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.
| 201. |
Compensatory field area allowance is exempt upto ______ |
| A. | 1,300 |
| B. | 1,800 |
| C. | 2,500 |
| D. | 2,600 |
| Answer» E. | |
| 202. |
In case of an individual or HUF, to determine whether certain TDS provisions are attracted,what has to be seen is whether the person is subject to tax audit under section 44AB in |
| A. | the immediately preceding financial year. |
| B. | current year. |
| C. | last two continuous financial years. |
| D. | None of the above |
| Answer» B. current year. | |
| 203. |
The time limit for acquisition or construction of self-occupied house property for claimingdeduction of interest is: |
| A. | 3 years |
| B. | 5 years |
| C. | 8 years |
| D. | 10 years |
| Answer» C. 8 years | |
| 204. |
Rate of surcharge applicable to a foreign company having total income of Rs. 8 crore is : |
| A. | Nil |
| B. | 2% |
| C. | 5% |
| D. | 10% |
| Answer» C. 5% | |
| 205. |
Following form number is to be used for filing the return of income by an individualhaving business income? |
| A. | Form No. 1 |
| B. | Form No. 2 |
| C. | Form No. 5 |
| D. | Form No. 3 |
| Answer» E. | |
| 206. |
Tax is deducted at source on winning from lottery, the rate for such deduction in case of resident individual deductee is: |
| A. | 30.9% |
| B. | Maximum marginal rate of tax |
| C. | 30% if such winning exceeds Rs. 10,000 |
| D. | 33.99% |
| Answer» D. 33.99% | |
| 207. |
Mr. Hari resident in India received Rs. 11 lakhs by way of dividend from Indiancompanies. Such dividend is: |
| A. | exempt from tax |
| B. | taxable at regular rates. |
| C. | taxable at maximum marginal rate |
| D. | taxable at 10% |
| Answer» E. | |
| 208. |
Mr. Atul (aged 63), a resident Indian, paid for himself through account payee cheque, health insurance premium of Rs. 2,10,000 for 5 years in one lump sum on 28.03.2019. The eligible amount of deduction under section 80-D for the assessment year 2019-20 would be _______. |
| A. | Rs. 50,000 |
| B. | Rs. 30,000 |
| C. | Rs. Nil |
| D. | Rs. 42,000 |
| Answer» E. | |
| 209. |
Advance tax is required to be paid by all assessee only if estimated advance tax liabilityis |
| A. | Rs. 5,000 or more |
| B. | Rs. 10,000 or more |
| C. | More than zero |
| D. | Rs. 50,000 or more |
| Answer» C. More than zero | |
| 210. |
Deduction u/s. 80E in respect of interest on education loan is allowed for: |
| A. | 10 years or till the interest is paid whichever is earlier. |
| B. | 8 years or till the interest is paid whichever is earlier. |
| C. | 10 years |
| D. | 8 years |
| Answer» C. 10 years | |
| 211. |
Pelf Finstock Ltd. filed its return of Income Tax for A.Y. 2018-19 on 30th March, 2019. The notice for making scrutiny assessment under section 143(3) can be served on the assesseeupto – |
| A. | 31st December 2019 |
| B. | 30th September 2019 |
| C. | 31st March 2019 |
| D. | 30th September 2020 |
| Answer» C. 31st March 2019 | |
| 212. |
New plant and machinery acquired and put to use by an assessee engaged in transmission of power is eligible for additional depreciation at ____ of actual cost. |
| A. | 10% |
| B. | 12.5% |
| C. | 15% |
| D. | 20% |
| Answer» E. | |
| 213. |
Unabsorbed business losses cannot be carried forward for more than |
| A. | 5 A.Y |
| B. | 6 A.Y |
| C. | 8 A.Y |
| D. | 10 A.Y |
| Answer» D. 10 A.Y | |
| 214. |
When the gross receipts from profession exceed Rs. ________ lakhs, it is liable for auditunder section 44AB and the provisions of section 44ADA will not apply. |
| A. | 50 |
| B. | 25 |
| C. | 100 |
| D. | 20 |
| Answer» B. 25 | |
| 215. |
An individual is said to be resident in India if |
| A. | He has a house in India |
| B. | He is in India in the previous year for a period of 182 days or more |
| C. | He is in India for a period of 30 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year |
| D. | His parents are Indian citizen. |
| Answer» C. He is in India for a period of 30 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year | |
| 216. |
Loss from specified business covered u/s 35AD can be adjusted against the income of |
| A. | Any other business income |
| B. | Cannot be adjusted |
| C. | Any income other than salary |
| D. | Income from other specified business |
| Answer» E. | |
| 217. |
An individual purchased a painting on 01-11-2017 for Rs. 5,00,000 though fair marketvalue of the asset is `5,25,000. Income taxable u/s 56(2)(x) is: |
