Wednesday, March 2, 2011

Taxation - 8

Taxation - 8

Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages, Dearness
Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.

Select The Blank
Question If assessee owns more than one house properties, he can get benefit
of nil annual value for any one house property ________.
Correct Answer As per his choice

True/False
Question Any recreational facility provided by the employer to a group of
employees (not being restricted to a select few employees) is not
exempt from tax.
Correct Answer False

Multiple Choice Multiple Answer
Question What are the types of Provident Fund?
Correct Answer Statutory Provident Fund , Recognized Provident Fund ,
Unrecognized Provident Fund

Multiple Choice Multiple Answer
Question The least of the following is the exemption available to an employee if
he is in receipt of house rent allowance :-
Correct Answer 50% of the Salary where such accommodation is situated in Mumbai,
Kolkata, Chennai and Delhi and 40% of the Salary when the
accommodation is situated at any other place. , Actual amount of
HRA received by the employee. , Excess of rent paid over 10% of the
Salary.

Multiple Choice Multiple Answer
Question To get deduction of Rs 150000/- as interest on borrowed capital
assessee needs to satisfy conditions i.e. :-
Correct Answer Borrowal is after 1st April 1999 , Construction is completed in 3 years

Multiple Choice Multiple Answer
Question The entertainment allowance received by the Government employees
is included in their salaries and the deduction is allowed to the extent
of least of the following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.

Select The Blank
Question Section 35AC of the Act applies to any sum paid by the assessee to
a public sector company or a local authority or an association
approved by the national committee for ________ for carrying out
any project in upliftment of public.
Correct Answer Promotion of social and economic welfare

Multiple Choice Single Answer
Question The provisions under section 44AB of the Act, is applicable to the
person carrying on the profession and whose gross receipts in
profession :-
Correct Answer Exceeds Rs.10 lakhs in any previous year

Multiple Choice Multiple Answer
Question As per the provision of section 143(2) and 143(3) scrutiny
assessment made by assessing officer in order to ensure that :-
Correct Answer Assessee has not understated the income , Assessee has not
overstated the loss , Assessee has under paid the taxes

Multiple Choice Single Answer
Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt

True/False
Question Interest paid on the loan for acquiring a capital asset will not be
considered to be a part of cost of acquisition.
Correct Answer False

Multiple Choice Single Answer
Question Previous year always ends on :-
Correct Answer 31st March

Multiple Choice Multiple Answer
Question Perquisites which are taxable only in the hands of specified employee
include the following categories of perquisites :-
Correct Answer Motor Car , Services of sweeper, gardener, watchman or personal
attendant , Gas, electricity and water provided for personal
consumption

Select The Blank
Question Short term Capital Gains is taxed at ________.
Correct Answer Normal Tax rates

Multiple Choice Single Answer
Question Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of news

True/False
Question Clause N0-30 of the Tax Audit requires that, if the cost Audit of the
company carried out, the report of such audit should be enclosed to
the Tax Audit Report.
Correct Answer True

True/False
Question If an assessee gets the salary from more than one employer during
an Assessment Year, Salary received from all the employers will be
aggregated and then the Standard Deduction will be allowed.
Correct Answer True

Multiple Choice Multiple Answer
Question The amount accumulated to the credit of the employee's provident
fund account is paid at the time of :-
Correct Answer Retirement , Resignation

Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees
before 15th September of Previous year is :-
Correct Answer 30% of advance tax payable

Multiple Choice Multiple Answer
Question Any loans or deposits borrowed or repaid under section 269SS of the
Act provides that the said provisions will not apply to the loans or
deposits accepted by :-
Correct Answer Government , Government company , Banking company including
cooperative bank and post office savings bank

Multiple Choice Single Answer
Question The amount of advance tax payable by corporate assessees before
15th March of Previous year is :-
Correct Answer 100% of advance tax payable

Multiple Choice Single Answer
Question The due date prescribed for filing the returns of income in Form No.
2C is
Correct Answer 31st October of the respective Assessment year

True/False
Question The amount of expenses including membership fees and annual fees
incurred by the employee on credit card and which are paid by the
employer shall be added as the perquisites unless the said expenses
are incurred wholly and exclusively for official purposes.
Correct Answer True

Multiple Choice Multiple Answer
Question Which of the following expenses should be debited to P & L Account,
but disallowed for Income tax purpose?
Correct Answer Wealth Tax , Personal expenditure , Income Tax

Multiple Choice Single Answer
Question The provisions regarding set off and carry forward of loses are
contained in :-
Correct Answer Sections 70 to 80 of the Income Tax Act, 1961.

