68
78k

200+ Income Tax Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration in Finance (BBA Finance) , Staff Selection Commission (SSC) .

151.

If S T T is paid, then LTCG tax on the transfer of listed equity shares is ....................

A. 15%
B. 5%
C. 10%
D. nil
Answer» D. nil
152.

Out of income from growing and manufacturing of latex ..................... , is considered as agricultural income.

A. 40%
B. 45%
C. 60%
D. 65%
Answer» D. 65%
153.

For SSIs , a deduction of ..................... % of profit is available to individual assessee.

A. 50%
B. 40%
C. 25%
D. nil
Answer» C. 25%
154.

Donation is deductible u/s .................................

A. 80c
B. 80d
C. 80 e
D. 80 g
Answer» D. 80 g
155.

Tax deduction available to certain industries for the initial few years is called ........................

A. tax holiday
B. tax exemption
C. tds
D. paye
Answer» A. tax holiday
156.

Contribution to RPF is deducted u/s ..................

A. 80c
B. 80d
C. 80e
D. 80g
Answer» A. 80c
157.

The maximum amount of deduction under section 80D in the case of a senior citizen is .........................

A. rs: 10,000
B. rs: 15,000
C. rs: 20,000
D. rs: 25,000
Answer» C. rs: 20,000
158.

Which among the following deduction is available only to disabled persons :

A. 80 c
B. 80 g
C. 80 q
D. 80 u
Answer» D. 80 u
159.

Section 80C provides for deduction in respect of tuition fee to ....................... children.

A. one
B. two
C. three
D. none
Answer» B. two
160.

The maximum amount deductible u/s 80GG in respect of rent paid is ........................

A. rs: 10,000
B. rs: 12,000
C. rs: 20,000
D. rs: 24,000
Answer» D. rs: 24,000
161.

Tax on long term capital gain is..................

A. 10%.
B. 20%.
C. 30%.
D. 25%.
Answer» B. 20%.
162.

Income from other sources is a.................

A. residuary head of income.
B. major head of income.
C. income from a single source.
D. constant and regular income.
Answer» A. residuary head of income.
163.

Which one of the following is not an income from other sources?

A. interest on fixed deposit in bank.
B. winnings from cross word puzzles.
C. gift in excess of rs.50,000 from an unrelated person.
D. profit on sale of building.
Answer» D. profit on sale of building.
164.

Which of the following income from other sources is not taxable?

A. dividend from co-operative society.
B. dividend from foreign company.
C. dividend from domestic company.
D. winnings from lottery.
Answer» C. dividend from domestic company.
165.

Dividends from co-operative society are........................

A. exempted.
B. taxable.
C. partially exempt
D. d. partially taxable.
Answer» B. taxable.
166.

Grossing up of interest on securities is required when...................

A. interest is received after t.d.s.
B. they are central govt. securities.
C. the interest on bank deposit is less than rs. 10,000.
D. none of these.
Answer» A. interest is received after t.d.s.
167.

Tax is reduced from casual incomes at....................

A. 10% + surcharge and cesses.
B. 20% + surcharge and cesses.
C. 30%.
D. none of these.
Answer» C. 30%.
168.

Interest on Bank Term Deposits is subject to tax deduction at source if the interest amount during the relevant previous year exceeds................

A. rs: 2,000.
B. rs: 5,000.
C. rs: 10,000.
D. rs: 30,000.
Answer» C. rs: 10,000.
169.

Rate of T.D.S for unlisted securities, including cesses is.................

A. 10.6%.
B. 15.6%.
C. 10%.
D. 30.6%.
Answer» C. 10%.
170.

Speculation Loss can be carried forward for.................

A. 8 years
B. 10years
C. 5years
D. 4years
Answer» D. 4years
171.

Which of the following is not a capital asset.

A. stock in trade
B. goodwill
C. agricultural land in mumbai
D. jewellary
Answer» A. stock in trade
172.

A partnership firm sold a residential house. The firm will get exemption under section .................... on capital gains.

A. sec. 54d
B. s
C. 54e c. sec. 54c
D. sec. 54ec
Answer» D. sec. 54ec
173.

Income of a minor child is included in the total income of ...........................

A. father
B. mother
C. parent whose income is greater
D. transferor of asset
Answer» C. parent whose income is greater
174.

The amount of deduction under section 80DD regarding disability is .....................

A. rs: 30,000
B. rs: 50,000
C. rs: 75,000
D. actual expense.
Answer» B. rs: 50,000
175.

Which of the following is eligible for 100% deduction ?

A. national children fund
B. rajiv gandhi foundation
C. national sports fund
D. nehru memorial fund
Answer» C. national sports fund
176.

Section C applies on ...................

