Taxation(IV sem SCDL PAPERS)

Multiple Choice Multiple Answer
Question What are the factors to be considered in cluster analysis?
Correct Answer Limited number of clusters due to limitation of market potential , Clusters are not
water tight compartment , Evaluating the quality of cluster is difficult
Your Answer Limited number of clusters due to limitation of market potential , Clusters are not
water tight compartment , Evaluating the quality of cluster is difficult
Multiple Choice Single Answer
Question Clarity of questions and instructions for filling the form is essential in :-
Correct Answer Mail survey
Your Answer Data analysis
Multiple Choice Single Answer
Question The technique through which objects/ cases are classified into relative homogeneous
groups or clusters is known as :-
Correct Answer Cluster analysis
Your Answer Cluster analysis
Multiple Choice Single Answer
Question Mean or average value is used to estimate when data have been collected using :-
Correct Answer Interval or ratio scale
Your Answer Interval or ratio scale
Select The Blank
Question In ________ method the research analyst is not concerned with cause and research
relationship.
Correct Answer Diagnostic
Your Answer Diagnostic
Multiple Choice Multiple Answer
Question Which are the New Delhi based Research Institutions?
Correct Answer NRDC , CSIR , Cement Research Institute of India
Your Answer NRDC , CSIR , Cement Research Institute of India
Multiple Choice Single Answer
Question Market Research is done to
Correct Answer Explore the Opportunities
Your Answer Explore the Opportunities
True/False
Question "Consumer Panel" is a specialized market research technique.
Correct Answer False
Your Answer False
Match The Following
Question Correct Answer Your Answer
"What might this be ?" Inkblot test Inkblot test
Aided Recall Depth Research Depth Research
Doesn’t intend to tell Projective techniques Projective techniques
Ease of construction Likert scale Likert scale
True/False
Question In regression analysis, dependent variables can be expressed as a linear function of
impendent variables.
Correct Answer True
Your Answer True
True/False
Question When company prepares a long range plan it is unpublished internal source of
information.
Correct Answer True
Your Answer True
Select The Blank
Question Association technique is a type of ________.
Correct Answer Projective technique
Your Answer Projective technique
Multiple Choice Single Answer
Question The impact of promotional slogans on the consumers can be studied with
Correct Answer Association technique
Your Answer Association technique
True/False
Question Brand image building is not important in case of industrial product for quality.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Which publications are used for research on Chemical Industry?
Correct Answer Indian Chemical Directory , Chemical Industry News , Chemical & Petro
Chemicals Journal
Your Answer Indian Chemical Directory , Chemical Industry News , Chemical & Petro Chemicals
Journal
Multiple Choice Single Answer
Question Spreading the sample through the entire population following a regular pattern is known
as :-
Correct Answer Systematic sampling
Your Answer Systematic sampling
Select The Blank
Question In absence of proper________ the market research becomes a data collection exercise.
Correct Answer Problem Definition
Your Answer Analysis
Multiple Choice Multiple Answer
Question Which institutions should be contacted for research on Paint Chemicals?
Correct Answer National Chemical Laboratory, Pune , Industrial Research & Development Center
, Building Research Institute
Your Answer National Chemical Laboratory, Pune , Industrial Research & Development Center ,
Building Research Institute
Multiple Choice Multiple Answer
Question The objectives of marketing research are
Correct Answer To understand the consumer needs and wants , To explore the new markets , To
analyze the competitors
Your Answer To understand the consumer needs and wants , To explore the new markets , To
analyze the competitors
Multiple Choice Single Answer
Question Ultra violet ink is used to disguise customer coding. This activity is :-
Correct Answer A disapproved method
Your Answer A disapproved method
Select The Blank
Question Through cluster analysis objects/cases are classified into relatively________ group
called cluster.
Correct Answer Homogeneous
Your Answer Homogeneous
Match The Following
Question Correct Answer Your Answer
Dangler POP POP
POP Communication medium Communication medium
Opinion Polls Daily basis Daily basis
Corporate Image Study Advertising research Advertising research
Multiple Choice Multiple Answer
Question Ethical issues to be observed while writing a report are :-
Correct Answer No deliberate misinterpretations , Marketing problems should be designed to suit
hidden agenda , Complete confidentiality and secrecy of data
Your Answer No deliberate misinterpretations , Marketing problems should be designed to suit
hidden agenda , Complete confidentiality and secrecy of data
Select The Blank
Question Multiple Choice is a ________type of question.
Correct Answer Close ended
Your Answer Close ended
Multiple Choice Single Answer
Question The conjoint analysis helps to enable company's to :-
Correct Answer Conduct brand swot analysis
Your Answer Conduct brand swot analysis
Multiple Choice Single Answer
Question In the Internet era, qualitative research is possible through :-
Correct Answer Chat sessions
Your Answer Chat sessions
Select The Blank
Question ________is an important communication medium that helps recall advertising.
Correct Answer Point of Purchase(POP)items
Your Answer Point of Purchase(POP)items
True/False
Question In the Funnel approach, specific questions come first and general questions later.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question In resources for marketing research skilled staff plays an important role in :-
Correct Answer Maintaining data , Dealing with different situation and problems , Timely
completion of research
Your Answer Maintaining data , Dealing with different situation and problems , Timely completion
of research
Select The Blank
Question Convenience Sampling is used for ________.
Correct Answer Exploratory research
Your Answer Exploratory research
True/False
Question The person conducting pharma research should be well qualified so that not to waste
Doctors time.
Correct Answer True
Your Answer True
True/False
Question The limitations with regression forecasting is that independent variables must be
forecasted before forecasting the dependent variables.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Main features of Technical Report are :-
Correct Answer Minute details of planning data collection , Analysis , Interpretation
Your Answer Minute details of planning data collection , Analysis , Interpretation
Multiple Choice Single Answer
Question How people allocate their time and money to certain products and factors is depicted by
Correct Answer Psychographic Variable
Your Answer Psychographic Variable
True/False
Question Question phrasing and structure are eliminated in Semantic differential scale.
Correct Answer True
Your Answer True
True/False
Question The popularity of Likert scale is due to its ease of construction and administration.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Which are the Export Promotion Councils?
Correct Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem
& Jewellery Export Promotion Council
Your Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem &
Jewellery Export Promotion Council
True/False
Question The written contract of a research should cover the penalty clause covering deficits
such as delays, inadequate data.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The producers in the sellers' market are also forced to take decisions based on the
market information because
Correct Answer The resources are scarce
Your Answer The resources are scarce
Multiple Choice Single Answer
Question Scale Intervals can be used for
Correct Answer Age
Your Answer Age
Select The Blank
Question Bibliography contains ________.
Correct Answer Information of references and secondary data
Your Answer Information of references and secondary data
Multiple Choice Multiple Answer
Question Online survey methods include :-
Correct Answer Email survey , HTML survey , Downloadable interactive surveys
Your Answer Email survey , HTML survey , Downloadable interactive surveys
Multiple Choice Single Answer
Question Data of market research cannot be maintained :-
Correct Answer Without experienced and educated research staff
Your Answer Without experienced and educated research staff
Multiple Choice Multiple Answer
Question Pretesting of Questionnaire includes testing of :-
Correct Answer Question content , Time taken to answer questions , Categorisation
Your Answer Question content , Time taken to answer questions , Categorisation
Multiple Choice Multiple Answer
Question Identification of Target Population is facilitated by :-
Correct Answer Well defined research objectives , Alternative, reasonable/target population
definitions , Specifications for exclusion in target population
Your Answer Well defined research objectives , Alternative, reasonable/target population
definitions , Specifications for exclusion in target population
Select The Blank
Question ________are used for National Panel Studies.
Correct Answer Quota controls
Your Answer Quota controls
Select The Blank
Question Finding out the number of vehicles at a given junction is a ________ method.
Correct Answer Direct Observation
Your Answer Direct Observation

Select The Blank
Question The basic advantage of having an agent in the export market is ________.
Correct Answer He is knowledgeable of the marketing condition
Your Answer He is knowledgeable of the marketing condition
Multiple Choice Multiple Answer
Question How does the customer know about the product & is influenced to buy it?
Correct Answer Publicity , Advertising , Sales promotion
Your Answer Publicity , Advertising , Sales promotion
Multiple Choice Single Answer
Question Which of the following is not included in foreign environment?
Correct Answer Local dimension
Your Answer Local dimension
Multiple Choice Single Answer
Question Why should a market researcher check a country's import tariffs when he is
investigating it as an export market?
Correct Answer It can affect the competitiveness of product against products made within the
market
Your Answer It can affect the competitiveness of product against products made within the
market
Multiple Choice Multiple Answer
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". What are the
distribution channels used for imports of silk products into USA market?
Correct Answer Merchant intermediaries , Departmental stores
Your Answer Merchant intermediaries , Departmental stores
True/False
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental entered the
US market in 1970 with a moderate export of Rs.20 million.
Correct Answer False
Your Answer False
Match The Following
Question Correct Answer Your Answer
Indirect exporting Home-based merchant Copyright
Business dimensions Channel network Channel network
Legal dimensions Copyright Use of patent
Licensing arrangement Use of patent Home-based merchant
Multiple Choice Single Answer
Question What is important to take pricing decision?
Correct Answer Competition
Your Answer Competition
Select The Blank
Question In ________, the firm faces only one set of customers.
