McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 101. |
Financial Year 2017-18 shall be considered as |
| A. | Assessment Year for the P.Y. 2016-17 and previous year for the A.Y. 2017-18 |
| B. | Assessment Year for the P.Y. 2016-17 and previous year for the A.Y. 2018-19 |
| C. | Assessment Year for the previous year 2017-18 |
| D. | Previous year for the assessment year 2017-18 |
| Answer» B. Assessment Year for the P.Y. 2016-17 and previous year for the A.Y. 2018-19 | |
| 102. |
For the purpose of levying tax on income other than agricultural income, Union List contained entry |
| A. | 82 |
| B. | 92C |
| C. | 92D |
| D. | None of the Above |
| Answer» A. 82 | |
| 103. |
Following is not a head of income: |
| A. | Income from House Property |
| B. | Salaries |
| C. | Income from Interest on securities |
| D. | None of the Above |
| Answer» C. Income from Interest on securities | |
| 104. |
If total income of a person is Rs. 2,67,888.34, it shall be rounded off to: |
| A. | Rs. 2,67,888/- |
| B. | Rs. 2,67,890/- |
| C. | Rs. 2,67,880/- |
| D. | None of the Above |
| Answer» B. Rs. 2,67,890/- | |
| 105. |
Income tax is a: |
| A. | Indirect Tax |
| B. | Entertainment Tax |
| C. | Direct Tax |
| D. | None of the Above |
| Answer» C. Direct Tax | |
| 106. |
A Hindu Undivided family is said to be resident in India if |
| A. | The family has a house in India where some of its members reside |
| B. | The member of such HUF is in India during the previous year |
| C. | Control and management of its affairs wholly or partly situated in India |
| D. | The Karta has been resident in India in atleast 9 out of 10 previous years preceding the relevant previous year |
| Answer» C. Control and management of its affairs wholly or partly situated in India | |
| 107. |
An individual is said to be resident in India if |
| A. | He has a house in India |
| B. | He is in India in the previous year for a period of 182 days or more |
| C. | He is in India for a period of 30 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year |
| D. | His parents are Indian citizen. |
| Answer» B. He is in India in the previous year for a period of 182 days or more | |
| 108. |
An Indian citizen leaving India during the previous year for employment purpose is said to be resident if |
| A. | He has a house in India |
| B. | He is in India in the previous year for a period of 182 days or more |
| C. | He is in India for a period of 60 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year |
| D. | His parents are Indian citizen. |
| Answer» B. He is in India in the previous year for a period of 182 days or more | |
| 109. |
An individual, being foreign national, came to India first time during the previous year 2017-18 on 01-01-2018 for 200 days, his residential status for the previous year 2017-18 is. |
| A. | Non-resident |
| B. | Resident but not ordinarily resident in India |
| C. | Resident and ordinarily resident in India |
| D. | Resident in India |
| Answer» A. Non-resident | |
| 110. |
Following income of a resident and ordinarily resident is taxable in India, that is |
| A. | Bank interest from State Bank of India, Delhi |
| B. | Bank interest from Bank of America, New York Branch |
| C. | Rental income from house property located in London |
| D. | All of the above |
| Answer» D. All of the above | |
| 111. |
Which of the following is an agriculture income? |
| A. | Dividend paid by a company out of its agriculture income. |
| B. | Share of Profit of a Partner from a firm engaged in an agriculture operation |
| C. | Income from supply of water by aassessee from a tank in its agriculture la |
| Answer» B. Share of Profit of a Partner from a firm engaged in an agriculture operation | |
| 112. |
Which of the following incomes received by an assessee are exempt under section 10 of the Income Tax Act? |
| A. | Agriculture Income |
| B. | Salary of a partner from a firm |
| C. | Salary received by a member of a ship’s crew. |
| D. | All of (a), (b) and (c) above |
| Answer» A. Agriculture Income | |
| 113. |
In case of an individual or HUF, agricultural income is |
| A. | Exempted |
| B. | Exempted but included in the total income for the rate purpose |
| C. | Fully taxable provided it is earned from India |
| D. | Taxable at flat rate of 10% |
