McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 151. |
Interest on delayed compensation or enhanced compensation is taxable: |
| A. | On accrual basis |
| B. | On receipt basis |
| C. | Exempt from tax |
| D. | As per method of accounting of the assessee. |
| Answer» B. On receipt basis | |
| 152. |
While computing taxable interest on delayed compensation, a standard deduction is allowed @ |
| A. | 50% |
| B. | 30% |
| C. | 15% |
| D. | Nil |
| Answer» A. 50% | |
| 153. |
An individual purchased a painting on 01-11-2017 for Rs. 5,00,000 though fair market value of the asset is `5,25,000. Income taxable u/s 56(2)(x) is: |
| A. | Rs. 25,000 i.e., difference between market value and actual consideration |
| B. | Nil as this is not gift |
| C. | Nil as difference between market value and actual consideration does not exceed Rs. 50,000 |
| D. | The provision of sec. 56(2)(x) is not applicable for any transaction entered during P.Y. 2017-18. |
| Answer» C. Nil as difference between market value and actual consideration does not exceed Rs. 50,000 | |
| 154. |
The provision of sec.56(2)(x) is applicable on |
| A. | All assessee |
| B. | Only on corporate assessee |
| C. | On an individual only |
| D. | On an individual and HUF only |
| Answer» A. All assessee | |
| 155. |
Tax is deducted at source on winning from lottery, the rate for such deduction in case of resident individual deductee is: |
| A. | 30.9% |
| B. | Maximum marginal rate of tax |
| C. | 30% if such winning exceeds Rs. 10,000 |
| D. | 33.99% |
| Answer» C. 30% if such winning exceeds Rs. 10,000 | |
| 156. |
While computing income from other sources, deduction is not allowed to the assessee for: |
| A. | Personal expenditure |
| B. | Direct tax |
| C. | Interest payable outside India without TDS |
| D. | All of the above |
| Answer» D. All of the above | |
| 157. |
Gift received by an individual in certain circumstances is not taxable, one of them is: |
| A. | Any gift received from family friend |
| B. | Any gift received on the occasion of any marriage in the family |
| C. | Any gift received on the occasion of the marriage of the individual-assessee |
| D. | All of the above |
| Answer» C. Any gift received on the occasion of the marriage of the individual-assessee | |
| 158. |
Generally, dividend is exempt from tax. Exceptions to this rule is: |
| A. | Dividend distributed by foreign company |
| B. | Dividend covered u/s 2(22)(e) |
| C. | Dividend from co-operative society |
| D. | All of the above |
| Answer» D. All of the above | |
| 159. |
One of the following receipt is taxable under the head ‘Income from Other Sources’: |
| A. | Uncommuted pension received from ex-employer |
| B. | Income from racing establishment |
| C. | Rental income from house property |
| D. | Income on transfer of rural agro land |
| Answer» B. Income from racing establishment | |
| 160. |
A person is deemed to have substantial interest in a company if he is |
| A. | The owner of at least 20% of equity capital of the company |
| B. | The owner of at least 25% of equity capital of the company |
| C. | Entitled to 10% of profits of the concern |
| D. | An employee director |
| Answer» A. The owner of at least 20% of equity capital of the company | |
| 161. |
Income of minor is clubbed however the clubbing provision is not applicable if |
| A. | Minor is a married daughter |
| B. | Minor is handicapped as specified u/s 80U |
| C. | Parents are separated |
| D. | None of the above |
| Answer» B. Minor is handicapped as specified u/s 80U | |
| 162. |
As per sec.60, income is clubbed if |
| A. | Asset yielding income is transferred as revocable transfer |
| B. | Income is transferred without transferring asset yielding income |
| C. | Asset yielding income is transferred as irrevocable transfer |
| D. | None of the above |
| Answer» B. Income is transferred without transferring asset yielding income | |
| 163. |
Any income from an asset transferred to spouse without adequate consideration is clubbed in the hands of the transferor if: |
| A. | Such asset is held by the spouse as on the last day of the previous year |
| B. | Relationship between them exist as on the date of accrual of income |
| C. | Transferee is not a senior citizen |
| D. | None of the above |
| Answer» B. Relationship between them exist as on the date of accrual of income | |
| 164. |
For the purpose of sec.64, an individual have substantial interest in a company if he holds 20% of voting right alongwith his relative. Here, relative do not include: |
| A. | Spouse |
| B. | Father |
