MCQOPTIONS
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MCQOPTIONS
This section includes 435 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Accounting and Finance (BAF) knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
An individual, being foreign national, came to India first time during the previous year 2017-18 on 01-01-2018 for 200 days, his residential status for the previous year 2017-18 is. |
| A. | Non-resident |
| B. | Resident but not ordinarily resident in India |
| C. | Resident and ordinarily resident in India |
| D. | Resident in India |
| Answer» B. Resident but not ordinarily resident in India | |
| 52. |
Income of minor child is exempt upto ______. |
| A. | Rs. 1,000 |
| B. | Rs. 1,500 |
| C. | Rs. 2,500 |
| D. | None of the above. |
| Answer» C. Rs. 2,500 | |
| 53. |
When an individual non-resident has total income exceeding Rs. 50 lakhs, the amount ofsurcharge payable on income-tax would be _____________. |
| A. | 17% |
| B. | 15% |
| C. | 12% |
| D. | 10% |
| Answer» E. | |
| 54. |
The accounts of the political party shall be audited by a __________. |
| A. | Cost Accountant |
| B. | Chartered Accountant |
| C. | Company Secretary |
| D. | None of the above. |
| Answer» C. Company Secretary | |
| 55. |
Dividend from a company which is engaged in agricultural activities is: |
| A. | Agriculture income |
| B. | Business income |
| C. | Partly agricultural income |
| D. | None of above |
| Answer» E. | |
| 56. |
Gift received by an individual in certain circumstances is not taxable, one of them is: |
| A. | Any gift received from family friend |
| B. | Any gift received on the occasion of any marriage in the family |
| C. | Any gift received on the occasion of the marriage of the individual-assessee |
| D. | All of the above |
| Answer» D. All of the above | |
| 57. |
Deduction u/s 35AD is available in respect of expenditure on specified business, one of them is: |
| A. | Setting up and operating a cold chain facility |
| B. | Setting up and operating a power plant |
| C. | Setting up and operating an industrial unit |
| D. | All of the above |
| Answer» B. Setting up and operating a power plant | |
| 58. |
Stake money on owning and maintaining race horses is Rs. 70,000 and expensesincurred is Rs. 20,000. Its taxable income is: |
| A. | Rs. 70,000 |
| B. | Rs. 50,000 |
| C. | Nil |
| D. | None of above |
| Answer» C. Nil | |
| 59. |
Employer’s contribution to unrecognized provident fund |
| A. | Is exempt from tax |
| B. | 10% of Salary of employee is taxable |
| C. | Is exempted subject to maximum of 2/5 of salary of the employee |
| D. | Is fully taxable |
| Answer» B. 10% of Salary of employee is taxable | |
| 60. |
U/s 54, capital gain will be allowed as exemption if the house property under transfer isheld for |
| A. | Less than 12 months preceding the date of transfer |
| B. | More than 12 months preceding the date of transfer |
| C. | Less than 36 months preceding the date of transfer |
| D. | More than 24 months preceding the date of transfer |
| Answer» E. | |
| 61. |
Net Annual Value of a self-occupied property treated as such is: |
| A. | Fair Rent |
| B. | Nil |
| C. | Reasonable Expected Rent as reduced by municipal tax paid during the previous year. |
| D. | None of the Above |
| Answer» C. Reasonable Expected Rent as reduced by municipal tax paid during the previous year. | |
| 62. |
Which of the following can be corrected while processing the return of income undersection 143(1)? |
| A. | Any arithmetical error in the return |
| B. | Any mistake in the return of income |
| C. | Any error of principle in the return of income |
| D. | Any claim by the taxpayer which is against law |
| Answer» B. Any mistake in the return of income | |
| 63. |
Where assessment has not been completed, belated income tax return for the A.Y. 2018-19 can be filed up to: |
| A. | 31.03.2019 |
| B. | 31.02.2019 |
| C. | 31.03.2020 |
| D. | Cannot be filed belatedly. |
| Answer» B. 31.02.2019 | |
| 64. |
Tax payable by a resident individual, if he has long term capital gain of Rs. 2,60,000 buthas no other income is: |
| A. | Rs. 1000 plus cess |
| B. | Rs. 26,000 plus cess |
| C. | Rs. 52,000 plus cess |
| D. | None of above |
| Answer» E. | |
| 65. |
Mr. A has loss from regular business of Rs. 8lakhs and income from speculation businessof Rs. 11 lakhs. His total income chargeable to tax would be |
| A. | Rs. 3,00,000 |
| B. | Rs. 11,00,000 |
