1. In case the directions fail to appoint first auditor (s), the shareholders shall
appoint them at…..by passing a resolution
Correct : A. a general meeting.
2. Life Insurance Corporation of India holds twenty five percent of subscribed capital of XYZ Ltd. The appointment of statutory auditor in XYZ Ltd. Would be by…………………..
Correct : B. special resolution.
3. Which of the following statement is not true regarding appointment of statutory auditor by the Central Government?
Correct : B. If a company fails to appoint an auditor at a general meeting.
4. The auditor’s _________ safeguards the auditor’s ability to form an audit opinion
without being affected by any influences.
Correct : D. Integrity.
5. Types of EDP Accounting System:
Correct : D. Both A and B .
6. Full form od CAAT .
Correct : D. Computer Assisted Audit Techniques.
7. Problems encountered in an EDP Enviroment:
Correct : D. All of the above.
8. What is EDP?
Correct : C. Electronic Data Processing
9. Full form of GAS:
Correct : B. Generalized Audit Software
10. Income Tax Act was passed in the year _________.
Correct : C. 1961
11. Life Insurance Corporation of India is a _______________.
Correct : C. Company
12. ……………………. is an artificial person registered under Indian Companies Act 1956.
Correct : B. Company
13. The first income tax act was introduced in the year
Correct : C. 1860
14. The apex body of Income Tax Department. is
Correct : C. CBDT
15. Income received or deemed to be received in India (whether accrued in or outside India) is taxable in case of
Correct : D. All of the above
16. The Income Tax Act, which is still in force in India, was enforced in
Correct : B. 1961
17. Mr. X has started has business from 1st Sept '16 and does not have any other source of income. His first previous year will start from
Correct : B. 1st Sept '16
18. According to Section 2(7) of Income Tax Act "Assessee" means a person
Correct : D. All of the above
19. Amongst the following _________________ is empowered to levy tax on agricultural income.
Correct : B. State Government
20. A person includes:
Correct : D. Individuals, HUF, Company, Firm, AOP or BOI, Local Authority, Every
21. XYZ LLP falls under which---------- category of person -
Correct : B. Partnership firm
22. Which amongst the following is not a head of Income?
Correct : D. Income from exports
23. Income is divided in ___________ heads of Income.
Correct : B. 5
24. Which of the following is not included in taxable income -
Correct : A. Reimbursement of expenses
25. Which amongst the following is Artificial Juridical Person?
Correct : A. Corporation
26. The Central Government has notified Income computation and disclosure standards for computing income under the head Profits and Gains of Business and Profession - .
Correct : D. 10
27. An assessee incurred expense of tax on non monetary perquisites of employees.
Such expenditure shall be considered as:
Correct : D. Expressly disallowed
28. Contribution was made by PFI towards Credit Guarantee Fund Trust. Such
expenditure shall be considered as:
Correct : A. Revenue expenditure
29. Surcharge of 10 per cent is payable by an individual where the total income exceeds:
Correct : C. Rs.10,00,000
30. For an employee in receipt of hostel expenditure allowance for his three children, the
maximum annual allowance exempt under section 10(14) is
Correct : B. Rs.7,200
31. Calculate the Gross Annual value from the following details:
Municipal Value - Rs. 45,000 Fair rental value - Rs. 50,000 Standard rent - Rs. 48,000 Actual Rent - Rs. 42,000
Correct : B. Rs. 48,000
32. M took a loan of Rs. 6,00,000 on 1.4.2011 from a bank for construction of a house. The loan carries an interest @ 10% p.a. The construction is completed on 15.6.2013. The entire loan is still outstanding. Compute the interest allowable for the assessment year 2020- 21
Correct : C. Rs. 84,000
33. The first income tax act was introduced in the year
Correct : B. 1861
34. Income received or deemed to be received in India (whether accrued in or outside India) is taxable in case of
Correct : A. Resident
35. Pension is _______________ under the salary head.
Correct : B. Partially taxable
36. The salary, remuneration or compensation received by the partners is taxable under
the head _______________.
