1. The number of identities included in the definition of persons is
Correct : C. seven
2. Deduction available under section 24(a) is _____ of NAV.
Correct : A. 30%
3. Expenditure incurred by a businessman for ready to use software is entitled to benefit of
Correct : D. 100% as revenue expenditure
4. The basic exemption limit for a resident super senior citizen above the age of 80 is
Correct : C. Rs. 5,00,000
5. The provisions relating to interest on delay in payment of refund are given in section
Correct : C. 244A
6. 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
7. Notice under section 156 is given for
Correct : C. deferment of tax
8. As per section 271H, where a person fails to file the statement of tax deducted/collected at source i.e. TDS/TCS return on or before the due dates prescribed in this regard, then he shall be liable to pay penalty under section 271H. Maximum penalty that can be levied is ______.
Correct : A. 1,00,000, but not exceeding the amount of TDS/TCS.
9. The threshold exemption limit for Equalization levy is?
Correct : D. Rs. 1 lakh
10. Rate of surcharge applicable to a foreign company having total income of Rs. 8 crore is :
Correct : B. 2%
11. Income Computation and Disclosure Standards are to be applied in computation of income under the head:
Correct : D. Both “Profits and Gains from Business or Profession” and “Income from Other Sources”
12. New plant and machinery acquired and put to use by an assessee engaged in transmission of power is eligible for additional depreciation at ____ of actual cost.
Correct : D. 20%
13. Maximum amount of exemption available in respect of amount received under voluntary
retirement scheme is:
Correct : D. Rs. 5,00,000
14. An individual can claim deduction from his gross total income in respect of expenditure
for the medical treatment of a dependent, being a person with disability upto maximum limit of
Correct : D. Rs. 1,25,000
15. Dividend from a company which is engaged in agricultural activities is:
Correct : D. None of above
16. Short term capital gain not covered u/s 111A is:
Correct : C. Taxable at normal rate applicable to the assessee
17. Loss from house property can be carried forward and set-off in subsequent eight assessment years:
Correct : C. Even if return of loss is not filed
18. The basic exemption limit in case of a non-resident firm is:
Correct : D. None of these
19. TDS u/s 194 in respect of dividend, if payee furnish PAN is:
Correct : A. 10%
20. Tax payable by a resident individual, if he has long term capital gain of Rs. 2,60,000 but
has no other income is:
Correct : D. None of above
21. A winning from lotteries is Rs. 50,000 and expenses incurred to earn such income is Rs.
5,000. Its taxable income is
Correct : A. Rs. 50,000
22. Net salary after deducting tax at source Rs. 10,000 is Rs. 2,50,000 .The amount of taxable
salary is:
Correct : C. Rs. 2,60,000
23. Amount of deduction in respect of donation to approved scientific research institution u/s
80GGA is:
Correct : A. 100% of such donation
24. Agricultural land located in rural area is:
Correct : B. Not a capital asset
25. TDS U/s 193 in respect of interest on securities if payee does not furnish PAN is:
Correct : D. None of above
26. Income of public charitable trust registered u/s 12A is:
Correct : A. Exempt
27. The number of Income computation and Disclose Standards issued so far are:
Correct : C. 10
28. Expenditure in respect of winnings from card games is:
Correct : B. Not deductible
29. Tax payable by a non-resident individual, if he has long term capital gain of Rs. 2,60,000
but has no other income is:
Correct : C. Rs. 52,000 plus cess
30. Stake money on owning and maintaining race horses is Rs. 70,000 and expenses
incurred is Rs. 20,000. Its taxable income is:
Correct : B. Rs. 50,000
31. Rent after deducting municipal taxes is Rs. 2,00,000, the amount of taxable income from
house property is:
Correct : B. Rs. 1,40,000
32. Contribution to approved research (not scientific) institution in case of a business man is:
Correct : A. 100% of such amount
33. Rebate u/s 87A is allowed to an Individual who is resident in India and whose total income
does not exceed ________.
