Income Tax Law And Practice Questions and Answers Set 7

income tax law and practice mcq
Quiz12345678

Question 1. Which of the following is not a capital asset ____________.

(A) Jewelry

(B) Agricultural land in Mumbai

(C) Goodwill

(D) stock in trade

View Answer
(D) stock in trade

Question 2. A partnership firm sold a residential house. The firm will get exemption under section __________ on capital gains.

(A) Sec. 54EC

(B) Sec. 54C

(C) Sec. 54E

(D) Sec. 54D

View Answer
(A) Sec. 54EC

Question 3. Income of a minor child is included in the total income of __________.

(A) Transferor of asset

(B) Parent whose income is greater

(C) Mother

(D) Father

View Answer
(B) Parent whose income is greater

Question 4. The amount of deduction under section 80DD regarding disability is _________.

(A) Actual expense.

(B) Rs: 75,000

(C) Rs: 50,000

(D) Rs: 30,000

View Answer
(C) Rs: 50,000

Question 5. Which of the following is eligible for 100% deduction ?

(A) Nehru Memorial Fund

(B) National Sports Fund

(C) Rajiv Gandhi Foundation

(D) National Children Fund

View Answer
(B) National Sports Fund

Question 6. Section C applies on _________.

(A) Company

(B) Firm

(C) Co-operative Society

(D) Individual and HUF

View Answer
(D) Individual and HUF

Question 7. Donation on PM’s National Relief Fund is deductible 100% out of the gross total income of the assessee, under section __________.

(A) 80GG

(B) 80G

(C) 80CC

(D) 80C

View Answer
(B) 80G

Question 8. For the P.Y , 2012-13, the maximum permissible deduction under section 80C is _______.

(A) 1,12,000

(B) Rs: 2,00,000

(C) Rs: 1,00,000

(D) Rs: 80,000

View Answer
(C) Rs: 1,00,000

Question 9. The rate of surcharge on tax payable is _________ % when taxable income is Rs: 5,57, 500.

(A) Nil

(B) 10%

(C) 5%

(D) 3%

View Answer
(A) Nil

Question 10. The basic exemption up to which income is not taxable for an individual resident is ________.

(A) Rs: 5,00,000

(B) Rs: 1,00,000

(C) Rs: 2,00,000

(D) None of the above

View Answer
(B) Rs: 1,00,000

Question 11. The Total income of an individual is Rs: 3,46,994. The rounded off total income will be _________.

(A) Rs: 3,50,000

(B) Rs: 3,46,990

(C) Rs: 3,47,000

(D) Rs: 3,46,000

View Answer
(B) Rs: 3,46,990

Question 12. The income tax payable by an individual is Rs:8,562.55. The rounded off tax payable will be __________.

(A) Rs: 8,570

(B) Rs: 8,560

(C) Rs: 8,563

(D) Rs: 8,562

View Answer
(B) Rs: 8,560

Question 13. The maximum tax exemption to a senior citizen for the assessment year is _________.

(A) Rs: 2,50,000

(B) Rs: 1,00,000

(C) Rs: 2,00,000

(D) Rs: 3,00,000

View Answer
(A) Rs: 2,50,000

Question 14. If STT is paid, then STCG tax on the transfer of capital asset is __________.

(A) 25%

(B) 20%

(C) 15%

(D) 10%

View Answer
(C) 15%

Question 15. Education cess for the A.Y is ___________.

(A) 15%

(B) 10%

(C) 5%

(D) 3%

View Answer
(D) 3%

Question 16. According to section _________, TDS shall be payable during the financial year in respect of the total income of the assessee.

(A) 210

(B) 208

(C) 207

(D) 206

View Answer
(C) 207

Question 17. _________ must be paid according to the provisions of the “ Pay As You Earn” Scheme.

(A) Education cess

(B) Advance tax

(C) TDS

(D) Income Tax

View Answer
(B) Advance tax 

Question 18. Advance tax is payable when tax payable by an assessee is ________ or more.

(A) Rs: 1,00,000

(B) Rs: 15,000

(C) Rs: 10,000

(D) Rs: 5,000

View Answer
(C) Rs: 10,000

Question 19. The rate of surcharge payable on tax for the A.Y. 2013-14 is _________.

(A) Nil

(B) 3%

(C) 10%

(D) 5%

View Answer
(A) Nil

Question 20. The non-taxable income for the woman assessee is ___________.

(A) Rs: 3,00,000

(B) Rs: 2,50,000

(C) Rs: 1,90,000

(D)Rs: 1,00,000

View Answer
(C) Rs: 1,90,000 

Question 21. If S T T is paid, then LTCG tax on the transfer of listed equity shares is .

(A) Nil

(B) 10%

(C) 5%

(D) 15%

View Answer
(A) Nil

Question 22. Out of income from growing and manufacturing of latex ………………… , is considered as agricultural income.

(A) 65%

(B) 60%

(C) 45%

(D) 40%

View Answer
(A) 65%

Question 23. For SSIs , a deduction of ________ % of profit is available to the individual assessee.

(A) Nil

(B) 25%

(C) 40%

(D) 50%

View Answer
(B) 25% 

Question 24. Donation is deductible u/s ___________.

(A) 80 G

(B) 80 E

(C) 80D

(D) 80C

View Answer
(A) 80 G

Question 25. Tax deduction available to certain industries for the initial few years is called __________.

(A) PAYE

(B) TDS

(C) Tax exemption

(D) Tax holiday

View Answer
(D) Tax holiday 
Quiz12345678