MCQOPTIONS
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MCQOPTIONS
This section includes 20 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Commerce (MDotcom) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Reducing tax liability, utilizing the deductions, exemptions or reliefs allowed in the Act and Rules is called---- |
| A. | Tax evasion |
| B. | Tax planning |
| C. | Tax avoidance |
| D. | Tax management |
| Answer» C. Tax avoidance | |
| 2. |
Under the Income-tax Act, 1961, which of the following outlays incurred by Sun Ltd. during the previous year ended 31st March, 2019 will not be admissible as deduction while computing its business income |
| A. | Contribution to a political party in cash |
| B. | Interest on loan taken for payment of income-tax |
| C. | Capital exnditure on advertisement |
| D. | All of the above |
| Answer» E. | |
| 3. |
Any corporation by or under any Central, State or Provincial Act or a Government Company as defined in the Companies Act is called ----- |
| A. | Public Sector Company |
| B. | Joint company |
| C. | Private Sector company |
| D. | Provincial Company |
| Answer» B. Joint company | |
| 4. |
A company which is neither an Indian company not has made the prescribed arrangements for the declaration and payment of dividends within India is called ----- |
| A. | Domestic Company |
| B. | Foreign Company |
| C. | Public sector company |
| D. | Provincial company |
| Answer» C. Public sector company | |
| 5. |
A person carrying not less than----- of the voting power in a company is said to have substantial interest in the company. |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | 40% |
| Answer» C. 30% | |
| 6. |
If the tax liability of a company is less than 18.5% of its book profits, the company is liable to pay MAT at the rate of ------ |
| A. | 15% of books profits plus Surcharge) if any) plus 4% HEC |
| B. | 16% of books profits plus Surcharge)if any) plus 4% HEC |
| C. | 16.5% of books profits plus Surcharge)if any) plus 4% HEC |
| D. | 18.5% of books profits plus Surcharge(if any) plus 4% HEC |
| Answer» E. | |
| 7. |
Income distributed by a fund other than a money market mutual fund or a liquid fund to an individual or HUF is subject to CDT at the rate of |
| A. | 12.5% + Surcharge 10% + 4 % HEC |
| B. | 15% + Surcharge 10% + 4 % HEC |
| C. | 20% + Surcharge 10% + 4 % HEC |
| D. | 25% + Surcharge 10% + 4 % HEC |
| Answer» B. 15% + Surcharge 10% + 4 % HEC | |
| 8. |
Which is the charging section of income under the head profits and gains of business or profession? |
| A. | Section 15 |
| B. | Section 24 |
| C. | Section 28 |
| D. | Section 17 |
| Answer» D. Section 17 | |
| 9. |
.Group of assets falling within a class of assets comprising of tangible & intangible assets is known as : |
| A. | Group of assets |
| B. | Block of assets |
| C. | Set of assets |
| D. | Cluster of assets |
| Answer» C. Set of assets | |
| 10. |
As per section 30, which expenditure incurred for a building used for the business or profession shall not be allowed as deduction? |
| A. | Rent, rates and taxes |
| B. | Insurance of building |
| C. | Repairs of building |
| D. | Capital expenditure |
| Answer» E. | |
| 11. |
An assessee was engaged in the business of cattle rearing. He incurred a loss in respect of animals which were used for the purposes of his business (otherwise than as stock-in trade) and which have died. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | Illegal expenditure |
| Answer» B. Capital expenditure | |
| 12. |
The books of accounts are to be kept and maintained for a period of how many years from the end of the relevant assessment year. |
| A. | 6 years |
| B. | 5 years |
| C. | 8 years |
| D. | Unlimited period |
| Answer» B. 5 years | |
| 13. |
Under the Income-tax Act, 1961, interest on capital received by a partner from a partnership firm is chargeable under the head |
| A. | Profits and gains of business or profession |
| B. | Income from other sources |
| C. | Capital gains |
| D. | None of the above |
| Answer» B. Income from other sources | |
| 14. |
Deduction of tax at source made for incomes which can be calculated in advance is called ..? |
| A. | TDS |
| B. | PAS |
| C. | FAS |
| D. | MAS |
| Answer» B. PAS | |
| 15. |
The method by which a person illegally reduces his tax burden by either deflating their income or inflating their expenses is known as |
| A. | Tax planning |
| B. | Tax evasion |
| C. | Tax management |
| D. | Tax avoidance |
| Answer» C. Tax management | |
| 16. |
The employer made a contribution of Rs 25,000 to recognized provident fund for the previous year 2018-19. Such payment was made on 12th March, 2019. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Capital expenditure |
| C. | Deferred revenue expenditure |
| D. | None of the above |
| Answer» B. Capital expenditure | |
| 17. |
Alternate Minimum Tax shall not be applicable to a non-corporate assessee who has claimed any deduction under: |
| A. | Sections 80-IA to 80RRB |
| B. | section 80P |
| C. | Section 10AA |
| D. | Section 35AD |
| Answer» C. Section 10AA | |
| 18. |
Expenditure incurred by an hotelier on replacement of linen and carpets in his hotel. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | Illegal expenditure |
| Answer» B. Deferred revenue expenditure | |
| 19. |
XYZ & Co. incurred a liability by giving discount on issue of debentures. Such expenditure shall be considered as |
| A. | Revenue expenditure |
| B. | Deferred revenue expenditure |
| C. | Capital expenditure |
| D. | Illegal expenditure |
| Answer» C. Capital expenditure | |
| 20. |
In accordance with the provisions of Section 17(1) of Income Tax Act, 1961, the term salary includes _______________ |
| A. | Any annuity or pension |
| B. | Any gratuity |
| C. | Any fees, commission, perquisite or profits in lieu of or in addition to any salary orwages |
| D. | All of the above |
| Answer» E. | |