Multiple Choice Single Answer
Question A partnership firm is an agreement between not more than :-
Correct Answer 20 persons

Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54B is for Capital Gains
arising from transfer of :-
Correct Answer Agricultural Land

Select The Blank
Question To acquire PAN, a person shall apply in ________ to the assessing
officer.
Correct Answer Form No. 49A

Multiple Choice Multiple Answer
Question Any amount deposited by an Individual or a HUF in 10 year or 15
year account under the Post Office Saving Bank (CTD) Rules, 1959.
The account can be in the name of :-
Correct Answer The individual himself , A minor of whom he is the guardian.

True/False
Question While computing the profits from Business and profession, the
business or profession must be carried out during the previous year.
Correct Answer True

Multiple Choice Multiple Answer
Question Following news agencies are specified by the Central Government as
specified news agencies :-
Correct Answer UNI , PTI

Select The Blank
Question Any expenditure incurred by the assessee for any purpose which is
________ or which is prohibited by law shall not be allowed as
business expenditure
Correct Answer Offence

True/False
Question If assessee owns more than one house properties, annual value of
any one of the house property can be treated as nil, and such option
can be changed year on year basis.
Correct Answer True

Match The Following
Question -Correct Answer

Superannuation Fund -It is an employee welfare
scheme

Statutory Provident Fund -This is set up as per the
provisions of Provident Fund Act, 1925

Recognized Provident Fund -the provisions of Employees Provident Fund
and Miscellaneous Provisions Act, 1952 apply to this fund.

Unrecognized Provident Fund- The provident fund which is not recognized by the
income tax authorities .


Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard Deduction will be
Rs.________.
Correct Answer 20000

Select The Blank
Question Mr. Ram is employed by the Central Government as accountant
whose gross salary income is Rs 6,00,000. He can claim standard
deduction of Rs ________ u/s 16(i) of the IT Act.
Correct Answer Rs 20,000

Match The Following
Question -Correct Answer

Deduction in case of permanent physical disability-Section 80U

Deductions for Donations Paid -Section 80G
Deduction for Rent Paid -Section 80GG

Deduction in respect of Interest on Bank Deposits -Section 80L

True/False
Question The consideration for transfer of Capital Asset is received by the
transferor is not material while Capital gain chargeable to tax.
Correct Answer True

True/False
Question The payments for claiming the tax rebate u/s 88 of the IT Act should
be made out of the income chargeable to tax.
Correct Answer True

Multiple Choice Single Answer
Question In case of any contribution made by an individual or a HUF to notified
units of any approved mutual fund or of Unit Trust of India in
accordance with a notified scheme (Equity Linked Savings Scheme)
Correct Answer The maximum allowable limit is Rs. 10,000

True/False
Question Dividend received from domestic company to its shareholders is
taxable in the hands of the shareholder.
Correct Answer False

Select The Blank
Question Loss from the activity of owning and maintaining the race horses can
be carried forward and set off in the subsequent Assessment Years
subject to the limit of ________ Assessment years.
Correct Answer 4

Select The Blank
Question If the property becomes the property of the assessee before
________, the Fair Market Value of the property of the capital asset
on that date will be considered to be the cost of acquisition
Correct Answer 1st April 1981

Select The Blank
Question For an individual as a citizen of India who leaves India in the relevant
previous year for the purpose of employment has to be in India for
________ days or more during previous year.
Correct Answer 182