| C. | Father-in-law |
| D. | None of the above |
| Answer» C. Father-in-law | |
| 165. |
Unabsorbed business losses cannot be carried for more than |
| A. | 7 assessment years |
| B. | 8 assessment years |
| C. | 10 assessment years |
| D. | 12 assessment years |
| Answer» B. 8 assessment years | |
| 166. |
Long term capital loss can be adjusted against |
| A. | Any income excluding winning from lottery |
| B. | Any capital gain |
| C. | Any long term capital gain |
| D. | Any speculative business income |
| Answer» C. Any long term capital gain | |
| 167. |
Unabsorbed depreciation can be carried forward for |
| A. | Any number of years |
| B. | 8 years |
| C. | 4 years |
| D. | 7 years |
| Answer» A. Any number of years | |
| 168. |
Deduction u/s 80CCC allowed to an individual for amount paid by him in an annuity plan of LIC is restricted to |
| A. | Rs. 5,000 |
| B. | Rs. 7,500 |
| C. | Rs. 1,50,000 |
| D. | Rs. 12,500 |
| Answer» C. Rs. 1,50,000 | |
| 169. |
Deduction under the section 80E is allowed in respect of |
| A. | Donations to charitable institutions |
| B. | Medical treatment of handicapped person |
| C. | Interest on loan taken for education |
| D. | Profits earned from exports |
| Answer» C. Interest on loan taken for education | |
| 170. |
80GGA available for donations made to |
| A. | Charitable Institutions |
| B. | Educational Institutions |
| C. | Research Associations |
| D. | Religion organizations |
| Answer» C. Research Associations | |
| 171. |
Deduction u/s. 80JJA is available if the assessee |
| A. | Is engaged in scientific research |
| B. | Sets up an industrial unit in a backward area |
| C. | Is engaged in agriculture business |
| D. | Is engaged in the business of collecting and processing biodegradable waste. |
| Answer» D. Is engaged in the business of collecting and processing biodegradable waste. | |
| 172. |
On donation to whom of the following a 50% deduction is allowable u/s.80G of the Income Tax Act? |
| A. | National Defence Fund |
| B. | Prime Ministers National Relief Fund |
| C. | Rajiv Gandhi Foundation |
| D. | National foundation for Communal Harmony |
| Answer» C. Rajiv Gandhi Foundation | |
| 173. |
Section 80QQB of the Income Tax Act, 1961, deals with |
| A. | Interest on debentures of a govt. company |
| B. | Royalty Income of authors |
| C. | Royalties from textbooks |
| D. | Profits from export of computer software |
| Answer» B. Royalty Income of authors | |
| 174. |
Advance tax is required to be paid by all assessee only if estimated advance tax liability is |
| A. | Rs. 5,000 or more |
| B. | Rs. 10,000 or more |
| C. | More than zero |
| D. | Rs. 50,000 or more |
| Answer» B. Rs. 10,000 or more | |
| 175. |
While computing advance tax following income shall not be considered: |
| A. | Agricultural income |
| B. | Long term capital gain |
| C. | Speculative profit |
| D. | None of these |
| Answer» D. None of these | |
| 176. |
Tax is required to be deducted at ……… from payment made to a road transport operator who declares that he does not own more than 10 goods carriage. |
| A. | Nil |
| B. | Nil if he furnished the PAN |
| C. | 1% |
| D. | 2% |
| Answer» B. Nil if he furnished the PAN | |
| 177. |
Tax is required to be deducted at ………… from rent payable on plant and machinery to a resident (Assuming PAN details are available) |
| A. | Nil |
| B. | 15% |
| C. | 1% |
| D. | 2% |
| Answer» D. 2% | |
| 178. |
Tax is required to be deducted at …….. from interest payable to a resident. (Assuming PAN details are available) |
| A. | 10% |
| B. | 20% if payee is domestic company else 10% |
| C. | 10% + Surcharge (if any) + Cess + SHEC |
| D. | 20% |
| Answer» A. 10% | |
| 179. |
Tax is required to be collected on sale of: |
| A. | Scrap |
| B. | Tendu Leaves |
| C. | Alcoholic Liquor |
| D. | All of the above |
| Answer» D. All of the above | |
| 180. |
TDS is not required to be deducted u/s 194A if the amount of interest on loan does not exceed: |
| A. | Rs. 5,000 |
| B. | Rs. 2,500 |
| C. | Rs. 7,500 |
| D. | Rs. 20,000 |
| Answer» A. Rs. 5,000 | |
| 181. |
On salary, tax is required to be deducted at the time of: |
| A. | Payment or crediting the employee, whichever is earlier |
| B. | Crediting the employee |
| C. | Payment |
| D. | Retirement of employee |
| Answer» C. Payment | |
| 182. |
Where assessment has not been completed, belated income tax return for assessment year 2018-19 can be filed upto |
| A. | 31.03.2019 |
| B. | 31.02.2019 |
| C. | 31.03.2020 |
| D. | 31.12.2019 |
| Answer» A. 31.03.2019 | |
| 183. |
