When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by .

the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted

Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head .

profit and gain from business and profession

Which of the following is not a requisite for charging income-tax on capital gains

there must be a gain arising on transfer of capital asset

the transfer must have been effected in the relevant assessment year

there must be a gain arising on transfer of capital asset

capital gains should not be exempt u/s 54

capital gains should not be exempt u/s 54ec

If the individual using the property for the business or professional purpose the income taxable under the ..head.

income from business or proprietorship

The children education allowance, the amount exempted from taxable income is limited to

100 per month per child upto 3 children

1,000 per year per child upto 2 children

100 per month per child upto 2 children

Tax Liability for the individual for 2016-17 who is not the resident of the India whose income ` 2,50,000 to ` 5,00,000 is .

10% of total income minus ` 1,00,000

10% of total income minus ` 2,00,000

10% of total income minus ` 1,00,000

15% of total income minus ` 1,00,000

If the agricultural income is .. then the agricultural income is considered for calculating tax.

more than ` 5,000 and total income is exceeding exemption limit

As per Section 2(e a), which of the following is an asset in case of anindividual:

motor car used for official purposes

A Long term capital asset means a capital asset held by the assessee formore than:

12 months immediately preceding the month of its transfer.

24 months immediately preceding the date of its transfer.

36 months immediately preceding the date of its transfer.

A short term capital asset means a capital asset held by the assessee for notmore than:

12 months immediately preceding the month of its transfer

24 months immediately preceding the date of its transfer.

36 months immediately preceding the date of its transfer.

Which of the following is not a requisite for charging income-tax on capitalgains –

there must be a gain arising on transfer of capital asset

the transfer must have been effected in the relevant assessment year

there must be a gain arising on transfer of capital asset

capital gains should not be exempt u/s 54

capital gains should not be exempt u/s 54ec

Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head .

profit and gain from business and profession

When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by .

the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted

253 + Mcqs in Business Taxation in Bachelor of Business Administration (BBA) Page 1 McqOptions

1.	As per Income Tax Act, 1961, income tax is charged on the income ofat a rates which are prescribed by the Finance Act of relevant assessmentyear.
A.	current year
B.	one year before previous year
C.	previous year
D.	none of the above
Answer» D. none of the above

Discussion

2.	The payment is authorized by, and is in accordance with the term of partnership deed according to sec .
A.	sec. 40(b)(ii)
B.	sec. 40(b)(iii)
C.	sec. 50(b)(ii)
D.	none of the above
Answer» B. sec. 40(b)(iii)

Discussion

3.	In the absence of the individual assesses, return of income can be signed by
A.	legal heir
B.	spouse.
C.	any person.
D.	authorized person
Answer» E.

Discussion

4.	The trust should be one established in accordance with law and its objects should fall within the definition of the term .
A.	charitable purposes
B.	work purpose
C.	assessment purposes
D.	to earn profit purpose
Answer» B. work purpose

Discussion

5.	When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by .
A.	the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted
B.	its present standard value
C.	all of the above
D.	none of the above
Answer» B. its present standard value

Discussion

6.	The net annual value of house let out is ` 1,00,000 and actual amount spentby the assessee on repairs and insurance premium is ` 20,000. The amountof deduction allowed under Section 24(a) shall be .
A.	` 35,000
B.	` 45,000
C.	` 30,000
D.	` 25,000
Answer» D. ` 25,000

Discussion

7.	Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head .
A.	profit and gain from business and profession
B.	income from capital gain
C.	income from house property
D.	all of the above
Answer» B. income from capital gain

Discussion

8.	Which of the following is not a requisite for charging income-tax on capital gains
A.	the transfer must have been effected in the relevant assessment year
B.	there must be a gain arising on transfer of capital asset
C.	capital gains should not be exempt u/s 54
D.	capital gains should not be exempt u/s 54ec
Answer» B. there must be a gain arising on transfer of capital asset

Discussion

9.	Expenditure on free meals to employee in excess of per meal will be treated as perquisite of employee.
A.	` 25
B.	50
C.	` 100
D.	` 55
Answer» C. ` 100

Discussion

10.	In terms of section 2(42A), listed securities are treated as long-term capital asset, if they are held for a period of more than
A.	12 months
B.	36 months
C.	24 months
D.	48 months
Answer» B. 36 months

