MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 29 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration in Finance (BBA Finance) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Compensation for cancellation of a licence by the government resulting in cessation of business is................................... |
| A. | a casual receipt. |
| B. | a capital receipt. |
| C. | a revenue receipt. |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 2. |
Out of income from growing and manufacturing of latex ..................... , is considered as agricultural income. |
| A. | 40% |
| B. | 45% |
| C. | 60% |
| D. | 65% |
| Answer» E. | |
| 3. |
A citizen of India who goes abroad for the purpose of employment, he must stay in India at least for ............................. days to become a resident |
| A. | 90 days |
| B. | 162 days |
| C. | 180 days |
| D. | 182 days |
| Answer» E. | |
| 4. |
Interest on Bank Term Deposits is subject to tax deduction at source if the interest amount during the relevant previous year exceeds................ |
| A. | rs: 2,000. |
| B. | rs: 5,000. |
| C. | rs: 10,000. |
| D. | rs: 30,000. |
| Answer» D. rs: 30,000. | |
| 5. |
A partnership firm sold a residential house. The firm will get exemption under section .................... on capital gains. |
| A. | sec. 54d |
| B. | s |
| C. | 54e c. sec. 54c |
| D. | sec. 54ec |
| Answer» E. | |
| 6. |
Deduction for other expenses except interest in the computation of income from house property is allowable to the extent of ......................... |
| A. | 1/5th of annual value |
| B. | 30% of annual value |
| C. | 25% of annual value |
| D. | 20% of annual value |
| Answer» C. 25% of annual value | |
| 7. |
If a depreciable asset is acquired and used for less than 180 days in a financial year, depreciation allowed on it is.............. |
| A. | normal rate. |
| B. | 50% of normal rate. |
| C. | nil. |
| D. | none of these. |
| Answer» C. nil. | |
| 8. |
A person who is of Indian origin visiting India during the previous year to be called resident must stay in India for at least..................... |
| A. | 60 days in py. |
| B. | 6 days in py and 365 days or more during 4 years preceding the py. |
| C. | 182 days in py. |
| D. | 730 days during 7 years preceding the py. |
| Answer» D. 730 days during 7 years preceding the py. | |
| 9. |
According to section ........................ , TDS shall be payable during the financial year in respect of the total income of the assessee. |
| A. | 206 |
| B. | 207 |
| C. | 208 |
| D. | 210 |
| Answer» C. 208 | |
| 10. |
The income tax payable by an individual is Rs:8,562.55. The rounded off tax payable will be ......................... |
| A. | rs: 8,562 |
| B. | rs: 8,563 |
| C. | rs: 8,560 |
| D. | rs: 8,570 |
| Answer» D. rs: 8,570 | |
| 11. |
As per Second additional condition, a resident will be an ordinarily resident if stay in India for at least ......................... days during the seven previous years preceding the relevant . |
| A. | 182 days. |
| B. | 365 days. |
| C. | 60 days. |
| D. | 730 days. |
| Answer» E. | |
| 12. |
Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actual allowance or................. |
| A. | rs. 1,000. |
| B. | rs. 2,000. |
| C. | rs. 20,000. |
| D. | rs. 5,000. |
| Answer» E. | |
| 13. |
Value of rent free accommodation a house owned by employer in case of non- Govt. employees with above 25 lakhs population is........................... |
| A. | 10% of employees salary |
| B. | 15% of employees salary |
| C. | 7.5% of employee salary |
| D. | 20% of employees salary |
| Answer» C. 7.5% of employee salary | |
| 14. |
As per the first basic condition to determine residential status, a person should have been in India during the previous year concerned for.................. |
| A. | 60 days or more |
| B. | 120 days or more. |
| C. | 182 days or more. |
| D. | 240 days or more. |
| Answer» D. 240 days or more. | |
| 15. |
Cost inflation rules for the purpose of long term capital gain has been notified by central government every year starting from the financial year.................. |
| A. | 1991-92. |
| B. | 1985-86. |
| C. | 1981-82. |
| D. | 1975-76. |
| Answer» D. 1975-76. | |
| 16. |
Additional depreciation is allowed at half the rate, if the asset is used in the initial year for................................. |
| A. | 195 days. |
| B. | 199 days. |
| C. | 360 days. |
| D. | less than 180 days. |
| Answer» E. | |
| 17. |
Income of political parties is not to be included in total income if certain conditions are satisfied. The relevant section of IT Act 1961 is. |
| A. | section 13a . |
| B. | s |
| C. | 1 |
| Answer» B. s | |
| 18. |
Salary paid by an Indian company to its employees working in one of its branches outside India is................................ |
| A. | salary accruing in india. |
| B. | salary deemed to accrue in india. |
| C. | salary accruing outside india. |
| D. | none of these. |
| Answer» B. salary deemed to accrue in india. | |
| 19. |
Exemption u/s 54 is allowed when a residential house is sold and the investment is made in ............................. |
| A. | another residential house. |
| B. | land. |
| C. | shares. |
| D. | jewellery. |
| Answer» B. land. | |
| 20. |
Donation on PM s National Relief Fund is deductible 100% out of the gross total income of the assessee, under section ................................... |
| A. | 80c |
| B. | 80cc |
| C. | 80g |
| D. | 80gg |
| Answer» D. 80gg | |
| 21. |
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. | |
| 22. |
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 | |
| 23. |
The number allotted by income tax authorities to assessees for identification and which should be quoted in all documents and correspondence is....................... |
| A. | i.d. no. |
| B. | register no. |
| C. | permanent account number (pan). |
| D. | licence no. |
| Answer» D. licence no. | |
| 24. |
Interest n loan taken before 1-4-1999 for construction or repairs of self occupied house shall be deducted 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 | |
| 25. |
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 | |
| 26. |
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 | |
| 27. |
Secondary and higher education cess is charged at the rate of .......................... of the amount of income tax. |
| A. | 1% |
| B. | 2% |
| C. | 3% |
| D. | 5% |
| Answer» B. 2% | |
| 28. |
In case of residential status of HUF ,firm and AOP if control and management are wholly outside India they are deemed as.................. |
| A. | resident. |
| B. | ordinarily resident. |
| C. | non resident |
| D. | none of these. |
| Answer» D. none of these. | |
| 29. |
Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profit in any accounting year can be carried forward for..................... |
| A. | 16 |
| B. | 8 |
| C. | indefinite |
| D. | 12 |
| Answer» D. 12 | |