Select The Blank
Question After deducting interest on capital & remuneration to partners, firm is
required to pay tax @ ________
Correct Answer Tax 35% + 2% SC +2% EC

Multiple Choice Multiple Answer
Question Under the clause No-32 of the Act, in the Tax Audit Report, the
Auditor is required to give the accounting calculation in ratios of :-
Correct Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnover



Taxation - 7

True/False
Question Deductions for income tax, payable by the employed person is
permissible.
Correct Answer True

Multiple Choice Single Answer
Question Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting

Match The Following
Question- Correct Answer
Deduction for absence of duty -Section 9

Deductions for payment to insurance and post office -Section 7(2)

Amendment to pay by cheques 1976 Amendment to pay by cash Fine -Section 8
Multiple Choice Single Answer
Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory

Select The Blank
Question A person who stands for directorship other than retiring director
has to give notice to the company at least ________ before the
date of general meeting.
Correct Answer 14 days

Multiple Choice Single Answer
Question Audit committee shall consist of not less than :-
Correct Answer Three directors

True/False
Question A temporary workman is not entitled to bonus though he works
for a few days in the organisation.
Correct Answer False

Multiple Choice Multiple Answer
Question Who is entitled to bonus?
Correct Answer Temporary workmen , Part time employee , Retrenched
employee

Multiple Choice Single Answer
Question A director is deemed to be interested in a contract if he holds
paid up capital of the company exceeding :-
Correct Answer 0.02

Select The Blank
Question To avoid conflicts of interest, ________ committee would
determine the remuneration packages of the executive directors.
Correct Answer Remuneration

Multiple Choice Single Answer
Question If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated

Select The Blank
Question Free selling/drawl of foreign exchange to authorized dealer(AD)
for ________.
Correct Answer Current account

Multiple Choice Single Answer
Question What is the minimum salary under which the persons are
covered in this act?
Correct Answer Less than Rs 1600

Multiple Choice Single Answer
Question In case a company has an executive director, how much
percentage of the board of Directors should comprise of
independent directors?
Correct Answer 0.5

True/False
Question Acquiring foreign security on gift is allowed.
Correct Answer True

True/False
Question An employee employed through contractors on building
operations is entitled to bonus.
Correct Answer False

Multiple Choice Multiple Answer
Question Borrowings for Indian companies are for :-
Correct Answer In Rupees , On repatriation , Non-repatriation
Your Answer In Rupees , On repatriation

Question An apprentice is not entitled to bonus.
Correct Answer True

Multiple Choice Single Answer
Question FEMA allows free selling of foreign exchange to/from whom from
current transaction?
Correct Answer Authorised Dealer

Multiple Choice Single Answer
Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased employed person

Select The Blank
Question A member shall have right to apply for operations and
mismanagement of the company provided application is made
bymembers not less than ________ or by the members holding
not less than one tenth of total number of shares in the share
capital of the company.
Correct Answer 100

Multiple Choice Multiple Answer
Question Who has not prescribed particular set of documentation for
current account remittances?
Correct Answer RBI , Central Govt.

Select The Blank
Question The uses and applications of the funds raised shall be disclosed
to the audit committee on a ________basis.
Correct Answer Quarterly

Select The Blank
Question For Special Resolution, votes cast in favour of the resolution
should be ________ times more than votes cast against the
resolution.
Correct Answer 3

Multiple Choice Multiple Answer
Question Object Clauses are divided into :-
Correct Answer Main Object , Object incidental or ancillary to Main , Other
Objects

Objects
True/False
Question Charge includes Mortgage.
Correct Answer True

Multiple Choice Single Answer
Question When was the factories act passed?
Correct Answer In 1948

Multiple Choice Multiple Answer
Question Public limited company's directors have following conditions :-
Correct Answer Minimum number is three , Should be individuals , Have sound
mind

True/False
Question Government can authorise for supply of essential commodities at
concessional rates and pay wages in kind.
Correct Answer True

Select The Blank
Question A ________ shall not be made for the appointment of two or
more persons as directors of the company by single resolution in
any general meeting of public company, unless resolution has
been agreed by meeting without any vote being given against it.
Correct Answer Motion

