MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 410 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
Grossing up of interest on securities is required when................... |
| A. | interest is received after t.d.s. |
| B. | they are central govt. securities. |
| C. | the interest on bank deposit is less than rs. 10,000. |
| D. | none of these. |
| Answer» B. they are central govt. securities. | |
| 152. |
Tax is reduced from casual incomes at.................... |
| A. | 10% + surcharge and cesses. |
| B. | 20% + surcharge and cesses. |
| C. | 30%. |
| D. | none of these. |
| Answer» D. none of these. | |
| 153. |
Dividends from co-operative society are........................ |
| A. | exempted. |
| B. | taxable. |
| C. | partially exempt |
| D. | d. partially taxable. |
| Answer» C. partially exempt | |
| 154. |
Interest on Bank Term Deposits is subject to tax deduction at source if the interest amount during therelevant previous year exceeds................ |
| A. | rs: 2,000. |
| B. | rs: 5,000. |
| C. | rs: 10,000. |
| D. | rs: 30,000. |
| Answer» D. rs: 30,000. | |
| 155. |
Speculation Loss can be carried forward for................. |
| A. | 8 years |
| B. | 10years |
| C. | 5years |
| D. | 4years |
| Answer» E. | |
| 156. |
Rate of T.D.S for unlisted securities, including cesses is................. |
| A. | 10.6%. |
| B. | 15.6%. |
| C. | 10%. |
| D. | 30.6%. |
| Answer» D. 30.6%. | |
| 157. |
A partnership firm sold a residential house. The firm will get exemption under section .................... oncapital gains. |
| A. | sec. 54d |
| B. | s |
| C. | 54e c. sec. 54c |
| D. | sec. 54ec |
| Answer» E. | |
| 158. |
The amount of deduction under section 80DD regarding disability is ..................... |
| A. | rs: 30,000 |
| B. | rs: 50,000 |
| C. | rs: 75,000 |
| D. | actual expense. |
| Answer» C. rs: 75,000 | |
| 159. |
Section C applies on ................... |
| A. | individual and huf |
| B. | co-operative society |
| C. | firm |
| D. | company |
| Answer» B. co-operative society | |
| 160. |
Donation on PM’s National Relief Fund is deductible 100% out of the gross total income of theassessee, under section ................................... |
| A. | 80c |
| B. | 80cc |
| C. | 80g |
| D. | 80gg |
| Answer» D. 80gg | |
| 161. |
For the P.Y , 2012-13, the maximum permissible deduction under section 80C is .............. |
| A. | rs: 80,000 |
| B. | rs: 1,00,000 |
| C. | rs: 2,00,000 |
| D. | 1,12,000 |
| Answer» C. rs: 2,00,000 | |
| 162. |
The basic exemption up to which income is not taxable for an individual resident is .............. |
| A. | rs: 1,00,000 |
| B. | rs: 2,00,000 |
| C. | rs: 5,00,000 |
| D. | none of the above |
| Answer» B. rs: 2,00,000 | |
| 163. |
STCL can be set off in the same assessment year from ............................... |
| A. | stcg |
| B. | ltcg |
| C. | both |
| D. | not possible |
| Answer» D. not possible | |
| 164. |
Any some received under key man insurance policy taken on the life of the employee shall be.......................... |
| A. | taxable under the head business or profession |
| B. | taxable under the head income from other sources |
| C. | taxable in the hands of employee |
| D. | exempt from tax |
| Answer» B. taxable under the head income from other sources | |
| 165. |
Maximum amount of deduction allowable under section 80CCF is ...................... |
| A. | rs: 10,000 |
| B. | rs: 20,000 |
| C. | rs: 25,000 |
| D. | rs: 1,00,000 |
| Answer» C. rs: 25,000 | |
| 166. |
Maximum Marginal Rate for the current A.Y. ( 2013-14) is .................................. |
| A. | 25% |
| B. | 20% |
| C. | 30% |
| D. | 35% |
| Answer» D. 35% | |
| 167. |
Interest n loan taken before 1-4-1999 for construction or repairs of self occupied house shall bededucted up to Rs: ....................................... |
| A. | rs: 25,000 |
| B. | rs: 30,000 |
| C. | rs: 1,00,000 |
| D. | rs: 1,50,000 |
| Answer» C. rs: 1,00,000 | |
| 168. |
For claiming exemption u/s 54, the assessee should construct the residential property within......................... |
| A. | one year before or 2 years after the date of transfer |
| B. | one year before or 3 years after the date of transfer |
| C. | within 3 years after the date of transfer |
| D. | within 2 years after the date of transfer. |
| Answer» D. within 2 years after the date of transfer. | |
| 169. |
The cost of acquisition of bonus shares allotted on or after 1-4-1981 is .......................... |
| A. | fair market value of that shares on 1-4-1981 |
| B. | fair market value on the date of issue of shares |
| C. | nil |
| D. | none of these |
| Answer» D. none of these | |
| 170. |
Rent free accommodation is an example for ..................................... |