Correct : D. None of the above
34. The payment under Bhopal Gas Leak Disaster shall be______
Correct : C. Exempt
35. Compensatory field area allowance is exempt upto ______
Correct : D. 2,600
36. The time limit for acquisition or construction of self-occupied house property for claiming
deduction of interest is:
Correct : B. 5 years
37. Tax to be collected at source in case of motor vehicle value exceeding ________.
Correct : D. Rs. 10,00,000
38. Interest rate on refund as per section 244A (1A)
Correct : C. 9%
39. Quantum of deduction u/s 80EE is______.
Correct : B. 50,000
40. Island duty allowance is exempt upto ___
Correct : D. 3,250
41. Threshold limit for person having income from business u/s 44AD is_______.
Correct : D. 2crore
42. Tax to be collected at source in case of commission on sale of lottery tickets.
Correct : C. 5%
43. When a person having agricultural lands sells the seeds taken from such lands in a
nursery, which is part of the said lands, the income from such sale is treated as
Correct : B. Agricultural income
44. An employer has paid medical insurance premium of Rs. 12,000 in respect of a salaried
employee drawing annual salary of Rs. 6 lakhs. The amount of perquisite charged in the hands of employee is
Correct : A. Nil
45. The rate of depreciation for a block of assets consisting of buildings used as factory is
Correct : C. 10%
46. In case of a Hindu Undivided Family, where the return of income cannot be signed by the
Karta, the same can be signed by
Correct : D. any adult member of the family.
47. In case of an individual or HUF, to determine whether certain TDS provisions are attracted,
what has to be seen is whether the person is subject to tax audit under section 44AB in
Correct : A. the immediately preceding financial year.
48. A senior citizen having total income consisting of pension and let out property income
aggregating to Rs. 6 lakhs must have paid advance tax during the financial year 2015-16 of
Correct : A. NIL
49. Mr. Ramji is employed in ABC Ltd. who maintained a hospital for treatment of employees.
During the financial year 2015-16, the value of medical benefit availed by Ramji’s family from the hospital was Rs. 2,10,000. The amount of medical perquisite chargeable to income tax would be
Correct : A. Rs. 2,10,000
50. Mr. A has loss from regular business of Rs. 8lakhs and income from speculation business
of Rs. 11 lakhs. His total income chargeable to tax would be
Correct : A. Rs. 3,00,000
51. AOP should consist of:
Correct : D. None of the above
52. An Indian Company, where place of effective management is outside India, shall be:
Correct : A. Resident in India
53. Casual income received by the assessee
Correct : C. Fully taxable
54. Free meal worth 120 per meal for 200 days provided by the employer during working
hours in a remote area is:
Correct : C. Fully exempt
55. Unrealised rent of a property shall be excluded from:
Correct : A. Gross Annual Value
56. Deduction under Section 32AD is allowed to:
Correct : C. Corporate and non-corporate assessee in notified area.
57. For the purpose of computation of capital gain, securities transaction tax is:
Correct : C. Neither allowed as deduction nor form part of cost
58. Loss from trading in derivates through a recognised stock exchange can be carried
forward for:
Correct : A. 8 years
59. Deduction u/s. 80E in respect of interest on education loan is allowed for:
Correct : B. 8 years or till the interest is paid whichever is earlier.
60. Dividend received by a shareholder of an Indian Company engaged in growing and
manufacturing of tea shall be treated as:
Correct : D. Non-agricultural income upto 100%
61. Income of REIF being a business trust by way of renting or leasing of an asset is exempt if:
Correct : B. Such asset is any Real Estate Asset owned by it
62. Cash gifts received by HUF from his members to the extent of Rs. 75,000 will be treated
as income of:
Correct : B. The members
63. The following is taxable under the head “Salaries”:
Correct : A. Gifts received by employee from employer
64. Maximum amount which is not chargeable to tax in case of a non-resident very senior
citizen is
Correct : A. Rs. 2,50,000
65. A partnership firm will become resident in India if
Correct : B. Its control and management is totally or partly in India
66. Transport allowance in case of a disabled employee is exempt upto:
Correct : C. Rs. 3,200 p.m.
