Correct : B. Assessment Year for the P.Y. 2016-17 and previous year for the A.Y. 2018-19
2. For the purpose of levying tax on income other than agricultural income, Union List
contained entry
Correct : A. 82
3. Following is not a head of income:
Correct : C. Income from Interest on securities
4. If total income of a person is Rs. 2,67,888.34, it shall be rounded off to:
Correct : B. Rs. 2,67,890/-
5. Income tax is a:
Correct : C. Direct Tax
6. A Hindu Undivided family is said to be resident in India if
Correct : C. Control and management of its affairs wholly or partly situated in India
7. An individual is said to be resident in India if
Correct : B. He is in India in the previous year for a period of 182 days or more
8. An Indian citizen leaving India during the previous year for employment purpose is said
to be resident if
Correct : B. He is in India in the previous year for a period of 182 days or more
9. An individual, being foreign national, came to India first time during the previous year 2017-18 on 01-01-2018 for 200 days, his residential status for the previous year 2017-18 is.
Correct : A. Non-resident
10. Following income of a resident and ordinarily resident is taxable in India, that is
Correct : D. All of the above
11. Which of the following is an agriculture income?
Correct : B. Share of Profit of a Partner from a firm engaged in an agriculture operation
12. Which of the following incomes received by an assessee are exempt under section 10 of the Income Tax Act?
Correct : A. Agriculture Income
13. In case of an individual or HUF, agricultural income is
Correct : B. Exempted but included in the total income for the rate purpose
14. In case of an assessee engaged in the business of manufacturing of tea, his agricultural income is:
Correct : C. Nil
15. Remuneration to partner of a firm engaged in the business of growing and
manufacturing rubber in India is:
Correct : A. Partly agricultural income and partly non-agricultural income
16. Following activity shall be considered as agricultural activity:
Correct : D. Both (b) and (c)
17. Which of the following is not taxable under head ‘Salaries’?
Correct : D. Both (a) and (b) above
18. Employer’s contribution to unrecognized provident fund
Correct : A. Is exempt from tax
19. If a domestic servant is engaged by the employer and salary is paid by him, the perquisite is
Correct : C. Taxable in the hands of specified employees only
20. Which of the following is taxable under the head ‘salaries’?
Correct : B. Commission received by an employee director of a company.
21. Who among the following is a specified employee?
Correct : D. Both (a) and (b) above
22. Rate of Interest accruing to a particular employee by virtue of his employer’s
contribution to Recognized Provident Fund is 12.5% p. a. In such a case
Correct : D. Only 3% of interest is taxable
23. Statutory limit u/s.16(ii) for deduction of entertainment allowance in case of a nonGovernment employee is
Correct : D. NIL
24. Taxable value of perquisite being sweat equity shares allotted by the employer is:
Correct : A. The fair market value of such shares as on the date when such option is exercised by the employee as reduced by the amount paid
25. Net Annual Value of a self-occupied property treated as such is:
Correct : B. Nil
26. One out of the following house properties is not exempted, which is:
Correct : B. House property let out for the purpose of own business of tenant.
27. A house property located outside India is:
Correct : C. Taxable in hands of resident and ordinarily resident assessee
28. Deduction u/s 24(a) is
Correct : A. 30% of net annual value of the house property
29. Interest relating to pre-construction period is allowable:
Correct : D. None of the Above
30. For the purpose of claiming higher deduction u/s 24(b), while computing income of a self-occupied property, assessee is required to take:
Correct : B. Loan on or after 01-04-1999
31. Income from sub-letting is:
Correct : B. Taxable under the head ‘Income from Other Sources’