Correct : C. Salary
37. Rent Free Accommodation given to an employee by the employer is a _________
Correct : A. Allowance
38. Family pension received by a widow of a member of the armed forces where the death of the member has occurred in the course of the operational duties, is………………..
Correct : C. Totally exempt under section 10(19)
39. The house rent allowance (HRA) under the salary head of Income Tax Act is given
by_____________.
Correct : B. Section 10(13A)
40. Children Education allowance is exempted for ______ child/ children.
Correct : B. Two
41. Pension is _______________ under the salary head.
Correct : A. Fully taxable
42. The salary, remuneration or compensation received by the partners is taxable under
the head _______________.
Correct : B. Income from Business
43. The death-cum-retirement gratuity received by the Government Employee or
employee of local authority is _______________.
Correct : B. Fully exempted
44. Under Section 15 of Income Tax Act, the salary due in previous years and even if it
is not received is _______________.
Correct : B. Not taxable
45. Provident Fund Act was passed in the year ___________.
Correct : A. 1932
46. Rent Free Accommodation given to an employee by the employer is a
____________.
Correct : B. Perquisite
47. The Payment of Gratuity Act came into force in…………..
Correct : D. 1972
48. The entertainment allowance is applicable to_______________.
Correct : C. Government employees
49. _______ is the rent fixed under Rent control Act.
Correct : C. Standard rent
50. Expected Rent can be determined in the following way
Correct : C. Higher of Municipal Value & Fair Rent subject to maximum of Standard Rent
51. Under the Head Income from House Property, the basis of charge is the
______________ of property.
Correct : A. Annual value
52. Mr. Ram owns a house property. He lent it to Laxman at`10,000 p.m. Laxman sublet it to Mr. Maruti on monthly rent of`20,000 p.m. Rental income of Ram is taxable under the head______________.
Correct : C. Income from House Property
53. Deduction from annual value is allowed under ______________.
Correct : A. Section 24
54. ………………………….% standard deduction is allowed on annual value.
Correct : B. 30
55. For computation of Gross Annual Value, if actual rent is more than expected rent,
then we select the ______________.
Correct : A. Actual rent
56. Under the Income Tax Act, 1961, depreciation on machinery is charged on
_______________.
Correct : B. Written down value of the machinery
57. Income chargeable under the head ‘Profits and Gains from Business or Profession’
is covered under _______________.
Correct : C. Section 28
58. Deduction under section 80C to 80U cannot exceed:
Correct : A. Gross Total Income
59. Mr. X made payment to Mr. Y on which Mr. X failed to deduct the TDS. Mr. Y (Resident) fulfilled the following requirements so that Mr. X should not be deemed to be an assesses in default. Which of the following was wrongly complied by Mr.Y because of which Mr. X was treated as assesses in default?
Correct : D. Furnished a Certificate to this effect from C.A. in Form 27BA.
60. Because of Death of his Son Mr. Salman could not file Quarterly statement for TDS Deducted. As there is a reasonable cause for such failure which of the following will not be levied:
Correct : B. Fees
61. Mr.Marshal owned network of telecom towers and infrastructure services. He let out these to major telecom operators of the country. He applied u/s. 197 for obtaining a certificate of lower deduction of tax. As per the Judgment of Indus Towers Ltd. Vs CIT (2014)(Del.) at what rate Tax shall be deducted
Correct : C. 2% u/s 194I
62. State Government pays commission of Rs.20, 000/- to one of its agent on sale of
Lottery Tickets.
Correct : B. TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 15,000/-
63. Taxpayers opting for presumptive taxation scheme of Section 44AD are required to
pay up to of advance tax by 15th June?
Correct : A. 15%
64. Full form of TDS is :
Correct : A. Tax Deducted at source.
65. ITR -5 is related to :
Correct : C. For Firms, AOPs And BOIs.
66. Challan No……………. is used by all categories of tax payers for payment of income
tax.
Correct : A. Challan no.280
67. ………………….is responsible to deduct tax at source.
