MCQOPTIONS
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MCQOPTIONS
This section includes 62 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following can be corrected while processing the return of income under section 143(1)? |
| A. | Any arithmetical error in the return |
| B. | Any mistake in the return of income |
| C. | Any error of principle in the return of income |
| D. | Any claim by the taxpayer which is against law |
| Answer» B. Any mistake in the return of income | |
| 2. |
For the purpose of levying tax on income other than agricultural income, Union List contained entry |
| A. | 82 |
| B. | 92C |
| C. | 92D |
| D. | None of the Above |
| Answer» B. 92C | |
| 3. |
An Indian citizen leaving India during the previous year for employment purpose is said to be resident if |
| A. | He has a house in India |
| B. | He is in India in the previous year for a period of 182 days or more |
| C. | He is in India for a period of 60 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year |
| D. | His parents are Indian citizen. |
| Answer» C. He is in India for a period of 60 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year | |
| 4. |
Remuneration to partner of a firm engaged in the business of growing and manufacturing rubber in India is: |
| A. | Partly agricultural income and partly non-agricultural income |
| B. | Agricultural income |
| C. | Non-Agricultural income |
| D. | None of the above |
| Answer» B. Agricultural income | |
| 5. |
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 |
| A. | Total Interest accrued is taxable |
| B. | Total Interest accrued is exempt |
| C. | Only 10% Interest is taxable |
| D. | Only 3% of interest is taxable |
| Answer» E. | |
| 6. |
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: |
| A. | Rs. 25,000 i.e., difference between market value and actual consideration |
| B. | Nil as this is not gift |
| C. | Nil as difference between market value and actual consideration does not exceed Rs. 50,000 |
| D. | The provision of sec. 56(2)(x) is not applicable for any transaction entered during P.Y. 2017-18. |
| Answer» D. The provision of sec. 56(2)(x) is not applicable for any transaction entered during P.Y. 2017-18. | |
| 7. |
While computing taxable interest on delayed compensation, a standard deduction is allowed @ |
| A. | 50% |
| B. | 30% |
| C. | 15% |
| D. | Nil |
| Answer» B. 30% | |
| 8. |
Deduction u/s 80CCC allowed to an individual for amount paid by him in an annuity plan of LIC is restricted to |
| A. | Rs. 5,000 |
| B. | Rs. 7,500 |
| C. | Rs. 1,50,000 |
| D. | Rs. 12,500 |
| Answer» D. Rs. 12,500 | |
| 9. |
Advance tax is required to be paid by all assessee only if estimated advance tax liability is |
| A. | Rs. 5,000 or more |
| B. | Rs. 10,000 or more |
| C. | More than zero |
| D. | Rs. 50,000 or more |
| Answer» C. More than zero | |
| 10. |
Expenditure incurred by a company for the purpose of promoting family planning among its employees, being of a capital nature |
| A. | Is not allowed as a deduction |
| B. | Allowed as deduction in 4 equal installments in 4 years |
| C. | 1/5 of expenditure is allowed as deduction in the previous year |
| D. | 4/5 of expenditure is allowed as deduction in 4 equal installments in 4 years after the previous year |
| Answer» D. 4/5 of expenditure is allowed as deduction in 4 equal installments in 4 years after the previous year | |
| 11. |
In case of loss, a partnership firm may claim deduction in respect of remuneration to partner to the extent of: |
| A. | Rs. 1,50,000/- |
| B. | Rs. ,50,000/- or remuneration paid, whichever is lower |
| C. | Rs. 1,50,000/- or 90% of book profit, whichever is lower |
| D. | Nil |
| Answer» C. Rs. 1,50,000/- or 90% of book profit, whichever is lower | |
| 12. |
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: |
| A. | Actual expenditure |
| B. | Nil |
| C. | 50% of actual expenditure |
| D. | None of the above. |
| Answer» C. 50% of actual expenditure | |
| 13. |
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 |
| A. | Nil |
| B. | Rs. 25,000 |
| C. | Rs. 5,000 |
| D. | None of the above |
| Answer» B. Rs. 25,000 | |
| 14. |
U/s 54, capital gain will be allowed as exemption if the house property under transfer is held for |
