Explore topic-wise MCQs in Finance & Accounting.

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.

101.

Indexation is applicable to.......................

A. sale of short term capital assets.
B. sale of long term debentures.
C. sale of depreciable capital assets.
D. sale of long term capital assets which are not depreciable assets
Answer» E.
Discussion
102.

FMV on 1.4.81 is applicable to assets.......................

A. acquired prior to 1.4.81.
B. transferred prior to 1.4.81.
C. acquired after 1.4.81.
D. none of the above.
Answer» B. transferred prior to 1.4.81.
Discussion
103.

Cost of improvement incurred prior to 1.4.81 is................

A. indexed separately.
B. indexed along with cost of acquisition.
C. ignored fully.
D. none of these.
Answer» D. none of these.
Discussion
104.

Cost inflation rules for the purpose of long term capital gain has been notified by central governmentevery year starting from the financial year..................

A. 1991-92.
B. 1985-86.
C. 1981-82.
D. 1975-76.
Answer» D. 1975-76.
Discussion
105.

Short term capital gain on sale of unlisted shares are.................

A. taxable.
B. exempted.
C. partially exempt
Answer» B. exempted.
Discussion
106.

Long term capital gain on sale of unlisted shares are........................

A. taxable.
B. exempted.
C. partially exempt
Answer» B. exempted.
Discussion
107.

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.
Discussion
108.

Tax on short-term gain on sale of listed shares is................

A. 20%.
B. 25%.
C. 30%.
D. 15%.
Answer» E.
Discussion
109.

Deduction from gross Total income is allowed under Sec. 80C up to lower of the Qualifying amount or a maximum of.

A. rs. 50,000.
B. rs. 80,000.
C. rs. 1,00,000.
D. rs. 2,00,000.
Answer» D. rs. 2,00,000.
Discussion
110.

Statutory limit for exemption of compensation received at the time of voluntary retirement (VRS) is.............................

A. rs. 5,00,000.
B. rs. 8,00,000.
C. rs. 10,00,000.
D. rs. 15,00,000.
Answer» B. rs. 8,00,000.
Discussion
111.

Profits earned from an illegal business are..........................

A. taxable.
B. tax free.
C. ignored by tax authorities.
D. treated as other income.
Answer» B. tax free.
Discussion
112.

Unabsorbed capital expenditure on scientific research can be carried forward for...............

A. 15 years.
B. 14 years.
C. 8 years.
D. 10
Answer» D. 10
Discussion
113.

Contribution made to an approved research association is eligible for deduction up to.................

A. 50%.
B. 80%.
C. 100%.
D. 125%.
Answer» E.
Discussion
114.

Medical reimbursement is exempt up to .................. if treatment is done in a private hospital.

A. rs: 5,000
B. rs: 10,000
C. rs: 15,000
D. rs: 50,000
Answer» D. rs: 50,000
Discussion
115.

Excise duty and sales tax are allowed as deduction if paid before......................

A. late date of filing of return.
B. previous year end.
C. before 31 st december of the previous year.
D. after 31 st december of previous year.
Answer» B. previous year end.
Discussion
116.

Technical know-how acquired after 1.4.98 is eligible for depreciation at...............

A. 10% p.a.
B. 20% p.a.
C. 25% p.a.
D. 40% p.a.
Answer» D. 40% p.a.
Discussion
117.

Which of the following is exempted.

A. c.c.a
B. d.a
C. foreign allowance
D. medical allowance
Answer» D. medical allowance
Discussion
118.

The income from the sale of house hold furniture is ......................

A. taxable income
B. exempted income
C. capital gain
D. business income
Answer» C. capital gain
Discussion
119.

Free food provided to employees is exempted upto ...................... per meal.

A. rs: 40
B. rs: 50
C. rs: 60
D. rs: 15
Answer» C. rs: 60
Discussion
120.

Deduction for other expenses except interest in the computation of income from house property isallowable 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
Discussion
121.

Preliminary expenses shall be allowed as deduction in...............

A. 5 instalments.
B. 10 instalments.
C. 15 instalments
D. 12 instalments.
Answer» B. 10 instalments.
Discussion
122.

Under valuation of opening stock is....................

A. deducted from net profit.
B. added to net profit.
C. credited to p & l a/c
D. none of these.
Answer» B. added to net profit.
Discussion
123.

Under section 44AB the audit of accounts is compulsory if total sales exceed ..........................

A. rs: 40 lakhs
B. rs: 50 lakhs
C. rs: one crore
D. rs: five crores
Answer» D. rs: five crores
Discussion
124.

Bad debts allowed earlier and recovered latter on is....................

A. business income.
B. non business income.
C. exempted income.
D. income from other sources.
Answer» B. non business income.
Discussion
125.

