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.
| 101. |
Ms. Jothi (aged 23) got married and left India to join her husband in the United Kingdom on 10.06.2017. She had never left India earlier. Her residential status for the assessment year 2018-19 is: |
| A. | Resident and ordinarily resident |
| B. | Resident but not ordinarily resident |
| C. | Non-resident |
| D. | None of the above |
| Answer» B. Resident but not ordinarily resident | |
| 102. |
Deduction u/s. 80JJA is available if the assessee |
| A. | Is engaged in scientific research |
| B. | Sets up an industrial unit in a backward area |
| C. | Is engaged in agriculture business |
| D. | Is engaged in the business of collecting and processing biodegradable waste. |
| Answer» E. | |
| 103. |
TDS on income of FII from securities |
| A. | 5% |
| B. | 10% |
| C. | 20% |
| D. | 30% |
| Answer» C. 20% | |
| 104. |
Deduction under Section 32AD is allowed to: |
| A. | Corporate assessee in notified area. |
| B. | Non-corporate assessee in notified area. |
| C. | Corporate and non-corporate assessee in notified area. |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 105. |
Maximum Marginal Rate for the A.Y. 2018-19 is _______________________ . |
| A. | 34.5% |
| B. | 33.99% |
| C. | 35.535% |
| D. | None of the above |
| Answer» D. None of the above | |
| 106. |
Income of minor is clubbed however the clubbing provision is not applicable if |
| A. | Minor is a married daughter |
| B. | Minor is handicapped as specified u/s 80U |
| C. | Parents are separated |
| D. | None of the above |
| Answer» C. Parents are separated | |
| 107. |
Which of the following is an agriculture income? |
| A. | Dividend paid by a company out of its agriculture income. |
| B. | Share of Profit of a Partner from a firm engaged in an agriculture operation |
| C. | Income from supply of water by aassessee from a tank in its agriculture la |
| Answer» C. Income from supply of water by aassessee from a tank in its agriculture la | |
| 108. |
When the assessee has loss from house property, the maximum amount of such loss eligible for set off against other permissible incomes would be |
| A. | Rs.30,000 |
| B. | Rs.1,50,000 |
| C. | Rs.2,00,000 |
| D. | No Limit |
| Answer» D. No Limit | |
| 109. |
Following income of a resident and ordinarily resident is taxable in India, that is |
| A. | Bank interest from State Bank of India, Delhi |
| B. | Bank interest from Bank of America, New York Branch |
| C. | Rental income from house property located in London |
| D. | All of the above |
| Answer» E. | |
| 110. |
When the total income of an individual exceeds Rs.50 lakhs, the surcharge is payable @ |
| A. | 5% |
| B. | 7% |
| C. | 10% |
| D. | 12% |
| Answer» D. 12% | |
| 111. |
ICDS VIII deals with ____________________ . |
| A. | Government Grants |
| B. | Securities |
| C. | Revenue recognition |
| D. | Construction Contract |
| Answer» C. Revenue recognition | |
| 112. |
If a domestic servant is engaged by the employer and salary is paid by him, the perquisite is |
| A. | Taxable in the hands of all employees |
| B. | Not taxable in the hands of both specified and non-specified employers |
| C. | Taxable in the hands of specified employees only |
| D. | Taxable to the extent of Rs. 120 per person in the hands of all employees. |
| Answer» D. Taxable to the extent of Rs. 120 per person in the hands of all employees. | |
| 113. |
The TDS rate for payments made to a non-resident sportsman is ________ %. |
| A. | 20 |
| B. | 20.8 |
| C. | 30 |
| D. | Nil |
| Answer» C. 30 | |
| 114. |
Dividend received by a shareholder of an Indian Company engaged in growing andmanufacturing of tea shall be treated as: |
| A. | Agricultural income upto 60% |
| B. | Agricultural income upto 100% |
| C. | Non-agricultural income upto 60% |
| D. | Non-agricultural income upto 100% |
| Answer» E. | |
| 115. |
Threshold limit for person having income from business u/s 44AD is_______. |
| A. | 50 Lakh |
| B. | 80 Lakh |
| C. | 1 crore |
| D. | 2crore |
| Answer» E. | |
| 116. |
For the purpose of sec.64, an individual have substantial interest in a company if he holds 20% of voting right alongwith his relative. Here, relative do not include: |
| A. | Spouse |
| B. | Father |
| C. | Father-in-law |
| D. | None of the above |
| Answer» D. None of the above | |
| 117. |
When a person having agricultural lands sells the seeds taken from such lands in anursery, which is part of the said lands, the income from such sale is treated as |