Select The Blank
Question Preference shareholders have ________ to get dividend over
equity share holders.
Correct Answer Preferential right

Multiple Choice Multiple Answer
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as
minimum piece rate , Guaranteed time rate for those employed
in piece work for the purpose of securing to such employees a
minimum rate of wages on time work basis


Multiple Choice Multiple Answer
Question Form No. 1 can be signed by :-
Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate

Multiple Choice Single Answer
Question When was the minimum wages act passed ?
Correct Answer 1948

Select The Blank
Question Director has to vacate his office, if he has been ________ by a
court of any offence involving moral turpitude.
Correct Answer Convicted

Match The Following
Question -Correct Answer

Section 2(vi) -Wages
Wages act -1936
Factories act -1948

Section 3 of wages act- Every employer responsible for payment to employed persons

Multiple Choice Single Answer
Question The Board of directors of the company has power to appoint an
additional director :-
Correct Answer Up to maximum permissible limit

Select The Blank
Question The Forms 8 &13 should be filed in ________ to ragistrar of
companies.
Correct Answer Triplicate

Multiple Choice Multiple Answer
Question Retiring director shall be deemed to be reappointed unless :-
Correct Answer He has expressed his unwillingness to be re-appointed , He is
disqualified for appointment , Resolution for reappointment has
been put to vote & lost

Multiple Choice Single Answer
Question Payment of wages act came into existence :-
Correct Answer To ensure regular and timely payment of wages to employed
persons

Multiple Choice Single Answer
Question What is computed by the competent authority at concessional
rates?
Correct Answer Cost of living allowance and cash value

Multiple Choice Single Answer
Question Minimum gap required between date of dispatch of notice and
date of AGM is :-
Correct Answer 25 days

Multiple Choice Single Answer
Question In which case did the Bombay high court observe the general
purpose of the act?
Correct Answer Arvind mills ltd case
Multiple Choice Single Answer
Question Settlement of gift or lawful obligation shall be surrendered within
Correct Answer Seven days

Multiple Choice Multiple Answer
Question Board's Report shall include :-
Correct Answer Dividend recommended , Financial position of the company ,
Amounts transferred to Reserves

True/False
Question The independent director is a supplier of a service provider of
the company.
Correct Answer False

Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Deductions for income tax, payable by the employed person is
permissible.
Correct Answer True

Multiple Choice Single Answer
Question Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting

Match The Following
Question- Correct Answer

Deduction for absence of duty -Section 9

Deductions for payment to insurance and post office -Section 7(2)
Amendment to pay by cheques 1976 Amendment to pay by cash Fine -Section 8

Multiple Choice Single Answer
Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory

Select The Blank
Question A person who stands for directorship other than retiring director
has to give notice to the company at least ________ before the
date of general meeting.
Correct Answer 14 days

Multiple Choice Single Answer
Question Audit committee shall consist of not less than :-
Correct Answer Three directors

True/False
Question A temporary workman is not entitled to bonus though he works
for a few days in the organisation.
Correct Answer False

Multiple Choice Multiple Answer
Question Who is entitled to bonus?
Correct Answer Temporary workmen , Part time employee , Retrenched
employee

Multiple Choice Single Answer
Question A director is deemed to be interested in a contract if he holds
paid up capital of the company exceeding :-
Correct Answer 0.02

Select The Blank
Question To avoid conflicts of interest, ________ committee would
determine the remuneration packages of the executive directors.
Correct Answer Remuneration

Multiple Choice Single Answer
Question If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated

Select The Blank
Question Free selling/drawl of foreign exchange to authorized dealer(AD)
for ________.
Correct Answer Current account

Multiple Choice Single Answer
Question What is the minimum salary under which the persons are
covered in this act?
Correct Answer Less than Rs 1600

Multiple Choice Single Answer
Question In case a company has an executive director, how much
percentage of the board of Directors should comprise of
independent directors?
Correct Answer 0.5

True/False
Question Acquiring foreign security on gift is allowed.
Correct Answer True

