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120+ Income Tax Law and Practice Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) .

101.

When the income of minor child is included in the income of parent, then parent is entitled to an exemption up to:

A. Rs: 1,000 per child
B. Rs: 1,500 per child
C. Rs: 3,000 per child
D. None of these
Answer» B. Rs: 1,500 per child
102.

Loss in respect of speculation business can be:

A. Set-off with profit from non-speculation business.
B. Set-off with profit from another speculation business
C. Set-off with income from house property
D. Set-off with income from other sources
Answer» B. Set-off with profit from another speculation business
103.

The unabsorbed loss under “Income from house property” shall be carried forward and set-off in subsequent assessment years up to a maximum of ............................... years against income from house property.

A. 4 years
B. 6 years
C. 8 years
D. 12 yeas
Answer» C. 8 years
104.

The losses of non-speculation business can be carried forward and set off against:

A. Profit from non-speculation business only
B. Profit from any business
C. Income from salary
D. All of the above
Answer» B. Profit from any business
105.

The losses of non-speculation business can be carried forward for:

A. 6 years
B. 8 years
C. 10 years
D. Any number of years
Answer» B. 8 years
106.

The losses of speculation business can be carried forward for:

A. 4 years
B. 8 years
C. 12 years
D. None of these
Answer» A. 4 years
107.

The losses from specified business can be carried forward and can be set-off against profits of:

A. Specified business only
B. Speculative business only
C. Non-speculative business only
D. Any business
Answer» A. Specified business only
108.

S T C L can be carried forward for:

A. 4 years
B. 6 years
C. 8 years
D. Any number of years
Answer» C. 8 years
109.

S T C L can be carried forward and set-off against:

A. S T C G only
B. L T C G only
C. S T C G or L T C G
D. Income under any head
Answer» C. S T C G or L T C G
110.

L T C L can be carried forward for:

A. 4 years
B. 6 years
C. 8 years
D. Any number of years
Answer» C. 8 years
111.

L T C L can be carried forward and set-off against:

A. L T C G only
B. S T C G only
C. S T C G or L T C G
D. Income under any head
Answer» A. L T C G only
112.

Loss from the activity of owning and maintaining race horses can be carried forward for:

A. 4 years
B. 6 years
C. 8 years
D. None of these
Answer» A. 4 years
113.

Only................are entitled to deduction under section 80 U.

A. Firms
B. Individuals
C. Companies
D. Co-operative societies
Answer» B. Individuals
114.

The amount of deduction under section 80 C is restricted to:

A. Rs: 1,00,000
B. Rs: 1,50,000
C. Rs: 2,00,000
D. Rs: 5,00,000
Answer» B. Rs: 1,50,000
115.

The aggregate amount of deduction under section 80 C, section 80 CCC and section 80 CCD(1) shall not exceed:

A. Rs: 1,00,000
B. Rs: 1,50,000
C. Rs: 2,00,000
D. Rs: 5,00,000
Answer» B. Rs: 1,50,000
116.

The deduction in respect of medical treatment of a dependent who is a person with disability is:

A. Rs: 1,50,000
B. Rs: 1,25,000
C. Rs: 75,000
D. None of these
Answer» C. Rs: 75,000
117.

The deduction in respect of medical treatment of a dependent who is a person with disability is:

A. Rs: 1,50,000
B. Rs: 1,25,000
C. Rs: 75,000
D. None of these
Answer» B. Rs: 1,25,000
118.

Which among the following deals with deduction in respect of donation to certain funds, charitable institution, etc?

A. 80E
B. 80EE
C. 80G
D. 80GG
Answer» C. 80G
119.

With effect from A. Y. 2018-19, donation should be paid in any mode other than cash when it exceeds:

A. Rs: 2,000
B. Rs: 2,500
C. Rs: 3,000
D. Rs: 10,000
Answer» A. Rs: 2,000
120.

Which among the following deals with deduction in respect of royalty income of authors?

A. 80JJA
B. 80QQB
C. 80TTB
D. 80P
Answer» B. 80QQB
121.

Which among the following deals with deduction in respect persons with disability?

A. 80G
B. 80E
C. 80D
D. 80U
Answer» D. 80U
122.

While computing the total income, an individual assessee with disability is entitled to a deduction of:

A. Rs: 50,000
B. Rs: 75,000
C. Rs: 1,25,000
D. Rs: 1,50,000
Answer» B. Rs: 75,000
123.

An individual assessee with severe disability is entitled to a deduction of ................. while computing his total income.

A. Rs: 50,000
B. Rs: 75,000
C. Rs: 1,25,000
D. Rs: 1,50,000
Answer» C. Rs: 1,25,000
124.

Hill allowance given to an employee is fully taxable, if the place is located at:

A. Less than 1,000 metre height from sea level
B. Less than 1,200 metre height from sea level
C. Less than 1,500 metre height from sea level
D. Less than 1,800 metre height from sea level
Answer» A. Less than 1,000 metre height from sea level
125.

Which among the following is a fully exempted allowance?

A. Proctor allowance
B. U.N. allowance
C. Deputation allowance
D. Non-practicing allowance
Answer» B. U.N. allowance
126.

If a partner lets out his buildings to the firm, the rent received by him will be taxed under:

A. Profits and gains from business
B. Income from house property
C. Income from other sources
D. None of these
Answer» B. Income from house property
127.

The rate of surcharge if total income of an individual assessee exceeds Rs:fifty lakh but does not exceed Rs: one crore is:

A. 7.5%
B. 10%
C. 15%
D. 20%
Answer» B. 10%
128.

The rate of surcharge if total income of an individual assessee exceeds Rs: one crore is:

A. 7.5%
B. 10%
C. 15%
D. 20%
Answer» C. 15%

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