MCQOPTIONS
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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.
| 201. |
If any amount is donate for research, such research should be in nature of |
| A. | Scientific research only |
| B. | Social or statistical research only |
| C. | Scientific or social or statistical research |
| D. | None of the above |
| Answer» D. None of the above | |
| 202. |
Preliminary expenses incurred are allowed deduction in |
| A. | 10 equal annual installments |
| B. | 5 equal annual installments |
| C. | full |
| D. | None of the above |
| Answer» C. full | |
| 203. |
Certain revenue and capital expenditure on scientific research are allowed as deduction in the previous year of commencement of business even if these are incurred: |
| A. | Five years immediately before the commencement of business |
| B. | 3 years immediately before the commencement of the business |
| C. | Any time prior to the commencement of the business |
| D. | None of the above |
| Answer» C. Any time prior to the commencement of the business | |
| 204. |
Under the head Business or Profession, the method of accounting which an assessee can follow shall be : |
| A. | Mercantile system only |
| B. | Cash system only |
| C. | Mercantile or cash system only |
| D. | Hybrid system |
| Answer» D. Hybrid system | |
| 205. |
R gifted his house property to his married minor daughter. The income from such house property shall be taxable in the hands of |
| A. | R as deemed owner |
| B. | Income of married minor daughter. |
| C. | R. However, it will be first computed as minor daughters income & clubbed in the income of R |
| D. | None of the above |
| Answer» C. R. However, it will be first computed as minor daughters income & clubbed in the income of R | |
| 206. |
R transferred his house property to his wife under an agreement to live apart. Income from such house property shall be taxable in the hands of : |
| A. | R as deemed owner |
| B. | R. However, it will be first computed as Mrs. R income & Thereafter clubbed in the hands of R |
| C. | Mrs. R |
| D. | None of the above |
| Answer» D. None of the above | |
| 207. |
Interest on capital or loan received by a partner from a firm is |
| A. | Exempt U/S 10(2A) |
| B. | Taxable U/H business and profession |
| C. | Taxable U/H income from other sources |
| D. | None of the above |
| Answer» C. Taxable U/H income from other sources | |
| 208. |
Family pension received by a widow of a member of the armed forces where the death of the member has occurred in the course of the operational duties, is |
| A. | Exempt up to Rs.3,00,000 |
| B. | Exempt up to Rs. 3,50,000 |
| C. | Totally chargeable to tax |
| D. | Totally exempt under section 10(19) |
| Answer» E. | |
| 209. |
Body of individual should consist of |
| A. | Individual only |
| B. | Persons other than individual only |
| C. | Both the above |
| D. | None of the above |
| Answer» B. Persons other than individual only | |
| 210. |
The rate of tax that is leivable on STCG arising from transfer of Equity shares of a Company or units of an Equity oriented fund is |
| A. | 10% |
| B. | 5% |
| C. | 20% |
| D. | 15% |
| Answer» E. | |
| 211. |
The partial integration of agricultural income, is done to compute tax on: |
| A. | Agricultural income |
| B. | Non agricultural income |
| C. | Both agricultural and non agricultural income |
| D. | None of the above |
| Answer» C. Both agricultural and non agricultural income | |
| 212. |
An assessee has borrowed money for purchase of a house & Interest is payable outside India. Such interest shall: |
| A. | Be allowed as deduction |
| B. | Not to be allowed on deduction |
| C. | Be allowed as deduction if the tax is deducted at source |
| D. | None of the above |
| Answer» D. None of the above | |
| 213. |
Agricultural income is |
| A. | Fully exempt |
| B. | Partially exempt |
| C. | Fully taxable |
| D. | None of the above |
| Answer» B. Partially exempt | |
| 214. |
If the assessee is engaged in the business of growing and manufacturing tea in India ,the agricultural income in that case shall be: |
| A. | 40% of the income from such business |
| B. | 60% of the income from such busines |
| C. | Market value of the agricultural produce minus expenses on cultivation of such produce |
| D. | None of the above |
| Answer» C. Market value of the agricultural produce minus expenses on cultivation of such produce | |
| 215. |
Dividend paid by an Indian company is: |
| A. | Taxable in India in the hands of the recipient |
| B. | Exempt in the hands of recipient |
| C. | Taxable in the hands of the company and exempt in the hands of the recipient |
| D. | None of the above |
| Answer» D. None of the above | |
| 216. |
Agricultural income is exempt provided the: |
| A. | Land is situated in India |
| B. | Land is situated in any rural area India |
| C. | Land is situated whether in India or outside India |
| D. | None of the above |
| Answer» B. Land is situated in any rural area India | |
| 217. |
The cost of acquisition of bonus shares allotted on or after 1-4-1981 is ........... |
| A. | Fair market value of that shares on 1-4-198 |
| B. | Fair market value on the date of issue of shares |
| C. | Nil |
| D. | None of the above |
| Answer» D. None of the above | |
| 218. |
A company registered in a foreign country, but the control and management of its affairs is situated in India shall be |
| A. | Resident in India |
| B. | Non-resident |
| C. | Not ordinarily resident in India |
| D. | None of the above |
| Answer» C. Not ordinarily resident in India | |
| 219. |