A. individual and huf
B. co-operative society
C. firm
D. company
Answer» A. individual and huf
177.

Donation on PM’s National Relief Fund is deductible 100% out of the gross total income of the assessee, under section ...................................

A. 80c
B. 80cc
C. 80g
D. 80gg
Answer» C. 80g
178.

For the P.Y , 2012-13, the maximum permissible deduction under section 80C is ..............

A. rs: 80,000
B. rs: 1,00,000
C. rs: 2,00,000
D. 1,12,000
Answer» B. rs: 1,00,000
179.

The rate of surcharge on tax payable is ......................% when taxable income is Rs: 5,57, 500.

A. 3%
B. 5%
C. 10%
D. nil
Answer» D. nil
180.

The basic exemption up to which income is not taxable for an individual resident is ..............

A. rs: 1,00,000
B. rs: 2,00,000
C. rs: 5,00,000
D. none of the above
Answer» A. rs: 1,00,000
181.

STCL can be set off in the same assessment year from ...............................

A. stcg
B. ltcg
C. both
D. not possible
Answer» C. both
182.

Maximum amount of deduction allowable under section 80CCF is ......................

A. rs: 10,000
B. rs: 20,000
C. rs: 25,000
D. rs: 1,00,000
Answer» B. rs: 20,000
183.

Maximum Marginal Rate for the current A.Y. ( 2013-14) is ..................................

A. 25%
B. 20%
C. 30%
D. 35%
Answer» C. 30%
184.

Interest n loan taken before 1-4-1999 for construction or repairs of self occupied house shall be deducted up to Rs: .......................................

A. rs: 25,000
B. rs: 30,000
C. rs: 1,00,000
D. rs: 1,50,000
Answer» B. rs: 30,000
185.

For claiming exemption u/s 54, the assessee should construct the residential property within .........................

A. one year before or 2 years after the date of transfer
B. one year before or 3 years after the date of transfer
C. within 3 years after the date of transfer
D. within 2 years after the date of transfer.
Answer» C. within 3 years after the date of transfer
186.

The cost of acquisition of bonus shares allotted on or after 1-4-1981 is ..........................

A. fair market value of that shares on 1-4-1981
B. fair market value on the date of issue of shares
C. nil
D. none of these
Answer» C. nil
187.

Any some received under key man insurance policy taken on the life of the employee shall be ..........................

A. taxable under the head business or profession
B. taxable under the head income from other sources
C. taxable in the hands of employee
D. exempt from tax
Answer» A. taxable under the head business or profession
188.

The rent fixed as per municipal valuation is called ............................

A. municipal value
B. fair rental value
C. standard rent
D. actual rent
Answer» A. municipal value
189.

Rent free accommodation is an example for .....................................

A. allowance
B. compensation
C. perquisite
D. profit in lieu of salary.
Answer» C. perquisite
190.

The amount deductible for severe disability u/s 80U is ..........................

A. rs: 1,00,000
B. rs: 1,20,000
C. rs: 50,000
D. rs: 90,000
Answer» A. rs: 1,00,000
191.

When a loan is taken for the education of a child, the father is entitled to deduction u/s ..........................

A. 80 c
B. 80 g
C. 80 e
D. 80 u
Answer» C. 80 e
192.

Income of a minor child is exempted up to ..........................

A. rs: 1,000
B. rs: 1,500
C. rs: 1,200
D. rs: 2,000
Answer» B. rs: 1,500
193.

Loss from business can be carried for ...................... years.

A. 6
B. 8
C. 12
D. 16
Answer» B. 8
194.

Income of Benami transactions shall be included in the income of .........................

A. real owner
B. transferor
C. transferee
D. none of these
Answer» A. real owner
195.

Dividend from an Indian company is ......................

A. fully taxablbe
B. fully exempted
C. partly taxable
D. none of the above
Answer» B. fully exempted
196.

The amount received from URPF is ..........................

A. taxable
B. exempted
C. exempted, subject to certain conditions
D. none of the above
Answer» A. taxable
197.

............................ section deals with exempted incomes.

A. section 80
B. section 17
C. section 10
D. section 23
Answer» C. section 10
198.

There will be no partial integration, if the agricultural income does not exceed ............................

A. rs: 15,000
B. rs: 25,000
C. rs: 50,000
D. rs: 5,000
Answer» D. rs: 5,000
199.

Salary on which income tax is borne by the employer is called ....................................

A. foregoing salary
B. tax free salary
C. tax holiday
D. none
Answer» B. tax free salary
200.

Secondary and higher education cess is charged at the rate of .......................... of the amount of income tax.

A. 1%
B. 2%
C. 3%
D. 5%
Answer» A. 1%

Done Studing? Take A Test.

Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.