Income Tax And Corporate Tax — Part 2 MCQs with Explanations

1 and 3 is the correct answer to “Tax planning is honest and right approach to attain the maximum benefit of taxation laws within its framework only. Objectives of tax planning are: 1. Productive investment 2. Un-healthy growth of economy 3. Minimisation of litigation 4. Increase in tax liability.”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

3 years have expired from the date of transfer is the correct answer to “Amount unutilised in capital gain account scheme for which exemption claimed u/s 54 shall be treated as long-term capital gain, if”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Income from Foreign Earnings is the correct answer to “Which of the following is not a head of Income as prescribed by the Income Tax Act”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Both 1 and 4 is the correct answer to “Which of the following will be considered as tax planning effort? 1. Mr. A purchased a house for self-residence of Rs. 8 lakh by taking a loan of Rs. 60 lakh from SBI at 10% interest, instead of using his own funds. 2. Mr. A made investment in purchasing 12% redeemable debentures of TISCO worth Rs. 1.50 lakh. 3. Mr. A purchased 100 gm gold biscuits of Rs. 2.5 lakh from SBI on the occasion of Diwali. 4. Mr. A invested Rs. 1 crore in purchasing 5 acres of agricultural land in his native village in Gaya.”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Rs. 10,000 is the correct answer to “Which of the following amount of penalty is imposable under section 272BB”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

10 (1) is the correct answer to “Agriculture income is exempted from income tax under the following section of Income Tax Act, 1961”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Both (A) and (R) are correct and (R) is the correct explanation of (A) is the correct answer to “Assertion (A): If the interest is payable outside India, tax must be deducted at source. Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income. Select the correct answer:”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

All of the above is the correct answer to “Which of the following components are true about tax planning? 1. Tax planning is the process of analyzing a financial plan or a situation from a tax perspective. 2. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency. 3. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success. 4. Tax planning comprises various considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures. 5. The chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome.”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

All of the above is the correct answer to “In own or leasean asset, which of the following point/s is/are important”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

50,000 per month is the correct answer to “Under Sec. 194 1B of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited u/s 44 AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds:”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

2 only is the correct answer to “Which of the following statements is correct in regards to health and education cess? 1. Amount of income tax shall be increased by health and education cess. 2. Amount of income tax and surcharge shall be increased by health and education cess. Select the correct answer:”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Less than Rs. 10,000 is the correct answer to “Interest on excess refund is not payable if the amount of refund is :”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Last day of February is the correct answer to “The order of the Assessing Officer under section 210(3) requiring the taxpayer to pay advance tax on his current year's income may be passed during the financial year, but not later than:”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

None of these is the correct answer to “Dividend received from Hindalco will be taxable”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

All of the above is the correct answer to “Property income is exempt from tax in which of the following case(s)”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Such period as specified in the APA, but not exceeding 5 consecutive years is the correct answer to “As per transfer pricing provisions, an advance pricing agreement is valid for”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Rs. 1,70,000 is the correct answer to “Given is the information related to a house Municipal Value (M.V.) Rs. 1,50,000 Fair Rent Rs. 1,80,000 Standard Rent Rs. 1,60,000 Actual Rent Rs. 20000 Municipal tax paid by owner is 20% of M. V. Unrealised rent 40,000 (conditions of rule 4 satisfied). What is the annual value of the house”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Both (A) and (R) are correct and (R) is the correct explanation of (A) is the correct answer to “Assertion (A): Revenue from indirect taxes was the major source of tax revenue till tax reforms were taken during nineties. Reason (R): Traditionally India's tax regime relied heavily on indirect taxes including customs and excise.”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Cost method is the correct answer to “The following methods as per section 92C are used in determination of arm's length prices from international transactions and specified domestic transaction except:”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

20% is the correct answer to “If the payee does not furnish PAN and TDS under section 194, dividends shall be made at:”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Firm is the correct answer to “Under which of the following categories, a partner of partnership firm will be assessed”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Double taxation relief is the correct answer to “ADEN Rules, 1953 is related to which of the following”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

All of these is the correct answer to “According to the income tax act, a person means”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

60% is the correct answer to “If an assessee is engagedin the business of growing and manufacturing tea in India, the portion of agricultural income in that case shall be”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

2014-15 is the correct answer to “Find out the assessment year for the following previous year House property Income for which the previous year is April, 2013 to March, 2014”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Both 1 and 4 is the correct answer to “Which of the following are true in tax planning? 1. It is futuristic in its approach. 2. It has limited scope compared to tax management. 3. The benefits arising from it are limited particularly in the short-run. 4. Its main objective is to reduce the tax liability.”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Certain companies is the correct answer to “Minimum Alternative Tax (MAT) under Section 115 JB of the Income Tax Act is applicable on”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

1961 is the correct answer to “First income tax act was enacted in independent India”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Fully exempted is the correct answer to “Gratuity received by a government employee is”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

a-2, b-3, c-4, d-1 is the correct answer to “Match the items of List-I with the items of List-II and choose the correct answer: List-I List-II a. Compensation received by an employee from his employer on termination of job 1. Exemption up to specified limit b. Pension received by the widow of an employee 2. Profits in lieu of salary c. Foreign allowance for rendering services abroad 3. Income from other sources d. Children hostel allowance 4. Fully exempt from tax”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Remuneration received by a partner is the correct answer to “Which of the following part is not taxable as income under the head 'Salaries'”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

a-3, b-4, c-2, d-1 is the correct answer to “Match the following items of List-I and List-II and select the correct answer: List I (Sections) List II (Maximum Deduction) a. Section 80C of I. T. Act 1. Rs. 10,000 b. Section 80D of I. T. Act 2. Rs. 40,000 c. Section 80 DDB of I. T. Act 3. Rs. 1,00,000 d. Section 80 TTA of I. T. Act 4. Rs. 15,000”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Tax Evasion is the correct answer to “Reduce tax liability by deliberately suppressing income or sale or by increasing expenses, etc., which results in reduction of total income of the assessee is called as:”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Purposive tax planning is the correct answer to “Which of the following is based on the measures which circumvent law”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Agricultural Income is the correct answer to “Income from a farm house is:”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Five is the correct answer to “To determine the gross income of the taxpayer, the total of the income how many heads are there”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

nearest ten rupees is the correct answer to “Income tax or demand notice or refund order is rounded off to”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

75 is the correct answer to “Set-off of losses of the firms is covered under Section”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

Both 2 and 4 is the correct answer to “Which of the following statements are incorrect? 1. Income tax is grouped in various slabs. 2. Income tax is not charged to progressive rate on increasing slabs of income. 3. A deemed assessee is liable to pay tax on behalf of another person. 4. Assessment year begins as on 1 st January of every year. 5. Certain amount of income tax is exempt from income tax. Select the correct answer using the options given below”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.

3500 is the correct answer to “The amount of interest received from a single post office savings account is exempt from income tax to the extent of”. This question is standard in competitive examination syllabi for Income Tax And Corporate Tax.