Correct Answer Domestic marketing
Your Answer Domestic marketing
Multiple Choice Multiple Answer
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental was an active
member of some councils, which are those?
Correct Answer Apparel Export Promotion Council , Woolen Export Promotion Council
Your Answer Apparel Export Promotion Council , Woolen Export Promotion Council
Multiple Choice Single Answer
Question This question is based on the case study 'AB Enterprises'. What is the problem in
adapting AB Enterprises product in the market?
Correct Answer Novelty is lost due to ethnic character in AB Enterprises
Your Answer Novelty is lost due to ethnic character in AB Enterprises
Multiple Choice Multiple Answer
Question What are the important infrastructure factors in evaluating production site?
Correct Answer Industrial site , Transportation & communication
Your Answer Industrial site , Transportation & communication
Multiple Choice Multiple Answer
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Which are the two
years the imports of silk fabrics from Japan by USA was almost same?
Correct Answer 1982 , 1983
Your Answer 1982 , 1983
Select The Blank
Question ________dimensions include customs and practices
Correct Answer Business
Your Answer Business
Multiple Choice Multiple Answer
Question What is the nature of direct export market?
Correct Answer Concentrated , Large potential sale
Your Answer Concentrated , Large potential sale
Multiple Choice Single Answer
Question What does product-mix decision include?
Correct Answer Packaging
Your Answer Packaging
Multiple Choice Multiple Answer
Question What are the internal sources of information?
Correct Answer Sales record , Correspondence from salesmen
Your Answer Sales record , Correspondence from salesmen
True/False
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Mr.Patnaik felt that it
was high time that he appraises his agents' performance relating to the vast & expanding US
market.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". What were the options
Mr.Patnaik had to operate in the US market?
Correct Answer Opening a branch office , A subsidiary company
Your Answer Opening a branch office , A subsidiary company
Select The Blank
Question In indirect export channel, the market is ________.
Correct Answer Dispersed
Your Answer Dispersed
True/False
Question Strategies suggested in the Medium Term Export Plan include product-market
penetration strategy for existing products, product-market, diversification for new products & new
markets.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Why is packaging so important for product planning?
Correct Answer As it enhances protection , As it gives shelf life for a product
Your Answer As it enhances protection , As it gives shelf life for a product
True/False
Question If foreign retailers are used, the products in question are industrial products rather than
consumer products.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question How is the nature of international strategy?
Correct Answer Depends on company's objectives , Varies from country to country
Your Answer Depends on company's objectives , Varies from country to country
Select The Blank
Question "make site booking" is a point of checklist of ________
Correct Answer Before the fair
Your Answer Before the fair
Multiple Choice Single Answer
Question What marketing technique is used to know international marketing need?
Correct Answer Marketing information & research
Your Answer Marketing information & research
Multiple Choice Multiple Answer
Question What are the benefits of participation in trade fair?
Correct Answer To get to know about competition , To know about the extent of product adaption
Your Answer To get to know about competition , To know about the extent of product adaption
Select The Blank
Question Experience survey, which is also called as ________.
Correct Answer Key informant survey
Your Answer Key informant survey
Multiple Choice Single Answer
Question What is a foreign agent?
Correct Answer Independent middleman
Your Answer Independent middleman
Multiple Choice Single Answer
Question What does political environment include?
Correct Answer Legal dimension
Your Answer Legal dimension
Match The Following
Question Correct Answer Your Answer
External factor Competitive profile Competitive profile
Ethnocentric orientation Overseas operation conducted from home country Overseas operation
conducted from home country
Polycentric orientation Each market is unique Each market is unique
Target market Marketing strategy Marketing strategy
True/False
Question In marginal cost pricing for export, competition in foreign markets requires quotation of a
lower price
Correct Answer True
Your Answer True
True/False
Question Policies or regulations regarding quality control & inspection vary considerably between
nations.
Correct Answer True
Your Answer True
Select The Blank
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental Silk Private
Limited, is a ________ unit, was one of the leading Indian manufacturers & exporters of silk
fabrics & made-ups
Correct Answer 100% export oriented
Your Answer 100% export oriented
Select The Blank
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". The bulk of the trade
was handled by ________
Correct Answer Central buying organizations
Your Answer Foreign agents
True/False
Question If business is variable, the company will choose the purchasing or subcontracting
alternatives.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question What is the meaning of offshore purchasing?
Correct Answer Relationship between independent buyer & seller for exchange of good for
money
Your Answer Relationship between independent buyer & seller for exchange of good for money
Select The Blank
Question Many companies modify their products/promotion strategies to suit ________ of the
population of the different countries.
Correct Answer Tastes & preferences
Your Answer Tastes & preferences
True/False
Question Companies with smaller needs, an independent supplier will be less active.
Correct Answer False
Your Answer False
True/False
Question Catalogues contain a list of all competitors with product details.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What is correct according to geocentric orientation?
Correct Answer Companies view the entire world as a single market , Uniform inventory
management & training
Your Answer Companies view the entire world as a single market , Uniform inventory
management & training
True/False
Question The area of change relates to product adaption requires upgradation of technology and
huge investment in brands.
Correct Answer True
Your Answer True
Select The Blank
Question This question is based on the case study "Chow Flowers Co. Ltd.". ________ was
Thailand's second largest export market for artificial flowers, mostly polyester or hand-wrapped.
Correct Answer Canada
Your Answer Canada
Multiple Choice Single Answer
Question What are the similarities between domestic & international marketing?
Correct Answer Satisfying consumers need
Your Answer Satisfying consumers need
Multiple Choice Single Answer
Question What is the need of marketing research for export-import trade?
Correct Answer To reduce the distance between an exporter & his customers in terms of
marketing
Your Answer To reduce the distance between an exporter & his customers in terms of marketing
Multiple Choice Single Answer
Question What is the avenue of entry into foreign markets?
Correct Answer Contract manufacturing
Your Answer Contract manufacturing
Multiple Choice Single Answer
Question What is the principal functional division of ministry of commerce & industry?
Correct Answer Export Industries Division
Your Answer Export Industries Division

Multiple Choice Multiple Answer
Question The entertainment allowance received by the
Government employees is included in their salaries
and the deduction is allowed to the extent of least of
the following amounts :-
Correct Answer Actual amount of Entertainment Allowance received. ,
Rs. 5,000 , 1/5th of Salary
Your Answer Actual amount of Entertainment Allowance received. ,
Rs. 5,000 , 1/5th of Salary
True/False
Question Income Tax Act, 1961 recognizes Written Down Value
(WDV) method as well as straight line method for the
computation of depreciation u/s 32 this act.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Profits earned by an Industrial Undertaking engaged
in other than infrastructure development is available
under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area, rural
area or place of pilgrimage , Company engaged in
scientific and industrial research
Your Answer Operation of Ship , Hotels situated in hilly area, rural
area or place of pilgrimage
Multiple Choice Single Answer
Question Which of the following expenditure is in the nature of
revenue expenditure?
Correct Answer Expenditure incurred as discount on issue of
debentures
Your Answer Expenditure incurred as discount on issue of
debentures
Select The Blank
Question If sum received is net of TDS then it is ________ to
include in income from other sources.
Correct Answer Grossed up
Your Answer Grossed up
True/False
Question Interest paid on the loan for acquiring a capital asset
will be considered to be a part of cost of acquisition.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing
deductions under Chapter VI-A is Rs. 1,45,000, wants
to make the investments in the following alternative
forms Rs. 80,000 in PPF and Rs. 20,000 in
Infrastructure Bonds. The amount of rebate available
to him u/s 88 is :-
Correct Answer Rs. 18,000
Your Answer Rs. 18,000
Multiple Choice Single Answer
Question Interest on specified securities or premium on
redemption is exempt for :-
Correct Answer Non resident Indian
Your Answer Non resident Indian
True/False
Question As per section 2(11) of the Income Tax Act, Block of
Assets includes both tangible as well as intangible
assets.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Deductions in respect of Certain Incomes received
under Section 80L is available in respect of
Correct Answer Interest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs)
Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Your Answer Interest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs)
Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Multiple Choice Single Answer
Question Tax liability of a person is based on :-
Correct Answer Residential status
Your Answer Residential status
Multiple Choice Multiple Answer
Question For the purpose of income tax, the perquisites can be
classified into :-
Correct Answer Perquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the
hands of specified employee
Your Answer Perquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the
hands of specified employee
Select The Blank
Question For an individual as a citizen of India who leaves India
in the relevant previous year for the purpose of
employment has to be in India for ________ days or
more during previous year.
Correct Answer 182
Your Answer 182
Multiple Choice Single Answer
Question Income earned in previous year is subjected to tax in
:-
Correct Answer Assessment year
Your Answer Assessment year
Multiple Choice Multiple Answer
Question Following professional institutions have their incomes
exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting
Your Answer Town planning , Company secretary , Accounting
Select The Blank
Question ________ of the Tax Audit Report refers to the details
of various payments which are allowed as deduction
only if they are actually paid for.
Correct Answer Section 43B Clause No-21
Your Answer Section 43B Clause No-21
Multiple Choice Multiple Answer
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Short Term Capital Gains. , Long term Capital Gains
Select The Blank
Question To claim sec 10A deduction unit must be established
in ________.