| Answer» B. Exempted but included in the total income for the rate purpose | |
| 114. |
In case of an assessee engaged in the business of manufacturing of tea, his agricultural income is: |
| A. | 60% of total receipt of the business |
| B. | 60% of income of the business |
| C. | Nil |
| D. | Total business income |
| Answer» C. Nil | |
| 115. |
Remuneration to partner of a firm engaged in the business of growing and manufacturing rubber in India is: |
| A. | Partly agricultural income and partly non-agricultural income |
| B. | Agricultural income |
| C. | Non-Agricultural income |
| D. | None of the above |
| Answer» A. Partly agricultural income and partly non-agricultural income | |
| 116. |
Following activity shall be considered as agricultural activity: |
| A. | Subsequent operation on the agricultural land |
| B. | Basic operation on the agricultural land |
| C. | Basic and subsequent operation on the agricultural land |
| D. | Both (b) and (c) |
| Answer» D. Both (b) and (c) | |
| 117. |
Which of the following is not taxable under head ‘Salaries’? |
| A. | Remuneration paid to the lecturer of a college for setting a question paper by a university. |
| B. | Salary received by a member of the Parliament. |
| C. | Commission received by an employee director of a company. |
| D. | Both (a) and (b) above |
| Answer» D. Both (a) and (b) above | |
| 118. |
Employer’s contribution to unrecognized provident fund |
| A. | Is exempt from tax |
| B. | 10% of Salary of employee is taxable |
| C. | Is exempted subject to maximum of 2/5 of salary of the employee |
| D. | Is fully taxable |
| Answer» A. Is exempt from tax | |
| 119. |
If a domestic servant is engaged by the employer and salary is paid by him, the perquisite is |
| A. | Taxable in the hands of all employees |
| B. | Not taxable in the hands of both specified and non-specified employers |
| C. | Taxable in the hands of specified employees only |
| D. | Taxable to the extent of Rs. 120 per person in the hands of all employees. |
| Answer» C. Taxable in the hands of specified employees only | |
| 120. |
Which of the following is taxable under the head ‘salaries’? |
| A. | Salary received by a Member of State Legislature. |
| B. | Commission received by an employee director of a company. |
| C. | Family pension received |
| D. | Both (a) and (b) above |
| Answer» B. Commission received by an employee director of a company. | |
| 121. |
Who among the following is a specified employee? |
| A. | A director of a company |
| B. | An employee drawing a salary of Rs. 15,000 p.m. |
| C. | A person who is an owner of equity shares carrying 10% voting power in the employer company. |
| D. | Both (a) and (b) above |
| Answer» D. Both (a) and (b) above | |
| 122. |
Rate of Interest accruing to a particular employee by virtue of his employer’s contribution to Recognized Provident Fund is 12.5% p. a. In such a case |
| A. | Total Interest accrued is taxable |
| B. | Total Interest accrued is exempt |
| C. | Only 10% Interest is taxable |
| D. | Only 3% of interest is taxable |
| Answer» D. Only 3% of interest is taxable | |
| 123. |
Statutory limit u/s.16(ii) for deduction of entertainment allowance in case of a nonGovernment employee is |
| A. | Rs. 5,000 |
| B. | 12.5% of employees’ salary |
| C. | 20% of employees’ salary |
| D. | NIL |
| Answer» D. NIL | |
| 124. |
Taxable value of perquisite being sweat equity shares allotted by the employer is: |
| A. | The fair market value of such shares as on the date when such option is exercised by the employee as reduced by the amount paid |
| B. | The fair market value of such shares as on the date when such option is vested to the employee as reduced by the amount paid |
| C. | Fair market value subject to standard deduction of Rs. 50,000 |
| D. | Not taxable in hands of employee. |
| Answer» A. The fair market value of such shares as on the date when such option is exercised by the employee as reduced by the amount paid | |
| 125. |
Net Annual Value of a self-occupied property treated as such is: |
| A. | Fair Rent |
| B. | Nil |
| C. | Reasonable Expected Rent as reduced by municipal tax paid during the previous year. |
| D. | None of the Above |
| Answer» B. Nil | |
| 126. |
One out of the following house properties is not exempted, which is: |
