1. An individual is resident and ordinarily resident of India if .
Correct : C. All of the above
2. The Resident HUF is ordinarily resident in India, if
Correct : A. He has been resident in India at least 2 years out of 10 previous years immediately
3. Basic condition will be for a person who leaves India for employment
Correct : A. At least 182 days in India
4. Which of the following is not included in the term Income under the Income Tax Act, 1961?
Correct : D. Profit in lieu of salary
5. 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.
Correct : D. None of the above
6. An assessee has borrowed money for purchase of a house & Interest is payable outside India.
Correct : C. Not to be allowed on deduction
7. Salary, bonus, commission or remuneration due to or received by a working partner from the firm is taxable under the head.
Correct : C. PGBP
8. Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head.
Correct : C. PGBP
9. Interest on capital or loan received by a partner from a firm is:
Correct : B. Taxable U/H business and profession
10. Under the head Business or Profession, the method of accounting which an assessee can follow shall be:
Correct : C. Mercantile or cash system only
11. Gain arising from the disposal of _________ is taxable under the head capital gains.
Correct : C. Securities
12. ____________are capital assets.
Correct : D. Both b and c
13. A person who derives his income by dealing in shares of private, unlisted and public limited companies are covered under the head.
Correct : C. Capital gains or
14. Bonus shares are issued by a company to its ______ without receiving any amount from them.
Correct : C. Shareholders
15. Gain from sale of shares of Private Limited companies is taxable under section_________.
Correct : A. 37
16. Bonus shares are the shares issued by a company_____________.
Correct : A. Free of cost
17. A company in which at least 50% of the shares are held by a foreign government is ___________.
Correct : B. Public company
18. Any incidental expenditure on disposal of capital assets shall form part of _____________.
Correct : A. Cost of assets
19. Capital loss u/s 37 is allowed as deduction for those assets the gain of which is___________.
Correct : A. Chargeable to tax
20. At the time of devolution ___________ would be the cost of the asset.
Correct : A. FMV
21. Capital gain tax shall not be chargeable on disposal of securities which are held for a period
of __________.
Correct : A. one year
22. ‘Derivatives’ is a general term for financial assets that are “derived” from other_______________.
Correct : C. financial assets
23. Gain on disposal of immovable property is chargeable to at _____%, where holding period
is up to one year.
Correct : A. 10
24. A loss on the sale of jewellery is _______ under the head capital gain.
Correct : B. not recognized
25. Maximum limit for the deduction of Life insurance premia from the gross total income is .
Correct : B. Rs 1,50,000
26. The deduction of life insurance premia, contribution to provident fund, etc. will is done under of Income Tax Act, 1961.
Correct : A. Section 80C
27. 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
28. In Income Tax Act, 1961, deduction under sections 80C to 80U cannot exceed .
Correct : A. Gross total income
29. The maximum aggregate amount of deduction under sections 80C, 80CCC and 80CCD cannot exceed .
Correct : C. Rs 1,50,000
30. Deduction in respect of contribution to political party will .
Correct : B. Not be allowed if payment made in cash
31. Maximum amount of deduction in case of a person with severe disability under section 80U will be .
Correct : A. 50,000
32. Government’s contribution to the new pension scheme referred to in Section 80CCD is
Correct : B. Income chargeable to tax as salaries in full
33. 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
Correct : D. Deductible up to 75%
34. Deduction in respect of contribution to pension scheme of central government comes under _____________of Income Tax Act, 1961.
Correct : A. Section 80CCD
35. In case of assessees other than companies, the following is advance tax rate to be payable on or before of 15th September:
Correct : B. 30%
36. 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.
Correct : B. False
37. Deduction under Section 80C can be claimed for fixed deposit made in any scheduled bank, if the minimum period of deposit is .
Correct : C. 12 Years
38. Which of the following is covered under section 80D of the Income Tax Act, 1961?
Correct : B. Medical insurance premium
39. The deduction available under section 80QQB in respect of royalty income of authors shall not exceed _____________in previous year.
Correct : B. 2,50,000
40. For the purpose of deduction under section 80DD, which of the following statements is/are true?
Correct : C. Assessee has a dependent disable relative
41. The maximum deduction one can clam under section 80D is .
Correct : D. 60,000
42. Amount of deduction in case of a person with severe disability under section 80U will
be______________ .
Correct : D. (d) 1,25,000
43. Aggregate amount of deduction under 80C, 80CCC and 80CCD cannot exceed_________..
Correct : D. 1,50,000
44. In the case of every senior citizen resident in India, tax rebate under section 87A is ______.
Correct : D. Nil
45. The provisions regarding TDS on Salaries are contained in .
Correct : C. Section 192
46. If the payee does not furnish PAN and TDS under section 194, dividends shall be made @__________ .
Correct : A. (a) 20%
47. Deduction of tax at source for insurance commission is @ ___________________.