McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 1. |
The number of identities included in the definition of persons is |
| A. | five |
| B. | six |
| C. | seven |
| D. | eight |
| Answer» C. seven | |
| 2. |
Deduction available under section 24(a) is _____ of NAV. |
| A. | 30% |
| B. | 50% |
| C. | 15% |
| D. | 70% |
| Answer» A. 30% | |
| 3. |
Expenditure incurred by a businessman for ready to use software is entitled to benefit of |
| A. | 15% as depreciation |
| B. | 30% as depreciation |
| C. | 60% as depreciation |
| D. | 100% as revenue expenditure |
| Answer» D. 100% as revenue expenditure | |
| 4. |
The basic exemption limit for a resident super senior citizen above the age of 80 is |
| A. | Rs. 2,00,000 |
| B. | Rs. 2,50,000 |
| C. | Rs. 5,00,000 |
| D. | None of the above |
| Answer» C. Rs. 5,00,000 | |
| 5. |
The provisions relating to interest on delay in payment of refund are given in section |
| A. | 234A |
| B. | 234B |
| C. | 244A |
| D. | 244B |
| Answer» C. 244A | |
| 6. |
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 mistake in the return of income |
| C. | Any error of principle in the return of income |
| D. | Any claim by the taxpayer which is against law |
| Answer» A. Any arithmetical error in the return | |
| 7. |
Notice under section 156 is given for |
| A. | failure to submit return |
| B. | tax demand |
| C. | deferment of tax |
| D. | None of the above |
| Answer» C. deferment of tax | |
| 8. |
As per section 271H, where a person fails to file the statement of tax deducted/collected at source i.e. TDS/TCS return on or before the due dates prescribed in this regard, then he shall be liable to pay penalty under section 271H. Maximum penalty that can be levied is ______. |
| A. | 1,00,000, but not exceeding the amount of TDS/TCS. |
| B. | 2,00,000 |
| C. | 3,00,000 |
| D. | 4,00,000 |
| Answer» A. 1,00,000, but not exceeding the amount of TDS/TCS. | |
| 9. |
The threshold exemption limit for Equalization levy is? |
| A. | Rs. 5 lakh |
| B. | Rs. 3 lakh |
| C. | Rs. 2 lakh |
| D. | Rs. 1 lakh |
| Answer» D. Rs. 1 lakh | |
| 10. |
Rate of surcharge applicable to a foreign company having total income of Rs. 8 crore is : |
| A. | Nil |
| B. | 2% |
| C. | 5% |
| D. | 10% |
| Answer» B. 2% | |
| 11. |
Income Computation and Disclosure Standards are to be applied in computation of income under the head: |
| A. | Capital Gain only |
| B. | Profits and Gains of Business or Profession only |
| C. | Income from other sources only |
| D. | Both “Profits and Gains from Business or Profession” and “Income from Other Sources” |
| Answer» D. Both “Profits and Gains from Business or Profession” and “Income from Other Sources” | |
| 12. |
New plant and machinery acquired and put to use by an assessee engaged in transmission of power is eligible for additional depreciation at ____ of actual cost. |
| A. | 10% |
| B. | 12.5% |
| C. | 15% |
| D. | 20% |
| Answer» D. 20% | |
| 13. |
Maximum amount of exemption available in respect of amount received under voluntary retirement scheme is: |
| A. | Rs. 2,00,000 |
| B. | Rs. 3,00,000 |
| C. | Rs. 4,00,000 |
| D. | Rs. 5,00,000 |
| Answer» D. Rs. 5,00,000 | |
| 14. |
An individual can claim deduction from his gross total income in respect of expenditure for the medical treatment of a dependent, being a person with disability upto maximum limit of |
| A. | Rs. 50,000 |
| B. | Rs. 1,00,000 |
| C. | Rs. 75,000 |
| D. | Rs. 1,25,000 |
| Answer» D. Rs. 1,25,000 | |
| 15. |
Dividend from a company which is engaged in agricultural activities is: |
| A. | Agriculture income |
| B. | Business income |
| C. | Partly agricultural income |
| D. | None of above |
| Answer» D. None of above | |
| 16. |
Short term capital gain not covered u/s 111A is: |
| A. | Exempt |
| B. | Taxable @ 15% |
| C. | Taxable at normal rate applicable to the assessee |
| D. | None of above |
| Answer» C. Taxable at normal rate applicable to the assessee | |
| 17. |