Correct Answer Free Trade Zone
Your Answer Free Trade Zone
Multiple Choice Single Answer
Question Assessment year is the period of 12 months starting
from :-
Correct Answer 1st April to 31st March
Your Answer 1st April to 31st March
Multiple Choice Single Answer
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Your Answer Gross total income
Multiple Choice Single Answer
Question If an employee does not avail of this leave travel
concession or assistance during a block of four
calendar years :-
Correct Answer Only one journey can be carried forward to the next
block.
Your Answer Only one journey can be carried forward to the next
block.
Select The Blank
Question To acquire PAN, a person shall apply in ________ to
the assessing officer.
Correct Answer Form No. 49A
Your Answer Form No. 49A
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54F is for
Capital Gains arising from transfer of :-
Correct Answer Any Long Term Capital Asset
Your Answer House Property
Select The Blank
Question Where an assessee files or submits the returns as per
provisions of section 139 or in response to the notice
under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Your Answer Scrutiny Assessment
Multiple Choice Multiple Answer
Question Income of a professional association is exempt if its
objectives are :-
Correct Answer Supervision , Control , Encouragement
Your Answer Supervision , Control , Encouragement
True/False
Question While computing the profits from Business and
profession, the business or profession must be carried
out during the previous year.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question In respect of leave travel concession If Mr. A has
availed the exemption only once or has not availed
any exemption at all, in the block of four years i.e.
1998-2001 then :-
Correct Answer He can carry over the exemption to the next block of
four years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next
block i.e. 2002.
Your Answer He can carry over the exemption to the next block of
four years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next
block i.e. 2002.
Multiple Choice Multiple Answer
Question The amount accumulated to the credit of the
employee's provident fund account is paid at the time
of :-
Correct Answer Retirement , Resignation
Your Answer Retirement , Resignation
Multiple Choice Multiple Answer
Question From annual value, following deductions are allowed :-
Correct Answer Standard deduction , Interest on borrowed capital ,
Municipal taxes
Your Answer Interest on borrowed capital , Municipal taxes
Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages,
Dearness Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
Multiple Choice Multiple Answer
Question From GTI of a company following deductions under
chapter VI A are allowed
Correct Answer 80 G Donations , 80 HHB profits and gains from
projects outside India , 80 IA profits and gains of
infrastructure companies
Your Answer 80 G Donations , 80 IA profits and gains of
infrastructure companies
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a
former ruler is :-
Correct Answer Exempt
Your Answer Taxable
Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard
Deduction will be Rs.________.
Correct Answer 20000
Your Answer 20000
Multiple Choice Single Answer
Question The amount of accumulated interest on NSCs
purchased in the earlier years is assumed to be
reinvested :-
Correct Answer And qualifies for tax rebate under section 88.
Your Answer And qualifies for tax rebate under section 88.
Select The Blank
Question Deduction u/s ________B is available for 10
consequent assessment years from the year of
commencement of production.
Correct Answer 10
Your Answer 10
True/False
Question Income from subletting is treated as income from
house property.
Correct Answer False
Your Answer False
Select The Blank
Question Section 80U allows the deduction in respect of the
________ .
Correct Answer Permanent physical disability
Your Answer Permanent physical disability
Match The Following
Question Correct Answer Your Answer
Disallowable
Expenditure
Litigation Expenses in
connection with
recovery of a debt
which is not a trading
debt
Litigation Expenses in
connection with
recovery of a debt
which is not a trading
debt
Business Includes trade,
commerce, or
Includes trade,
commerce, or
manufacture or any
adventure or concern
in the nature of trade,
commerce or
manufacture
manufacture or any
adventure or concern in
the nature of trade,
commerce or
manufacture
Profession Includes vocation Includes vocation
Capital Expenditure Expenditure incurred
by a company with the
issue of rights shares
Premium on
redemption of
Debentures
True/False
Question Any recreational facility provided by the employer to a
group of employees (not being restricted to a select
few employees) is not exempt from tax.
Correct Answer False
Your Answer False
True/False
Question In case of deductions for medical treatment under
Section 80DDB the amount of deduction will be
reduced by the amount received under an insurance
policy or the amount reimbursed by the employer.
Correct Answer True
Your Answer True
True/False
Question Any advance tax paid before 31st March is treated as
advance tax paid during the previous year.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Municipal taxes paid is allowed as deduction from :-
Correct Answer Gross annual value
Your Answer Gross annual value
True/False
Question Entertainment Allowance received by the employees
from the private sector is taxable in the hands of the
employee.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Any subscription made
to National Saving
Scheme
By an individual or a
HUF is eligible for
rebate u/s 88
By an individual or a
HUF is eligible for
rebate u/s 88
Mr. A, a 70 years old
Senior Citizen, has the
Gross Total Income of
Rs. 2,50,000 during
the Assessment Year
2005-2006. He
invested Rs. 50,000 in
the tax saving bonds of
ICICI on 10th June
2004. His tax liability
for the A Y 2005-2006.
RS.12,500 RS.12,500
During the
Assessment Year
2005-2006, Mrs. A,
age 58 years, has the
Gross Total Income of
Rs. 1,45,000 including
the dividend from
Indian companies
amounting to Rs.
10,000. She invests
Rs. 50,000 in PPF
during the said
Assessment Year. her
tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made
to a Public Provident
Fund
Is eligible for rebate
u/s 88
Is eligible for rebate u/s
88
Multiple Choice Multiple Answer
Question Following incomes of local authorities are exempt :-
Correct Answer Capital gains , Other income , House property
Your Answer Capital gains , Other income , House property
Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the
assessee should invest the whole or part of the capital
gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the longterm
capital asset
Your Answer Within six months from the date of transfer of the longterm
capital asset
True/False
Question Income from partnership firms is exempt from taxation
for the partners
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question 48 Deduction in respect of Contribution to certain pension funds is related to :-
Correct Answer Section 80CCC
Your Answer Section 80CCC
True/False
Question 49 The rebate u/s 88B is allowed before the rebate u/s 88 is allowed.
Correct Answer True
TAXATION
9
Your Answer False
Select The Blank
Question 50 Expenditure incurred in connection with the local festivals like Diwali etc. are
________ as business expenditure.
Correct Answer Allowed
Your Answer Allowed
Select The Blank
Question 51 Deduction is available for income from foreign sources under Section 80RR if
such remuneration brought into India in convertible foreign exchange within a
period of________ months from the end of the previous year.
Correct Answer 6
Your Answer 6
Multiple Choice Multiple Answer
Question 52 Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Short Term Capital Gains. , Long term Capital Gains
Multiple Choice Single Answer
Question 53 Income from winning from lotteries / crossword puzzles/ horse races is taxed at
flat rate of :-
Correct Answer 0.3
Your Answer 0.35
Select The Blank
Question 54 Section 35D of the Act provides that the preliminary expenses can be ________
over a period of 5 years commencing from the year of commencement of
business.
Correct Answer Amortized and written off to profit and loss account
Your Answer Amortized and written off to profit and loss account
Select The Blank
Question 55 Section 43B of the IT Act provides that the certain payments are allowed as
deduction only if they are ________.
Correct Answer Actually paid
Your Answer Reasonable
Multiple Choice Multiple Answer
Question 56 The rebate u/s 88 is available to an :-
TAXATION
10
Correct Answer Individual , Hindu Undivided Family.
Your Answer Individual , Hindu Undivided Family.
Multiple Choice Single Answer
Question 57 Income from other sources covers agricultural income from land situated :-
Correct Answer Outside India
Your Answer Outside India
Multiple Choice Multiple Answer
Question 58 A return is considered to be defective returns under section 139(9) unless :-
Correct Answer The computation of income under each head, Gross Total Income are properly
filed in , The return is accompanied by the tax audit report under section 44AB ,
The return is accompanied by copies of required financial statements of the
assessee
Your Answer The computation of income under each head, Gross Total Income are properly
filed in , The return is accompanied by the tax audit report under section 44AB ,
The return is accompanied by copies of required financial statements of the
assessee
Multiple Choice Single Answer
Question 59 If an employee does not avail of this leave travel concession or assistance
during a block of four calendar years :-
Correct Answer Only one journey can be carried forward to the next block.
Your Answer Only one journey can be carried forward to the next block.
Select The Blank
Question 60 The person who does not deduct the tax source as required by the Act or after
deducting fails to pay the tax as required by the Act, shall be liable to pay the
simple interest @________ % per month on the amount of such tax from the
date on which the tax was deductible till the date on which such tax is actually
paid.