| C. | Rs. 7,00,000 |
| D. | Rs. 2,50,000 |
| Answer» B. Rs. 11,00,000 | |
| 66. |
In case of a Hindu Undivided Family, where the return of income cannot be signed by theKarta, the same can be signed by |
| A. | the next senior-most male member. |
| B. | Karta's wife. |
| C. | any male member of the family. |
| D. | any adult member of the family. |
| Answer» E. | |
| 67. |
When a motor car is sold for Rs.12 lakhs by a dealer to a buyer holding PAN, the amountof tax collectible as source shall be _______ . |
| A. | Rs.12,000 (1%) |
| B. | Rs. 24,000 (2%) |
| C. | Rs. 1,20,000(10%) |
| D. | NIL |
| Answer» B. Rs. 24,000 (2%) | |
| 68. |
Rebate u/s 87A is allowed to an Individual who is resident in India and whose total incomedoes not exceed ________. |
| A. | Rs. 2,50,000 |
| B. | Rs. 3,00,000 |
| C. | Rs. 5,00,000 |
| D. | None of the above |
| Answer» E. | |
| 69. |
A religions trust received anonymous donations of Rs. 10 lakhs, the said sum is: |
| A. | Fully exempt |
| B. | Partly exempt |
| C. | Chargeable at MMR |
| D. | Not taxable at MMR |
| Answer» E. | |
| 70. |
A house property located outside India is: |
| A. | Taxable in hands of all assessee |
| B. | Taxable in hands of non residentassessee |
| C. | Taxable in hands of resident and ordinarily resident assessee |
| D. | Exempted from tax in India. |
| Answer» D. Exempted from tax in India. | |
| 71. |
Net salary after deducting tax at source Rs. 10,000 is Rs. 2,50,000 .The amount of taxablesalary is: |
| A. | Rs. 2,40,000 |
| B. | Rs. 2,50,000 |
| C. | Rs. 2,60,000 |
| D. | None of the above |
| Answer» D. None of the above | |
| 72. |
An employer has paid medical insurance premium of Rs. 12,000 in respect of a salariedemployee drawing annual salary of Rs. 6 lakhs. The amount of perquisite charged in the hands of employee is |
| A. | Nil |
| B. | Rs. 6,000 |
| C. | Rs.12,000 |
| D. | None of the above |
| Answer» B. Rs. 6,000 | |
| 73. |
Financial Year 2017-18 shall be considered as |
| A. | Assessment Year for the P.Y. 2016-17 and previous year for the A.Y. 2017-18 |
| B. | Assessment Year for the P.Y. 2016-17 and previous year for the A.Y. 2018-19 |
| C. | Assessment Year for the previous year 2017-18 |
| D. | Previous year for the assessment year 2017-18 |
| Answer» C. Assessment Year for the previous year 2017-18 | |
| 74. |
When the return of income for the assessment year 2017-18 is filed under Section 139(4),the assessee can revise the return on or before- |
| A. | 31-3-2018 |
| B. | 31-12-2018 |
| C. | 31-03-2019 |
| D. | 31-12-2019 |
| Answer» D. 31-12-2019 | |
| 75. |
Personal effect do not cover the following |
| A. | Jewellery |
| B. | Immovable property |
| C. | Drawings |
| D. | All of the above |
| Answer» E. | |
| 76. |
The provision of sec.56(2)(x) is applicable on |
| A. | All assessee |
| B. | Only on corporate assessee |
| C. | On an individual only |
| D. | On an individual and HUF only |
| Answer» B. Only on corporate assessee | |
| 77. |
Agricultural land located in rural area is: |
| A. | Capital asset |
| B. | Not a capital asset |
| C. | Exempted capital asset |
| D. | None of above |
| Answer» C. Exempted capital asset | |
| 78. |
Section 80QQB of the Income Tax Act, 1961, deals with |
| A. | Interest on debentures of a govt. company |
| B. | Royalty Income of authors |
| C. | Royalties from textbooks |
| D. | Profits from export of computer software |
| Answer» C. Royalties from textbooks | |
| 79. |
As per sec.60, income is clubbed if |
| A. | Asset yielding income is transferred as revocable transfer |
| B. | Income is transferred without transferring asset yielding income |
| C. | Asset yielding income is transferred as irrevocable transfer |
| D. | None of the above |
| Answer» C. Asset yielding income is transferred as irrevocable transfer | |
| 80. |
In case of local authority the return of income is verified by |
| A. | Karta |
| B. | Managing director |
| C. | Principal officer |
| D. | Partner |
| Answer» D. Partner | |
| 81. |
ICDS-IV stands for _______. |
| A. | Accounting policies |
| B. | Construction Contract |
| C. | Revenue recognition |
| D. | Valuation of inventories |
| Answer» D. Valuation of inventories | |
| 82. |
A winning from lotteries is Rs. 50,000 and expenses incurred to earn such income is Rs.5,000. Its taxable income is |
| A. | Rs. 50,000 |
| B. | Rs. 45,000 |
| C. | Nil |
| D. | None of above |
| Answer» B. Rs. 45,000 | |
| 83. |
