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.
| 151. |
Following is not a head of income: |
| A. | Income from House Property |
| B. | Salaries |
| C. | Income from Interest on securities |
| D. | None of the Above |
| Answer» D. None of the Above | |
| 152. |
The number of Income computation and Disclose Standards issued so far are: |
| A. | 32 |
| B. | 24 |
| C. | 10 |
| D. | None of above |
| Answer» D. None of above | |
| 153. |
Gift of a capital asset is not considered as transfer, however exception is: |
| A. | Shares acquired under the Employees Stock Option Plan |
| B. | Jewellery |
| C. | Immovable property |
| D. | Nil |
| Answer» B. Jewellery | |
| 154. |
Rate of TDS on dividend u/s 194 |
| A. | 5% |
| B. | 10% |
| C. | 20% |
| D. | None of the above |
| Answer» C. 20% | |
| 155. |
Income of REIF being a business trust by way of renting or leasing of an asset is exempt if: |
| A. | Such asset is a land owned by it |
| B. | Such asset is any Real Estate Asset owned by it |
| C. | Such asset is a land hired by it |
| D. | Such asset is any Real Estate Asset hired by it |
| Answer» C. Such asset is a land hired by it | |
| 156. |
While computing TDS on salary paid to employees, the losses given below to the applicable extent would be considered by the employer: |
| A. | Loss from business |
| B. | Loss from house property |
| C. | Long-term capital loss |
| D. | Short-term capital loss |
| Answer» C. Long-term capital loss | |
| 157. |
When the shares are held in unlisted company, it is treated as long term capital assetswhen the holding period exceeds |
| A. | 36 months |
| B. | 12 months |
| C. | 6 months |
| D. | 24 months |
| Answer» E. | |
| 158. |
Who among the following is a specified employee? |
| A. | A director of a company |
| B. | An employee drawing a salary of Rs. 15,000 p.m. |
| C. | A person who is an owner of equity shares carrying 10% voting power in the employer company. |
| D. | Both (a) and (b) above |
| Answer» E. | |
| 159. |
When the amount is withdrawn from National Pension System Trust, it is chargeable to tax to the extent the withdrawal exceeds ______________ % of the contribution of the assessee. |
| A. | 10 |
| B. | 25 |
| C. | 15 |
| D. | 20 |
| Answer» C. 15 | |
| 160. |
Long term capital gain on sale of equity share through stock exchange |
| A. | is exempt u/s 10(38) |
| B. | is exempt u/s 10(37) |
| C. | is covered u/s 111A, hence liable to tax @ 15% |
| D. | is taxable @ 20% and @ 10% if index benefit is not claimed. |
| Answer» B. is exempt u/s 10(37) | |
| 161. |
A person is deemed to have substantial interest in a company if he is |
| A. | The owner of at least 20% of equity capital of the company |
| B. | The owner of at least 25% of equity capital of the company |
| C. | Entitled to 10% of profits of the concern |
| D. | An employee director |
| Answer» B. The owner of at least 25% of equity capital of the company | |
| 162. |
Which of the following incomes received by an assessee are exempt under section 10 of the Income Tax Act? |
| A. | Agriculture Income |
| B. | Salary of a partner from a firm |
| C. | Salary received by a member of a ship’s crew. |
| D. | All of (a), (b) and (c) above |
| Answer» B. Salary of a partner from a firm | |
| 163. |
The lock-in-period for capital gain bonds issued by National Highway Authority of Indiafor the purpose of deduction under section 54EC is ________. |
| A. | 5 years |
| B. | 3 years |
| C. | 7 years |
| D. | 1 year |
| Answer» B. 3 years | |
| 164. |
Deduction under the section 80E is allowed in respect of |
| A. | Donations to charitable institutions |
| B. | Medical treatment of handicapped person |
| C. | Interest on loan taken for education |
| D. | Profits earned from exports |
| Answer» D. Profits earned from exports | |
| 165. |
When a capital asset was acquired on 01.04.1980 and sold in June, 2017, the cost of acquisition or the fair market value of the asset as on ------, at the option of the assessee is to be adopted for indexation purpose: |
| A. | 01.04.2011 |
| B. | 01.04.2001 |
| C. | 01.04.1991 |
| D. | 01.04.1981 |
| Answer» C. 01.04.1991 | |
| 166. |
As per ICDS-II ― “Valuation on Inventories” there recognises _____ costing formulae. |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 5 |
| Answer» C. 4 | |
| 167. |
While computing taxable interest on delayed compensation, a standard deduction isallowed @ |
| A. | 50% |
| B. | 30% |
| C. | 15% |
| D. | Nil |
| Answer» B. 30% | |
| 168. |
80GGA available for donations made to |
| A. | Charitable Institutions |
| B. | Educational Institutions |
| C. | Research Associations |
