McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) , Bachelor of Commerce in Banking and Insurance (B.Com Banking and Insurance) .
| 101. |
An individual is resident and ordinarily resident of India if . |
| A. | Person had been resident in India at least 2 out of 10 previous years immediately preceding the relevant previous year |
| B. | Person been in India for a period of 730 days or more during 7 years immediately preceding the relevant previous year |
| C. | All of the above |
| D. | None of the above |
| Answer» C. All of the above | |
| 102. |
The Resident HUF is ordinarily resident in India, if |
| A. | He has been resident in India at least 2 years out of 10 previous years immediately |
| B. | He has been resident in India at least 3 years out of 10 previous years immediately |
| C. | He has been resident in India at least 2 years out of 5 previous years immediately |
| D. | None of the above |
| Answer» A. He has been resident in India at least 2 years out of 10 previous years immediately | |
| 103. |
Basic condition will be for a person who leaves India for employment |
| A. | At least 182 days in India |
| B. | At least 60 days in previous year and 365 days in preceding 4 years |
| C. | At least 730 days in preceding 7 years |
| D. | All of the above |
| Answer» A. At least 182 days in India | |
| 104. |
Which of the following is not included in the term Income under the Income Tax Act, 1961? |
| A. | Reimbursement of travelling expenses |
| B. | Profits and gains of business or profession |
| C. | Dividend |
| D. | Profit in lieu of salary |
| Answer» D. Profit in lieu of salary | |
| 105. |
14 Income from shares of a public company set up in any special Industrial zone is exempt up to-------- years from the date of commencement of commercial production. |
| A. | Three |
| B. | Four |
| C. | Five |
| D. | None of the above |
| Answer» D. None of the above | |
| 106. |
An assessee has borrowed money for purchase of a house & Interest is payable outside India. |
| A. | Such interest shall: |
| B. | Be allowed as deduction |
| C. | Not to be allowed on deduction |
| D. | Be allowed as deduction if the tax is deducted at source |
| Answer» C. Not to be allowed on deduction | |
| 107. |
Salary, bonus, commission or remuneration due to or received by a working partner from the firm is taxable under the head. |
| A. | Income from salaries |
| B. | Other sources |
| C. | PGBP |
| D. | none |
| Answer» C. PGBP | |
| 108. |
Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head. |
| A. | Salary |
| B. | Other sources |
| C. | PGBP |
| D. | none |
| Answer» C. PGBP | |
| 109. |
Interest on capital or loan received by a partner from a firm is: |
| A. | Exempt U/S 10(2A) |
| B. | Taxable U/H business and profession |
| C. | Taxable U/H income from other sources |
| D. | none |
| Answer» B. Taxable U/H business and profession | |
| 110. |
Under the head Business or Profession, the method of accounting which an assessee can follow shall be: |
| A. | Mercantile system only |
| B. | Cash system only |
| C. | Mercantile or cash system only |
| D. | Hybrid system |
| Answer» C. Mercantile or cash system only | |
| 111. |
Gain arising from the disposal of _________ is taxable under the head capital gains. |
| A. | Depreciable asset |
| B. | Eligible depreciable asset |
| C. | Securities |
| D. | All of the above |
| Answer» C. Securities | |
| 112. |
____________are capital assets. |
| A. | Stock in trade |
| B. | Sculpture |
| C. | Immovable property |
| D. | Both b and c |
| Answer» D. Both b and c | |
| 113. |
A person who derives his income by dealing in shares of private, unlisted and public limited companies are covered under the head. |
| A. | Income from business |
| B. | Income from other sources |
| C. | Capital gains or |
| D. | All of the above |
| Answer» C. Capital gains or | |
| 114. |