True/False
Question An employee employed through contractors on building
operations is entitled to bonus.
Correct Answer False

Multiple Choice Multiple Answer
Question Borrowings for Indian companies are for :-
Correct Answer In Rupees , On repatriation , Non-repatriation

True/False
Question An apprentice is not entitled to bonus.
Correct Answer True

Multiple Choice Single Answer
Question FEMA allows free selling of foreign exchange to/from whom from
current transaction?
Correct Answer Authorised Dealer

Multiple Choice Single Answer
Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased employed person

Select The Blank
Question A member shall have right to apply for operations and
mismanagement of the company provided application is made
bymembers not less than ________ or by the members holding
not less than one tenth of total number of shares in the share
capital of the company.
Correct Answer 100

Multiple Choice Multiple Answer
Question Who has not prescribed particular set of documentation for
current account remittances?
Correct Answer RBI , Central Govt.

Select The Blank
Question The uses and applications of the funds raised shall be disclosed
to the audit committee on a ________basis.
Correct Answer Quarterly

Select The Blank
Question For Special Resolution, votes cast in favour of the resolution
should be ________ times more than votes cast against the
resolution.
Correct Answer 3

Multiple Choice Multiple Answer
Question Object Clauses are divided into :-
Correct Answer Main Object , Object incidental or ancillary to Main , Other
Objects

Objects
True/False
Question Charge includes Mortgage.
Correct Answer True

Multiple Choice Single Answer
Question When was the factories act passed?
Correct Answer In 1948

Multiple Choice Multiple Answer
Question Public limited company's directors have following conditions :-
Correct Answer Minimum number is three , Should be individuals , Have sound
mind

True/False
Question Government can authorise for supply of essential commodities at
concessional rates and pay wages in kind.
Correct Answer True

Select The Blank
Question A ________ shall not be made for the appointment of two or
more persons as directors of the company by single resolution in
any general meeting of public company, unless resolution has
been agreed by meeting without any vote being given against it.
Correct Answer Motion

Select The Blank
Question Preference shareholders have ________ to get dividend over
equity share holders.
Correct Answer Preferential right

Multiple Choice Multiple Answer
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as
minimum piece rate , Guaranteed time rate for those employed
in piece work for the purpose of securing to such employees a
minimum rate of wages on time work basis

Multiple Choice Multiple Answer
Question Form No. 1 can be signed by :-
Correct Answer Chartered Accountant , Cost & Works Accountant , Advocate

Multiple Choice Single Answer
Question When was the minimum wages act passed ?
Correct Answer 1948

Select The Blank
Question Director has to vacate his office, if he has been ________ by a
court of any offence involving moral turpitude.
Correct Answer Convicted

Match The Following
Question -Correct Answer

Section 2(vi) Wages

Wages act 1936
Factories act 1948

Section 3 of wages act Every employer responsible for payment to
employed persons


Multiple Choice Single Answer
Question The Board of directors of the company has power to appoint an
additional director :-
Correct Answer Up to maximum permissible limit

Select The Blank
Question The Forms 8 &13 should be filed in ________ to ragistrar of
companies.
Correct Answer Triplicate

Multiple Choice Multiple Answer
Question Retiring director shall be deemed to be reappointed unless :-
Correct Answer He has expressed his unwillingness to be re-appointed , He is
disqualified for appointment , Resolution for reappointment has
been put to vote & lost

Multiple Choice Single Answer
Question Payment of wages act came into existence :-
Correct Answer To ensure regular and timely payment of wages to employed
persons

Multiple Choice Single Answer
Question What is computed by the competent authority at concessional
rates?
Correct Answer Cost of living allowance and cash value

Multiple Choice Single Answer
Question Minimum gap required between date of dispatch of notice and
date of AGM is :-
Correct Answer 25 days

Multiple Choice Single Answer
Question In which case did the Bombay high court observe the general
purpose of the act?
Correct Answer Arvind mills ltd case

Multiple Choice Single Answer
Question Settlement of gift or lawful obligation shall be surrendered within
Correct Answer Seven days

Multiple Choice Multiple Answer
Question Board's Report shall include :-
Correct Answer Dividend recommended , Financial position of the company ,
Amounts transferred to Reserves

True/False
Question The independent director is a supplier of a service provider of
the company.
Correct Answer False

Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route





Taxation - 6

Multiple Choice Multiple Answer
Question The entertainment allowance received by the
Government employees is included in their salaries
and the deduction is allowed to the extent of least of
the following amounts :-
Correct Answer Actual amount of Entertainment Allowance received. ,
Rs. 5,000 , 1/5th of Salary

True/False
Question Income Tax Act, 1961 recognizes Written Down Value
(WDV) method as well as straight line method for the
computation of depreciation u/s 32 this act.
Correct Answer False

Multiple Choice Multiple Answer
Question Profits earned by an Industrial Undertaking engaged
in other than infrastructure development is available
under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area, rural
area or place of pilgrimage , Company engaged in
scientific and industrial research

Multiple Choice Single Answer
Question Which of the following expenditure is in the nature of
revenue expenditure?
Correct Answer Expenditure incurred as discount on issue of
debentures

Select The Blank
Question If sum received is net of TDS then it is ________ to
include in income from other sources.
Correct Answer Grossed up

True/False
Question Interest paid on the loan for acquiring a capital asset
will be considered to be a part of cost of acquisition.
Correct Answer True

Multiple Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing
deductions under Chapter VI-A is Rs. 1,45,000, wants
to make the investments in the following alternative
forms Rs. 80,000 in PPF and Rs. 20,000 in
Infrastructure Bonds. The amount of rebate available
to him u/s 88 is :-
Correct Answer Rs. 18,000

Multiple Choice Single Answer
Question Interest on specified securities or premium on
redemption is exempt for :-
Correct Answer Non resident Indian

True/False
Question As per section 2(11) of the Income Tax Act, Block of
Assets includes both tangible as well as intangible
assets.
Correct Answer True

Multiple Choice Multiple Answer
Question Deductions in respect of Certain Incomes received
under Section 80L is available in respect of
Correct Answer Interest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs)
Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest

Multiple Choice Single Answer
Question Tax liability of a person is based on :-
Correct Answer Residential status

Multiple Choice Multiple Answer
Question For the purpose of income tax, the perquisites can be
classified into :-
Correct Answer Perquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the
hands of specified employee

Select The Blank
Question For an individual as a citizen of India who leaves India
in the relevant previous year for the purpose of
employment has to be in India for ________ days or
more during previous year.
Correct Answer 182
Multiple Choice Single Answer
Question Income earned in previous year is subjected to tax in
Correct Answer Assessment year

Multiple Choice Multiple Answer
Question Following professional institutions have their incomes
exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting

Select The Blank
Question ________ of the Tax Audit Report refers to the details
of various payments which are allowed as deduction
only if they are actually paid for.
Correct Answer Section 43B Clause No-21

Multiple Choice Multiple Answer
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains

Select The Blank
Question To claim sec 10A deduction unit must be established
in ________.
Correct Answer Free Trade Zone

Multiple Choice Single Answer
Question Assessment year is the period of 12 months starting
from :-
Correct Answer 1st April to 31st March

Multiple Choice Single Answer
Question Combined total of five heads of income equals :-
Correct Answer Gross total income

Multiple Choice Single Answer
Question If an employee does not avail of this leave travel
concession or assistance during a block of four
calendar years :-
Correct Answer Only one journey can be carried forward to the next
block.


Select The Blank
Question To acquire PAN, a person shall apply in ________ to
the assessing officer.
Correct Answer Form No. 49A

Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54F is for
Capital Gains arising from transfer of :-
Correct Answer Any Long Term Capital Asset

Select The Blank
Question Where an assessee files or submits the returns as per
provisions of section 139 or in response to the notice
under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment

Multiple Choice Multiple Answer
Question Income of a professional association is exempt if its
objectives are :-
Correct Answer Supervision , Control , Encouragement

True/False
Question While computing the profits from Business and
profession, the business or profession must be carried
out during the previous year.
Correct Answer True

Multiple Choice Single Answer
Question In respect of leave travel concession If Mr. A has
availed the exemption only once or has not availed
any exemption at all, in the block of four years i.e.
1998-2001 then :-
Correct Answer He can carry over the exemption to the next block of
four years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next
block i.e. 2002.