| D. | Religion organizations |
| Answer» D. Religion organizations | |
| 169. |
Unabsorbed depreciation can be carried forward for |
| A. | Any number of years |
| B. | 8 years |
| C. | 4 years |
| D. | 7 years |
| Answer» B. 8 years | |
| 170. |
Deduction available under section 24(a) is _____ of NAV. |
| A. | 30% |
| B. | 50% |
| C. | 15% |
| D. | 70% |
| Answer» B. 50% | |
| 171. |
Income from sub-letting is: |
| A. | Taxable under the head ‘Income from House Property’ |
| B. | Taxable under the head ‘Income from Other Sources’ |
| C. | Exempted |
| D. | None of the above |
| Answer» C. Exempted | |
| 172. |
Capital gain on Slump sale is |
| A. | always short-term capital gain |
| B. | always long-term capital gain |
| C. | Depends on period of holding of capital asset being undertaking transferred |
| D. | Not taxable |
| Answer» D. Not taxable | |
| 173. |
While computing income from other sources, deduction is not allowed to the assessee for: |
| A. | Personal expenditure |
| B. | Direct tax |
| C. | Interest payable outside India without TDS |
| D. | All of the above |
| Answer» E. | |
| 174. |
Rate of Interest accruing to a particular employee by virtue of his employer’scontribution to Recognized Provident Fund is 12.5% p. a. In such a case |
| A. | Total Interest accrued is taxable |
| B. | Total Interest accrued is exempt |
| C. | Only 10% Interest is taxable |
| D. | Only 3% of interest is taxable |
| Answer» E. | |
| 175. |
A start-up can claim deduction under Section 80-IAC for _____ consecutive yearsbeginning from the year in which the eligible start-up was incorporated. |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 5 |
| Answer» D. 5 | |
| 176. |
Statutory limit u/s.16(ii) for deduction of entertainment allowance in case of a nonGovernment employee is |
| A. | Rs. 5,000 |
| B. | 12.5% of employees’ salary |
| C. | 20% of employees’ salary |
| D. | NIL |
| Answer» E. | |
| 177. |
Block of asset is required to be increased by an amount which is actual cost of the assetbeing covered u/s 35AD that amount is: |
| A. | Actual expenditure |
| B. | Nil |
| C. | 50% of actual expenditure |
| D. | None of the above. |
| Answer» C. 50% of actual expenditure | |
| 178. |
Seshan, a retired civil servant received monthly pension of Rs. 60,000 during the previous year 2018-19. The amount of pension liable to tax after standard deduction would be Rs. ________. |
| A. | 7,10,000 |
| B. | 7,00,000 |
| C. | 6,80,000 |
| D. | 6,30,000 |
| Answer» D. 6,30,000 | |
| 179. |
When a charitable trust registered under section 12AA paid rent of Rs. 50,000 per month throughout the PY 2018-19 and no tax was deducted at source, the amount of expenditure to be considered for computing the application of income by the trust would be __________ . |
| A. | Rs. 6,00,000 |
| B. | Nil |
| C. | Rs. 3,00,000 |
| D. | Rs. 4,20,000 |
| Answer» E. | |
| 180. |
A senior citizen having total income consisting of pension and let out property incomeaggregating to Rs. 6 lakhs must have paid advance tax during the financial year 2015-16 of |
| A. | NIL |
| B. | 90% of Rs. 28,840 |
| C. | 90% of 44,290 |
| D. | 90% of Rs. 39,140 |
| Answer» B. 90% of Rs. 28,840 | |
| 181. |
While computing advance tax following income shall not be considered: |
| A. | Agricultural income |
| B. | Long term capital gain |
| C. | Speculative profit |
| D. | None of these |
| Answer» E. | |
| 182. |
Any income from an asset transferred to spouse without adequate consideration is clubbed in the hands of the transferor if: |
| A. | Such asset is held by the spouse as on the last day of the previous year |
| B. | Relationship between them exist as on the date of accrual of income |
| C. | Transferee is not a senior citizen |
| D. | None of the above |
| Answer» C. Transferee is not a senior citizen | |
| 183. |
While calculating TDS, surcharge is also considered if the payee is: |
| A. | Non-Resident |
| B. | Foreign company |
| C. | Domestic company |
| D. | Any assessee |
| Answer» C. Domestic company | |
| 184. |
One of the following receipt is taxable under the head ‘Income from Other Sources’: |
| A. | Uncommuted pension received from ex-employer |
| B. | Income from racing establishment |
| C. | Rental income from house property |
| D. | Income on transfer of rural agro land |
| Answer» C. Rental income from house property | |
| 185. |
If total income of a person is Rs. 2,67,888.34, it shall be rounded off to: |
| A. | Rs. 2,67,888/- |
| B. | Rs. 2,67,890/- |
| C. | Rs. 2,67,880/- |
| D. | None of the Above |
| Answer» C. Rs. 2,67,880/- | |
| 186. |