Gifts from clients are...................

A. professional income.
B. income from other sources.
C. non taxable item.
D. none of these.
Answer» B. income from other sources.
Discussion
126.

Repairs incurred before installation of an assets is..................

A. capital expenditure.
B. revenue expenditure.
C. non business expenditure.
D. none of these.
Answer» B. revenue expenditure.
Discussion
127.

If a depreciable asset is acquired and used for less than 180 days in a financial year, depreciationallowed on it is..............

A. normal rate.
B. 50% of normal rate.
C. nil.
D. none of these.
Answer» C. nil.
Discussion
128.

Rate of depreciation on residential building is.................

A. 5%.
B. 10%
C. 15%
D. 20%.
Answer» B. 10%
Discussion
129.

The Total income of an individual is Rs: 3,46,994. The rounded off total income will be........................

A. rs: 3,46,000
B. rs: 3,47,000
C. rs: 3,46,990
D. rs: 3,50,000
Answer» D. rs: 3,50,000
Discussion
130.

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
Discussion
131.

The maximum tax exemption to a senior citizen for the assessment year is ......................

A. rs: 3,00,000
B. rs: 2,00,000
C. rs: 1,00,000
D. rs: 2,50,000
Answer» E.
Discussion
132.

If STT is paid, then STCG tax on the transfer of capital asset is ..............................

A. 10%
B. 15%
C. 20%
D. 25%
Answer» C. 20%
Discussion
133.

Education cess for the A.Y is ................................

A. 3%
B. 5%
C. 10%
D. 15%
Answer» B. 5%
Discussion
134.

According to section ........................ , TDS shall be payable during the financial year in respect of thetotal income of the assessee.

A. 206
B. 207
C. 208
D. 210
Answer» C. 208
Discussion
135.

.................. must be paid according to the provisions of “ Pay As You Earn” Scheme.

A. income tax
B. tds
C. advance tax
D. education cess
Answer» D. education cess
Discussion
136.

Advance tax is payable when tax payable by an assessee is ........................or more.

A. rs: 5,000
B. rs: 10,000
C. rs: 15,000
D. rs: 1,00,000
Answer» C. rs: 15,000
Discussion
137.

The rate of surcharge payable on tax for the A.Y. 2013-14 is ......................

A. 5%
B. 10%
C. 3%
D. nil
Answer» E.
Discussion
138.

The non-taxable income for the woman assessee is .................................

A. rs: 1,00,000
B. rs: 1,90,000
C. rs: 2,50,000
D. rs: 3,00,000
Answer» C. rs: 2,50,000
Discussion
139.

Out of income from growing and manufacturing of latex ..................... , is considered as agriculturalincome.

A. 40%
B. 45%
C. 60%
D. 65%
Answer» E.
Discussion
140.

If S T T is paid, then LTCG tax on the transfer of listed equity shares is ....................

A. 15%
B. 5%
C. 10%
D. nil
Answer» E.
Discussion
141.

For SSIs , a deduction of ..................... % of profit is available to individual assessee.

A. 50%
B. 40%
C. 25%
D. nil
Answer» D. nil
Discussion
142.

Donation is deductible u/s .................................

A. 80c
B. 80d
C. 80 e
D. 80 g
Answer» E.
Discussion
143.

Tax deduction available to certain industries for the initial few years is called ........................

A. tax holiday
B. tax exemption
C. tds
D. paye
Answer» B. tax exemption
Discussion
144.

The maximum amount of deduction under section 80D in the case of a senior citizen is .........................

A. rs: 10,000
B. rs: 15,000
C. rs: 20,000
D. rs: 25,000
Answer» D. rs: 25,000
Discussion
145.

Contribution to RPF is deducted u/s ..................

A. 80c
B. 80d
C. 80e
D. 80g
Answer» B. 80d
Discussion
146.

Which among the following deduction is available only to disabled persons :

A. 80 c
B. 80 g
C. 80 q
D. 80 u
Answer» E.
Discussion
147.

Section 80C provides for deduction in respect of tuition fee to ....................... children.

A. one
B. two
C. three
D. none
Answer» C. three
Discussion
148.

The maximum amount deductible u/s 80GG in respect of rent paid is ........................

A. rs: 10,000
B. rs: 12,000
C. rs: 20,000
D. rs: 24,000
Answer» E.
Discussion
149.

Tax on long term capital gain is..................

A. 10%.
B. 20%.
C. 30%.
D. 25%.
Answer» C. 30%.
Discussion
150.

Income from other sources is a.................

A. residuary head of income.
B. major head of income.
C. income from a single source.
D. constant and regular income.
Answer» B. major head of income.
Discussion