Loss from house property can be carried forward and set-off in subsequent eight assessment years: |
| A. | If return of loss is filed within due date |
| B. | Even if return of loss is filed after due date |
| C. | Even if return of loss is not filed |
| D. | None of above |
| Answer» C. Even if return of loss is not filed | |
| 18. |
The basic exemption limit in case of a non-resident firm is: |
| A. | Rs. 2,50,000 |
| B. | Rs. 3,00,000 |
| C. | Rs. 5,00,000 |
| D. | None of these |
| Answer» D. None of these | |
| 19. |
TDS u/s 194 in respect of dividend, if payee furnish PAN is: |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | None of above |
| Answer» A. 10% | |
| 20. |
Tax payable by a resident individual, if he has long term capital gain of Rs. 2,60,000 but has no other income is: |
| A. | Rs. 1000 plus cess |
| B. | Rs. 26,000 plus cess |
| C. | Rs. 52,000 plus cess |
| D. | None of above |
| Answer» D. None of above | |
| 21. |
A winning from lotteries is Rs. 50,000 and expenses incurred to earn such income is Rs. 5,000. Its taxable income is |
| A. | Rs. 50,000 |
| B. | Rs. 45,000 |
| C. | Nil |
| D. | None of above |
| Answer» A. Rs. 50,000 | |
| 22. |
Net salary after deducting tax at source Rs. 10,000 is Rs. 2,50,000 .The amount of taxable salary is: |
| A. | Rs. 2,40,000 |
| B. | Rs. 2,50,000 |
| C. | Rs. 2,60,000 |
| D. | None of the above |
| Answer» C. Rs. 2,60,000 | |
| 23. |
Amount of deduction in respect of donation to approved scientific research institution u/s 80GGA is: |
| A. | 100% of such donation |
| B. | 200% of such donation |
| C. | 175% of such donation |
| D. | None of above |
| Answer» A. 100% of such donation | |
| 24. |
Agricultural land located in rural area is: |
| A. | Capital asset |
| B. | Not a capital asset |
| C. | Exempted capital asset |
| D. | None of above |
| Answer» B. Not a capital asset | |
| 25. |
TDS U/s 193 in respect of interest on securities if payee does not furnish PAN is: |
| A. | Rate in force |
| B. | Rate as per Act |
| C. | Nil |
| D. | None of above |
| Answer» D. None of above | |
| 26. |
Income of public charitable trust registered u/s 12A is: |
| A. | Exempt |
| B. | Taxable at MMR |
| C. | Taxable at slab rates |
| D. | None of above |
| Answer» A. Exempt | |
| 27. |
The number of Income computation and Disclose Standards issued so far are: |
| A. | 32 |
| B. | 24 |
| C. | 10 |
| D. | None of above |
| Answer» C. 10 | |
| 28. |
Expenditure in respect of winnings from card games is: |
| A. | Deductible |
| B. | Not deductible |
| C. | Deductible if conditions are satisfied |
| D. | None of above |
| Answer» B. Not deductible | |
| 29. |
Tax payable by a non-resident individual, if he has long term capital gain of Rs. 2,60,000 but has no other income is: |
| A. | Rs. 1000 plus cess |
| B. | Rs. 26,000 plus cess |
| C. | Rs. 52,000 plus cess |
| D. | None of above |
| Answer» C. Rs. 52,000 plus cess | |
| 30. |
Stake money on owning and maintaining race horses is Rs. 70,000 and expenses incurred is Rs. 20,000. Its taxable income is: |
| A. | Rs. 70,000 |
| B. | Rs. 50,000 |
| C. | Nil |
| D. | None of above |
| Answer» B. Rs. 50,000 | |
| 31. |
Rent after deducting municipal taxes is Rs. 2,00,000, the amount of taxable income from house property is: |
| A. | Rs. 2,00,000 |
| B. | Rs. 1,40,000 |
| C. | Rs. 2,60,000 |
| D. | None of above |
| Answer» B. Rs. 1,40,000 | |
| 32. |
Contribution to approved research (not scientific) institution in case of a business man is: |
| A. | 100% of such amount |
| B. | 125% of such amount |
| C. | 175% of such amount |
| D. | None of above |
| Answer» A. 100% of such amount | |
| 33. |
Rebate u/s 87A is allowed to an Individual who is resident in India and whose total income does not exceed ________. |
| A. | Rs. 2,50,000 |
| B. | Rs. 3,00,000 |
| C. | Rs. 5,00,000 |
| D. | None of the above |
| Answer» D. None of the above | |
| 34. |
The payment under Bhopal Gas Leak Disaster shall be______ |
| A. | Fully taxable |
| B. | Partially taxable |
| C. | Exempt |
| D. | None of the above |
| Answer» C. Exempt | |
| 35. |
Compensatory field area allowance is exempt upto ______ |
| A. | 1,300 |
| B. | 1,800 |
| C. | 2,500 |
| D. | 2,600 |
| Answer» D. 2,600 | |
| 36. |
The time limit for acquisition or construction of self-occupied house property for claiming deduction of interest is: |
| A. | 3 years |
| B. | 5 years |
| C. | 8 years |
| D. | 10 years |
| Answer» B. 5 years | |
| 37. |
Tax to be collected at source in case of motor vehicle value exceeding ________. |
| A. | Rs. 2,50,000 |
| B. | Rs. 5,00,000 |
| C. | Rs. 7,50,000 |
| D. | Rs. 10,00,000 |
| Answer» D. Rs. 10,00,000 | |
| 38. |
Interest rate on refund as per section 244A (1A) |
| A. | 3% |
| B. | 6% |
| C. | 9% |
| D. | None of the above |
| Answer» C. 9% | |
| 39. |
Quantum of deduction u/s 80EE is______. |
| A. | 5,000 |
| B. | 50,000 |
| C. | 75,000 |
| D. | None of the above |
| Answer» B. 50,000 | |
| 40. |
Island duty allowance is exempt upto ___ |
| A. | 1,300 |
| B. | 1,800 |
| C. | 2,500 |
| D. | 3,250 |
| Answer» D. 3,250 | |
| 41. |
Threshold limit for person having income from business u/s 44AD is_______. |
| A. | 50 Lakh |
| B. | 80 Lakh |
| C. | 1 crore |
| D. | 2crore |
| Answer» D. 2crore | |
| 42. |
Tax to be collected at source in case of commission on sale of lottery tickets. |
| A. | 1% |
| B. | 2% |
| C. | 5% |
| D. | 10% |
| Answer» C. 5% | |
| 43. |
When a person having agricultural lands sells the seeds taken from such lands in a nursery, which is part of the said lands, the income from such sale is treated as |
| A. | Business income |
| B. | Agricultural income |
| C. | Income from other sources |
| D. | None of the above |
| Answer» B. Agricultural income | |
| 44. |
An employer has paid medical insurance premium of Rs. 12,000 in respect of a salaried employee drawing annual salary of Rs. 6 lakhs. The amount of perquisite charged in the hands of employee is |
| A. | Nil |
| B. | Rs. 6,000 |
| C. | Rs.12,000 |
| D. | None of the above |
| Answer» A. Nil | |
| 45. |
The rate of depreciation for a block of assets consisting of buildings used as factory is |
| A. | 2.5% |
| B. | 5% |
| C. | 10% |
| D. | None of the above |
| Answer» C. 10% | |
| 46. |
In case of a Hindu Undivided Family, where the return of income cannot be signed by the Karta, the same can be signed by |
| A. | the next senior-most male member. |
| B. | Karta's wife. |
| C. | any male member of the family. |
| D. | any adult member of the family. |
| Answer» D. any adult member of the family. | |
| 47. |
In case of an individual or HUF, to determine whether certain TDS provisions are attracted, what has to be seen is whether the person is subject to tax audit under section 44AB in |
| A. | the immediately preceding financial year. |
| B. | current year. |
| C. | last two continuous financial years. |
| D. | None of the above |
| Answer» A. the immediately preceding financial year. | |
| 48. |
A senior citizen having total income consisting of pension and let out property income aggregating to Rs. 6 lakhs must have paid advance tax during the financial year 2015-16 of |
| A. | NIL |
| B. | 90% of Rs. 28,840 |
| C. | 90% of 44,290 |
| D. | 90% of Rs. 39,140 |
| Answer» A. NIL | |
| 49. |
Mr. Ramji is employed in ABC Ltd. who maintained a hospital for treatment of employees. During the financial year 2015-16, the value of medical benefit availed by Ramji’s family from the hospital was Rs. 2,10,000. The amount of medical perquisite chargeable to income tax would be |
| A. | Rs. 2,10,000 |
| B. | Rs. 1,05,000 |
| C. | Rs. 21,000 |
| D. | Nil |
| Answer» A. Rs. 2,10,000 | |
| 50. |
Mr. A has loss from regular business of Rs. 8lakhs and income from speculation business of Rs. 11 lakhs. His total income chargeable to tax would be |
| A. | Rs. 3,00,000 |
| B. | Rs. 11,00,000 |
| C. | Rs. 7,00,000 |
| D. | Rs. 2,50,000 |
| Answer» A. Rs. 3,00,000 | |
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