDS should have been done by Mr. X. |
| C. | Paid the Tax Due on the income declared by him in such return of Income. |
| D. | Furnished a Certificate to this effect from C.A. in Form 27BA. |
| Answer» D. Furnished a Certificate to this effect from C.A. in Form 27BA. | |
| 160. |
Because of Death of his Son Mr. Salman could not file Quarterly statement for TDS Deducted. As there is a reasonable cause for such failure which of the following will not be levied: |
| A. | Penalty |
| B. | Fees |
| C. | Both |
| D. | none |
| Answer» B. Fees | |
| 161. |
Mr.Marshal owned network of telecom towers and infrastructure services. He let out these to major telecom operators of the country. He applied u/s. 197 for obtaining a certificate of lower deduction of tax. As per the Judgment of Indus Towers Ltd. Vs CIT (2014)(Del.) at what rate Tax shall be deducted |
| A. | 1% u/s 194C |
| B. | 10% u/s 194I |
| C. | 2% u/s 194I |
| D. | 0.5% u/s 194C |
| Answer» C. 2% u/s 194I | |
| 162. |
State Government pays commission of Rs.20, 000/- to one of its agent on sale of Lottery Tickets. |
| A. | TDS is required to be made @ 5% on any amount paid as commission for sale of lottery tickets |
| B. | TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 15,000/- |
| C. | TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 30,000/- |
| D. | TDS shall not be deducted as payment is made by State Government |
| Answer» B. TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 15,000/- | |
| 163. |
Taxpayers opting for presumptive taxation scheme of Section 44AD are required to pay up to of advance tax by 15th June? |
| A. | 15% |
| B. | 45% |
| C. | 75% |
| D. | Nil |
| Answer» A. 15% | |
| 164. |
Full form of TDS is : |
| A. | Tax Deducted at source. |
| B. | Tax sources. |
| C. | Tax Challan |
| D. | Tax Deposited at source |
| Answer» A. Tax Deducted at source. | |
| 165. |
ITR -5 is related to : |
| A. | For Individuals |
| B. | For HUF. |
| C. | For Firms, AOPs And BOIs. |
| D. | For Companies. |
| Answer» C. For Firms, AOPs And BOIs. | |
| 166. |
Challan No……………. is used by all categories of tax payers for payment of income tax. |
| A. | Challan no.280 |
| B. | Challan no.282 |
| C. | Challan no.281 |
| D. | Challan no.281(A) |
| Answer» A. Challan no.280 | |
| 167. |
………………….is responsible to deduct tax at source. |
| A. | Assessee |
| B. | Payee |
| C. | Payer |
| D. | Agencies. |
| Answer» C. Payer | |
| 168. |
Tax refund has to be claimed within : |
| A. | Five years |
| B. | Same year |
| C. | One year |
| D. | Next year |
| Answer» C. One year | |
| 169. |
In the case of companies, income tax return is signed by: |
| A. | Manager |
| B. | Board of Directors. |
| C. | 3.General Manager. |
| D. | Managing Director |
| Answer» D. Managing Director | |
| 170. |
In the absence of the individual assesses, return of income can be signed by ………………… |
| A. | Legal Heir |
| B. | Spouse. |
| C. | Any Person. |
| D. | Authorized person |
| Answer» D. Authorized person | |
| 171. |
The filing of return of loss in case of a person other than a company or firm is: |
| A. | mandatory |
| B. | not mandatory |
| C. | mandatory if the assesses has to carry forward the loss which are allowed to be carried forward & set off |
| D. | none |
| Answer» A. mandatory | |
| 172. |
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. 1,00,000 |
| D. | Rs. 1,50,000 |
| Answer» C. Rs. 1,00,000 | |
| 173. |
An individual needs to pay Rs. 1,00,000 as advance tax. By 15th of December, how much amount must be paid by the individual: |
| A. | Rs. 30,000 |
| B. | Rs. 60,000 |
| C. | Rs. 1,00,000 |
| D. | Nil |
| Answer» B. Rs. 60,000 | |
| 174. |
Mr. DS during the previous year 2018-19 made a payment outside India to a nonresident on which TDS was not paid upto time allowed under section 200. However, such TDS was deducted and paid on 30th September 2019. When shall deduction of this expenditure be allowed to assessee? |
| A. | Previous Year 2018-19 |
| B. | Previous Year 2019-20 |
| C. | Previous Year 2017-18 |
| D. | Not allowed deduction |
| Answer» A. Previous Year 2018-19 | |
| 175. |
Payment of Rs. ` 45,000 made in cash towards purchases of medicines. The amount of disallowance under section 40A(3) is - |
| A. | Rs 45,000 |
| B. | Rs 30,000 |
| C. | Nil |
| D. | Rs 20,000 |
| Answer» A. Rs 45,000 | |
| 176. |
Director sitting fees will be Chargeable Under which head? |
| A. | Income from house property |
| B. | Income from other sources |
| C. | Income from PGBP |
| D. | Income from Capital gain |
| Answer» B. Income from other sources | |
| 177. |
Rental income from the business of leasing out properties would be taxable under the head_______ |
| A. | Income from house property |
| B. | Income from other sources |
| C. | Income from PGBP |
| D. | Income from Capital gain |
| Answer» C. Income from PGBP | |
| 178. |
As per Section 2(e a), which of the following is an asset in case of an individual: |
| A. | Cash in hand up to Rs. 50,000 |
| B. | Shares |
| C. | Debentures or Bonds |
| D. | Motor car used for official purposes |
| Answer» D. Motor car used for official purposes | |
| 179. |
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, 2014 and May, 2014 is received in advance in March, 2014. What will be his gross income for Assessment Year 2014-15? |
| A. | Rs. 5,60,000 |
