Question 1. Statutory limit for exemption of compensation received at the time of voluntary retirement (VRS) is ____________.
(A) Rs. 15,00,000.
(B) Rs. 10,00,000.
(C) Rs. 8,00,000.
(D) Rs. 5,00,000.
Question 2. Deduction from Gross Total income is allowed under Sec. 80C up to lower of the Qualifying amount or maximum of____________.
(A) Rs. 2,00,000.
(B) Rs. 1,00,000.
(C) Rs. 80,000.
(D) Rs. 50,000.
Question 3. Profits earned from an illegal business are __________.
(A) treated as other income
(B) Tax free
(C) Ignored by Tax Authorities
(D) Taxable
Question 4. Contribution made to an approved research association is eligible for deduction up to __________.
(A) 125%.
(B) 100%.
(C) 80%
(D) 50%.
Question 5. Unabsorbed capital expenditure on scientific research can be carried forward for __________.
(A) 10 years
(B) 8 years
(C) 14 years
(D) 15 years
Question 6. . Medical reimbursement is exempt up to _______ if treatment is done in a private hospital.
(A) Rs: 50,000
(B) Rs: 15,000
(C) Rs: 10,000
(D) Rs: 5,000
Question 7. Excise duty and sales tax are allowed as deduction if paid before __________.
(A) after 31 st December of the previous year.
(B) Previous year-end.
(C) Before 31 st December of the previous year.
(D) Late date of filing of return.
Question 8. Technical know-how acquired after 1.4.98 is eligible for depreciation at _________.
(A) 40% p.a.
(B) 25% p.a.
(C) 20% p.a.
(D) 10% p.a.
Question 9. Which of the following is exempted____________.
(A) Medical Allowance
(B) D.A
(C) Foreign Allowance
(D) C.C.A
Question 10. Free food provided to employees is exempted up to _______ per meal.
(A) Rs: 15
(B) Rs: 60
(C) Rs: 50
(D) Rs: 40
Question 11. The income from the sale of household furniture is __________.
(A) Business income
(B) Exempted income
(C) Capital gain
(D) Taxable income
Question 12. Deduction for other expenses except for interest in the computation of income from house property is allowable to the extent of __________.
(A) 20% of Annual Value
(B) 30% of Annual Value
(C) 25% of Annual Value
(D) 1/5th of Annual Value
Question 13. Preliminary expenses shall be allowed as deduction in _________.
(A) 12 Instalments
(B) 15 Instalments
(C) 10 Instalments
(D) 5 Instalments
Question 14. Bad debts allowed earlier and recovered latter on is _________.
(A) Income from other sources
(B) Non business income
(C) Exempted income
(D) Business income
Question 15. Under valuation of opening stock is _________.
(A) Deducted from net profit
(B) Added to net profit
(C) Credited to P & L A/c
(D) None of these
Question 16. Under section 44AB the audit of accounts is compulsory if total sales exceed _________.
(A) Rs: five crores
(B) Rs: one crore
(C) Rs: 50 lakhs
(D) Rs: 40 lakhs
Question 17. Gifts from clients are _________.
(A) Professional income
(B) Income from other sources
(C) Nontaxable item
(D) None of these
Question 18. Repairs incurred before installation of an assets is __________.
(A) Capital expenditure
(B) Revenue expenditure
(C) Nonbusiness expenditure
(D) None of these
Question 19. If a depreciable asset is acquired and used for less than 180 days in a financial year, depreciation allowed on it is _________.
(A) Normal Rate
(B) 50% of Normal Rate
(C) Nil
(D) None of these
Question 20. Rate of depreciation on residential building is _______.
(A) 20%
(B) 15%
(C) 10%
(D) 5%
Question 21. Rate of depreciation on non residential building is _________.
(A) 25%
(B) 20%
(C) 15%
(D) 10%
Question 22. Rate of depreciation on furniture is ___________.
(A) 20%
(B) 10%
(C) 15%
(D) 5%
Question 23. . Additional depreciation is allowed at half the rate if the asset is used in the initial year for __________.
(A) Less than 180 days
(B) 360 days
(C) 199 days
(D) 195 days
Question 24. . Under section 44AB ‘specified date’ means, _________.
(A) 31st December
(B) 30th September
(C) 30th November
(D) 30th June
Question 25. Income from sale of rural Agricultural land is __________.
(A) Taxable capital gain
(B) Exempted capital gain
(C) Taxable income
(D) None of these