Correct Answer 1
Your Answer 1.25
Multiple Choice Multiple Answer
Question 61 The assessing officer may allot the Permanent Account Number(PAN) to :-
Correct Answer Person whose Total Income during previous year exceeds the maximum
amount, chargeable to tax , Person carrying on the business or profession
whose turnover exceeds Rs.5 lakhs in any previous year , Any other person by
whom tax is payable
Your Answer Person carrying on the business or profession whose turnover exceeds Rs.5
lakhs in any previous year , Any other person by whom tax is payable , Any
person not applying for permanent account number but, tax is payable by him
TAXATION
11
Multiple Choice Multiple Answer
Question 62 The provisions for payment of gratuity is not allowed under section 40A(7) but,
under the head, profits from business and profession, the amount of gratuity will
be allowed as deduction only when :-
Correct Answer The amount of gratuity has actually become payable to the employees during
the previous year , The provision has been made for the payment of a sum by
way of contribution to an approval gratuity , The other than the above two
situations, any provision made for the payment of gratuity is not allowed as
deduction
Your Answer The amount of gratuity has actually become payable to the employees during
the previous year , The provision has been made for the payment of a sum by
way of contribution to an approval gratuity , The other than the above two
situations, any provision made for the payment of gratuity is not allowed as
deduction
Multiple Choice Multiple Answer
Question 63 For the purpose of taxability of perquisite a specified employee means :-
Correct Answer The person who is director of a company , The employee who has substantial
interest in the company by having 20% or more of the voting power , The
employee whose income under the head salaries (including all the taxable
monetary payments of salary but excluding the value of any non-monetary
benefits or perquisites), after allowing deductions under Section 16, exceeds
Rs. 50,000
Your Answer The person who is director of a company , The employee who has substantial
interest in the company by having 20% or more of the voting power , The
employee whose income under the head salaries (including all the taxable
monetary payments of salary but excluding the value of any non-monetary
benefits or perquisites), after allowing deductions under Section 16, exceeds
Rs. 50,000
True/False
Question 64 Sum received under a will / inheritance is not exempt.
Correct Answer True
Your Answer False
Select The Blank
Question 65 It should be noted that the tax liability of an individual having the total income of
less than Rs ________ is Nil u/s 88D.
Correct Answer 1,00,000
Your Answer 1,00,000
Match The Following
Question 66 Correct Answer Your Answer
All intangible assets like
Patents, Trademarks, Copy
Rights, Licenses etc.
Rate of depreciation is 25% Rate of depreciation is 25%
Temporary Structures Rate of depreciation is 100% Rate of depreciation is 10%
TAXATION
12
Computers Rate of depreciation is 60% Rate of depreciation is 40%
Containers made of glass or
plastic used as refills
Rate of depreciation is 40% Rate of depreciation is 60%
Select The Blank
Question 67 In case of foreign companies rate of tax is ________.
Correct Answer 0.35
Your Answer 0.35
Multiple Choice Single Answer
Question 68 Which of the following expenditure is in the nature of revenue expenditure?
Correct Answer Expenditure incurred as discount on issue of debentures
Your Answer Expenditure incurred as discount on issue of debentures
Multiple Choice Multiple Answer
Question 69 For the purpose of Section 40 A (2) of the IT Act, if assessee is a firm, the term
"Specified Persons" may include :-
Correct Answer Any partner of the firm or his relative , Any person having the substantial interest
in the business or profession of the firm or any director or partner of such
company or firm or any relative of such person. , Any person who carries on
business or profession and in his business or profession the assessee or any
partner of such firm or relative of such partner has substantial interest.
Your Answer Any partner of the firm or his relative , Any person having the substantial interest
in the business or profession of the firm or any director or partner of such
company or firm or any relative of such person. , Any person who carries on
business or profession and in his business or profession the assessee or any
partner of such firm or relative of such partner has substantial interest.
Multiple Choice Single Answer
Question 70 For charging the income in the form of salaries :-
Correct Answer There needs to be an employer-employee relationship between the payer and
the payee.
Your Answer There needs to be an employer-employee relationship between the payer and
the payee.
True/False
Question 71 For claiming the deduction under section 80IA, the industrial undertaking should
be owned by a company registered in India or a consortium of such companies.
Correct Answer True
Your Answer True
Select The Blank
Question 72 Any expenditure incurred by the assessee for any purpose which is ________
or which is prohibited by law shall not be allowed as business expenditure
TAXATION
13
Correct Answer Offence
Your Answer Offence
Multiple Choice Single Answer
Question 73 As a general principle, the Basic Salary or Wages, Dearness Allowance and
Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
True/False
Question 74 Rebates as per the provisions of Section 88 of the Act are not available from the
tax on long-term capital gains.
Correct Answer True
Your Answer True
True/False
Question 75 MAT is applicable if there is a difference of 7.5% between net profit & book
profit.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question 76 For the purpose of Section 40 A (2) of the IT Act, if assessee is an individual,
the term "Specified Persons" may include :-
Correct Answer Any relative of such individual , Any person (individual, company, firm etc.)
having a substantial interest in the business or profession of the individual or
any director or partner of such company or firm or any relative of such person. ,
Any person who carries on a business or profession and in his business or
profession, the assessee himself or his relative has a substantial interest.
Your Answer Any relative of such individual , Any person (individual, company, firm etc.)
having a substantial interest in the business or profession of the individual or
any director or partner of such company or firm or any relative of such person. ,
Any person who carries on a business or profession and in his business or
profession, the assessee himself or his relative has a substantial interest.
Select The Blank
Question 77 Deduction for remuneration from foreign sources for professors, teachers etc
under Section 80R is limited to ________% of such remuneration brought in
India.
Correct Answer 15
Your Answer 10
True/False
Question 78 Any expenditure incurred for earning the income which is included under the
head income from other sources will be allowed as deduction from such income
TAXATION
14
provided that certain conditions are satisfied
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question 79 Deduction from Capital Gains from the transfer of residential house property
under Section 54 is available to :-
Correct Answer Individual , HUF
Your Answer Individual , HUF , Company
True/False
Question 80 Income earned & received outside India & remitted to India is taxable for
resident & ordinary resident
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 81 Mr X has received Rs 200000 as income from salary, Rs 50000 income from
house property and he also received Rs 100000 income from specified units of
the mutual fund. What will be his total income
Correct Answer Rs 250000
Your Answer Rs 250000
Multiple Choice Multiple Answer
Question 82 Standard deduction takes care of :-
Correct Answer Repairs & maintenance , Insurance premium , Ground rent
Your Answer Insurance premium
Match The Following
Question 83 Correct Answer Your Answer
Individual partners & firms Are separate taxable entities Losses are shared equally
Partnership firm Companies can be partners Are separate taxable entities
Company partners Can not get salaries Companies can be partners
Individual partners Can be partners in any number
of firms
Can be partners in any number
of firms
Multiple Choice Multiple Answer
TAXATION
15
Question 84 Capital Gains arise on account of excess of transfer consideration over the
following amounts
Correct Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and
exclusively in connection with the transfer
Your Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and
exclusively in connection with the transfer
True/False
Question 85 Income of a mutual fund is taxable even if it is authorized by RBI.
Correct Answer False
Your Answer False
Select The Blank
Question 86 If sum received is net of TDS then it is ________ to include in income from other
sources.
Correct Answer Grossed up
Your Answer Grossed up
Multiple Choice Multiple Answer
Question 87 What is the tax treatment of Statutory Provident Fund?
Correct Answer Employer's Contribution to PF is not liable for any tax payment , Interest
credited to the employee's account is not liable for any tax payment. , The lump
sum received at the time of retirement or resignation or death is also exempt
under section 10(11) and 10(12).
Your Answer Employer's Contribution to PF is not liable for any tax payment , Interest
credited to the employee's account is not liable for any tax payment. , The lump
sum received at the time of retirement or resignation or death is also exempt
under section 10(11) and 10(12).
True/False
Question 88 Interest paid on the loan for acquiring a capital asset will be considered to be a
part of cost of acquisition.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question 89 What is the manner in which Income from Salaries is taxable?
Correct Answer Due basis or 'receipt' basis whichever is earlier.
Your Answer Due basis or 'receipt' basis whichever is earlier.
Multiple Choice Single Answer
Question 90 Deduction from Capital Gains under Section 54F is for Capital Gains arising
from transfer of :-
Correct Answer Any Long Term Capital Asset
TAXATION
16
Your Answer Any Long Term Capital Asset
Multiple Choice Single Answer
Question 91 In case the assessee is not a company, a person(other than a company) who is
falling under One by Six economic criteria, the last date for filing the return is
prescribed as :-
Correct Answer 31st July of the Assessment year
Your Answer 31st July of the Assessment year
Select The Blank
Question 92 Registration charges in connection with the increasing of ________ share
capital of the company is not allowed as revenue expenditure.
Correct Answer Authorized
Your Answer Authorized
True/False
Question 93 The amount of telephone bills (including the mobile phone bills) of the employee
reimbursed by the employer is taxable in the hands of the employee.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question 94 As per which provision and section, every person, company or any other person
shall furnish his returns of income in the prescribed form on or before the
specified due date?
Correct Answer Section 139(1)
Your Answer Section 139(2)

Select The Blank
Question For an individual as a citizen of India who leaves India in the
relevant previous year for the purpose of employment has to be in India for
________ days or more during previous year.
Correct Answer 182
Your Answer 182
Multiple Choice Single Answer
Question The due date prescribed for filing the returns of income in Form
No. 2C is
Correct Answer 31st October of the respective Assessment year
Your Answer 31st October of the respective Previous year
Multiple Choice Single Answer
Question The payments for claiming the rebate u/s 88 should :-
Correct Answer Be made out of the income chargeable to tax.
Your Answer Be made out of the income chargeable to tax.
Multiple Choice Single Answer
Question As per which provision and section, every person, company or any
other person shall furnish his returns of income in the prescribed form on or
before the specified due date?
Correct Answer Section 139(1)
Your Answer Section 139(1)
Select The Blank
Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can
claim tax rebate of ________u/s 88C of the IT Act.