| B. | Rs. 4,80,000 |
| C. | Rs. 4,40,000 |
| D. | Rs. 5,20,000 |
| Answer» A. Rs. 5,60,000 | |
| 180. |
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 |
| Answer» C. adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses | |
| 181. |
An assessee incurred a sum of Rs.1,10,000 for alteration of the memorandum and articles of association. Such expenditure shall be considered as: |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | Non-deductible expenditure |
| Answer» A. Revenue expenditure | |
| 182. |
franchise fee received by an assessee in tourism business, against special rights given to franchisees to undertake hotel business in assessee’s property is taxable under the head _____ |
| A. | Income from house property |
| B. | Income from PGBP |
| C. | Income from Capital gain |
| D. | Income from other sources |
| Answer» B. Income from PGBP | |
| 183. |
Amendments by the finance act are made applicable from |
| A. | First day of next financial year |
| B. | First day of same financial year |
| C. | Last day of same Accounting year |
| D. | None of the above. |
| Answer» A. First day of next financial year | |
| 184. |
Income by way of royalty in respect of a patent developed and registered in India in respect of person who is resident in India is chargeable to tax at rate of - |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 30% |
| Answer» D. 30% | |
| 185. |
Which of the following is not included in taxable income - |
| A. | Reimbursement of expenses |
| B. | Cash gifts received from non relatives |
| C. | Income from illegal activity |
| D. | Profit on sale of equity shares of unlisted company. |
| Answer» A. Reimbursement of expenses | |
| 186. |
Income Tax is levied on the ___________ of a person. |
| A. | Total Income |
| B. | Total Income-Debt |
| C. | Gross Total Income |
| D. | Net Income-Debt Perquisites |
| Answer» A. Total Income | |
| 187. |
Describe the status of the following person (i.e. individual, HUF, Firm, Company etc.) X and Yare legal heirs of Z. Z died in 2018 and X and Y carry on his business without entering into a partnership. |
| A. | Firm |
| B. | Limited Liability Partnership |
| C. | Company |
| D. | Body of Individual |
| Answer» D. Body of Individual | |
| 188. |
ITAT all decisions are taken by majority of member’s, if the Members are equally divided then the final vote will have of |
| A. | President |
| B. | Chairman |
| C. | Assessing officer |
| D. | Majority Of member |
| Answer» A. President | |
| 189. |
For ITAT special powers of stay is available and stay will automatically Get vacated if matter is not decided in time of. |
| A. | 6 months |
| B. | 9 months |
| C. | 12 months |
| D. | 18 months |
| Answer» A. 6 months | |
| 190. |
Assessment under following section is termed as scrutiny assessment |
| A. | 143(3) |
| B. | 144 |
| C. | Both of the above |
| D. | None of the above |
| Answer» A. 143(3) | |
| 191. |
An appeal to the Commissioner of Income-tax (Appeals) shall be filed in Form No. ________. |
| A. | 35 |
| B. | 36 |
| C. | 34C |
| D. | 35B |
| Answer» A. 35 | |
| 192. |
Section ________ specifies the orders against which an appeal can be filed before the Commissioner of Income tax (Appeals). |
| A. | 246A |
| B. | 260A |
| C. | 253 |
| D. | 261 |
| Answer» A. 246A | |
| 193. |
The Commissioner of Income-tax (Appeals) is the ________ appellate authority |
| A. | First |
| B. | Second |
| C. | Third |
| D. | Fourth |
| Answer» A. First | |
| 194. |
There are certain specified financial transactions in which quoting of PAN is mandatory. If a person intending to enter into such transaction does not hold PAN then, he has to furnish; |
| A. | Form 60 |
| B. | Form 49A |
| C. | Form 49C |
| D. | Form 49AA |
| Answer» A. Form 60 | |
| 195. |
Mr. A is not a citizen of India. He wants to apply for PAN in India and he has consulted you to provide him the applicable form for application of PAN. What would be correct Form; |
| A. | Form 49A |
| B. | Form 49B |
| C. | Form 49AA |
| D. | None of above |
| Answer» C. Form 49AA | |
| 196. |
Which of the following can be corrected while processing the return of income under section 143(1)? |
| A. | any arithmetical error in the return |
| B. | any error in the return of income |
| C. | any mistake in the return of income |
| D. | any claim by the taxpayer which is against law |
| Answer» A. any arithmetical error in the return | |
| 197. |
E-filing of return in case of an office of the Government/company and a firm whose accounts are liable to be audited is: |
| A. | mandatory |
| B. | optional |
| C. | mandatory when its income exceeds Rs. `5,00,000 |
| D. | mandatory when its income exceeds Rs. 10,00,00 |
| Answer» A. mandatory | |
| 198. |
The return of income can be filed with the Income-tax Department in electronic mode only. |
| A. | True |
| B. | False |
| Answer» A. True | |
| 199. |
The return of income is to be furnished in |
| A. | ITNS 281 |
| B. | Form 26AS |
| C. | Form 26Q |
| D. | ITR 1 – to 7 (as the case may be) |
| Answer» D. ITR 1 – to 7 (as the case may be) | |
| 200. |
Supreme Courts precedent in binding on |
| A. | Courts |
| B. | Appellate Tribunals |
| C. | Income Tax Authorities |
| D. | All of the above. |
| Answer» D. All of the above. | |
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