| A. | House property of a political party |
| B. | House property let out for the purpose of own business of tenant. |
| C. | House property of a local authority |
| D. | None of the Above |
| Answer» B. House property let out for the purpose of own business of tenant. | |
| 127. |
A house property located outside India is: |
| A. | Taxable in hands of all assessee |
| B. | Taxable in hands of non residentassessee |
| C. | Taxable in hands of resident and ordinarily resident assessee |
| D. | Exempted from tax in India. |
| Answer» C. Taxable in hands of resident and ordinarily resident assessee | |
| 128. |
Deduction u/s 24(a) is |
| A. | 30% of net annual value of the house property |
| B. | 30% of gross annual value of house property |
| C. | 30% of actual rent received |
| D. | None of the Above |
| Answer» A. 30% of net annual value of the house property | |
| 129. |
Interest relating to pre-construction period is allowable: |
| A. | In 5 equal installments from the year in which it was incurred. |
| B. | In the year in which it was incurred |
| C. | In the year in which house property was constructed |
| D. | None of the Above |
| Answer» D. None of the Above | |
| 130. |
For the purpose of claiming higher deduction u/s 24(b), while computing income of a self-occupied property, assessee is required to take: |
| A. | Loan on or before 01-04-1999 |
| B. | Loan on or after 01-04-1999 |
| C. | Loan after 01-04-1999 |
| D. | Loan on 01-04-1999 |
| Answer» B. Loan on or after 01-04-1999 | |
| 131. |
Income from sub-letting is: |
| A. | Taxable under the head ‘Income from House Property’ |
| B. | Taxable under the head ‘Income from Other Sources’ |
| C. | Exempted |
| D. | None of the above |
| Answer» B. Taxable under the head ‘Income from Other Sources’ | |
| 132. |
Deduction u/s 24(a) is not available when: |
| A. | Net annual value is zero |
| B. | Net annual value is positive |
| C. | Net annual value is zero or negative |
| D. | None of the above |
| Answer» C. Net annual value is zero or negative | |
| 133. |
Which of the following deductions is /are not allowed in case of a deemed to be let-out house? |
| A. | New construction allowance |
| B. | Repairs |
| C. | Vacancy allowance |
| D. | All of the above |
| Answer» D. All of the above | |
| 134. |
Which of the following is not allowed as a deduction for computation of business Income? |
| A. | Loss incurred due to theft in factory after working hours |
| B. | Anticipated future losses |
| C. | Loss caused by white ants |
| D. | Loss due to accidental fire in stock-in-trade |
| Answer» B. Anticipated future losses | |
| 135. |
Preliminary expenses are incurred in every business. What are the expenses that qualify for deduction u/s.35D? |
| A. | Expenses for drafting memorandum and articles of association |
| B. | Payment of duty at the office of Registrar of Companies |
| C. | Expenditure incurred in preparation of project report |
| D. | All of the above |
| Answer» D. All of the above | |
| 136. |
Expenditure incurred by a company for the purpose of promoting family planning among its employees, being of a capital nature |
| A. | Is not allowed as a deduction |
| B. | Allowed as deduction in 4 equal installments in 4 years |
| C. | 1/5 of expenditure is allowed as deduction in the previous year |
| D. | 4/5 of expenditure is allowed as deduction in 4 equal installments in 4 years after the previous year |
| Answer» C. 1/5 of expenditure is allowed as deduction in the previous year | |
| 137. |
Expenditure on promotion of family planning is an allowance as deduction u/s. 36(1)(ix) of the Income Tax Act, 1961 in case of |
| A. | Individual |
| B. | Firm |
| C. | HUF |
| D. | Company |
| Answer» D. Company | |
| 138. |
Deduction u/s 35AD is available in respect of expenditure on specified business, one of them is: |
| A. | Setting up and operating a cold chain facility |
| B. | Setting up and operating a power plant |
| C. | Setting up and operating an industrial unit |
| D. | All of the above |
| Answer» A. Setting up and operating a cold chain facility | |
| 139. |
Deduction u/s 35AD is available in respect of expenditure on specified business provided such business commenced its operation on or after 01-04-2009 subject to an exception that: |
