McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) .
| 51. |
Subletting is assessable under the head ………………… |
| A. | Income from HP |
| B. | Income from Other Source |
| C. | Income from Capital Gain |
| D. | None of the above |
| Answer» B. Income from Other Source | |
| 52. |
Preliminary expenses incurred are allowed deduction in: |
| A. | 10 equal annual instalments |
| B. | 5 equal annual instalments |
| C. | full |
| D. | None of these |
| Answer» B. 5 equal annual instalments | |
| 53. |
Educational cess is levied in case of ……….. |
| A. | Individual |
| B. | HUF |
| C. | Company |
| D. | All assesses |
| Answer» D. All assesses | |
| 54. |
As per section 2(31), the following is not included in the definition of 'person' |
| A. | An individual |
| B. | A Hindu undivided family |
| C. | A company |
| D. | A minor |
| Answer» D. A minor | |
| 55. |
Amendments by the finance act are made applicable from |
| A. | First day of next financial year |
| B. | First day of same financial year |
| C. | Last day of same Accounting year |
| D. | None of the above |
| Answer» A. First day of next financial year | |
| 56. |
Assessee is having stock existing in the business. Valuation of stock will be at: |
| A. | Cost price |
| B. | Market price |
| C. | Cost or market price, whichever is less |
| D. | Cost or market price, whichever is more |
| Answer» C. Cost or market price, whichever is less | |
| 57. |
Which is the charging section of income under the head profits and gains of business or profession? |
| A. | Section 15 |
| B. | Section 24 |
| C. | Section 28 |
| D. | Section 17 |
| Answer» C. Section 28 | |
| 58. |
Which of the following taxes are allowed as deduction while computing the business income? |
| A. | Wealth-tax |
| B. | Income-tax |
| C. | Sales tax |
| D. | None of the above |
| Answer» C. Sales tax | |
| 59. |
As per section 30, which expenditure incurred for a building used for the business or profession shall not be allowed as deduction? |
| A. | Rent, rates and taxes |
| B. | Insurance of building |
| C. | Repairs of building |
| D. | Capital expenditure |
| Answer» D. Capital expenditure | |
| 60. |
.Group of assets falling within a class of assets comprising of tangible & intangible assets is known as : |
| A. | Group of assets |
| B. | Block of assets |
| C. | Set of assets |
| D. | Cluster of assets |
| Answer» B. Block of assets | |
| 61. |
A short term capital asset means a capital asset held by the assesse for not more than |
| A. | 12 Months immediately preceding the month of its transfer |
| B. | 24 Months immediately preceding the month of its transfer |
| C. | 36 Months immediately preceding the month of its transfer |
| D. | None of these |
| Answer» C. 36 Months immediately preceding the month of its transfer | |
| 62. |
-------- are treated as agricultural income |
| A. | Income from poultry farm |
| B. | Income from bee heaving |
| C. | Purchase of standing crops |
| D. | All of these |
| Answer» D. All of these | |
| 63. |
Long term capital loss can be set off against ----- |
| A. | Long term capital loss |
| B. | Short term capital loss |
| C. | Long term capital gain |
| D. | All of these |
| Answer» C. Long term capital gain | |
| 64. |
Clubbing of income means |
| A. | Adding income of two persons |
| B. | Inclusion of income of other person in assessee’sincome |
| C. | Total income of various heads |
| D. | Collection of income |
| Answer» B. Inclusion of income of other person in assessee’sincome | |
| 65. |
Income from horse race falls under the head |
| A. | Salary |
| B. | Other sources |
| C. | Profession |
| D. | Business |
| Answer» B. Other sources | |
| 66. |
Which of the following is not taxable under the head income from other sources? |
| A. | Family pension |
| B. | Sum received under Keyman Insurance Policy |
| C. | Rent received on letting of business |
| D. | Salary to a member of parliament |