In the case of a domestic company (turnover/gross receipts Rs. 70 crores), the basic rate of income-tax applicable for computing as per normal provisions would be ________, when the turnover of the company has been Rs. 45 crores in the previous year relevant to the assessment year 2017-18. (Note: Ignore surcharge, education cess, etc.) |
| A. | 30% |
| B. | 29% |
| C. | 25% |
| D. | 35% |
| Answer» D. 35% | |
| 84. |
Deduction is not allowed to the assessee while computing income from other sources for |
| A. | Direct Tax |
| B. | Interest payable outside India without TDS |
| C. | Personal expenditure |
| D. | All of the above |
| Answer» E. | |
| 85. |
Expenditure on promotion of family planning is an allowance as deduction u/s. 36(1)(ix) of the Income Tax Act, 1961 in case of |
| A. | Individual |
| B. | Firm |
| C. | HUF |
| D. | Company |
| Answer» E. | |
| 86. |
One out of the following house properties is not exempted, which is: |
| A. | House property of a political party |
| B. | House property let out for the purpose of own business of tenant. |
| C. | House property of a local authority |
| D. | None of the Above |
| Answer» C. House property of a local authority | |
| 87. |
The threshold exemption limit for Equalization levy is? |
| A. | Rs. 5 lakh |
| B. | Rs. 3 lakh |
| C. | Rs. 2 lakh |
| D. | Rs. 1 lakh |
| Answer» E. | |
| 88. |
Deduction u/s 80CCC allowed to an individual for amount paid by him in an annuityplan of LIC is restricted to |
| A. | Rs. 5,000 |
| B. | Rs. 7,500 |
| C. | Rs. 1,50,000 |
| D. | Rs. 12,500 |
| Answer» D. Rs. 12,500 | |
| 89. |
Long term capital loss can be adjusted against |
| A. | Any income excluding winning from lottery |
| B. | Any capital gain |
| C. | Any long term capital gain |
| D. | Any speculative business income |
| Answer» D. Any speculative business income | |
| 90. |
TDS U/s 193 in respect of interest on securities if payee does not furnish PAN is: |
| A. | Rate in force |
| B. | Rate as per Act |
| C. | Nil |
| D. | None of above |
| Answer» E. | |
| 91. |
An Indian Company, where place of effective management is 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 | |
| 92. |
Caution money forfeited by the assessee is: |
| A. | Taxable in the year of forfeiture under the head “Income from Other Sources” |
| B. | Exempt fully |
| C. | Taxable in the year of forfeiture under the head “Capital Gain” |
| D. | Considered as casual income and liable to tax @ 30%. |
| Answer» B. Exempt fully | |
| 93. |
Which of the following is not taxable under head ‘Salaries’? |
| A. | Remuneration paid to the lecturer of a college for setting a question paper by a university. |
| B. | Salary received by a member of the Parliament. |
| C. | Commission received by an employee director of a company. |
| D. | Both (a) and (b) above |
| Answer» E. | |
| 94. |
Short term capital gain not covered u/s 111A is: |
| A. | Exempt |
| B. | Taxable @ 15% |
| C. | Taxable at normal rate applicable to the assessee |
| D. | None of above |
| Answer» D. None of above | |
| 95. |
Which of the following deductions is /are not allowed in case of a deemed to be let-out house? |
| A. | New construction allowance |
| B. | Repairs |
| C. | Vacancy allowance |
| D. | All of the above |
| Answer» E. | |
| 96. |
For the purpose of claiming higher deduction u/s 24(b), while computing income of a self-occupied property, assessee is required to take: |
| A. | Loan on or before 01-04-1999 |
| B. | Loan on or after 01-04-1999 |
| C. | Loan after 01-04-1999 |
| D. | Loan on 01-04-1999 |
| Answer» C. Loan after 01-04-1999 | |
| 97. |
In case of self-occupied house property, following category of person are considered: |
| A. | All assessee |
| B. | All assessee other than company |
| C. | All Assessee other than HUF |
| D. | Individual and HUF |
| Answer» E. | |
| 98. |
Deduction u/s 24(a) is |
| A. | 30% of net annual value of the house property |
| B. | 30% of gross annual value of house property |
| C. | 30% of actual rent received |
| D. | None of the Above |
| Answer» B. 30% of gross annual value of house property | |
| 99. |
For the purpose of levying tax on income other than agricultural income, Union Listcontained entry |
| A. | 82 |
| B. | 92C |
| C. | 92D |
| D. | None of the Above |
| Answer» B. 92C | |
| 100. |
TDS u/s 194 in respect of dividend, if payee furnish PAN is: |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | None of above |
| Answer» B. 20% | |