| A. | Business income |
| B. | Agricultural income |
| C. | Income from other sources |
| D. | None of the above |
| Answer» C. Income from other sources | |
| 118. |
When Mr. Avinash earned long-term capital gain of Rs. 1,80,000 on sale of listed shares, his total income being Rs. 10 lakhs, the amount of income-tax (including cess) on the said long-term capital gain would be _________ . |
| A. | Nil |
| B. | Rs. 18,720 |
| C. | Rs. 8,320 |
| D. | Rs. 10,400 |
| Answer» D. Rs. 10,400 | |
| 119. |
Mr Pankaj, partner of PKJ, is assessable as |
| A. | Firm |
| B. | Individual |
| C. | HUF |
| D. | None of the above |
| Answer» C. HUF | |
| 120. |
While computing capital gain on sale of immovable property, full value of consideration shall be: |
| A. | Actual consideration |
| B. | Actual consideration less expenses on transfer |
| C. | Actual consideration or stamp duty value of the property transferred, whichever is higher |
| D. | Stamp Value of the property transferred. |
| Answer» D. Stamp Value of the property transferred. | |
| 121. |
TDS is not required to be deducted u/s 194A if the amount of interest on loan does notexceed: |
| A. | Rs. 5,000 |
| B. | Rs. 2,500 |
| C. | Rs. 7,500 |
| D. | Rs. 20,000 |
| Answer» B. Rs. 2,500 | |
| 122. |
Loss from house property can be carried forward and set-off in subsequent eight assessment years: |
| A. | If return of loss is filed within due date |
| B. | Even if return of loss is filed after due date |
| C. | Even if return of loss is not filed |
| D. | None of above |
| Answer» D. None of above | |
| 123. |
Long term capital gain arising from transfer of unlisted securities in the hands of nonresident / foreign company is chargeable to tax at |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | 40% |
| Answer» C. 30% | |
| 124. |
Mr. Raj (age 62) is Karta of HUF which is engaged in textile trade. The total income of theHUF is Rs. 3,40,000. The tax liability of the HUF would be ______ |
| A. | Rs. 9,270 |
| B. | Rs. 4,120 |
| C. | Nil |
| D. | Rs. 1,05,060 |
| Answer» B. Rs. 4,120 | |
| 125. |
The maximum marginal rate of tax applicable for individual taxpayer having totalincome of Rs. 1.5 crore (including surcharge and health & education cess) is ________. |
| A. | 34.32% |
| B. | 35.88% |
| C. | 34.944% |
| D. | 29.12% |
| Answer» C. 34.944% | |
| 126. |
The provisions relating to interest on delay in payment of refund are given in section |
| A. | 234A |
| B. | 234B |
| C. | 244A |
| D. | 244B |
| Answer» D. 244B | |
| 127. |
Maximum amount which is not chargeable to tax in case of a non-resident very seniorcitizen is |
| A. | Rs. 2,50,000 |
| B. | Rs. 3,00,000 |
| C. | Rs. 5,00,000 |
| D. | None of above |
| Answer» B. Rs. 3,00,000 | |
| 128. |
Income from farm house outside India is: |
| A. | Agricultural income |
| B. | Agricultural income, if certain conditions are satisfied |
| C. | Non-agricultural income |
| D. | Partly agricultural and partly non-agricultural income |
| Answer» D. Partly agricultural and partly non-agricultural income | |
| 129. |
An individual estimates that he is required to pay Rs. 1,00,000 as advance tax. By 15thof December, how much amount must be paid by the individual? |
| A. | Rs. 30,000 |
| B. | Rs. 75,000 |
| C. | Rs. 1,00,000 |
| D. | Nil |
| Answer» C. Rs. 1,00,000 | |
| 130. |
Amortization of preliminary expenses has been restricted to ___ of the cost of project. |
| A. | 2% |
| B. | 3% |
| C. | 5% |
| D. | 8% |
| Answer» D. 8% | |
| 131. |
Unrealised rent of a property shall be excluded from: |
| A. | Gross Annual Value |
| B. | Net Annual Value |
| C. | Income from property |
| D. | All the three |
| Answer» B. Net Annual Value | |
| 132. |
Ramesh Tea Ltd., acquired a motor car for Rs. 6,20,000 on 30.08.2018. The company is engaged in manufacture of tea in India. The amount of depreciation allowable on such motor car would be __________. |
| A. | Rs. 93,000 |
| B. | Rs. 37,200 |
| C. | Rs. 46,500 |
| D. | Nil |
| Answer» B. Rs. 37,200 | |
| 133. |
Expenditure in respect of winnings from card games is: |
| A. | Deductible |
| B. | Not deductible |
| C. | Deductible if conditions are satisfied |
| D. | None of above |
| Answer» C. Deductible if conditions are satisfied | |
| 134. |
Amount of deduction in respect of donation to approved scientific research institution u/s80GGA is: |
| A. | 100% of such donation |
| B. | 200% of such donation |