| Answer» C. Rent received on letting of business | |
| 67. |
PAN stands for |
| A. | Private bank Number |
| B. | Permanent Account Number |
| C. | Personal Account Number |
| D. | Passive Account Number |
| Answer» B. Permanent Account Number | |
| 68. |
Donation is deductible under section |
| A. | 80 C |
| B. | 80D |
| C. | 80 E |
| D. | 80 G |
| Answer» D. 80 G | |
| 69. |
Return filed after the due date is called |
| A. | Revised return |
| B. | Best return |
| C. | Belated return |
| D. | Defective return |
| Answer» C. Belated return | |
| 70. |
Tax deduction available to certain industries for the initial few years is called----- |
| A. | Tax Holiday |
| B. | Tax |
| C. | TDS |
| D. | Advance |
| Answer» A. Tax Holiday | |
| 71. |
An assessee was engaged in the business of cattle rearing. He incurred a loss in respect of animals which were used for the purposes of his business (otherwise than as stock-in trade) and which have died. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | Illegal expenditure |
| Answer» A. Revenue expenditure | |
| 72. |
The loss from speculation business can be set off against |
| A. | Any income |
| B. | Not any income |
| C. | Non speculative business |
| D. | Speculative business only |
| Answer» D. Speculative business only | |
| 73. |
Minor’s income is clubbed to ----- |
| A. | Father’s income |
| B. | Mother’s income |
| C. | Father’s income or mother’s income whichever is grater |
| D. | Both mother’s and father’s income |
| Answer» C. Father’s income or mother’s income whichever is grater | |
| 74. |
------ deals with PAN |
| A. | Section 140 |
| B. | Section 140 (A) |
| C. | Section 140 (B) |
| D. | Section 140 (C) |
| Answer» B. Section 140 (A) | |
| 75. |
------ is a casual income |
| A. | Interest received |
| B. | Dividend income |
| C. | Person received |
| D. | Winning from lotteries |
| Answer» D. Winning from lotteries | |
| 76. |
An assessee was engaged in the business of dealing in commodities. He had paid Commodities transaction tax of Rs.15,000 in respect of the taxable commodities transactions. Income arising of Rs 3,00,000 from such taxable commodities transactions was included in the income computed under the head "Profits and gains of business or profession”. Such expenditure of payment of Commodities transaction tax shall be considered as |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Speculative transaction expenditure |
| D. | Illegal expenditure |
| Answer» A. Revenue expenditure | |
| 77. |
--------- is the implementation of the plan of tax |
| A. | Tax evasion |
| B. | Tax avoidance |
| C. | Tax management |
| D. | None of these |
| Answer» C. Tax management | |
| 78. |
Which of the following is an objective of tax management? |
| A. | Minimize litigation |
| B. | Productive investment |
| C. | Compliance with legal formalities |
| D. | Healthy growth of economy |
| Answer» C. Compliance with legal formalities | |
| 79. |
The method by which a person illegally reduces his tax burden by either deflating their income or inflating their expenses is known as |
| A. | Tax planning |
| B. | Tax evasion |
| C. | Tax management |
| D. | Tax avoidance |
| Answer» B. Tax evasion | |
| 80. |
------ refers to hedging of tax? |
| A. | Tax planning |
| B. | Tax evasion |
| C. | Tax management |
| D. | Tax avoidance |
| Answer» D. Tax avoidance | |
| 81. |
Company is defined under |
| A. | Section 2 (17)of the Income Tax Act |
| B. | Section 2 (32)of the Income Tax Act |
| C. | Section 2 (14)of the Income Tax Act |
| D. | Section 2 (12)of the Income Tax Act |
| Answer» A. Section 2 (17)of the Income Tax Act | |
| 82. |
Whichof the following deals with Domestic Company? |
| A. | Sec 2 (234) |
| B. | Sec 2 (224) |
| C. | Sec 2 (22) |
| D. | Sec 2 (26) |
| Answer» B. Sec 2 (224) | |
| 83. |
Section 2 (234) relates to |
| A. | Indian company |
| B. | Domestic company |
| C. | Foreign company |
| D. | Widely held company |
