Quiznetik

Direct Taxation | Set 3

1. While computing TDS on salary paid to employees, the losses given below to the applicable extent would be considered by the employer:

Correct : B. Loss from house property

2. When tax is not deducted at source on annual rent of Rs.2 lakhs paid to landlord by a company, the amount liable for disallowance under section 40(a) (ia) is

Correct : D. Rs.60,000

3. When the assessee has loss from house property, the maximum amount of such loss eligible for set off against other permissible incomes would be

Correct : C. Rs.2,00,000

4. When a capital asset was acquired on 01.04.1980 and sold in June, 2017, the cost of acquisition or the fair market value of the asset as on ------, at the option of the assessee is to be adopted for indexation purpose:

Correct : B. 01.04.2001

5. When a motor car is sold for Rs.12 lakhs by a dealer to a buyer holding PAN, the amount of tax collectible as source shall be _______ .

Correct : A. Rs.12,000 (1%)

6. Cash donation given to a charitable trust (approved under section 80G) is eligible for deduction under that section, when the amount of donation does not exceed

Correct : A. Rs. 2,000

7. In the case of a domestic company (turnover/gross receipts Rs. 70 crores), the basic rate of income-tax applicable for computing as per normal provisions would be ________, when the turnover of the company has been Rs. 45 crores in the previous year relevant to the assessment year 2017-18. (Note: Ignore surcharge, education cess, etc.)

Correct : C. 25%

8. The maximum marginal rate of tax applicable for individual taxpayer having total income of Rs. 1.5 crore (including surcharge and health & education cess) is ________.

Correct : B. 35.88%

9. When a charitable trust registered u/s 12AA pays Rs. 50,000 towards rent to a resident for the premises occupied by it without deduction of tax at source for the entire previous year 2018-19, the amount of rental expenditure liable for disallowance would be ________.

Correct : D. Rs. 1,80,000

10. The lock-in-period for capital gain bonds issued by National Highway Authority of India for the purpose of deduction under section 54EC is ________.

Correct : A. 5 years

11. The TDS rate for payments made to a non-resident sportsman is ________ %.

Correct : B. 20.8

12. Where a partner of a firm transfers any capital asset to the firm by way of capital contribution, for the purpose of computing capital gain in the hands of the partner, the amount of deemed consideration is

Correct : C. the amount recorded in the books of the firm.

13. When the gross receipts from profession exceed Rs. ________ lakhs, it is liable for audit under section 44AB and the provisions of section 44ADA will not apply.

Correct : A. 50

14. Medical insurance premium incurred for senior citizen is eligible for deduction up to ________ under section 80D.

Correct : B. Rs. 50,000

15. When a resident senior citizen having gross total income of Rs. 5,56,000, has derived interest from savings account in a nationalized bank of Rs. 8,200 and fixed deposit interest of Rs. 47,000 from such bank, he is eligible for deduction of Rs. ________ from the gross total income.

Correct : D. 50,000

16. Seshan, a retired civil servant received monthly pension of Rs. 60,000 during the previous year 2018-19. The amount of pension liable to tax after standard deduction would be Rs. ________.

Correct : C. 6,80,000

17. Mr. Atul (aged 63), a resident Indian, paid for himself through account payee cheque, health insurance premium of Rs. 2,10,000 for 5 years in one lump sum on 28.03.2019. The eligible amount of deduction under section 80-D for the assessment year 2019-20 would be _______.

Correct : D. Rs. 42,000

18. Ramesh Tea Ltd., acquired a motor car for Rs. 6,20,000 on 30.08.2018. The company is engaged in manufacture of tea in India. The amount of depreciation allowable on such motor car would be __________.

Correct : A. Rs. 93,000

19. When an individual non-resident has total income exceeding Rs. 50 lakhs, the amount of surcharge payable on income-tax would be _____________.

Correct : D. 10%

20. When a charitable trust registered under section 12AA paid rent of Rs. 50,000 per month throughout the PY 2018-19 and no tax was deducted at source, the amount of expenditure to be considered for computing the application of income by the trust would be __________ .

Correct : D. Rs. 4,20,000

21. Manoj,a resident, employed in ABC Ltd., an Indian company, has gross annual salary income of Rs. 20,60,000. The standard deduction available under section 16(1) would be _________ .

Correct : D. Rs. 50,000

22. Shares in unlisted companies, in order to be treated as long-term capital asset, should be held for a minimum period of ____________ immediately prior to the date of transfer.

Correct : C. 24 months

23. Padmaja Power Co. (P) Ltd. is engaged in generation and distribution of electrical power. It avails deduction under section 80-IA. The gross receipts of the company is Rs. 89 lakhs. The last date for filing the return of income in order to be eligible to avail deduction under section 80-IA is ________________ . (Note: Assume there is no extension of time for filling the return of income)

Correct : A. 30.09.2019

24. Mr. Harivallabh incurred medical expenditure of Rs. 1,20,000 in respect of the disease specified in rule 11DD for his father (aged 66) who is wholly dependent on him. The amount eligible for deduction from his gross total income would be ________.

Correct : D. Rs. 1,00,000

25. When Mr. Avinash earned long-term capital gain of Rs. 1,80,000 on sale of listed shares, his total income being Rs. 10 lakhs, the amount of income-tax (including cess) on the said long-term capital gain would be _________ .

Correct : C. Rs. 8,320