In respect of shares held as investment, while computing the capital gains, securities transaction tax paid in respect of sale of listed shares sold in a recognized stock exchange, |
| A. | Is deductible up to Rs.1,00,000 |
| B. | Is deductible up to Rs.2,00,000 |
| C. | Is deductible if C.G.’s is < 5,00,000 |
| D. | Is not deductible at all |
| Answer» E. | |
| 220. |
An Indian company whose entire control and management of its affairs is situated outside India shall be |
| A. | Resident in India |
| B. | Non-resident in India |
| C. | Not ordinarily resident in India |
| D. | None of the above |
| Answer» B. Non-resident in India | |
| 221. |
A.O.P should consist of : |
| A. | Individual only |
| B. | Persons other than individual only |
| C. | Both the above |
| D. | None of the above |
| Answer» D. None of the above | |
| 222. |
Income which accrue or arise outside India and also received outside India taxable in case of: |
| A. | resident only |
| B. | not ordinarily resident |
| C. | both ordinarily resident and NOR |
| D. | None of the above |
| Answer» B. not ordinarily resident | |
| 223. |
Income which accrue outside India from a business controlled from India is taxable in case of: |
| A. | Resident only |
| B. | Not ordinarily resident only |
| C. | Both ordinarily resident and NOR |
| D. | Non-resident |
| Answer» D. Non-resident | |
| 224. |
Income deemed to accrue or arise in India is taxable in case of : |
| A. | Resident only |
| B. | Both ordinarily resident and NOR |
| C. | Non-resident |
| D. | All the assesses |
| Answer» E. | |
| 225. |
Incomes which accrue or arise outside India but are received directly into India are taxable in case of |
| A. | Resident only |
| B. | Both ordinarily resident and NOR |
| C. | Non-resident |
| D. | All the assesses |
| Answer» E. | |
| 226. |
Income tax is rounded off to: |
| A. | Nearest ten rupees |
| B. | Nearest hundred rupees |
| C. | Nearest one rupee |
| D. | No rounding off of tax is done |
| Answer» B. Nearest hundred rupees | |
| 227. |
Residential status to be determined for : |
| A. | Previous year |
| B. | Assessment year |
| C. | Accounting year |
| D. | Last five years |
| Answer» B. Assessment year | |
| 228. |
Education cess is leviable in case of: |
| A. | An individual |
| B. | HUF |
| C. | A company assessee only |
| D. | All assesses |
| Answer» E. | |
| 229. |
Gift of Rs 5,00,000 received on 10 July, 2008 through account payee cheque from a non-relative regularly assessed to income-tax, is |
| A. | A capital receipt not chargeable to tax |
| B. | Chargeable as other sources |
| C. | Chargeable to tax as business income |
| D. | Exempt up to Rs.50,000 and balance chargeable to tax as income from other source |
| Answer» C. Chargeable to tax as business income | |
| 230. |
The amount received from URPF is ........ |
| A. | Taxablbe |
| B. | Exempted |
| C. | Exempted, subject to certain conditions |
| D. | None of the above |
| Answer» B. Exempted | |
| 231. |
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 | |
| 232. |
STCL can be set off in the same assessment year from ............ |
| A. | STCG |
| B. | LTCG |
| C. | both |
| D. | Not possible |
| Answer» D. Not possible | |
| 233. |
Dividend from an Indian company is ...... |
| A. | Fully Taxablbe |
| B. | Fully Exempted |
| C. | Partly Taxable |
| D. | None of the above |
| Answer» C. Partly Taxable | |
| 234. |
Loss from business can be carried for ...................... years |
| A. | 6 |
| B. | 8 |
| C. | 12 |
| D. | 16 |
| Answer» C. 12 | |
| 235. |
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 | |
| 236. |
Section 80C provides for deduction in respect of tuition fee to ....................... children |
| A. | One |
| B. | Two |
| C. | Three |
| D. | None |
| Answer» C. Three | |
| 237. |
When a loan is taken for the education of a child, the father is entitled to deduction under section .......... |
| A. | Section 80 C |
| B. | Section 80 G |
| C. | Section 80 E |
| D. | Section 80 U |
| Answer» D. Section 80 U | |
| 238. |
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 | |
| 239. |
Which among the following deduction is available only to disabled persons? |
| A. | Section 80 C |
| B. | Section 80 G |
| C. | Section 80 Q |
| D. | Section 80 U |
| Answer» E. | |
| 240. |
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 | |
| 241. |
Contribution to RPF is deducted under section ..... |
| A. | Section 80C |
| B. | Section 80D |
| C. | Section 80E |
| D. | Section 80G |
| Answer» B. Section 80D | |
| 242. |
Donation is deductible u/s ................ |
| A. | 80C |
| B. | 80D |
| C. | 80 E |
| D. | 80 G |
| Answer» E. | |
| 243. |
................ 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 | |
| 244. |
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 | |
| 245. |
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 | |
| 246. |
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 | |
| 247. |
The rate of surcharge on tax payable is ......................% when taxable income is Rs: 5,57, 500. |
| A. | 3% |
| B. | 5% |
| C. | 10% |
| D. | Nil |
| Answer» E. | |
| 248. |
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 | |
| 249. |
What is the date on which Fair Market Value of capital assets acquired is determined? |
| A. | 1.4.2001. |
| B. | 1.4.1971 |
| C. | 1.4.1981 |
| D. | 1.4.1971 |
| Answer» D. 1.4.1971 | |
| 250. |
Under section 44AB the audit of accounts is compulsory if total sales exceed .. |
| A. | Rs: 40 lakhs |
| B. | Rs: 40 lakhs |
| C. | Rs: one crore |
| D. | Rs: five crores |
| Answer» D. Rs: five crores | |