32. Deduction u/s 24(a) is not available when:
Correct : C. Net annual value is zero or negative
33. Which of the following deductions is /are not allowed in case of a deemed to be let-out house?
Correct : D. All of the above
34. Which of the following is not allowed as a deduction for computation of business Income?
Correct : B. Anticipated future losses
35. Preliminary expenses are incurred in every business. What are the expenses that qualify for deduction u/s.35D?
Correct : D. All of the above
36. Expenditure incurred by a company for the purpose of promoting family planning
among its employees, being of a capital nature
Correct : C. 1/5 of expenditure is allowed as deduction in the previous year
37. Expenditure on promotion of family planning is an allowance as deduction u/s. 36(1)(ix) of the Income Tax Act, 1961 in case of
Correct : D. Company
38. Deduction u/s 35AD is available in respect of expenditure on specified business, one of them is:
Correct : A. Setting up and operating a cold chain facility
39. Deduction u/s 35AD is available in respect of expenditure on specified business provided such business commenced its operation on or after 01-04-2009 subject to an exception that:
Correct : B. Business of laying and operating a cross-country natural gas pipeline network may be commenced at any time on or after 01-04-2007
40. In case of loss, a partnership firm may claim deduction in respect of remuneration to
partner to the extent of:
Correct : B. Rs. ,50,000/- or remuneration paid, whichever is lower
41. Block of asset is required to be increased by an amount which is actual cost of the asset
being covered u/s 35AD that amount is:
Correct : B. Nil
42. A payment of Rs. 25,000 is made to the road transport-operator on 20-02-2018 in cash,
consequently, amount disallowed u/s 40A(3) is
Correct : A. Nil
43. U/s 54, capital gain will be allowed as exemption if the house property under transfer is
held for
Correct : D. More than 24 months preceding the date of transfer
44. Capital gain on Slump sale is
Correct : C. Depends on period of holding of capital asset being undertaking transferred
45. While computing capital gain on sale of immovable property, full value of consideration shall be:
Correct : C. Actual consideration or stamp duty value of the property transferred, whichever is higher
46. Cost of acquisition of capital asset being immovable property acquired through gift covered u/s 49(4) is:
Correct : C. Stamp duty value of the property as considered while computing income u/s 56(2)
47. Long term capital gain on sale of equity share through stock exchange
Correct : A. is exempt u/s 10(38)
48. Caution money forfeited by the assessee is:
Correct : A. Taxable in the year of forfeiture under the head “Income from Other Sources”
49. Gift of a capital asset is not considered as transfer, however exception is:
Correct : A. Shares acquired under the Employees Stock Option Plan
50. Cost of acquisition of self-generated asset is nil, the exception is:
Correct : C. Bonus shares acquired before 01-04-2001
51. Interest on delayed compensation or enhanced compensation is taxable:
Correct : B. On receipt basis
52. While computing taxable interest on delayed compensation, a standard deduction is
allowed @
Correct : A. 50%
53. An individual purchased a painting on 01-11-2017 for Rs. 5,00,000 though fair market
value of the asset is `5,25,000. Income taxable u/s 56(2)(x) is:
Correct : C. Nil as difference between market value and actual consideration does not exceed Rs. 50,000
54. The provision of sec.56(2)(x) is applicable on
Correct : A. All assessee
55. Tax is deducted at source on winning from lottery, the rate for such deduction in case of resident individual deductee is:
Correct : C. 30% if such winning exceeds Rs. 10,000
56. While computing income from other sources, deduction is not allowed to the assessee for:
Correct : D. All of the above
57. Gift received by an individual in certain circumstances is not taxable, one of them is:
Correct : C. Any gift received on the occasion of the marriage of the individual-assessee
58. Generally, dividend is exempt from tax. Exceptions to this rule is:
Correct : D. All of the above
59. One of the following receipt is taxable under the head ‘Income from Other Sources’:
Correct : B. Income from racing establishment
60. A person is deemed to have substantial interest in a company if he is
Correct : A. The owner of at least 20% of equity capital of the company
61. Income of minor is clubbed however the clubbing provision is not applicable if
Correct : B. Minor is handicapped as specified u/s 80U
62. As per sec.60, income is clubbed if
Correct : B. Income is transferred without transferring asset yielding income
63. Any income from an asset transferred to spouse without adequate consideration is clubbed in the hands of the transferor if:
Correct : B. Relationship between them exist as on the date of accrual of income
64. For the purpose of sec.64, an individual have substantial interest in a company if he holds 20% of voting right alongwith his relative. Here, relative do not include:
Correct : C. Father-in-law
65. Unabsorbed business losses cannot be carried for more than
Correct : B. 8 assessment years
66. Long term capital loss can be adjusted against
Correct : C. Any long term capital gain
67. Unabsorbed depreciation can be carried forward for
Correct : A. Any number of years
68. Deduction u/s 80CCC allowed to an individual for amount paid by him in an annuity
plan of LIC is restricted to
Correct : C. Rs. 1,50,000
69. Deduction under the section 80E is allowed in respect of
Correct : C. Interest on loan taken for education
70. 80GGA available for donations made to
Correct : C. Research Associations
71. Deduction u/s. 80JJA is available if the assessee
Correct : D. Is engaged in the business of collecting and processing biodegradable waste.