Discussion

11.	The interest on loan paid by the Government of India to a non-resident outside India is ..in India.
A.	not taxable
B.	partially taxable
C.	taxable
D.	can t say
Answer» B. partially taxable

Discussion

12.	Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m.Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rentalincome of Laxman is taxable under the head .
A.	income from salary
B.	income from other sources
C.	income from house property
D.	income from business
Answer» C. income from house property

Discussion

13.	Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid `8,000 as local taxes during the year. He uses this house for his residentialpurposes but lets out half of the house @ ` 3,000 p.m. The annual value ofthe house is.
A.	15,000
B.	` 16,000
C.	` 17,000
D.	` 18,000
Answer» C. ` 17,000

Discussion

14.	If the individual using the property for the business or professional purpose the income taxable under the ..head.
A.	income from house property
B.	income from huf
C.	income from other
D.	income from business or proprietorship
Answer» E.

Discussion

15.	If the assesses let out the building or staff quarters to the employee ofbusiness, the rent collected from such employees is assessable as incomefrom .
A.	business
B.	house property
C.	other sources
D.	none of the above
Answer» D. none of the above

Discussion

16.	Calculate the Gross Annual Value from the following details: MunicipalValue ` 45,000Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000
A.	` 50,000
B.	48,000
C.	` 45,000
D.	42,000
Answer» C. ` 45,000

Discussion

17.	Arrear rent is taxable after deducting ..as per Section 25B of the Income Tax Act, 1961.
A.	30%
B.	35%
C.	10%
D.	20%
Answer» B. 35%

Discussion

18.	Mr. Shushant is the owner of a house, the details of which are given belowthe gross annual value would be Municipal value ` 36,000 Actual rent `32,000 Fair Rent ` 36,000 Standard Rent ` 40,000
A.	` 36,000
B.	35,000
C.	` 30,000
D.	` 40,000
Answer» B. 35,000

Discussion

19.	The children education allowance, the amount exempted from taxable income is limited to
A.	100 per month per child upto 3 children
B.	1,000 per year per child upto 2 children
C.	100 per month per child upto 2 children
D.	none of the above
Answer» D. none of the above

Discussion

20.	Total income is to be rounded off to nearest multiple of .and tax is to be rounded off to nearest multiple of .
A.	ten rupee
B.	hundred, ten
C.	ten, ten
D.	rupee, rupee
Answer» D. rupee, rupee

Discussion

21.	Surcharge is levied at the rate .if the income exceeds ` 1 crore of the financial year 2016-17.
A.	10%
B.	12%
C.	15%
D.	20%
Answer» D. 20%

Discussion

22.	Tax Liability for the individual for 2016-17 who is not the resident of the India whose income ` 2,50,000 to ` 5,00,000 is .
A.	10% of total income minus ` 2,00,000
B.	10% of total income minus ` 1,00,000
C.	15% of total income minus ` 1,00,000
D.	none of the above
Answer» B. 10% of total income minus ` 1,00,000

Discussion

23.	If loan granted by employer to employee does not exceed ., it is not treated as perquisite to employee for purpose of income tax.
A.	` 20,000
B.	40,000
C.	` 30,000
D.	` 25,000
Answer» C. ` 30,000

Discussion

24.	The income is chargeable under the head of salary under of Income Tax Act, 1961.
A.	section 15
B.	section 20
C.	section 14
D.	section 16
Answer» B. section 20

Discussion

25.	If the agricultural income is .. then the agricultural income is considered for calculating tax.
A.	more than ` 5,000 and total income is exceeding exemption limit
B.	more than ` 5,000
C.	more than ` 10,000
D.	any amount
Answer» B. more than ` 5,000

Discussion

26.	As per Section 2(e a), which of the following is an asset in case of anindividual:
A.	cash in hand up to rs. 50,000
B.	shares
C.	debentures or bonds
D.	motor car used for official purposes
Answer» B. shares

Discussion

27.	Rental income from the business of leasing out properties would be taxableunder the head_______
A.	income from house property
B.	income from other sources
C.	income from pgbp
D.	income from capital gain
Answer» D. income from capital gain

Discussion

28.	Payment of Rs. ` 45,000 made in cash towards purchases of medicines. Theamount of disallowance under section 40A(3) is -
A.	rs 45,000
B.	rs 30,000
C.	nil
D.	rs 20,000
Answer» B. rs 30,000