67. A religions trust received anonymous donations of Rs. 10 lakhs, the said sum is:
Correct : D. Not taxable at MMR
68. Income from farm house outside India is:
Correct : C. Non-agricultural income
69. While calculating TDS, surcharge is also considered if the payee is:
Correct : B. Foreign company
70. When the shares are held in unlisted company, it is treated as long term capital assets
when the holding period exceeds
Correct : D. 24 months
71. Personal effect do not cover the following
Correct : D. All of the above
72. TDS on interest on securities is covered under section
Correct : C. Section 193
73. Rate of TDS on dividend u/s 194
Correct : B. 10%
74. Income of minor child is exempt upto ______.
Correct : B. Rs. 1,500
75. The accounts of the political party shall be audited by a __________.
Correct : B. Chartered Accountant
76. Loss from specified business covered u/s 35AD can be adjusted against the income of
Correct : D. Income from other specified business
77. ICDS-II stands for _______.
Correct : D. Valuation of inventories
78. ICDS-IV stands for _______.
Correct : C. Revenue recognition
79. TDS on income of FII from securities
Correct : B. 10%
80. TDS on commission other than insurance commission
Correct : A. 5%
81. As per ICDS-II ― “Valuation on Inventories” there recognises _____ costing formulae.
Correct : B. 3
82. Mr Pankaj, partner of PKJ, is assessable as
Correct : B. Individual
83. In case of local authority the return of income is verified by
Correct : C. Principal officer
84. In case of self-occupied house property, following category of person are considered:
Correct : D. Individual and HUF
85. Amortization of preliminary expenses has been restricted to ___ of the cost of project.
Correct : C. 5%
86. Unabsorbed business losses cannot be carried forward for more than
Correct : C. 8 A.Y
87. Coverage of best judgment assessment is under which section.
Correct : D. 144
88. Monetary limit for exemption in the case of encashment of earned leave on
superannuation received by private sector employee is
Correct : C. 3 Lakh
89. Deduction is not allowed to the assessee while computing income from other sources for
Correct : D. All of the above
90. When Mr. Balu paid royalty to Dr. Peter of Sweden for use of know-how in India, such payment
is
Correct : B. accruing in India
91. Mr. Hari resident in India received Rs. 11 lakhs by way of dividend from Indian
companies. Such dividend is:
Correct : D. taxable at 10%
92. When an employee receives money on closure of national pension system trust it is
Correct : C. 40% is exempt from tax
93. When employer contributes to approved superannuation fund it is chargeable to tax as
perquisite when the contribution exceeds-
Correct : A. Rs. 1,50,000
94. Long term capital gain arising from transfer of unlisted securities in the hands of nonresident / foreign company is chargeable to tax at
Correct : B. 20%
95. A start-up can claim deduction under Section 80-IAC for _____ consecutive years
beginning from the year in which the eligible start-up was incorporated.
Correct : C. 3
96. When the return of income for the assessment year 2017-18 is filed under Section 139(4),
the assessee can revise the return on or before-
Correct : C. 31-03-2019
97. When copyright is acquired for Rs. 50 lakhs on 10-11-2016 and used from 01-12-2016,
the amount of depreciation under Section 32 would be ____
Correct : C. Rs. 6,25,000
98. Mr. Raj (age 62) is Karta of HUF which is engaged in textile trade. The total income of the
HUF is Rs. 3,40,000. The tax liability of the HUF would be ______
Correct : A. Rs. 9,270
99. Interest on Post Office SB joint account is exempt upto _____
Correct : B. Rs. 7,000
100. When cash is deposited into savings bank account, quoting of PAN is mandatory when
the amount of deposit is ____ or more.