Bonus shares are issued by a company to its ______ without receiving any amount from them. |
| A. | Employees |
| B. | Customer |
| C. | Shareholders |
| D. | All of the above |
| Answer» C. Shareholders | |
| 115. |
Gain from sale of shares of Private Limited companies is taxable under section_________. |
| A. | 37 |
| B. | 37A |
| C. | Not taxable |
| D. | None of (a) to (c) |
| Answer» A. 37 | |
| 116. |
Bonus shares are the shares issued by a company_____________. |
| A. | Free of cost |
| B. | Issued at concessional rate |
| C. | On credit |
| D. | None of the above |
| Answer» A. Free of cost | |
| 117. |
A company in which at least 50% of the shares are held by a foreign government is ___________. |
| A. | Private company |
| B. | Public company |
| C. | Foreign company |
| D. | All of the above |
| Answer» B. Public company | |
| 118. |
Any incidental expenditure on disposal of capital assets shall form part of _____________. |
| A. | Cost of assets |
| B. | Disposal consideration |
| C. | Selling cost |
| D. | None of a to c |
| Answer» A. Cost of assets | |
| 119. |
Capital loss u/s 37 is allowed as deduction for those assets the gain of which is___________. |
| A. | Chargeable to tax |
| B. | Exempt from tax |
| C. | Both of these |
| D. | None of (a) to (c) |
| Answer» A. Chargeable to tax | |
| 120. |
At the time of devolution ___________ would be the cost of the asset. |
| A. | FMV |
| B. | Historical cost |
| C. | higher of a and b |
| D. | none |
| Answer» A. FMV | |
| 121. |
Capital gain tax shall not be chargeable on disposal of securities which are held for a period of __________. |
| A. | one year |
| B. | two years |
| C. | three years |
| D. | six months |
| Answer» A. one year | |
| 122. |
‘Derivatives’ is a general term for financial assets that are “derived” from other_______________. |
| A. | fixed assets |
| B. | current assets |
| C. | financial assets |
| D. | income |
| Answer» C. financial assets | |
| 123. |
Gain on disposal of immovable property is chargeable to at _____%, where holding period is up to one year. |
| A. | 10 |
| B. | 2 |
| C. | 6 |
| D. | 12 |
| Answer» A. 10 | |
| 124. |
A loss on the sale of jewellery is _______ under the head capital gain. |
| A. | recognized |
| B. | not recognized |
| C. | taxable |
| D. | none of above |
| Answer» B. not recognized | |
| 125. |
Maximum limit for the deduction of Life insurance premia from the gross total income is . |
| A. | Rs. 2,00,000 |
| B. | Rs 1,50,000 |
| C. | R s 1,00,000 |
| D. | Rs 1,25,000 |
| Answer» B. Rs 1,50,000 | |
| 126. |
The deduction of life insurance premia, contribution to provident fund, etc. will is done under of Income Tax Act, 1961. |
| A. | Section 80C |
| B. | Section 80U |
| C. | Section 80D |
| D. | Section 80E |
| Answer» A. Section 80C | |
| 127. |
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 sections 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 | |
| 128. |
In Income Tax Act, 1961, deduction under sections 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 | |
| 129. |
The maximum aggregate amount of deduction under sections 80C, 80CCC and 80CCD cannot exceed . |
| A. | Rs 1,10,000 |
| B. | Rs 2,00,000 |
| C. | Rs 1,50,000 |
| D. | Nil |
| Answer» C. Rs 1,50,000 | |
| 130. |
Deduction in respect of contribution to political party will . |
| A. | Be allowed in respect of sum paid by way of cash |
| B. | Not be allowed if payment made in cash |
| C. | This type of deduction is not allowed whether payment is in cash or not |
| D. | Be allowed if payment made in cash, subject to certain conditions |
| Answer» B. Not be allowed if payment made in cash | |
| 131. |
Maximum amount of deduction in case of a person with severe disability under section 80U will be . |
| A. | 50,000 |
| B. | 75,000 |
| C. | 80,000 |
| D. | 1,00,000 |
| Answer» A. 50,000 | |
| 132. |
Government’s contribution to the new pension scheme referred to in Section 80CCD is |