Discussion

29.	Amount of deduction in case of a person with severe disability undersection 80U will be:
A.	rs. 50,000
B.	rs. 75,000
C.	rs. 1,00,000
D.	rs. 1,50,000
Answer» D. rs. 1,50,000

Discussion

30.	The trust should be one established in accordance with law and its objectsshould fall within the definition of the term ………….
A.	charitable purposes
B.	work purpose
C.	assessment purposes
D.	to earn profit purpose
Answer» B. work purpose

Discussion

31.	Joint Commissioners are appointed by…………
A.	central government
B.	state government
C.	district government
D.	gram panchayat
Answer» B. state government

Discussion

32.	The subject matter of the trust is called …………….
A.	trust property
B.	own property
C.	own furniture
D.	none of the above
Answer» B. own property

Discussion

33.	The person who accepts the confidence is called ………….
A.	trustee
B.	karta
C.	firm
D.	aop
Answer» B. karta

Discussion

34.	…………..is an obligation annexed to the ownership of property.
A.	trust
B.	firm
C.	company
D.	karta
Answer» B. firm

Discussion

35.	The payment is authorized by, and is in accordance with the term ofpartnership deed according to sec………….
A.	sec. 40(b)(ii)
B.	sec. 40(b)(iii)
C.	sec. 50(b)(ii)
D.	none of the above
Answer» B. sec. 40(b)(iii)

Discussion

36.	…………..cannot become a partner.
A.	minor
B.	partner
C.	firm
D.	society
Answer» B. partner

Discussion

37.	Collective group of persons is known as……..
A.	firm
B.	society
C.	person’
D.	none of the above
Answer» B. society

Discussion

38.	. A person entered into partnership is known as …………
A.	partner
B.	people
C.	karta
D.	none of the above
Answer» B. people

Discussion

39.	A Long term capital asset means a capital asset held by the assessee formore than:
A.	12 months immediately preceding the month of its transfer.
B.	24 months immediately preceding the date of its transfer.
C.	36 months immediately preceding the date of its transfer.
D.	none of the above.
Answer» D. none of the above.

Discussion

40.	In terms of section 2(42A), listed securities are treated as long-term capitalasset, if they are held for a period of more than –
A.	12 months
B.	36 months
C.	24 months
D.	48 months
Answer» B. 36 months

Discussion

41.	A short term capital asset means a capital asset held by the assessee for notmore than:
A.	12 months immediately preceding the month of its transfer
B.	24 months immediately preceding the date of its transfer.
C.	36 months immediately preceding the date of its transfer.
D.	none of the above.
Answer» D. none of the above.

Discussion

42.	Which of the following is not a requisite for charging income-tax on capitalgains –
A.	the transfer must have been effected in the relevant assessment year
B.	there must be a gain arising on transfer of capital asset
C.	capital gains should not be exempt u/s 54
D.	capital gains should not be exempt u/s 54ec
Answer» B. there must be a gain arising on transfer of capital asset

Discussion

43.	For computation of Gross Annual Value, if actual rent is more thanexpected rent, then we select the .
A.	actual rent
B.	expected rent
C.	any of the above
D.	none of the above
Answer» B. expected rent

Discussion

44.	Income from property held under trust for charitable or religious purposesis .
A.	exempted from tax
B.	taxable @ 10%
C.	taxable @ 20%
D.	none of the above
Answer» B. taxable @ 10%

Discussion

45.	When annual value of one-self occupied house is nil, the assesses will beentitled to the standard deduction of .
A.	10%
B.	20%
C.	nil
D.	none of the above
Answer» D. none of the above

Discussion

46.	Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head .
A.	profit and gain from business and profession
B.	income from capital gain
C.	income from house property
D.	all of the above
Answer» B. income from capital gain

Discussion

47.	The net annual value of house let out is ` 1,00,000 and actual amount spentby the assessee on repairs and insurance premium is ` 20,000. The amountof deduction allowed under Section 24(a) shall be .
A.	` 35,000
B.	` 45,000
C.	` 30,000
D.	` 25,000
Answer» D. ` 25,000

Discussion

48.	If fair rent is not gives, then assume………….as fair rent.
A.	actual rent
B.	standard rent
C.	average rent
D.	none of the above
Answer» B. standard rent

Discussion

49.	When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by .
A.	the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted
B.	its present standard value
C.	all of the above
D.	none of the above
Answer» B. its present standard value

Discussion

50.	An individual assesses can show maximum loss of …………….from a selfoccupied residential house property.
A.	1,50,000
B.	` 30,000
C.	20,000
D.	` 5,00,000
Answer» B. ` 30,000

Discussion

Explore topic-wise MCQs in Bachelor of Business Administration (BBA).