| C. | 175% of such donation |
| D. | None of above |
| Answer» B. 200% of such donation | |
| 135. |
Tax is required to be deducted at ……… from payment made to a road transport operator who declares that he does not own more than 10 goods carriage. |
| A. | Nil |
| B. | Nil if he furnished the PAN |
| C. | 1% |
| D. | 2% |
| Answer» C. 1% | |
| 136. |
For the purpose of computation of capital gain, securities transaction tax is: |
| A. | Allowed as deduction |
| B. | Form part of cost |
| C. | Neither allowed as deduction nor form part of cost |
| D. | None of the above |
| Answer» D. None of the above | |
| 137. |
Tax to be collected at source in case of commission on sale of lottery tickets. |
| A. | 1% |
| B. | 2% |
| C. | 5% |
| D. | 10% |
| Answer» D. 10% | |
| 138. |
Free meal worth 120 per meal for 200 days provided by the employer during workinghours in a remote area is: |
| A. | Exempt upto 50 per meal |
| B. | Taxable upto 50 per meal |
| C. | Fully exempt |
| D. | Fully taxable |
| Answer» D. Fully taxable | |
| 139. |
When copyright is acquired for Rs. 50 lakhs on 10-11-2016 and used from 01-12-2016,the amount of depreciation under Section 32 would be ____ |
| A. | Nil |
| B. | Rs. 12,50,000 |
| C. | Rs. 6,25,000 |
| D. | Rs. 15,00,000 |
| Answer» D. Rs. 15,00,000 | |
| 140. |
Tax to be collected at source in case of motor vehicle value exceeding ________. |
| A. | Rs. 2,50,000 |
| B. | Rs. 5,00,000 |
| C. | Rs. 7,50,000 |
| D. | Rs. 10,00,000 |
| Answer» E. | |
| 141. |
Cash gifts received by HUF from his members to the extent of Rs. 75,000 will be treatedas income of: |
| A. | The HUF |
| B. | The members |
| C. | None, as it is exempt |
| D. | Both the HUF and the members |
| Answer» C. None, as it is exempt | |
| 142. |
Transport allowance in case of a disabled employee is exempt upto: |
| A. | Rs. 800 p.m. |
| B. | Rs. 1,600 p.m. |
| C. | Rs. 3,200 p.m. |
| D. | No limit |
| Answer» D. No limit | |
| 143. |
Expenditure incurred by a businessman for ready to use software is entitled to benefit of |
| A. | 15% as depreciation |
| B. | 30% as depreciation |
| C. | 60% as depreciation |
| D. | 100% as revenue expenditure |
| Answer» E. | |
| 144. |
Section 80 RRB the Income-tax Act, 1961 deals with deduction from gross total income in respect of income by way of |
| A. | Interest on debentures of a government company |
| B. | Royalty income on authors |
| C. | Royalty on patents |
| D. | Royalty from text-books |
| Answer» D. Royalty from text-books | |
| 145. |
A Hindu Undivided family is said to be resident in India if |
| A. | The family has a house in India where some of its members reside |
| B. | The member of such HUF is in India during the previous year |
| C. | Control and management of its affairs wholly or partly situated in India |
| D. | The Karta has been resident in India in atleast 9 out of 10 previous years preceding the relevant previous year |
| Answer» D. The Karta has been resident in India in atleast 9 out of 10 previous years preceding the relevant previous year | |
| 146. |
Padmaja Power Co. (P) Ltd. is engaged in generation and distribution of electrical power. It avails deduction under section 80-IA. The gross receipts of the company is Rs. 89 lakhs. The last date for filing the return of income in order to be eligible to avail deduction under section 80-IA is ________________ . (Note: Assume there is no extension of time for filling the return of income) |
| A. | 30.09.2019 |
| B. | 31.07.2019 |
| C. | 30.11.2019 |
| D. | 31.03.2020 |
| Answer» B. 31.07.2019 | |
| 147. |
Casual income received by the assessee |
| A. | Exempt upto 50,000 |
| B. | Fully exempt |
| C. | Fully taxable |
| D. | None of the above |
| Answer» D. None of the above | |
| 148. |
Which of the following is not a case of deemed ownership of house property? |
| A. | Transfer to spouse for inadequate consideration |
| B. | Transfer to minor child for inadequate consideration |
| C. | Co-owner of a Property |
| D. | None of the above |
| Answer» D. None of the above | |
| 149. |
Where assessment has not been completed, belated income tax return for assessment year 2018-19 can be filed upto |
| A. | 31.03.2019 |
| B. | 31.02.2019 |
| C. | 31.03.2020 |
| D. | 31.12.2019 |
| Answer» B. 31.02.2019 | |
| 150. |
Tax payable by a non-resident individual, if he has long term capital gain of Rs. 2,60,000but has 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» D. None of above | |