Correct Answer Rs. 5,000
Your Answer Nil
Multiple Choice Multiple Answer
Question Rebate is allowed on any subscription made to National Saving
Scheme by :-
Correct Answer An individual , A HUF
Your Answer An individual , A HUF , Partnership Firms
Multiple Choice Multiple Answer
Question For the purpose of taxability of perquisite a specified employee
means :-
Correct Answer The person who is director of a company , The employee
who has substantial interest in the company by having 20% or more of the
voting power , The employee whose income under the head salaries (including
all the taxable monetary payments of salary but excluding the value of any nonmonetary
benefits or perquisites), after allowing deductions under Section 16,
exceeds Rs. 50,000
Your Answer The person who is director of a company , The employee who
has substantial interest in the company by having 20% or more of the voting
power , The employee whose income under the head salaries (including all the
taxable monetary payments of salary but excluding the value of any nonmonetary
benefits or perquisites), after allowing deductions under Section 16,
exceeds Rs. 50,000
Multiple Choice Multiple Answer
Question Following professional institutions have their incomes exempt from
tax :-
Correct Answer Town planning , Company secretary , Accounting
Your Answer Town planning , Company secretary , Accounting
True/False
Question Deduction u/s 80E for repayment of loan taken for higher
education is available if the loan must have borrowed by the assessee himself
or his Father
Correct Answer False
Your Answer False
True/False
Question The consideration for transfer of Capital Asset is received by the
transferor is not material while Capital gain chargeable to tax.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Any loans or deposits borrowed or repaid under section 269SS of
the Act provides that the said provisions will not apply to the loans or deposits
accepted by :-
Correct Answer Banking company including cooperative bank and post
office savings bank , Government , Government company
Your Answer Government , Government company , Banking company
including cooperative bank and post office savings bank
Match The Following
Question Correct Answer Your Answer
Employee stock option plan ESOPS ESOPS
Uncommuted Pension Indicates the periodical payment of pension
Indicates the periodical payment of pension
Commuted Pension Indicates the lump sum received in lieu of the
periodical Indicates the lump sum received in lieu of the periodical
Treatment of Perquisite Taxed in the hands of employee as taxable salary
Taxed in the hands of employee as taxable salary
True/False
Question A person who is a Senior Citizen who has attained the age of 65
years is not entitled to the rebate u/s 88 of the Act.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the assessee should
invest the whole or part of the capital gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the long-term
capital asset
Your Answer Within six months from the date of transfer of the long-term
capital asset
Select The Blank
Question Unabsorbed business loss can carried forward and set off in the
subsequent Assessment Years subject to the time limit of ________
Assessment years.
Correct Answer 8
Your Answer 3
Multiple Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing deductions
under Chapter VI-A is Rs. 2,40,000 wants to make the investments in the
following alternative forms Rs. 50,000 in PPF and Rs. 50,000 in Infrastructure
Bonds. The amount of rebate available to him u/s 88 is :-
Correct Answer Rs. 15,000
Your Answer Rs. 15,000
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt
Your Answer Exempt
Match The Following
Question Correct Answer Your Answer
Any subscription made to National Saving Scheme
By an individual or a HUF is eligible for rebate u/s 88 By an individual or a
HUF is eligible for rebate u/s 88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs.
2,50,000 during the Assessment Year 2005-2006. He invested Rs. 50,000 in the
tax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y
2005-2006.
RS.12,500 RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross
Total Income of Rs. 1,45,000 including the dividend from Indian companies
amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the said
Assessment Year. her tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made to a Public Provident Fund
Is eligible for rebate u/s 88 Is eligible for rebate u/s 88
Select The Blank
Question To claim sec 10A deduction unit must be established in ________.
Correct Answer Free Trade Zone
Your Answer Free Trade Zone
Select The Blank
Question Non resident individual satisfies ________ of the basic conditions.
Correct Answer None
Your Answer Any one
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54 is for Capital
Gains arising from transfer of :-
Correct Answer House Property
Your Answer House Property
Select The Blank
Question Deduction for remuneration from foreign sources for professors,
teachers etc under Section 80R is limited to ________% of such remuneration
brought in India.
Correct Answer 15
Your Answer 15
Select The Blank
Question Relief under section 89 is available to an employee in respect of the
amount of salary received ________.
Correct Answer In advance or in arrears
Your Answer In the immediately succeeding year.
Select The Blank
Question AOP id formed when two or more ________ come together to earn
income.
Correct Answer Persons
Your Answer Persons
Multiple Choice Multiple Answer
Question Capital Gains arise on account of excess of transfer consideration
over the following amounts
Correct Answer Cost of acquisition , Cost of improvement , Expenditure
incurred wholly and exclusively in connection with the transfer
Your Answer Cost of acquisition , Cost of improvement , Expenditure
incurred wholly and exclusively in connection with the transfer
Multiple Choice Multiple Answer
Question Which of the following amounts credited to P & L Account but not
taxable from Income tax Purposes as Profits from Business and Profession?
Correct Answer Refund of Income tax , Capital Gains , Dividend Income
Your Answer Refund of Income tax , Capital Gains , Dividend Income
True/False
Question Rebates as per the provisions of Section 88 of the Act are not
available from the tax on long-term capital gains.
Correct Answer True
Your Answer True
Select The Blank
Question If assessee owns more than one house properties, he can get benefit
of nil annual value for any one house property ________.
Correct Answer As per his choice
Your Answer As per his choice
Multiple Choice Single Answer
Question What is the treatment of principal amount of loan borrowed for the
purchase or construction of a residential house?
Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000
Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000
Multiple Choice Multiple Answer
Question The provisions for payment of gratuity is not allowed under section
40A(7) but, under the head, profits from business and profession, the amount of
gratuity will be allowed as deduction only when :-
Correct Answer The amount of gratuity has actually become payable to the
employees during the previous year , The provision has been made for the
payment of a sum by way of contribution to an approval gratuity , The other
than the above two situations, any provision made for the payment of gratuity is
not allowed as deduction
Your Answer The amount of gratuity has actually become payable to the
employees during the previous year , The provision has been made for the
payment of a sum by way of contribution to an approval gratuity
Multiple Choice Multiple Answer
Question If the Salary is less than Rs. 5,00,000, Standard Deduction will be
the least of the following :-
Correct Answer 40% of the Salary , Rs. 30,000
Your Answer 40% of the Salary , Rs. 30,000
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees
before 15th December of Previous year is :-
Correct Answer 60% of advance tax payable
Your Answer 100% of advance tax payable
Select The Blank
Question It should be noted that the tax liability of an individual having the
total income of less than Rs ________ is Nil u/s 88D.
Correct Answer 1,00,000
Your Answer 1,00,000
True/False
Question If assessee owns more than one house properties, annual value of
any one of the house property can be treated as nil, and such option can be
changed year on year basis.
Correct Answer True
Your Answer True
True/False
Question Income from subletting is treated as income from house property.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Following persons are deemed to be an assessee :-
Correct Answer Legal heir of deceased person , Parents of minor assessee ,
Agent of NRI
Your Answer Legal heir of deceased person , Parents of minor assessee ,
Agent of NRI
Multiple Choice Single Answer
Question Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of
news
Your Answer They apply their income for collection & distribution of news
Select The Blank
Question The rebate u/s 88B is available to an individual who has attained
the age of ________ or more at any time during the previous year.
Correct Answer 65
Your Answer 65
Multiple Choice Multiple Answer
Question What is the tax treatment of the Lump sum received from
unrecognized provident fund on the retirement or resignation or death of the
employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest
on employee's contribution is taxable as "Income from Other Sources" ,
Employer's Contribution to PF and interest thereon is taxable as "Income from
salaries"
Your Answer Employee's contribution to PF is exempt from tax , Interest on
employee's contribution is taxable as "Income from Other Sources" ,
Employer's Contribution to PF and interest thereon is taxable as "Income from
salaries"
True/False
Question Any advance tax paid before 31st March is treated as advance tax
paid during the previous year.
Correct Answer True
Your Answer True
True/False
Question A woman assessee below the age of 65 years is also entitled to
rebate u/s 88.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Rent for other amenities like lift, electricity, telephone etc. is taxed
under the heading :-
Correct Answer Income from other sources
Your Answer Income from salaries
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees
before 15th June of Previous year is :-
Correct Answer Nil
Your Answer 100% of advance tax payable
Multiple Choice Multiple Answer
Question The entertainment allowance received by the Government
employees is included in their salaries and the deduction is allowed to the
extent of least of the following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.
Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.
True/False
Question Loss from house property can be adjusted against the income from
any other house property.
Correct Answer True
Your Answer True
True/False
Question Annual premium paid by the employer for the accident insurance
policy taken by the employer in the name of the employee is chargeable to tax.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question Annual return for TDS from Salaries is to be filed in :-
Correct Answer Form No. 24
Your Answer Form No. 24

Select The Blank
Question Monetory Limit for deduction for royalty income of authors under Section
80QQB is Rs.________.
Correct Answer 300000
Your Answer 300000
Multiple Choice Single Answer
Question Income from winning from lotteries / crossword puzzles/ horse races is
taxed at flat rate of :-
Correct Answer 0.3
Your Answer 0.3
Multiple Choice Single Answer
Question Income earned in previous year is subjected to tax in :-
Correct Answer Assessment year
Your Answer Assessment year
Multiple Choice Single Answer
Question Mediclaim premium u/s Section 80D should be paid by
Correct Answer Cheque
Your Answer Cheque or Cash
True/False
Question Any sum payable by the assessee by way of tax, duty, cess or fee is
allowed as deduction even though they are not actually paid.
Correct Answer False
Your Answer True
True/False
Question As per section 2(11) of the Income Tax Act, Block of Assets includes both
tangible as well as intangible assets.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question What is the tax treatment of Statutory Provident Fund?
Correct Answer Employer's Contribution to PF is not liable for any tax payment ,
Interest credited to the employee's account is not liable for any tax payment. , The lump
sum received at the time of retirement or resignation or death is also exempt under
section 10(11) and 10(12).
Your Answer Employer's Contribution to PF is not liable for any tax payment ,
Interest credited to the employee's account is not liable for any tax payment. , The lump
sum received at the time of retirement or resignation or death is also exempt under
section 10(11) and 10(12).
Select The Blank
Question The aggregate amount of all the expenditure falling under the head
preliminary expenses incurred under section 3________, for an Indian company the
aggregate of all the expenditure can be 5% of the cost of project or 5% of capital
employed whichever is higher.
Correct Answer 5% of the cost of project or 5% of capital employed
Your Answer 5% of the cost of project or 7% of capital employed
Multiple Choice Single Answer
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Your Answer Gross total income
Multiple Choice Single Answer
Question Previous year always ends on :-
Correct Answer 31st March
Your Answer 31st March
Multiple Choice Single Answer
Question Rates of income tax are prescribed by :-
Correct Answer The Finance Act
Your Answer Ordinance
Select The Blank
Question If assessee owns more than one house properties, he can get benefit of nil
annual value for any one house property ________.
Correct Answer As per his choice
Your Answer House which is first purchased
Multiple Choice Single Answer
Question Tax liability of a person is based on :-
Correct Answer Residential status
Your Answer Gross total income
Multiple Choice Multiple Answer
Question Choose capital expenditure from the following list :-
Correct Answer Purchase of Building , Purchase of machinery
Your Answer Purchase of Building , Construction of temporary structures ,
Purchase of machinery
Multiple Choice Multiple Answer
Question Rebate is allowed on any subscription made to National Saving Scheme
by :-
Correct Answer An individual , A HUF
Your Answer An individual , A HUF
Multiple Choice Single Answer
Question In respect of leave travel concession If Mr. A has availed the exemption
only once or has not availed any exemption at all, in the block of four years i.e. 1998-
2001 then :-
Correct Answer He can carry over the exemption to the next block of four years i.e.
2002-2005 provided that he avails the exemption of LTC in the first calendar year of the
next block i.e. 2002.
Your Answer He can carry over the exemption to the next block of four years i.e.
2002-2005 provided that he avails the exemption of LTC in the first calendar year of the
next block i.e. 2002.
True/False
Question Loss under the head Profits from Business or Profession can be adjusted
against the Income from Salaries.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question The amount paid by the employer to the employee on his retirement is
taxed as :-
Correct Answer Income from Salaries
Your Answer Income from Salaries
Select The Blank
Question For an individual as a citizen of India who leaves India in the relevant
previous year for the purpose of employment has to be in India for ________ days or
more during previous year.
Correct Answer 182
Your Answer 182
True/False
Question Bad Debts recovered not allowed as deduction in earlier years is not
taxable in any year.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Long term Capital Gains , Short Term Capital Gains.
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees before
15th March of Previous year is :-
Correct Answer 100% of advance tax payable
Your Answer 100% of advance tax payable
Multiple Choice Multiple Answer
Question An assessee can claim deduction under section 35 in relation to the
expenditure incurred on scientific research in the field of natural gas or applied sciences
if :-
Correct Answer Any revenue expenses incurred by the assessee for carrying out the
scientific research provided that such research is related to his business , Any capital
expenses incurred by the assesse himself for carrying out the scientific research provided
that such research is related to his business , The assesse is a company engaged in the
business of bio-technology or any other notified product a weighted deduction of 150% is
allowed in respect of in-house research and development expensed, till 31st March, 2005
Your Answer Any revenue expenses incurred by the assessee for carrying out the
scientific research provided that such research is related to his business , The assesse is a
company engaged in the business of bio-technology or any other notified product a
weighted deduction of 150% is allowed in respect of in-house research and development
expensed, till 31st March, 2005
Select The Blank
Question Registration charges in connection with the increasing of ________ share
capital of the company is not allowed as revenue expenditure.
Correct Answer Authorized
Your Answer Issued
True/False
Question If a person is required to quote the PAN and he quotes or intimates a false
number then he may be liable to pay a penalty of Rs. 25000.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What is the tax treatment of the Lump sum received from unrecognized
provident fund on the retirement or resignation or death of the employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest on
employee's contribution is taxable as "Income from Other Sources" , Employer's
Contribution to PF and interest thereon is taxable as "Income from salaries"
Your Answer Employee's contribution to PF is exempt from tax , Interest on
employee's contribution is taxable as "Income from Other Sources"
Select The Blank
Question If the person responsible for deducting the tax at source and paying the
same to the credit of Central Government has not been allotted the Tax Deduction
Account Number (TAN), he shall within ________ from the end of the month in which
the tax was deducted, apply for the allotment of TAN Number.
Correct Answer One month
Your Answer Fifteen days
Match The Following
Question Correct Answer Your Answer
Deduction in case of permanent physical disability Section 80U Section 80U
Deductions for Donations Paid Section 80G Section 80G
Deduction for Rent Paid Section 80GG Section 80GG
Deduction in respect of Interest on Bank Deposits Section 80L Section 80L
True/False
Question If the capital asset becomes the property of the assessee by virtue of gift or
will, the period for which the capital asset is held by the previous owner should be
excluded while deciding the holding period.
Correct Answer False
Your Answer True
True/False
Question Amount paid by the employer in respect of any leave standing to the credit
of the employee after the date of furnishing return of income, this sum was payable in the
previous year is allowed as deduction.
Correct Answer False
Your Answer False
Select The Blank
Question Under section 43B, Clause N0-21 provides that the details of various
payments are allowed as deductions only if they are actually paid but, where if the
assessee follows the ________, the payments can be claimed on due basis.
Correct Answer Mercantile system of accounting
Your Answer Cash system of accounting
True/False
Question A woman assessee below the age of 65 years is also entitled to rebate u/s
88.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Income received by following assesses is taxable in India :-
Correct Answer Resident , Non resident , Resident but not ordinary resident
Your Answer Resident , Resident but not ordinary resident
Multiple Choice Single Answer
Question Any premium paid by the assessee by Cheque as an employer to effect or
keep in force an insurance on the health of his employees is :-
Correct Answer Allowed as expenses while calculating profits from business and
profession
Your Answer Is allowed as a deduction under Section 80G
Select The Blank
Question Where an assessee files or submits the returns as per provisions of section
139 or in response to the notice under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Your Answer Scrutiny Assessment
Multiple Choice Multiple Answer
Question Assessee gets deduction of interest paid on borrowed capital even if he :-
Correct Answer Takes possession later on , Acquires later on
Your Answer Takes possession later on , Acquires later on
Match The Following
Question Correct Answer Your Answer
Perquisites Indicate benefits or amenities provided by the employer to the employee,
either free of cost or at the concessional rate Indicate benefits or amenities provided by
the employer to the employee, either free of cost or at the concessional rate
House Rent Allowance This indicates the amount paid by the employer to the
employee to meet the expenditure for residential accommodation occupied by the
employee This indicates the amount paid by the employer to the employee to meet
the expenditure for residential accommodation occupied by the employee
Retrenchment Compensation Compensation received by a worker at the time of
retrenchment Compensation received by a worker at the time of retrenchment
Traveling Allowance Any allowance granted to meet the cost of travel on tour or on
transfer of duty. Any allowance granted to meet the cost of travel on tour or on
transfer of duty.
Select The Blank
Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim tax
rebate of ________u/s 88C of the IT Act.
Correct Answer Rs. 5,000
Your Answer Rs. 20,000
Multiple Choice Single Answer
Question Assessment year is the period of 12 months starting from :-
Correct Answer 1st April to 31st March
Your Answer 1st April to 31st March
Multiple Choice Single Answer
Question If notified news agency distributes its income amongst its members then :-
Correct Answer Whole of its income will be taxable
Your Answer It will have to pay tax on distributed profits
Multiple Choice Single Answer
Question Deduction in respect of Contribution to certain pension funds u/s 80CCC
is available to :-
Correct Answer Individuals
Your Answer Individuals
True/False
Question Income from subletting is treated as income from house property.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question In case of Payment of Interest on Securities no tax is required to be
deducted under the following circumstances :-
Correct Answer If the debentures are issued by a widely held company and the
debentures are listed on a stock exchange and if the amount of interest does not exceed
Rs. 2,500 during the financial year. , If the interest paid is on State or Central
Government Securities, If the debentures are issued by an institution, authority, Public
Sector Company or cooperative society as the Central Government may notify.
Your Answer If the interest paid is on State or Central Government Securities , If
the debentures are issued by a widely held company and the debentures are listed on a
stock exchange and if the amount of interest does not exceed Rs.5,000 during the
financial year.
Select The Blank
Question Expenditure incurred by an assessee on advertisement in any brochure,
tract, pamphlet or like published by a ________shall not be allowed as business
expenditure.