As per Income Tax Act, 1961, income tax is charged on the income ofat a rates which are prescribed by the Finance Act of relevant assessmentyear.

The payment is authorized by, and is in accordance with the term of partnership deed according to sec .

In the absence of the individual assesses, return of income can be signed by

The trust should be one established in accordance with law and its objects should fall within the definition of the term .

When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by .

The net annual value of house let out is ` 1,00,000 and actual amount spentby the assessee on repairs and insurance premium is ` 20,000. The amountof deduction allowed under Section 24(a) shall be .

Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head .

Which of the following is not a requisite for charging income-tax on capital gains

Expenditure on free meals to employee in excess of per meal will be treated as perquisite of employee.

In terms of section 2(42A), listed securities are treated as long-term capital asset, if they are held for a period of more than

The interest on loan paid by the Government of India to a non-resident outside India is ..in India.

Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m.Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rentalincome of Laxman is taxable under the head .

Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid `8,000 as local taxes during the year. He uses this house for his residentialpurposes but lets out half of the house @ ` 3,000 p.m. The annual value ofthe house is.

If the individual using the property for the business or professional purpose the income taxable under the ..head.

If the assesses let out the building or staff quarters to the employee ofbusiness, the rent collected from such employees is assessable as incomefrom .

Calculate the Gross Annual Value from the following details: MunicipalValue ` 45,000Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000

Arrear rent is taxable after deducting ..as per Section 25B of the Income Tax Act, 1961.

Mr. Shushant is the owner of a house, the details of which are given belowthe gross annual value would be Municipal value ` 36,000 Actual rent `32,000 Fair Rent ` 36,000 Standard Rent ` 40,000

The children education allowance, the amount exempted from taxable income is limited to

Total income is to be rounded off to nearest multiple of .and tax is to be rounded off to nearest multiple of .

Surcharge is levied at the rate .if the income exceeds ` 1 crore of the financial year 2016-17.

Tax Liability for the individual for 2016-17 who is not the resident of the India whose income ` 2,50,000 to ` 5,00,000 is .

If loan granted by employer to employee does not exceed ., it is not treated as perquisite to employee for purpose of income tax.

The income is chargeable under the head of salary under of Income Tax Act, 1961.

If the agricultural income is .. then the agricultural income is considered for calculating tax.

As per Section 2(e a), which of the following is an asset in case of anindividual:

Rental income from the business of leasing out properties would be taxableunder the head_______

Payment of Rs. ` 45,000 made in cash towards purchases of medicines. Theamount of disallowance under section 40A(3) is -

Amount of deduction in case of a person with severe disability undersection 80U will be:

The trust should be one established in accordance with law and its objectsshould fall within the definition of the term ………….

Joint Commissioners are appointed by…………

The subject matter of the trust is called …………….

The person who accepts the confidence is called ………….

…………..is an obligation annexed to the ownership of property.

The payment is authorized by, and is in accordance with the term ofpartnership deed according to sec………….

…………..cannot become a partner.

Collective group of persons is known as……..

. A person entered into partnership is known as …………

A Long term capital asset means a capital asset held by the assessee formore than:

In terms of section 2(42A), listed securities are treated as long-term capitalasset, if they are held for a period of more than –

A short term capital asset means a capital asset held by the assessee for notmore than:

Which of the following is not a requisite for charging income-tax on capitalgains –

For computation of Gross Annual Value, if actual rent is more thanexpected rent, then we select the .

Income from property held under trust for charitable or religious purposesis .

When annual value of one-self occupied house is nil, the assesses will beentitled to the standard deduction of .

Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head .

The net annual value of house let out is ` 1,00,000 and actual amount spentby the assessee on repairs and insurance premium is ` 20,000. The amountof deduction allowed under Section 24(a) shall be .

If fair rent is not gives, then assume………….as fair rent.

When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by .

An individual assesses can show maximum loss of …………….from a selfoccupied residential house property.