72. On donation to whom of the following a 50% deduction is allowable u/s.80G of the Income Tax Act?
Correct : C. Rajiv Gandhi Foundation
73. Section 80QQB of the Income Tax Act, 1961, deals with
Correct : B. Royalty Income of authors
74. Advance tax is required to be paid by all assessee only if estimated advance tax liability
is
Correct : B. Rs. 10,000 or more
75. While computing advance tax following income shall not be considered:
Correct : D. None of these
76. Tax is required to be deducted at ……… from payment made to a road transport operator who declares that he does not own more than 10 goods carriage.
Correct : B. Nil if he furnished the PAN
77. Tax is required to be deducted at ………… from rent payable on plant and machinery to a resident (Assuming PAN details are available)
Correct : D. 2%
78. Tax is required to be deducted at …….. from interest payable to a resident. (Assuming
PAN details are available)
Correct : A. 10%
79. Tax is required to be collected on sale of:
Correct : D. All of the above
80. TDS is not required to be deducted u/s 194A if the amount of interest on loan does not
exceed:
Correct : A. Rs. 5,000
81. On salary, tax is required to be deducted at the time of:
Correct : C. Payment
82. Where assessment has not been completed, belated income tax return for assessment year 2018-19 can be filed upto
Correct : A. 31.03.2019
83. Following form number is to be used for filing the return of income by an individual
having business income?
Correct : D. Form No. 3
84. W.e.f. 01-04-2016, quoting ‘Permanent Account Number’ (PAN) is compulsory in the
following transaction –
Correct : A. Payment to LIP exceeding Rs. 50,000 in a financial year
85. Pelf Finstock Ltd. filed its return of Income Tax for A.Y. 2018-19 on 30th March, 2019. The notice for making scrutiny assessment under section 143(3) can be served on the assesseeupto –
Correct : B. 30th September 2019
86. When assessment has not been completed, revised return can be filed within ______
from the end of the relevant previous year.
Correct : A. one year
87. Which of the following is not a case of deemed ownership of house property?
Correct : C. Co-owner of a Property
88. Where assessment has not been completed, belated income tax return for the A.Y. 2018-
19 can be filed up to:
Correct : A. 31.03.2019
89. An individual estimates that he is required 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. 75,000
90. Section 80 RRB the Income-tax Act, 1961 deals with deduction from gross total income in respect of income by way of
Correct : C. Royalty on patents
91. Preliminary expenses that can be amortized under the Income-tax Act 1961 has to be restricted to ______________ of the cost of the Project.
Correct : A. 5%
92. Maximum Marginal Rate for the A.Y. 2018-19 is _______________________ .
Correct : C. 35.535%
93. Rebate u/s 87A can be claimed by
Correct : B. Resident Individual
94. As per section 115BBDA dividend from Indian companies is taxable in the hands of certain recipients at _______ when the aggregate dividend exceeds _______.
Correct : C. 10%, 10 lakhs
95. ICDS VIII deals with ____________________ .
Correct : B. Securities
96. Income escaping assessment is covered under section _________ .
Correct : D. 147
97. Short-term capital gain on sale of listed shares (STT paid) in a recognized stock
exchange is chargeable to income-tax @ ______ %.
Correct : B. 15
98. When the total income of an individual exceeds Rs.50 lakhs, the surcharge is payable @
Correct : C. 10%
99. When the amount is withdrawn from National Pension System Trust, it is chargeable to tax to the extent the withdrawal exceeds ______________ % of the contribution of the assessee.
Correct : B. 25
100. Ms. Jothi (aged 23) got married and left India to join her husband in the United Kingdom on 10.06.2017. She had never left India earlier. Her residential status for the assessment year 2018-19 is: