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.
| 301. |
A person is said to be a non resident when he is ...... |
| A. | not fulfilling any one of the basic conditions |
| B. | fulfilling only basic conditions |
| C. | fulfilling only additional conditions |
| D. | fulfilling both basic and additional conditions |
| Answer» B. fulfilling only basic conditions | |
| 302. |
Repairs incurred before installation of an assets is .... |
| A. | Capital expenditure |
| B. | Revenue expenditure |
| C. | Non business expenditure |
| D. | None of the above |
| Answer» B. Revenue expenditure | |
| 303. |
Gifts from clients are ...... |
| A. | Professional income |
| B. | Income from other sources |
| C. | Non taxable item |
| D. | None of the above |
| Answer» B. Income from other sources | |
| 304. |
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 the above |
| Answer» B. Added to net profit | |
| 305. |
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 | |
| 306. |
Perquisites to employees are covered in the I.T. Act 1961 under ..... |
| A. | Section 2a |
| B. | Section 17b |
| C. | Section 28a |
| D. | Section 36c |
| Answer» C. Section 28a | |
| 307. |
A Perk is....... |
| A. | Cash paid by employer to employee |
| B. | Facility provided by employer to employee |
| C. | Amount credited to employees |
| D. | None of these accounts |
| Answer» C. Amount credited to employees | |
| 308. |
Unabsorbed capital expenditure on scientific research can be carried forward for... |
| A. | 15 years |
| B. | 14 years |
| C. | 8 years |
| D. | 10 years |
| Answer» D. 10 years | |
| 309. |
Preliminary expenses shall be allowed as deduction in... |
| A. | 5 Instalments. |
| B. | 10 Instalments |
| C. | 15 Instalments |
| D. | 12 Instalments |
| Answer» B. 10 Instalments | |
| 310. |
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 | |
| 311. |
Contribution made to an approved research association is eligible for deduction up to.... |
| A. | 50% |
| B. | 80% |
| C. | 100% |
| D. | 125% |
| Answer» E. | |
| 312. |
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 | |
| 313. |
Speculation Loss can be carried forward for............ |
| A. | 8 years |
| B. | 10 years |
| C. | 5 years |
| D. | 4 years |
| Answer» E. | |
| 314. |
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 | |
| 315. |
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 | |
| 316. |
Dividends from co-operative society are........ |
| A. | Exempted |
| B. | Taxable |
| C. | Partially Exempted |
| D. | Partially Taxable |
| Answer» C. Partially Exempted | |
| 317. |
Which of the following income from other sources is not taxable? |
| A. | Dividend from co-operative society |
| B. | Dividend from foreign company |
| C. | Dividend from domestic company |
| D. | Winnings from lottery. |
| Answer» D. Winnings from lottery. | |
| 318. |
Which one of the following is not an income from other sources? |
| A. | Interest on fixed deposit in bank. |
| B. | Winnings from cross word puzzles |
| C. | Gift in excess of Rs.50,000 from an unrelated person |
| D. | Profit on sale of building |
| Answer» E. | |
| 319. |
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 | |
| 320. |
Tax on long term capital gain is........ |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | 25% |
| Answer» C. 30% | |
| 321. |
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 | |
| 322. |
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 | |
| 323. |
The rent fixed as per municipal valuation is called ............. |
| A. | Actual rent |
| B. | Fair rental Value |
| C. | Standard rent |
| D. | Municipal value |
| Answer» E. | |
| 324. |
Income tax is a form of .......................... tax |
| A. | Direct tax |
| B. | Indirect tax |
| C. | Value Added Tax |
| D. | Deemed Tax |
| Answer» B. Indirect tax | |
| 325. |
.......................... section deals with exempted incomes |
| A. | Section 80 |
| B. | Section 17 |
| C. | Section 10 |
| D. | Section 23 |
| Answer» D. Section 23 | |
| 326. |
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 | |
| 327. |
Education allowance is exempted for a maximum of....... |
| A. | One child |
| B. | Two children |
| C. | Three children |
| D. | Four children |
| Answer» C. Three children | |
| 328. |
Exempted limit of HRA in metropolitan cities is |
| A. | 50% of salary |
| B. | 40% of salary |
| C. | 15% of salary |
| D. | none of these |
| Answer» B. 40% of salary | |
| 329. |
House rent allowance is....... |