| Answer» C. Foreign company | |
| 84. |
A company in which the public is not substantially interested is known as |
| A. | Domestic company |
| B. | Foreign company |
| C. | Widely held company |
| D. | Closely held company |
| Answer» C. Widely held company | |
| 85. |
Section 80 JJAA deals with |
| A. | Deduction in respect of produced companies |
| B. | Production in respect of certain incomes |
| C. | Deduction in respect of employment of new employee |
| D. | Deduction in respect of profits and gains from undertakings an enterprise in special category states |
| Answer» C. Deduction in respect of employment of new employee | |
| 86. |
Expenditure incurred by an hotelier on replacement of linen and carpets in his hotel. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | Illegal expenditure |
| Answer» A. Revenue expenditure | |
| 87. |
The maximum deduction available under section 80 C is |
| A. | Rs50000 |
| B. | Rs100000 |
| C. | Rs150000 |
| D. | Rs200000 |
| Answer» C. Rs150000 | |
| 88. |
The Presumptive Taxation Scheme of Section 44 AD can be adopted by |
| A. | Resident Individual tax payers |
| B. | Hindu Undivided Families |
| C. | Partnership firms except Limited Liability Partnership Firms |
| D. | All of these |
| Answer» D. All of these | |
| 89. |
Deemed dividend is defined in |
| A. | Section 2 (22)(a) |
| B. | Section 2 (21)(a) |
| C. | Section 2 (23)(a) |
| D. | Section 2 (22)(c) |
| Answer» A. Section 2 (22)(a) | |
| 90. |
80 ID deals with tax holiday for |
| A. | Hospitals |
| B. | Hotels |
| C. | Natural gas |
| D. | Eligible business |
| Answer» B. Hotels | |
| 91. |
An assessee incurred expense of tax on non monetary perquisites of employees. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Deferred revenue |
| C. | Capital expenditure |
| D. | Expressly disallowed |
| Answer» D. Expressly disallowed | |
| 92. |
Flat rate of corporate tax for a domestic company with annual turnover up to Rs250 crore is |
| A. | 15% |
| B. | 25% |
| C. | 30% |
| D. | 35% |
| Answer» B. 25% | |
| 93. |
Flat rate of corporate tax for a domestic company with annual turnover more than Rs250 crore is |
| A. | 15% |
| B. | 25% |
| C. | 30% |
| D. | 35% |
| Answer» C. 30% | |
| 94. |
Flat rate of corporate tax for a foreign company is |
| A. | 15% |
| B. | 25% |
| C. | 30% |
| D. | 40%% |
| Answer» D. 40%% | |
| 95. |
Which of the following shall not be regarded as capital asset? |
| A. | Jewellery |
| B. | Rural Agricultural land |
| C. | Archaeological Collections |
| D. | Paintings |
| Answer» B. Rural Agricultural land | |
| 96. |
Which of the following is not a capital expense? |
| A. | Installation expenditure of plant of a company. |
| B. | Legal expenses for reduction of capital. |
| C. | Commission to employees to achieve sales Targets. |
| D. | Expenses of promoting a company. |
| Answer» C. Commission to employees to achieve sales Targets. | |
| 97. |
Which of the following donations is eligible for 100 % deduction? |
| A. | Help to poor |
| B. | National DefenceFund |
| C. | Rajive Gandhi Foundation |
| D. | Any notified temple |
| Answer» B. National DefenceFund | |
| 98. |
Indexation is applicable to....................... |
| A. | Sale of short term capital assets. |
| B. | Sale of long term debentures. |
| C. | Sale of depreciable capital assets. |
| D. | Sale of long term capital assets which are not depreciable assets |
| Answer» D. Sale of long term capital assets which are not depreciable assets | |
| 99. |
XYZ & Co. incurred a liability by giving discount on issue of debentures. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | Illegal expenditure |
| Answer» B. Deferred revenue expenditure | |
| 100. |
The objectives of tax planning is to minimise .........? |
| A. | tax liability |
| B. | finance liability |
| C. | tax return |
| D. | none of these |
| Answer» A. tax liability | |
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