| A. | Rs. 25,000 i.e., difference between market value and actual consideration |
| B. | Nil as this is not gift |
| C. | Nil as difference between market value and actual consideration does not exceed Rs. 50,000 |
| D. | The provision of sec. 56(2)(x) is not applicable for any transaction entered during P.Y. 2017-18. |
| Answer» D. The provision of sec. 56(2)(x) is not applicable for any transaction entered during P.Y. 2017-18. | |
| 218. |
Coverage of best judgment assessment is under which section. |
| A. | 143 |
| B. | 139(1) |
| C. | 147 |
| D. | 144 |
| Answer» E. | |
| 219. |
Rent after deducting municipal taxes is Rs. 2,00,000, the amount of taxable income fromhouse property is: |
| A. | Rs. 2,00,000 |
| B. | Rs. 1,40,000 |
| C. | Rs. 2,60,000 |
| D. | None of above |
| Answer» C. Rs. 2,60,000 | |
| 220. |
Rebate u/s 87A can be claimed by |
| A. | Any resident |
| B. | Resident Individual |
| C. | Any person |
| D. | Any person other than non-resident |
| Answer» C. Any person | |
| 221. |
The basic exemption limit for a resident super senior citizen above the age of 80 is |
| A. | Rs. 2,00,000 |
| B. | Rs. 2,50,000 |
| C. | Rs. 5,00,000 |
| D. | None of the above |
| Answer» D. None of the above | |
| 222. |
Cost of acquisition of self-generated asset is nil, the exception is: |
| A. | Goodwill |
| B. | Route permit |
| C. | Bonus shares acquired before 01-04-2001 |
| D. | Loom hours |
| Answer» D. Loom hours | |
| 223. |
In case of an assessee engaged in the business of manufacturing of tea, his agricultural income is: |
| A. | 60% of total receipt of the business |
| B. | 60% of income of the business |
| C. | Nil |
| D. | Total business income |
| Answer» D. Total business income | |
| 224. |
Manoj,a resident, employed in ABC Ltd., an Indian company, has gross annual salary income of Rs. 20,60,000. The standard deduction available under section 16(1) would be _________ . |
| A. | Nil |
| B. | Rs. 30,000 |
| C. | Rs. 40,000 |
| D. | Rs. 50,000 |
| Answer» D. Rs. 50,000 | |
| 225. |
AOP should consist of: |
| A. | Individuals only |
| B. | Persons other than individuals only |
| C. | Individuals and HUF only |
| D. | None of the above |
| Answer» E. | |
| 226. |
When an employee receives money on closure of national pension system trust it is |
| A. | chargeable to tax |
| B. | exempt from tax |
| C. | 40% is exempt from tax |
| D. | 60% is exempt from tax |
| Answer» D. 60% is exempt from tax | |
| 227. |
Where a partner of a firm transfers any capital asset to the firm by way of capital contribution, for the purpose of computing capital gain in the hands of the partner, the amount of deemed consideration is |
| A. | cost to the partner. |
| B. | fair market value of the asset on the date of transfer. |
| C. | the amount recorded in the books of the firm. |
| D. | value as determined by the Stamp valuation authority. |
| Answer» D. value as determined by the Stamp valuation authority. | |
| 228. |
Preliminary expenses are incurred in every business. What are the expenses that qualify for deduction u/s.35D? |
| A. | Expenses for drafting memorandum and articles of association |
| B. | Payment of duty at the office of Registrar of Companies |
| C. | Expenditure incurred in preparation of project report |
| D. | All of the above |
| Answer» E. | |
| 229. |
The payment under Bhopal Gas Leak Disaster shall be______ |
| A. | Fully taxable |
| B. | Partially taxable |
| C. | Exempt |
| D. | None of the above |
| Answer» D. None of the above | |
| 230. |
Mr. Ramji is employed in ABC Ltd. who maintained a hospital for treatment of employees.During the financial year 2015-16, the value of medical benefit availed by Ramji’s family from the hospital was Rs. 2,10,000. The amount of medical perquisite chargeable to income tax would be |
| A. | Rs. 2,10,000 |
| B. | Rs. 1,05,000 |
| C. | Rs. 21,000 |
| D. | Nil |
| Answer» B. Rs. 1,05,000 | |
| 231. |
Generally, dividend is exempt from tax. Exceptions to this rule is: |
| A. | Dividend distributed by foreign company |
| B. | Dividend covered u/s 2(22)(e) |
| C. | Dividend from co-operative society |
| D. | All of the above |
| Answer» E. | |
| 232. |
Under Section 15 of Income Tax Act, the salary due in previous years and even if itis not received is _______________. |
| A. | Taxable |
| B. | Not taxable |
| C. | Partially taxable |
| D. | None of the above |
| Answer» C. Partially taxable | |
| 233. |
A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of _ |
| A. | Error of omission. |
| B. | Error of commission. |
| C. | Compensating error. |
| D. | Error of principle. |
| Answer» C. Compensating error. | |
| 234. |
This kind of audit is conducted generally between two annual audits. |
| A. | Internal audit. |
| B. | Interim audit. |
| C. | Final audit. |
| D. | Continuous audit. |
| Answer» C. Final audit. | |
| 235. |
The performance audit may be initiated by the organisation or by ____. |
| A. | Government |
| B. | Employees & Management |
| C. | Shareholders |
| D. | External interested parties |
| Answer» E. | |
| 236. |
The Central Government has notified Income computation and disclosure standards for computing income under the head Profits and Gains of Business and Profession - . |
| A. | 2 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» E. | |
| 237. |
The Payment of Gratuity Act came into force in………….. |
| A. | 1973. |
| B. | 1980 |
| C. | 1991 |
| D. | 1972 |
| Answer» E. | |
| 238. |
Deduction under section 80C to 80U cannot exceed: |
| A. | Gross Total Income |
| B. | Total Income |
| C. | Income from business or profession |
| D. | Income from house property |
| Answer» B. Total Income | |
| 239. |
Problems encountered in an EDP Enviroment: |
| A. | Absence of voucher. |
| B. | Computer virus. |
| C. | Coding Problem. |
| D. | All of the above. |
| Answer» E. | |
| 240. |
Compliance with the Standard of Auditing is the responsibility of |
| A. | Management |
| B. | Those charged with governance |
| C. | Auditor |
| D. | Audit committee |
| Answer» D. Audit committee | |
| 241. |
Meaning of Interim Audit: |
| A. | Audit of 12 months |
| B. | Audit for more than 12 months. |
| C. | Audit for less than 12 months. |
| D. | Audit for long period. |
| Answer» D. Audit for long period. | |
| 242. |
Audit under any statute in a country is called ------------------ |
| A. | Final audit |
| B. | Internal audit |
| C. | Statutory audit |
| D. | none |
| Answer» D. none | |
| 243. |
Rental income from the business of leasing out properties would be taxable underthe head_______ |
| A. | Income from house property |
| B. | Income from other sources |
| C. | Income from PGBP |
| D. | Income from Capital gain |
| Answer» D. Income from Capital gain | |
| 244. |
Mr. X made payment to Mr. Y on which Mr. X failed to deduct the TDS. Mr. Y (Resident) fulfilled the following requirements so that Mr. X should not be deemed to be an assesses in default. Which of the following was wrongly complied by Mr.Y because of which Mr. X was treated as assesses in default? |
| A. | Furnished his return u/s 139. |
| B. | Offered the income in return on which TDS should have been done by Mr. X. |
| C. | Paid the Tax Due on the income declared by him in such return of Income. |
| D. | Furnished a Certificate to this effect from C.A. in Form 27BA. |
| Answer» E. | |
| 245. |
Form 3-CB is used for : |
| A. | Truth and fairness of Accounts. |
| B. | Filled in the case of compulsory Audit. |
| C. | Filled by Special Business. |
| D. | Filled by government organizations. |
| Answer» B. Filled in the case of compulsory Audit. | |
| 246. |
The house rent allowance (HRA) under the salary head of Income Tax Act is givenby_____________. |
| A. | Section 10 |
| B. | Section 10(13A) |
| C. | Section11(13B) |
| D. | Section11 |
| Answer» C. Section11(13B) | |
| 247. |
An independent audit is important to readers of financial statements because it |
| A. | Provides a measure of management's stewardship function. |
| B. | Measures and communicates the financial data included in financial statements. |
| C. | Objectively examines and reports on management's financial statements. |
| D. | Reports on the accuracy of information in the financial statements. |
| Answer» D. Reports on the accuracy of information in the financial statements. | |
| 248. |
The entertainment allowance is applicable to_______________. |
| A. | Private sector employees |
| B. | Public sector employees |
| C. | Government employees |
| D. | All of the above |
| Answer» D. All of the above | |
| 249. |
Children Education allowance is exempted for ______ child/ children. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» C. Three | |
| 250. |
---------------- audit is compulsory for joint stock companies |
| A. | Statutory |
| B. | Final |
| C. | Continuous |
| D. | none |
| Answer» B. Final | |