| A. | Fully exempted |
| B. | Partly taxable |
| C. | Fully taxable |
| D. | Actual rent paid alone is taxable |
| Answer» C. Fully taxable | |
| 330. |
Allowances received by a government employee posted abroad are..... |
| A. | Fully exempted |
| B. | Partly exempted |
| C. | Fully taxable |
| D. | Taxable by the country where posted |
| Answer» B. Partly exempted | |
| 331. |
Salary received by a member of parliament is |
| A. | Taxable as salary income |
| B. | Exempt from tax sources |
| C. | Taxable as income from other sources |
| D. | None of these |
| Answer» D. None of these | |
| 332. |
In case of Tax free salary, .............. |
| A. | Tax is to be paid by employer |
| B. | No tax is payable on such salary |
| C. | Tax is to be paid by the employee |
| D. | Govt, itself pays the tax at a future date |
| Answer» B. No tax is payable on such salary | |
| 333. |
Casual income is ........ |
| A. | Fully taxable |
| B. | Partly taxable |
| C. | Fully exempted |
| D. | None of these |
| Answer» B. Partly taxable | |
| 334. |
Share of income from firm is..... |
| A. | Taxable in the hands of partner |
| B. | Exempted in the hands of partner |
| C. | Exempted in the hands of firm |
| D. | None of these |
| Answer» C. Exempted in the hands of firm | |
| 335. |
Income accrued in India is taxable in the hands of......... |
| A. | Non-resident only |
| B. | Resident and not ordinarily resident only. |
| C. | All assesses |
| D. | Resident and ordinarily resident only. |
| Answer» D. Resident and ordinarily resident only. | |
| 336. |
Income received in India is taxable in the hands of..... |
| A. | Resident only |
| B. | Resident and ordinarily resident only |
| C. | Non-resident only |
| D. | All assessees |
| Answer» E. | |
| 337. |
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 | |
| 338. |
Which of the following is not included in salary income? |
| A. | Commuted pension |
| B. | Un commuted pension |
| C. | Family pension |
| D. | Leave salary |
| Answer» D. Leave salary | |
| 339. |
Tax Holiday is |
| A. | Income tax on holiday income |
| B. | Cancellation of tax for the entire country |
| C. | Tax exemption for a specified period |
| D. | None of the above |
| Answer» D. None of the above | |
| 340. |
The existing Maximum Marginal Rate of tax of an individual assessee is.... |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | 35% |
| Answer» D. 35% | |
| 341. |
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. | Section 10d |
| C. | Section 233B |
| D. | Section 88G |
| Answer» B. Section 10d | |
| 342. |
Allowances of MP/M.L.A / or M.L.C are |
| A. | Fully exempted |
| B. | Fully taxable |
| C. | Partly exempted |
| D. | None of these |
| Answer» B. Fully taxable | |
| 343. |
Scholarship granted is........ |
| A. | Fully exempted. |
| B. | Fully taxable |
| C. | Partly exempted |
| D. | None of these |
| Answer» B. Fully taxable | |
| 344. |
Incomes absolutely exempt from Tax are listed under........ |
| A. | Section 2 |
| B. | Section 10 |
| C. | Section 38 |
| D. | Section 80c |
| Answer» C. Section 38 | |
| 345. |
Any payments made under and awards instituted by central or state Governments are....... |
| A. | Fully exempted |
| B. | Fully taxable |
| C. | Partly exempted |
| D. | None of these |
| Answer» B. Fully taxable | |
| 346. |
Exempted incomes are defined under section.... |
| A. | 15 of income tax Act |
| B. | 18 of income tax Act |
| C. | 10 of income tax Act |
| D. | 20 of income tax Act |
| Answer» D. 20 of income tax Act | |
| 347. |
Past untaxed income brought to India is taxable in the hands of..... |
| A. | Resident and not ordinarily resident |
| B. | Resident and ordinarily resident |
| C. | Non-resident |
| D. | None of these |
| Answer» E. | |
| 348. |
Income accrued and received outside India is taxable in the hands of...... |
| A. | Non-resident |
| B. | Resident and ordinarily resident |
| C. | Resident and not ordinarily |
| D. | None of these residents |
| Answer» C. Resident and not ordinarily | |
| 349. |
Incomes on which Income tax is not charged are called.... |
| A. | Exceptional incomes |
| B. | Privileged incomes |
| C. | Exempted incomes |
| D. | None of the above |
| Answer» D. None of the above | |
| 350. |
Income from a farm house is............. |
| A. | Income from house property |
| B. | Income from business |
| C. | Agricultural income |
| D. | income from other sources |
| Answer» D. income from other sources | |