Multiple Choice Multiple Answer
Question The amount accumulated to the credit of the
employee's provident fund account is paid at the time
of :-
Correct Answer Retirement , Resignation

Multiple Choice Multiple Answer
Question From annual value, following deductions are allowed :-
Correct Answer Standard deduction , Interest on borrowed capital ,
Municipal taxes

Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages,
Dearness Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.

Multiple Choice Multiple Answer
Question From GTI of a company following deductions under
chapter VI A are allowed
Correct Answer 80 G Donations , 80 HHB profits and gains from
projects outside India , 80 IA profits and gains of
infrastructure companies

Multiple Choice Single Answer
Question Annual value of any one palace in possession of a
former ruler is :-
Correct Answer Exempt

Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard
Deduction will be Rs.________.
Correct Answer 20000

Multiple Choice Single Answer
Question The amount of accumulated interest on NSCs
purchased in the earlier years is assumed to be
reinvested :-
Correct Answer And qualifies for tax rebate under section 88.

Select The Blank
Question Deduction u/s ________B is available for 10
consequent assessment years from the year of
commencement of production.
Correct Answer 10

True/False
Question Income from subletting is treated as income from
house property.
Correct Answer False

Select The Blank
Question Section 80U allows the deduction in respect of the
________ .
Correct Answer Permanent physical disability

Match The Following
Question- Correct Answer

Disallowable Expenditure-Litigation Expenses in connection with
recovery of a debt which is not a trading debt

Business Includes trade, commerce, or Includes trade, -commerce, or
manufacture or any adventure or concern in the nature of trade,


Profession -Includes vocation

Capital Expenditure- Expenditure incurred by a company with the
issue of rights shares
True/False
Question Any recreational facility provided by the employer to a
group of employees (not being restricted to a select
few employees) is not exempt from tax.
Correct Answer False

True/False
Question In case of deductions for medical treatment under
Section 80DDB the amount of deduction will be
reduced by the amount received under an insurance
policy or the amount reimbursed by the employer.
Correct Answer True

True/False
Question Any advance tax paid before 31st March is treated as
advance tax paid during the previous year.
Correct Answer True

Multiple Choice Single Answer
Question Municipal taxes paid is allowed as deduction from :-
Correct Answer Gross annual value

True/False
Question Entertainment Allowance received by the employees
from the private sector is taxable in the hands of the
employee.
Correct Answer True

Match The Following
Question -Correct Answer

Any subscription made to National Saving Scheme
-By an individual or a HUF is eligible for rebate u/s 88

Mr. A, a 70 years old
Senior Citizen, has the
Gross Total Income of
Rs. 2,50,000 during
the Assessment Year
2005-2006. He
invested Rs. 50,000 in
the tax saving bonds of
ICICI on 10th June
2004. His tax liability
for the A Y 2005-2006.
RS.12,500 RS.12,500
During the
Assessment Year
2005-2006, Mrs. A,
age 58 years, has the
Gross Total Income of
Rs. 1,45,000 including
the dividend from
Indian companies
amounting to Rs.
10,000. She invests
Rs. 50,000 in PPF
during the said
Assessment Year. her
tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made
to a Public Provident
Fund
Is eligible for rebate
u/s 88
Is eligible for rebate u/s
88

Multiple Choice Multiple Answer
Question Following incomes of local authorities are exempt :-
Correct Answer Capital gains , Other income , House property

Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the
assessee should invest the whole or part of the capital
gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the longterm
capital asset

True/False
Question Income from partnership firms is exempt from taxation
for the partners
Correct Answer True

No comments:

Post a Comment

Post a Comment