Correct : C. Payer
68. Tax refund has to be claimed within :
Correct : C. One year
69. In the case of companies, income tax return is signed by:
Correct : D. Managing Director
70. In the absence of the individual assesses, return of income can be signed by
…………………
Correct : D. Authorized person
71. The filing of return of loss in case of a person other than a company or firm is:
Correct : A. mandatory
72. Amount of deduction in case of a person with severe disability under section 80U will be:
Correct : C. Rs. 1,00,000
73. An individual needs to pay Rs. 1,00,000 as advance tax. By 15th of December, how
much amount must be paid by the individual:
Correct : B. Rs. 60,000
74. Mr. DS during the previous year 2018-19 made a payment outside India to a nonresident on which TDS was not paid upto time allowed under section 200. However,
such TDS was deducted and paid on 30th September 2019. When shall deduction of this expenditure be allowed to assessee?
Correct : A. Previous Year 2018-19
75. Payment of Rs. ` 45,000 made in cash towards purchases of medicines. The amount of disallowance under section 40A(3) is -
Correct : A. Rs 45,000
76. Director sitting fees will be Chargeable Under which head?
Correct : B. Income from other sources
77. Rental income from the business of leasing out properties would be taxable under
the head_______
Correct : C. Income from PGBP
78. As per Section 2(e a), which of the following is an asset in case of an individual:
Correct : D. Motor car used for official purposes
79. Salary of S (Rs. 40,000 per month) becomes due on the last day of the month but is paid on 7th of next month. Also, salary of April, 2014 and May, 2014 is received in advance in March, 2014. What will be his gross income for Assessment Year 2014-15?
Correct : A. Rs. 5,60,000
80. Gross Total Income is arrived after:
Correct : C. adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses
81. An assessee incurred a sum of Rs.1,10,000 for alteration of the memorandum and
articles of association. Such expenditure shall be considered as:
Correct : A. Revenue expenditure
82. franchise fee received by an assessee in tourism business, against special rights given to franchisees to undertake hotel business in assessee’s property is taxable under the head _____
Correct : B. Income from PGBP
83. Amendments by the finance act are made applicable from
Correct : A. First day of next financial year
84. Income by way of royalty in respect of a patent developed and registered in India in
respect of person who is resident in India is chargeable to tax at rate of -
Correct : D. 30%
85. Which of the following is not included in taxable income -
Correct : A. Reimbursement of expenses
86. Income Tax is levied on the ___________ of a person.
Correct : A. Total Income
87. Describe the status of the following person (i.e. individual, HUF, Firm, Company etc.) X and Yare legal heirs of Z. Z died in 2018 and X and Y carry on his business without entering into a partnership.
Correct : D. Body of Individual
88. ITAT all decisions are taken by majority of member’s, if the Members are equally
divided then the final vote will have of
Correct : A. President
89. For ITAT special powers of stay is available and stay will automatically Get vacated if
matter is not decided in time of.
Correct : A. 6 months
90. Assessment under following section is termed as scrutiny assessment
Correct : A. 143(3)
91. An appeal to the Commissioner of Income-tax (Appeals) shall be filed in Form No.
________.
Correct : A. 35
92. Section ________ specifies the orders against which an appeal can be filed before
the Commissioner of Income tax (Appeals).
Correct : A. 246A
93. The Commissioner of Income-tax (Appeals) is the ________ appellate authority
Correct : A. First
94. There are certain specified financial transactions in which quoting of PAN is mandatory. If a person intending to enter into such transaction does not hold PAN then, he has to furnish;
Correct : A. Form 60
95. Mr. A is not a citizen of India. He wants to apply for PAN in India and he has consulted you to provide him the applicable form for application of PAN. What would be correct Form;
Correct : C. Form 49AA
96. Which of the following can be corrected while processing the return of income under section 143(1)?
Correct : A. any arithmetical error in the return
97. E-filing of return in case of an office of the Government/company and a firm whose
accounts are liable to be audited is:
Correct : A. mandatory
98. The return of income can be filed with the Income-tax Department in electronic mode
only.