| A. | allowance |
| B. | compensation |
| C. | perquisite |
| D. | profit in lieu of salary. |
| Answer» D. profit in lieu of salary. | |
| 171. |
The rent fixed as per municipal valuation is called ............................ |
| A. | municipal value |
| B. | fair rental value |
| C. | standard rent |
| D. | actual rent |
| Answer» B. fair rental value | |
| 172. |
When a loan is taken for the education of a child, the father is entitled to deduction u/s.......................... |
| A. | 80 c |
| B. | 80 g |
| C. | 80 e |
| D. | 80 u |
| Answer» D. 80 u | |
| 173. |
The amount deductible for severe disability u/s 80U is .......................... |
| A. | rs: 1,00,000 |
| B. | rs: 1,20,000 |
| C. | rs: 50,000 |
| D. | rs: 90,000 |
| Answer» B. rs: 1,20,000 | |
| 174. |
Income of a minor child is exempted up to.......................... |
| A. | rs: 1,000 |
| B. | rs: 1,500 |
| C. | rs: 1,200 |
| D. | rs: 2,000 |
| Answer» C. rs: 1,200 | |
| 175. |
Dividend from an Indian company is ...................... |
| A. | fully taxablbe |
| B. | fully exempted |
| C. | partly taxable |
| D. | none of the above |
| Answer» C. partly taxable | |
| 176. |
Loss from business can be carried for ...................... years. |
| A. | 6 |
| B. | 8 |
| C. | 12 |
| D. | 16 |
| Answer» C. 12 | |
| 177. |
Income of Benami transactions shall be included in the income of ......................... |
| A. | real owner |
| B. | transferor |
| C. | transferee |
| D. | none of these |
| Answer» B. transferor | |
| 178. |
The amount received from URPF is .......................... |
| A. | taxable |
| B. | exempted |
| C. | exempted, subject to certain conditions |
| D. | none of the above |
| Answer» B. exempted | |
| 179. |
............................ section deals with exempted incomes. |
| A. | section 80 |
| B. | section 17 |
| C. | section 10 |
| D. | section 23 |
| Answer» D. section 23 | |
| 180. |
Salary on which income tax is borne by the employer is called .................................... |
| A. | foregoing salary |
| B. | tax free salary |
| C. | tax holiday |
| D. | none |
| Answer» C. tax holiday | |
| 181. |
There will be no partial integration, if the agricultural income does not exceed ............................ |
| A. | rs: 15,000 |
| B. | rs: 25,000 |
| C. | rs: 50,000 |
| D. | rs: 5,000 |
| Answer» E. | |
| 182. |
Secondary and higher education cess is charged at the rate of .......................... of the amount ofincome tax. |
| A. | 1% |
| B. | 2% |
| C. | 3% |
| D. | 5% |
| Answer» B. 2% | |
| 183. |
A partnership firm will be assessed as firm if there is ......................... |
| A. | an agreement |
| B. | a written agreement |
| C. | an oral agreement |
| D. | none of the above. |
| Answer» C. an oral agreement | |
| 184. |
Partnership firms are governed by the provisions of the Indian Partnership Act of ................... |
| A. | 1956 |
| B. | 1932 |
| C. | 1946 |
| D. | 1881 |
| Answer» C. 1946 | |
| 185. |
A firm shall pay tax on long term capital gain @ ................................. |
| A. | 15% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» C. 25% | |
| 186. |
Section 89 of the Income tax Act deals with ............................. |
| A. | perquisites |
| B. | arrears of salary income |
| C. | allowances |
| D. | profit in lieu of salary |
| Answer» C. allowances | |
| 187. |
_____ is a progressive tax. |
| A. | Custom duty |
| B. | Sales tax |
| C. | Income tax |
| D. | Development Surcharge |
| Answer» D. Development Surcharge | |
| 188. |
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.Assertion (A): Among all methods of charging depreciation on fixed assets, diminishing balance method is the best method.Reason (R): Diminishing balance method of charging depreciation has been permitted under the Income Tax Act, 1961 for claiming deduction for depreciation. |
| A. | Both (A) and (R) are correct and (R) is the correct explanation of (A). |
| B. | Both (A) and (R) are correct but (R) is not the correct explanation of (A). |
| C. | (A) is correct but (R) is not correct. |
| D. | (A) is incorrect but (R) is correct. |
| Answer» E. | |
| 189. |
Mohan, has rendered his services in India and retired in 2015. He then shifted and settled in Singapore. The pension received by him for such services would be _____? |
| A. | Deemed to accure or arise outside India |
| B. | Deemed to accure or arise in India only when it is received in India |
| C. | Deemed to accure or arise in India only when it is received outside India |
| D. | Deemed to accure or arise in India |
| Answer» B. Deemed to accure or arise in India only when it is received in India | |
| 190. |