Following form number is to be used for filing the return of income by an individual having business income? |
| A. | Form No. 1 |
| B. | Form No. 2 |
| C. | Form No. 5 |
| D. | Form No. 3 |
| Answer» D. Form No. 3 | |
| 184. |
W.e.f. 01-04-2016, quoting ‘Permanent Account Number’ (PAN) is compulsory in the following transaction – |
| A. | Payment to LIP exceeding Rs. 50,000 in a financial year |
| B. | Sale or purchase of any immovable property valued at Rs. 4,00,000 |
| C. | Time deposit upto Rs. 35,000 with a bank |
| D. | None of the above |
| Answer» A. Payment to LIP exceeding Rs. 50,000 in a financial year | |
| 185. |
Pelf Finstock Ltd. filed its return of Income Tax for A.Y. 2018-19 on 30th March, 2019. The notice for making scrutiny assessment under section 143(3) can be served on the assesseeupto – |
| A. | 31st December 2019 |
| B. | 30th September 2019 |
| C. | 31st March 2019 |
| D. | 30th September 2020 |
| Answer» B. 30th September 2019 | |
| 186. |
When assessment has not been completed, revised return can be filed within ______ from the end of the relevant previous year. |
| A. | one year |
| B. | 6 months |
| C. | 1 month |
| D. | 2 years |
| Answer» A. one year | |
| 187. |
Which of the following is not a case of deemed ownership of house property? |
| A. | Transfer to spouse for inadequate consideration |
| B. | Transfer to minor child for inadequate consideration |
| C. | Co-owner of a Property |
| D. | None of the above |
| Answer» C. Co-owner of a Property | |
| 188. |
Where assessment has not been completed, belated income tax return for the A.Y. 2018- 19 can be filed up to: |
| A. | 31.03.2019 |
| B. | 31.02.2019 |
| C. | 31.03.2020 |
| D. | Cannot be filed belatedly. |
| Answer» A. 31.03.2019 | |
| 189. |
An individual estimates that he is required 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. 75,000 |
| C. | Rs. 1,00,000 |
| D. | Nil |
| Answer» B. Rs. 75,000 | |
| 190. |
Section 80 RRB the Income-tax Act, 1961 deals with deduction from gross total income in respect of income by way of |
| A. | Interest on debentures of a government company |
| B. | Royalty income on authors |
| C. | Royalty on patents |
| D. | Royalty from text-books |
| Answer» C. Royalty on patents | |
| 191. |
Preliminary expenses that can be amortized under the Income-tax Act 1961 has to be restricted to ______________ of the cost of the Project. |
| A. | 5% |
| B. | 15% |
| C. | 20% |
| D. | None of the above |
| Answer» A. 5% | |
| 192. |
Maximum Marginal Rate for the A.Y. 2018-19 is _______________________ . |
| A. | 34.5% |
| B. | 33.99% |
| C. | 35.535% |
| D. | None of the above |
| Answer» C. 35.535% | |
| 193. |
Rebate u/s 87A can be claimed by |
| A. | Any resident |
| B. | Resident Individual |
| C. | Any person |
| D. | Any person other than non-resident |
| Answer» B. Resident Individual | |
| 194. |
As per section 115BBDA dividend from Indian companies is taxable in the hands of certain recipients at _______ when the aggregate dividend exceeds _______. |
| A. | 10%, 1 lakh |
| B. | 15%, 10 lakhs |
| C. | 10%, 10 lakhs |
| D. | 5%, 5 lakhs |
| Answer» C. 10%, 10 lakhs | |
| 195. |
ICDS VIII deals with ____________________ . |
| A. | Government Grants |
| B. | Securities |
| C. | Revenue recognition |
| D. | Construction Contract |
| Answer» B. Securities | |
| 196. |
Income escaping assessment is covered under section _________ . |
| A. | 144 |
| B. | 156 |
| C. | 143(3) |
| D. | 147 |
| Answer» D. 147 | |
| 197. |
Short-term capital gain on sale of listed shares (STT paid) in a recognized stock exchange is chargeable to income-tax @ ______ %. |
| A. | 10 |
| B. | 15 |
| C. | 20 |
| D. | 30 |
| Answer» B. 15 | |
| 198. |
When the total income of an individual exceeds Rs.50 lakhs, the surcharge is payable @ |
| A. | 5% |
| B. | 7% |
| C. | 10% |
| D. | 12% |
| Answer» C. 10% | |
| 199. |
When the amount is withdrawn from National Pension System Trust, it is chargeable to tax to the extent the withdrawal exceeds ______________ % of the contribution of the assessee. |
| A. | 10 |
| B. | 25 |
| C. | 15 |
| D. | 20 |
| Answer» B. 25 | |
| 200. |
Ms. Jothi (aged 23) got married and left India to join her husband in the United Kingdom on 10.06.2017. She had never left India earlier. Her residential status for the assessment year 2018-19 is: |
| A. | Resident and ordinarily resident |
| B. | Resident but not ordinarily resident |
| C. | Non-resident |
| D. | None of the above |
| Answer» A. Resident and ordinarily resident | |
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