| A. | An exempt income |
| B. | Income chargeable to tax as salaries in full |
| C. | 50% thereof is income chargeable to tax as Salaries |
| D. | Income chargeable to tax as income from other sources in full |
| Answer» B. Income chargeable to tax as salaries in full | |
| 133. |
In case of a hospital built in specified area after 31.3.2008 fulfilling the required conditions laid down in Section 80IB-(11C), the profits and gains derived from running the hospital are |
| A. | Deductible in full |
| B. | Deduction up to 50% |
| C. | Taxable in full |
| D. | Deductible up to 75% |
| Answer» D. Deductible up to 75% | |
| 134. |
Deduction in respect of contribution to pension scheme of central government comes under _____________of Income Tax Act, 1961. |
| A. | Section 80CCD |
| B. | Section 80U |
| C. | Section 80EE |
| D. | Section 80G |
| Answer» A. Section 80CCD | |
| 135. |
In case of assessees other than companies, the following is advance tax rate to be payable on or before of 15th September: |
| A. | 45% |
| B. | 30% |
| C. | 15% |
| D. | 10% |
| Answer» B. 30% | |
| 136. |
For the purposes of computing minimum alternate tax under Section 115B(a) of the Income Tax Act, 1961, the book profit need not to be increased by inter alia, the amount of deferred tax debited to the profit and loss account. |
| A. | True |
| B. | False |
| C. | Can’t say |
| D. | none |
| Answer» B. False | |
| 137. |
Deduction under Section 80C can be claimed for fixed deposit made in any scheduled bank, if the minimum period of deposit is . |
| A. | 10 Years |
| B. | 5 Years |
| C. | 12 Years |
| D. | 8 Years |
| Answer» C. 12 Years | |
| 138. |
Which of the following is covered under section 80D of the Income Tax Act, 1961? |
| A. | Medical treatment of handicapped dependent |
| B. | Medical insurance premium |
| C. | Reimbursement of medical expenses |
| D. | Repayment of loan taken for higher education |
| Answer» B. Medical insurance premium | |
| 139. |
The deduction available under section 80QQB in respect of royalty income of authors shall not exceed _____________in previous year. |
| A. | 1,50,000 |
| B. | 2,50,000 |
| C. | 3,00,000 |
| D. | 1,00,000 |
| Answer» B. 2,50,000 | |
| 140. |
For the purpose of deduction under section 80DD, which of the following statements is/are true? |
| A. | Assessee is either and individual or a HUF |
| B. | Assessee is resident of India |
| C. | Assessee has a dependent disable relative |
| D. | All of the above |
| Answer» C. Assessee has a dependent disable relative | |
| 141. |
The maximum deduction one can clam under section 80D is . |
| A. | 30,000 |
| B. | 50,000 |
| C. | 40,000 |
| D. | 60,000 |
| Answer» D. 60,000 | |
| 142. |
Amount of deduction in case of a person with severe disability under section 80U will be______________ . |
| A. | (a) 75,000 |
| B. | (b) 85,000 |
| C. | (c) 1,50,000 |
| D. | (d) 1,25,000 |
| Answer» D. (d) 1,25,000 | |
| 143. |
Aggregate amount of deduction under 80C, 80CCC and 80CCD cannot exceed_________.. |
| A. | 1,10,000 |
| B. | 1,20,000 |
| C. | 1,30,000 |
| D. | 1,50,000 |
| Answer» D. 1,50,000 | |
| 144. |
In the case of every senior citizen resident in India, tax rebate under section 87A is ______. |
| A. | 5,000 |
| B. | 2,000 |
| C. | 1,000 |
| D. | Nil |
| Answer» D. Nil | |
| 145. |
The provisions regarding TDS on Salaries are contained in . |
| A. | Section 190 |
| B. | Section 191 |
| C. | Section 192 |
| D. | Section 193 |
| Answer» C. Section 192 | |
| 146. |
If the payee does not furnish PAN and TDS under section 194, dividends shall be made @__________ . |
| A. | (a) 20% |
| B. | (b) 15% |
| C. | (c) 10% |
| D. | (d) Nil |
| Answer» A. (a) 20% | |
| 147. |
Deduction of tax at source for insurance commission is @ ___________________. |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 12% |
| Answer» A. 10% | |
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