Correct Answer Political party
Your Answer Company

Question The entertainment allowance received by the Government employees is
included in their salaries and the deduction is allowed to the extent of least of the
following amounts :-
Correct Answer Actual amount of Entertainment Allowance received. , Rs. 5,000 ,
1/5th of Salary
Your Answer Actual amount of Entertainment Allowance received. , Rs. 5,000 ,
1/5th of Salary
True/False
Question Income Tax Act, 1961 recognizes Written Down Value (WDV) method as
well as straight line method for the computation of depreciation u/s 32 this act.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Profits earned by an Industrial Undertaking engaged in other than
infrastructure development is available under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area, rural area or place
of pilgrimage , Company engaged in scientific and industrial research
Your Answer Operation of Ship , Hotels situated in hilly area, rural area or place
of pilgrimage
Multiple Choice Single Answer
Question Which of the following expenditure is in the nature of revenue
expenditure?
Correct Answer Expenditure incurred as discount on issue of debentures
Your Answer Expenditure incurred as discount on issue of debentures
Select The Blank
Question If sum received is net of TDS then it is ________ to include in income
from other sources.
Correct Answer Grossed up
Your Answer Grossed up
True/False
Question Interest paid on the loan for acquiring a capital asset will be considered to
be a part of cost of acquisition.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing deductions under
Chapter VI-A is Rs. 1,45,000, wants to make the investments in the following alternative
forms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The amount of rebate
available to him u/s 88 is :-
Correct Answer Rs. 18,000
Your Answer Rs. 18,000
Multiple Choice Single Answer
Question Interest on specified securities or premium on redemption is exempt for :-
Correct Answer Non resident Indian
Your Answer Non resident Indian
True/False
Question As per section 2(11) of the Income Tax Act, Block of Assets includes both
tangible as well as intangible assets.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Deductions in respect of Certain Incomes received under Section 80L is
available in respect of
Correct Answer Interest on Central or State Government Securities , Interest on
National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Your Answer Interest on Central or State Government Securities , Interest on
National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Multiple Choice Single Answer
Question Tax liability of a person is based on :-
Correct Answer Residential status
Your Answer Residential status
Multiple Choice Multiple Answer
Question For the purpose of income tax, the perquisites can be classified into :-
Correct Answer Perquisites which are taxable in case of all types of employees ,
Perquisites which are taxable only in the hands of specified employee
Your Answer Perquisites which are taxable in case of all types of employees ,
Perquisites which are taxable only in the hands of specified employee
Select The Blank
Question For an individual as a citizen of India who leaves India in the relevant
previous year for the purpose of employment has to be in India for ________ days or
more during previous year.
Correct Answer 182
Your Answer 182
Multiple Choice Single Answer
Question Income earned in previous year is subjected to tax in :-
Correct Answer Assessment year
Your Answer Assessment year
Multiple Choice Multiple Answer
Question Following professional institutions have their incomes exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting
Your Answer Town planning , Company secretary , Accounting
Select The Blank
Question ________ of the Tax Audit Report refers to the details of various
payments which are allowed as deduction only if they are actually paid for.
Correct Answer Section 43B Clause No-21
Your Answer Section 43B Clause No-21
Multiple Choice Multiple Answer
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Short Term Capital Gains. , Long term Capital Gains
Select The Blank
Question To claim sec 10A deduction unit must be established in ________.
Correct Answer Free Trade Zone
Your Answer Free Trade Zone
Multiple Choice Single Answer
Question Assessment year is the period of 12 months starting from :-
Correct Answer 1st April to 31st March
Your Answer 1st April to 31st March
Multiple Choice Single Answer
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Your Answer Gross total income
Multiple Choice Single Answer
Question If an employee does not avail of this leave travel concession or assistance
during a block of four calendar years :-
Correct Answer Only one journey can be carried forward to the next block.
Your Answer Only one journey can be carried forward to the next block.
Select The Blank
Question To acquire PAN, a person shall apply in ________ to the assessing officer.
Correct Answer Form No. 49A
Your Answer Form No. 49A
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54F is for Capital Gains
arising from transfer of :-
Correct Answer Any Long Term Capital Asset
Your Answer House Property
Select The Blank
Question Where an assessee files or submits the returns as per provisions of section
139 or in response to the notice under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Your Answer Scrutiny Assessment
Multiple Choice Multiple Answer
Question Income of a professional association is exempt if its objectives are :-
Correct Answer Supervision , Control , Encouragement
Your Answer Supervision , Control , Encouragement
True/False
Question While computing the profits from Business and profession, the business or
profession must be carried out during the previous year.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question In respect of leave travel concession If Mr. A has availed the exemption
only once or has not availed any exemption at all, in the block of four years i.e. 1998-
2001 then :-
Correct Answer He can carry over the exemption to the next block of four years i.e.
2002-2005 provided that he avails the exemption of LTC in the first calendar year of the
next block i.e. 2002.
Your Answer He can carry over the exemption to the next block of four years i.e.
2002-2005 provided that he avails the exemption of LTC in the first calendar year of the
next block i.e. 2002.
Multiple Choice Multiple Answer
Question The amount accumulated to the credit of the employee's provident fund
account is paid at the time of :-
Correct Answer Retirement , Resignation
Your Answer Retirement , Resignation
Multiple Choice Multiple Answer
Question From annual value, following deductions are allowed :-
Correct Answer Standard deduction , Interest on borrowed capital , Municipal taxes
Your Answer Interest on borrowed capital , Municipal taxes
Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages, Dearness Allowance
and Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
Multiple Choice Multiple Answer
Question From GTI of a company following deductions under chapter VI A are
allowed
Correct Answer 80 G Donations , 80 HHB profits and gains from projects outside
India , 80 IA profits and gains of infrastructure companies
Your Answer 80 G Donations , 80 IA profits and gains of infrastructure
companies
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt
Your Answer Taxable
Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard Deduction will be
Rs.________.
Correct Answer 20000
Your Answer 20000
Multiple Choice Single Answer
Question The amount of accumulated interest on NSCs purchased in the earlier
years is assumed to be reinvested :-
Correct Answer And qualifies for tax rebate under section 88.
Your Answer And qualifies for tax rebate under section 88.
Select The Blank
Question Deduction u/s ________B is available for 10 consequent assessment years
from the year of commencement of production.
Correct Answer 10
Your Answer 10
True/False
Question Income from subletting is treated as income from house property.
Correct Answer False
Your Answer False
Select The Blank
Question Section 80U allows the deduction in respect of the ________ .
Correct Answer Permanent physical disability
Your Answer Permanent physical disability
Match The Following
Question Correct Answer Your Answer
Disallowable Expenditure Litigation Expenses in connection with recovery of a debt
which is not a trading debt Litigation Expenses in connection with recovery of a debt
which is not a trading debt
Business Includes trade, commerce, or manufacture or any adventure or concern in
the nature of trade, commerce or manufacture Includes trade, commerce, or
manufacture or any adventure or concern in the nature of trade, commerce or
manufacture
Profession Includes vocation Includes vocation
Capital Expenditure Expenditure incurred by a company with the issue of rights shares
Premium on redemption of Debentures
True/False
Question Any recreational facility provided by the employer to a group of
employees (not being restricted to a select few employees) is not exempt from tax.
Correct Answer False
Your Answer False
True/False
Question In case of deductions for medical treatment under Section 80DDB the
amount of deduction will be reduced by the amount received under an insurance policy or
the amount reimbursed by the employer.
Correct Answer True
Your Answer True
True/False
Question Any advance tax paid before 31st March is treated as advance tax paid
during the previous year.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Municipal taxes paid is allowed as deduction from :-
Correct Answer Gross annual value
Your Answer Gross annual value
True/False
Question Entertainment Allowance received by the employees from the private
sector is taxable in the hands of the employee.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Any subscription made to National Saving Scheme By an individual or a HUF is eligible
for rebate u/s 88 By an individual or a HUF is eligible for rebate u/s 88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 during
the Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICI
on 10th June 2004. His tax liability for the A Y 2005-2006. RS.12,500 RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross Total
Income of Rs. 1,45,000 including the dividend from Indian companies amounting to Rs.
10,000. She invests Rs. 50,000 in PPF during the said Assessment Year. her tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made to a Public Provident Fund Is eligible for rebate u/s 88 Is
eligible for rebate u/s 88
Multiple Choice Multiple Answer
Question Following incomes of local authorities are exempt :-
Correct Answer Capital gains , Other income , House property
Your Answer Capital gains , Other income , House property
Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the assessee should invest the
whole or part of the capital gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the long-term
capital asset
Your Answer Within six months from the date of transfer of the long-term
capital asset
True/False
Question Income from partnership firms is exempt from taxation for the partners
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question As a general principle, the Basic Salary or Wages, Dearness
Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
Select The Blank
Question If assessee owns more than one house properties, he can get benefit
of nil annual value for any one house property ________.
Correct Answer As per his choice
Your Answer As per his choice
True/False
Question Any recreational facility provided by the employer to a group of
employees (not being restricted to a select few employees) is not
exempt from tax.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question What are the types of Provident Fund?
Correct Answer Statutory Provident Fund , Recognized Provident Fund ,
Unrecognized Provident Fund
Your Answer Statutory Provident Fund , Recognized Provident Fund ,
Unrecognized Provident Fund
Multiple Choice Multiple Answer
Question The least of the following is the exemption available to an employee if
he is in receipt of house rent allowance :-
Correct Answer 50% of the Salary where such accommodation is situated in Mumbai,
Kolkata, Chennai and Delhi and 40% of the Salary when the
accommodation is situated at any other place. , Actual amount of
HRA received by the employee. , Excess of rent paid over 10% of the
Salary.