| A. | Business of industrial undertaking may be commenced at any time on or after 01-04- 2007 |
| B. | Business of laying and operating a cross-country natural gas pipeline network may be commenced at any time on or after 01-04-2007 |
| C. | Business of cold chain facility may be commenced at any time on or after 01-04- 2007 |
| D. | All of the above |
| Answer» B. Business of laying and operating a cross-country natural gas pipeline network may be commenced at any time on or after 01-04-2007 | |
| 140. |
In case of loss, a partnership firm may claim deduction in respect of remuneration to partner to the extent of: |
| A. | Rs. 1,50,000/- |
| B. | Rs. ,50,000/- or remuneration paid, whichever is lower |
| C. | Rs. 1,50,000/- or 90% of book profit, whichever is lower |
| D. | Nil |
| Answer» B. Rs. ,50,000/- or remuneration paid, whichever is lower | |
| 141. |
Block of asset is required to be increased by an amount which is actual cost of the asset being covered u/s 35AD that amount is: |
| A. | Actual expenditure |
| B. | Nil |
| C. | 50% of actual expenditure |
| D. | None of the above. |
| Answer» B. Nil | |
| 142. |
A payment of Rs. 25,000 is made to the road transport-operator on 20-02-2018 in cash, consequently, amount disallowed u/s 40A(3) is |
| A. | Nil |
| B. | Rs. 25,000 |
| C. | Rs. 5,000 |
| D. | None of the above |
| Answer» A. Nil | |
| 143. |
U/s 54, capital gain will be allowed as exemption if the house property under transfer is held for |
| A. | Less than 12 months preceding the date of transfer |
| B. | More than 12 months preceding the date of transfer |
| C. | Less than 36 months preceding the date of transfer |
| D. | More than 24 months preceding the date of transfer |
| Answer» D. More than 24 months preceding the date of transfer | |
| 144. |
Capital gain on Slump sale is |
| A. | always short-term capital gain |
| B. | always long-term capital gain |
| C. | Depends on period of holding of capital asset being undertaking transferred |
| D. | Not taxable |
| Answer» C. Depends on period of holding of capital asset being undertaking transferred | |
| 145. |
While computing capital gain on sale of immovable property, full value of consideration shall be: |
| A. | Actual consideration |
| B. | Actual consideration less expenses on transfer |
| C. | Actual consideration or stamp duty value of the property transferred, whichever is higher |
| D. | Stamp Value of the property transferred. |
| Answer» C. Actual consideration or stamp duty value of the property transferred, whichever is higher | |
| 146. |
Cost of acquisition of capital asset being immovable property acquired through gift covered u/s 49(4) is: |
| A. | Actual cost of acquisition to the previous owner |
| B. | Nil |
| C. | Stamp duty value of the property as considered while computing income u/s 56(2) |
| D. | Actual cost of acquisition to the assessee. |
| Answer» C. Stamp duty value of the property as considered while computing income u/s 56(2) | |
| 147. |
Long term capital gain on sale of equity share through stock exchange |
| A. | is exempt u/s 10(38) |
| B. | is exempt u/s 10(37) |
| C. | is covered u/s 111A, hence liable to tax @ 15% |
| D. | is taxable @ 20% and @ 10% if index benefit is not claimed. |
| Answer» A. is exempt u/s 10(38) | |
| 148. |
Caution money forfeited by the assessee is: |
| A. | Taxable in the year of forfeiture under the head “Income from Other Sources” |
| B. | Exempt fully |
| C. | Taxable in the year of forfeiture under the head “Capital Gain” |
| D. | Considered as casual income and liable to tax @ 30%. |
| Answer» A. Taxable in the year of forfeiture under the head “Income from Other Sources” | |
| 149. |
Gift of a capital asset is not considered as transfer, however exception is: |
| A. | Shares acquired under the Employees Stock Option Plan |
| B. | Jewellery |
| C. | Immovable property |
| D. | Nil |
| Answer» A. Shares acquired under the Employees Stock Option Plan | |
| 150. |
Cost of acquisition of self-generated asset is nil, the exception is: |
| A. | Goodwill |
| B. | Route permit |
| C. | Bonus shares acquired before 01-04-2001 |
| D. | Loom hours |
| Answer» C. Bonus shares acquired before 01-04-2001 | |
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