| A. | Less than 12 months preceding the date of transfer |
| B. | More than 12 months preceding the date of transfer |
| C. | Less than 36 months preceding the date of transfer |
| D. | More than 24 months preceding the date of transfer |
| Answer» E. | |
| 15. |
Monetary limit for exemption in the case of encashment of earned leave on superannuation received by private sector employee is |
| A. | 1 Lakh |
| B. | 2 Lakh |
| C. | 3 Lakh |
| D. | None of the above |
| Answer» D. None of the above | |
| 16. |
Mr. Hari resident in India received Rs. 11 lakhs by way of dividend from Indian companies. Such dividend is: |
| A. | exempt from tax |
| B. | taxable at regular rates. |
| C. | taxable at maximum marginal rate |
| D. | taxable at 10% |
| Answer» E. | |
| 17. |
When Mr. Balu paid royalty to Dr. Peter of Sweden for use of know-how in India, such payment is |
| A. | exempt from tax |
| B. | accruing in India |
| C. | accrues in Sweden |
| D. | received in India. |
| Answer» C. accrues in Sweden | |
| 18. |
When employer contributes to approved superannuation fund it is chargeable to tax as perquisite when the contribution exceeds- |
| A. | Rs. 1,50,000 |
| B. | Rs. 1,00,000 |
| C. | Rs. 50,000 |
| D. | Rs. 20,000 |
| Answer» B. Rs. 1,00,000 | |
| 19. |
Loss from trading in derivates through a recognised stock exchange can be carried forward for: |
| A. | 8 years |
| B. | 4 years |
| C. | Unlimited years. |
| D. | None of the above |
| Answer» B. 4 years | |
| 20. |
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. |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 5 |
| Answer» D. 5 | |
| 21. |
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 ____ |
| A. | Nil |
| B. | Rs. 12,50,000 |
| C. | Rs. 6,25,000 |
| D. | Rs. 15,00,000 |
| Answer» D. Rs. 15,00,000 | |
| 22. |
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- |
| A. | 31-3-2018 |
| B. | 31-12-2018 |
| C. | 31-03-2019 |
| D. | 31-12-2019 |
| Answer» D. 31-12-2019 | |
| 23. |
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 ______ |
| A. | Rs. 9,270 |
| B. | Rs. 4,120 |
| C. | Nil |
| D. | Rs. 1,05,060 |
| Answer» B. Rs. 4,120 | |
| 24. |
When cash is deposited into savings bank account, quoting of PAN is mandatory when the amount of deposit is ____ or more. |
| A. | Rs. 20,000 |
| B. | Rs. 50,000 |
| C. | Rs. 1,00,000 |
| D. | Rs. 2,00,000 |
| Answer» C. Rs. 1,00,000 | |
| 25. |
TDS is not required to be deducted u/s 194A if the amount of interest on loan does not exceed: |
| A. | Rs. 5,000 |
| B. | Rs. 2,500 |
| C. | Rs. 7,500 |
| D. | Rs. 20,000 |
| Answer» B. Rs. 2,500 | |
| 26. |
Tax is required to be deducted at .. from interest payable to a resident. (Assuming PAN details are available) |
| A. | 10% |
| B. | 20% if payee is domestic company else 10% |
| C. | 10% + Surcharge (if any) + Cess + SHEC |
| D. | 20% |
| Answer» B. 20% if payee is domestic company else 10% | |
| 27. |
W.e.f. 01-04-2016, quoting Permanent Account Number (PAN) is compulsory in the following transaction |
| A. | Payment to LIP exceeding Rs. 50,000 in a financial year |
| B. | Sale or purchase of any immovable property valued at Rs. 4,00,000 |
| C. | Time deposit upto Rs. 35,000 with a bank |
| D. | None of the above |
| Answer» B. Sale or purchase of any immovable property valued at Rs. 4,00,000 | |
| 28. |
Free meal worth 120 per meal for 200 days provided by the employer during working hours in a remote area is: |
| A. | Exempt upto 50 per meal |
| B. | Taxable upto 50 per meal |
| C. | Fully exempt |
| D. | Fully taxable |
| Answer» D. Fully taxable | |
| 29. |
Cash gifts received by HUF from his members to the extent of Rs. 75,000 will be treated as income of: |
| A. | The HUF |
| B. | The members |
| C. | None, as it is exempt |
| D. | Both the HUF and the members |
| Answer» C. None, as it is exempt | |
| 30. |
Dividend received by a shareholder of an Indian Company engaged in growing and manufacturing of tea shall be treated as: |
| A. | Agricultural income upto 60% |
| B. | Agricultural income upto 100% |
| C. | Non-agricultural income upto 60% |
| D. | Non-agricultural income upto 100% |
| Answer» E. | |
| 31. |