Your Answer 50% of the Salary where such accommodation is situated in Mumbai,
Kolkata, Chennai and Delhi and 40% of the Salary when the
accommodation is situated at any other place. , Actual amount of
HRA received by the employee. , Excess of rent paid over 10%of the
Salary.
Multiple Choice Multiple Answer
Question To get deduction of Rs 150000/- as interest on borrowed capital
assessee needs to satisfy conditions i.e. :-
Correct Answer Borrowal is after 1st April 1999 , Construction is completed in 3 years
Your Answer Borrowal is after 1st April 1999 , Construction is completed in 3 years
Multiple Choice Multiple Answer
Question The entertainment allowance received by the Government employees
is included in their salaries and the deduction is allowed to the extent
of least of the following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.
Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment
Allowance received.
Select The Blank
Question Section 35AC of the Act applies to any sum paid by the assessee to
a public sector company or a local authority or an association
approved by the national committee for ________ for carrying out
any project in upliftment of public.
Correct Answer Promotion of social and economic welfare
Your Answer Promotion of social and economic welfare
Multiple Choice Single Answer
Question The provisions under section 44AB of the Act, is applicable to the
person carrying on the profession and whose gross receipts in
profession :-
Correct Answer Exceeds Rs.10 lakhs in any previous year
Your Answer Exceeds Rs.40 lakhs in any previous year
Multiple Choice Multiple Answer
Question As per the provision of section 143(2) and 143(3) scrutiny
assessment made by assessing officer in order to ensure that :-
Correct Answer Assessee has not understated the income , Assessee has not
overstated the loss , Assessee has under paid the taxes
Your Answer Assessee has not understated the income , Assessee has not
overstated the loss , Assessee has under paid the taxes , Assessee
has not been allotted the PAN
Multiple Choice Single Answer
Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt
Your Answer Exempt
True/False
Question Interest paid on the loan for acquiring a capital asset will not be
considered to be a part of cost of acquisition.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question Previous year always ends on :-
Correct Answer 31st March
Your Answer 31st March
Multiple Choice Multiple Answer
Question Perquisites which are taxable only in the hands of specified employee
include the following categories of perquisites :-
Correct Answer Motor Car , Services of sweeper, gardener, watchman or personal
attendant , Gas, electricity and water provided for personal
consumption
Your Answer Motor Car , Services of sweeper, gardener, watchman or personal
attendant , Gas, electricity and water provided for personal
consumption
Select The Blank
Question Short term Capital Gains is taxed at ________.
Correct Answer Normal Tax rates
Your Answer Normal Tax rates
Multiple Choice Single Answer
Question Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of news
Your Answer They apply their income for collection & distribution of news
True/False
Question Clause N0-30 of the Tax Audit requires that, if the cost Audit of the
company carried out, the report of such audit should be enclosed to
the Tax Audit Report.
Correct Answer True
Your Answer True
True/False
Question If an assessee gets the salary from more than one employer during
an Assessment Year, Salary received from all the employers will be
aggregated and then the Standard Deduction will be allowed.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The amount accumulated to the credit of the employee's provident
fund account is paid at the time of :-
Correct Answer Retirement , Resignation
Your Answer Retirement , Resignation
Multiple Choice Single Answer
Question The amount of advance tax payable by non corporate assessees
before 15th September of Previous year is :-
Correct Answer 30% of advance tax payable
Your Answer 30% of advance tax payable
Multiple Choice Multiple Answer
Question Any loans or deposits borrowed or repaid under section 269SS of the
Act provides that the said provisions will not apply to the loans or
deposits accepted by :-
Correct Answer Government , Government company , Banking company including
cooperative bank and post office savings bank
Your Answer Government , Government company , Banking company including
cooperative bank and post office savings bank
Multiple Choice Single Answer
Question The amount of advance tax payable by corporate assessees before
15th March of Previous year is :-
Correct Answer 100% of advance tax payable
Your Answer 100% of advance tax payable
Multiple Choice Single Answer
Question The due date prescribed for filing the returns of income in Form No.
2C is
Correct Answer 31st October of the respective Assessment year
Your Answer 31st October of the respective Previous year
True/False
Question The amount of expenses including membership fees and annual fees
incurred by the employee on credit card and which are paid by the
employer shall be added as the perquisites unless the said expenses
are incurred wholly and exclusively for official purposes.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Which of the following expenses should be debited to P & L Account,
but disallowed for Income tax purpose?
Correct Answer Wealth Tax , Personal expenditure , Income Tax
Your Answer Wealth Tax , Revenue expenditure , Personal expenditure
Multiple Choice Single Answer
Question The provisions regarding set off and carry forward of loses are
contained in :-
Correct Answer Sections 70 to 80 of the Income Tax Act, 1961.
Your Answer Sections 70 to 80 of the Income Tax Act, 1961.
Multiple Choice Single Answer
Question A partnership firm is an agreement between not more than :-
Correct Answer 20 persons
Your Answer 20 persons
Multiple Choice Single Answer
Question Deduction from Capital Gains under Section 54B is for Capital Gains
arising from transfer of :-
Correct Answer Agricultural Land
Your Answer Long Term Capital Asset other than House Property
Select The Blank
Question To acquire PAN, a person shall apply in ________ to the assessing
officer.
Correct Answer Form No. 49A
Your Answer Form No. 49A
Multiple Choice Multiple Answer
Question Any amount deposited by an Individual or a HUF in 10 year or 15
year account under the Post Office Saving Bank (CTD) Rules, 1959.
The account can be in the name of :-
Correct Answer The individual himself , A minor of whom he is the guardian.
Your Answer The individual himself , A minor of whom he is the guardian. , Spouse
of individual
True/False
Question While computing the profits from Business and profession, the
business or profession must be carried out during the previous year.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Following news agencies are specified by the Central Government as
specified news agencies :-
Correct Answer UNI , PTI
Your Answer PTI , NDTV
Select The Blank
Question Any expenditure incurred by the assessee for any purpose which is
________ or which is prohibited by law shall not be allowed as
business expenditure
Correct Answer Offence
Your Answer Anti social
True/False
Question If assessee owns more than one house properties, annual value of
any one of the house property can be treated as nil, and such option
can be changed year on year basis.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Superannuation Fund It is an employee welfare
scheme
It is an employee welfare
scheme
Statutory Provident Fund This is set up as per the
provisions of Provident
Fund Act, 1925.
This is set up as per the
provisions of Provident Fund
Act, 1925.
Recognized Provident Fund the provisions of
Employees Provident Fund
and Miscellaneous
Provisions Act, 1952 apply
to this fund.
the provisions of Employees
Provident Fund and
Miscellaneous Provisions
Act, 1952 apply to this fund.
Unrecognized Provident
Fund
The provident fund which is
not recognized by the
income tax authorities .
The provident fund which is
not recognized by the
income tax authorities .
Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard Deduction will be
Rs.________.
Correct Answer 20000
Your Answer 20000
Select The Blank
Question Mr. Ram is employed by the Central Government as accountant
whose gross salary income is Rs 6,00,000. He can claim standard
deduction of Rs ________ u/s 16(i) of the IT Act.
Correct Answer Rs 20,000
Your Answer Rs 20,000
Match The Following
Question Correct Answer Your Answer
Deduction in case of
permanent physical
disability
Section 80U Section 80U
Deductions for Donations
Paid
Section 80G Section 80G
Deduction for Rent Paid Section 80GG Section 80GG
Deduction in respect of
Interest on Bank Deposits
Section 80L Section 80L
True/False
Question The consideration for transfer of Capital Asset is received by the
transferor is not material while Capital gain chargeable to tax.
Correct Answer True
Your Answer True
True/False
Question The payments for claiming the tax rebate u/s 88 of the IT Act should
be made out of the income chargeable to tax.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question In case of any contribution made by an individual or a HUF to notified
units of any approved mutual fund or of Unit Trust of India in
accordance with a notified scheme (Equity Linked Savings Scheme)
:-
Correct Answer The maximum allowable limit is Rs. 10,000
Your Answer Qualifies for tax rebate under section 88D.
True/False
Question Dividend received from domestic company to its shareholders is
taxable in the hands of the shareholder.
Correct Answer False
Your Answer False
Select The Blank
Question Loss from the activity of owning and maintaining the race horses can
be carried forward and set off in the subsequent Assessment Years
subject to the limit of ________ Assessment years.
Correct Answer 4
Your Answer 4
Select The Blank
Question If the property becomes the property of the assessee before
________, the Fair Market Value of the property of the capital asset
on that date will be considered to be the cost of acquisition
Correct Answer 1st April 1981
Your Answer 1st April 1991
Select The Blank
Question For an individual as a citizen of India who leaves India in the relevant
previous year for the purpose of employment has to be in India for
________ days or more during previous year.
Correct Answer 182
Your Answer 182
Select The Blank
Question After deducting interest on capital & remuneration to partners, firm is
required to pay tax @ ________
Correct Answer Tax 35% + 2% SC +2% EC
Your Answer Tax 35% + 2% SC +2% EC
Multiple Choice Multiple Answer
Question Under the clause No-32 of the Act, in the Tax Audit Report, the
Auditor is required to give the accounting calculation in ratios of :-
Correct Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnover
Your Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnover

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