Arrange the following in correct sequence:A. Income under the different heads of income.B. Deduction from gross total income.C. Adjustment of losses of the current year and earlier years.D. Rounding off.Choose the correct answer from the options given below |
| A. | A, C, B, D |
| B. | A, B, C, D |
| C. | A, B, D, C |
| D. | A, D, B, C |
| Answer» B. A, B, C, D | |
| 191. |
Match List-I with List-II:List-IList-IIa)Sec 6 (i)i)Agriculture Incomeb)Sec 10AAii)Leave Travel Concessionc)Sec 10 (i)iii)Residentd)Sec 10 (5)iv) Leave Salary Choose the correct option from those given below: |
| A. | a-i, b-iv, c-iii, d-ii |
| B. | a-iii, b-iv, c-ii, d-i |
| C. | a-iii, b-ii, c-iv, d-i |
| D. | a-iii, b-iv, c-i, d-ii |
| Answer» E. | |
| 192. |
Match the items of List I with the items of List II and choose the correct answer from the code given below. List I List II(a) Compensation received by an employee from his employer on termination of job(i) Exemption upto specified limit (b) Pension received by the widow of an employee (ii) Profits in lieu of salary(c) Foreign allowance for rendering services abroad (iii) Income from other sources(d) Children hostel allowance(iv) Fully exempt from tax |
| A. | (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i) |
| B. | (a) - (ii), (b) - (iii), (c) - (iv), (d) - (i) |
| C. | (a) - (ii), (b) - (iv), (c) - (iii), (d) - (i) |
| D. | (a) - (iv), (b) - (iii), (c) - (i), (d) - (ii) |
| Answer» C. (a) - (ii), (b) - (iv), (c) - (iii), (d) - (i) | |
| 193. |
Match List-I with List-II:List-IList-IIa) 80 TTAi) Deduction in respect of payment of payment of intereston loan taken for higher educationb) 80 CCDii) Deduction in respect of interest on loan taken forresidential house propertyc) 80 Eiii) Deduction in respect of interest on deposits in savingsaccountd) 80 EEiv) Deduction in respect of contribution to national pensionsystem Choose the correct option from those given below: |
| A. | a-iii, b-iv, c-i, d-ii |
| B. | a-iii, b-iv, c-ii, d-i |
| C. | a-iii, b-i, c-ii, d-iv |
| D. | a-i, b-ii, c-iii, d-iv |
| Answer» C. a-iii, b-i, c-ii, d-iv | |
| 194. |
Given below are two statements.Statement (I): Gratuity received by Government employee is exempted from tax under Section 10(10)(i) of the Indian Income Tax Act, 1961.Statement (II): Gratuity received by local authority employee is exempted from tax.In the light of the above statements, choose the correct answer from the options given below: |
| A. | Both Statement (I) and Statement (II) are true |
| B. | Both Statement (I) and Statement (II) are false |
| C. | Statement (I) is correct but Statement (II) is false |
| D. | Statement (I) is incorrect but Statement (II) is true |
| Answer» B. Both Statement (I) and Statement (II) are false | |
| 195. |
Arrange the steps to e-filing of Income Tax Return in correct sequence:a) Register yourselfb) Verify ITR Vc) Select the requisite formd) Fill form and uploadChoose the correct option from those below: |
| A. | → c) → d) → b) |
| B. | → b) → c) → d) |
| C. | → b) → d) → c) |
| D. | → a) → d) → b) |
| Answer» B. → b) → c) → d) | |
| 196. |
Deduction u/s 37(1) is allowed under tax laws for those expenditures which are |
| A. | revenue |
| B. | capital |
| C. | both revenue and capital |
| D. | deferred revenue expenses |
| Answer» B. capital | |
| 197. |
In tax laws, donation to approved and notified association for scientific research is allowed as |
| A. | 125% of the donation |
| B. | 100% of the donation |
| C. | 175% of the donation |
| D. | 150% of the donation |
| Answer» C. 175% of the donation | |
| 198. |
On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under section 10 AA of the Income Tax Act is allowed for |
| A. | 5 years |
| B. | 10 years |
| C. | 15 years |
| D. | Unlimited period |
| Answer» D. Unlimited period | |
| 199. |
Arrange the following procedure of Income Tax return e-Filling in India(A) Login(B) Register(C) Verification(D) Downloading utility and preparing return(E) e-filing Income Tax ReturnChoose the correct answer from the options given below: |
| A. | (A), (B), (C), (D), (E) |
| B. | (A), (C), (B), (E), (D) |
| C. | (B), (A), (E), (D), (C) |
| D. | (B), (A), (D), (E), (C) |
| Answer» E. | |
| 200. |
Belated return u / s 139(4) can be filled at any time |
| A. | Before the expire of relevant assessment year |
| B. | Before the expire of one year from relevant assessment year |
| C. | Before the expire of relevant assessment year or before the assessment is complete, whichever is earlier |
| D. | Before the expire of one year from the end of the relevant assessment year or before the assessment year, whichever is earlier |
| Answer» D. Before the expire of one year from the end of the relevant assessment year or before the assessment year, whichever is earlier | |