Maximum amount which is not chargeable to tax in case of a non-resident very senior citizen is |
| A. | Rs. 2,50,000 |
| B. | Rs. 3,00,000 |
| C. | Rs. 5,00,000 |
| D. | None of above |
| Answer» B. Rs. 3,00,000 | |
| 32. |
When the shares are held in unlisted company, it is treated as long term capital assets when the holding period exceeds |
| A. | 36 months |
| B. | 12 months |
| C. | 6 months |
| D. | 24 months |
| Answer» E. | |
| 33. |
In case of a Hindu Undivided Family, where the return of income cannot be signed by the Karta, the same can be signed by |
| A. | the next senior-most male member. |
| B. | Karta's wife. |
| C. | any male member of the family. |
| D. | any adult member of the family. |
| Answer» E. | |
| 34. |
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 |
| A. | Business income |
| B. | Agricultural income |
| C. | Income from other sources |
| D. | None of the above |
| Answer» C. Income from other sources | |
| 35. |
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 |
| A. | Rs. 2,000 |
| B. | Rs. 5,000 |
| C. | Rs. 7,000 |
| D. | Rs. 10,000 |
| Answer» B. Rs. 5,000 | |
| 36. |
Rent after deducting municipal taxes is Rs. 2,00,000, the amount of taxable income from house property is: |
| A. | Rs. 2,00,000 |
| B. | Rs. 1,40,000 |
| C. | Rs. 2,60,000 |
| D. | None of above |
| Answer» C. Rs. 2,60,000 | |
| 37. |
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 ________. |
| A. | 34.32% |
| B. | 35.88% |
| C. | 34.944% |
| D. | 29.12% |
| Answer» C. 34.944% | |
| 38. |
Stake money on owning and maintaining race horses is Rs. 70,000 and expenses incurred is Rs. 20,000. Its taxable income is: |
| A. | Rs. 70,000 |
| B. | Rs. 50,000 |
| C. | Nil |
| D. | None of above |
| Answer» C. Nil | |
| 39. |
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 |
| A. | Rs. 3,00,000 |
| B. | Rs. 11,00,000 |
| C. | Rs. 7,00,000 |
| D. | Rs. 2,50,000 |
| Answer» B. Rs. 11,00,000 | |
| 40. |
When an individual non-resident has total income exceeding Rs. 50 lakhs, the amount of surcharge payable on income-tax would be _____________. |
| A. | 17% |
| B. | 15% |
| C. | 12% |
| D. | 10% |
| Answer» E. | |
| 41. |
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? |
| A. | Rs. 30,000 |
| B. | Rs. 75,000 |
| C. | Rs. 1,00,000 |
| D. | Nil |
| Answer» C. Rs. 1,00,000 | |
| 42. |
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: |
| A. | Rs. 1000 plus cess |
| B. | Rs. 26,000 plus cess |
| C. | Rs. 52,000 plus cess |
| D. | None of above |
| Answer» D. None of above | |
| 43. |
The lock-in-period for capital gain bonds issued by National Highway Authority of India for the purpose of deduction under section 54EC is ________. |
| A. | 5 years |
| B. | 3 years |
| C. | 7 years |
| D. | 1 year |
| Answer» B. 3 years | |
| 44. |
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. |
| A. | 50 |
| B. | 25 |
| C. | 100 |
| D. | 20 |
| Answer» B. 25 | |
| 45. |
Where assessment has not been completed, belated income tax return for the A.Y. 2018- 19 can be filed up to: |
| A. | 31.03.2019 |
| B. | 31.02.2019 |
| C. | 31.03.2020 |
| D. | Cannot be filed belatedly. |
| Answer» B. 31.02.2019 | |
| 46. |
Rebate u/s 87A is allowed to an Individual who is resident in India and whose total income does not exceed ________. |
| A. | Rs. 2,50,000 |
| B. | Rs. 3,00,000 |
| C. | Rs. 5,00,000 |
| D. | None of the above |
| Answer» E. | |
| 47. |
When assessment has not been completed, revised return can be filed within ______ from the end of the relevant previous year. |
| A. | one year |
| B. | 6 months |
| C. | 1 month |
| D. | 2 years |
| Answer» B. 6 months | |
| 48. |
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 |
| A. | the immediately preceding financial year. |
| B. | current year. |
| C. | last two continuous financial years. |
| D. | None of the above |
| Answer» B. current year. | |
| 49. |
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 |
| A. | NIL |
| B. | 90% of Rs. 28,840 |
| C. | 90% of 44,290 |
| D. | 90% of Rs. 39,140 |
| Answer» B. 90% of Rs. 28,840 | |
| 50. |
Following form number is to be used for filing the return of income by an individual having business income? |
| A. | Form No. 1 |
| B. | Form No. 2 |
| C. | Form No. 5 |
| D. | Form No. 3 |
| Answer» E. | |