Taxable value of perquisite being sweat equity shares allotted by the employer is: |
| A. | The fair market value of such shares as on the date when such option is exercised by the employee as reduced by the amount paid |
| B. | The fair market value of such shares as on the date when such option is vested to the employee as reduced by the amount paid |
| C. | Fair market value subject to standard deduction of Rs. 50,000 |
| D. | Not taxable in hands of employee. |
| Answer» B. The fair market value of such shares as on the date when such option is vested to the employee as reduced by the amount paid | |
| 187. |
Expenditure incurred by a company for the purpose of promoting family planningamong its employees, being of a capital nature |
| A. | Is not allowed as a deduction |
| B. | Allowed as deduction in 4 equal installments in 4 years |
| C. | 1/5 of expenditure is allowed as deduction in the previous year |
| D. | 4/5 of expenditure is allowed as deduction in 4 equal installments in 4 years after the previous year |
| Answer» D. 4/5 of expenditure is allowed as deduction in 4 equal installments in 4 years after the previous year | |
| 188. |
A partnership firm will become resident in India if |
| A. | Its control and management is totally in India |
| B. | Its control and management is totally or partly in India |
| C. | Its place of effective management is in India |
| D. | Its partners become resident in India |
| Answer» C. Its place of effective management is in India | |
| 189. |
A payment of Rs. 25,000 is made to the road transport-operator on 20-02-2018 in cash,consequently, amount disallowed u/s 40A(3) is |
| A. | Nil |
| B. | Rs. 25,000 |
| C. | Rs. 5,000 |
| D. | None of the above |
| Answer» B. Rs. 25,000 | |
| 190. |
When employer contributes to approved superannuation fund it is chargeable to tax asperquisite when the contribution exceeds- |
| A. | Rs. 1,50,000 |
| B. | Rs. 1,00,000 |
| C. | Rs. 50,000 |
| D. | Rs. 20,000 |
| Answer» B. Rs. 1,00,000 | |
| 191. |
Quantum of deduction u/s 80EE is______. |
| A. | 5,000 |
| B. | 50,000 |
| C. | 75,000 |
| D. | None of the above |
| Answer» C. 75,000 | |
| 192. |
Loss from trading in derivates through a recognised stock exchange can be carriedforward for: |
| A. | 8 years |
| B. | 4 years |
| C. | Unlimited years. |
| D. | None of the above |
| Answer» B. 4 years | |
| 193. |
Deduction u/s 35AD is available in respect of expenditure on specified business provided such business commenced its operation on or after 01-04-2009 subject to an exception that: |
| A. | Business of industrial undertaking may be commenced at any time on or after 01-04- 2007 |
| B. | Business of laying and operating a cross-country natural gas pipeline network may be commenced at any time on or after 01-04-2007 |
| C. | Business of cold chain facility may be commenced at any time on or after 01-04- 2007 |
| D. | All of the above |
| Answer» C. Business of cold chain facility may be commenced at any time on or after 01-04- 2007 | |
| 194. |
Which of the following is taxable under the head ‘salaries’? |
| A. | Salary received by a Member of State Legislature. |
| B. | Commission received by an employee director of a company. |
| C. | Family pension received |
| D. | Both (a) and (b) above |
| Answer» C. Family pension received | |
| 195. |
An individual can claim deduction from his gross total income in respect of expenditurefor the medical treatment of a dependent, being a person with disability upto maximum limit of |
| A. | Rs. 50,000 |
| B. | Rs. 1,00,000 |
| C. | Rs. 75,000 |
| D. | Rs. 1,25,000 |
| Answer» E. | |
| 196. |
When Mr. Balu paid royalty to Dr. Peter of Sweden for use of know-how in India, such paymentis |
| A. | exempt from tax |
| B. | accruing in India |
| C. | accrues in Sweden |
| D. | received in India. |
| Answer» C. accrues in Sweden | |
| 197. |
The basic exemption limit in case of a non-resident firm is: |
| A. | Rs. 2,50,000 |
| B. | Rs. 3,00,000 |
| C. | Rs. 5,00,000 |
| D. | None of these |
| Answer» E. | |
| 198. |
Tax is required to be collected on sale of: |
| A. | Scrap |
| B. | Tendu Leaves |
| C. | Alcoholic Liquor |
| D. | All of the above |
| Answer» E. | |
| 199. |
Preliminary expenses that can be amortized under the Income-tax Act 1961 has to be restricted to ______________ of the cost of the Project. |
| A. | 5% |
| B. | 15% |
| C. | 20% |
| D. | None of the above |
| Answer» B. 15% | |
| 200. |
When assessment has not been completed, revised return can be filed within ______from the end of the relevant previous year. |
| A. | one year |
| B. | 6 months |
| C. | 1 month |
| D. | 2 years |
| Answer» B. 6 months | |