Income Tax Law And Practices Set 5
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This set of Income Tax Law and Practices Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Law And Practices Set 5
Q1 | An individual is resident and ordinarily resident of India if .
- Person had been resident in India at least 2 out of 10 previous years immediately preceding the relevant previous year
- Person been in India for a period of 730 days or more during 7 years immediately preceding the relevant previous year
- All of the above
- None of the above
Q2 | The Resident HUF is ordinarily resident in India, if
- He has been resident in India at least 2 years out of 10 previous years immediately
- He has been resident in India at least 3 years out of 10 previous years immediately
- He has been resident in India at least 2 years out of 5 previous years immediately
- None of the above
Q3 | Basic condition will be for a person who leaves India for employment
- At least 182 days in India
- At least 60 days in previous year and 365 days in preceding 4 years
- At least 730 days in preceding 7 years
- All of the above
Q4 | Which of the following is not included in the term Income under the Income Tax Act, 1961?
- Reimbursement of travelling expenses
- Profits and gains of business or profession
- Dividend
- Profit in lieu of salary
Q5 | 14 Income from shares of a public company set up in any special Industrial zone is exempt up to-------- years from the date of commencement of commercial production.
- Three
- Four
- Five
- None of the above
Q6 | An assessee has borrowed money for purchase of a house & Interest is payable outside India.
- Such interest shall:
- Be allowed as deduction
- Not to be allowed on deduction
- Be allowed as deduction if the tax is deducted at source
Q7 | Salary, bonus, commission or remuneration due to or received by a working partner from the firm is taxable under the head.
- Income from salaries
- Other sources
- PGBP
- none
Q8 | Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head.
- Salary
- Other sources
- PGBP
- none
Q9 | Interest on capital or loan received by a partner from a firm is:
- Exempt U/S 10(2A)
- Taxable U/H business and profession
- Taxable U/H income from other sources
- none
Q10 | Under the head Business or Profession, the method of accounting which an assessee can follow shall be:
- Mercantile system only
- Cash system only
- Mercantile or cash system only
- Hybrid system
Q11 | Gain arising from the disposal of _________ is taxable under the head capital gains.
- Depreciable asset
- Eligible depreciable asset
- Securities
- All of the above
Q12 | ____________are capital assets.
- Stock in trade
- Sculpture
- Immovable property
- Both b and c
Q13 | A person who derives his income by dealing in shares of private, unlisted and public limited companies are covered under the head.
- Income from business
- Income from other sources
- Capital gains or
- All of the above
Q14 | Bonus shares are issued by a company to its ______ without receiving any amount from them.
- Employees
- Customer
- Shareholders
- All of the above
Q15 | Gain from sale of shares of Private Limited companies is taxable under section_________.
- 37
- 37A
- Not taxable
- None of (a) to (c)
Q16 | Bonus shares are the shares issued by a company_____________.
- Free of cost
- Issued at concessional rate
- On credit
- None of the above
Q17 | A company in which at least 50% of the shares are held by a foreign government is ___________.
- Private company
- Public company
- Foreign company
- All of the above
Q18 | Any incidental expenditure on disposal of capital assets shall form part of _____________.
- Cost of assets
- Disposal consideration
- Selling cost
- None of a to c
Q19 | Capital loss u/s 37 is allowed as deduction for those assets the gain of which is___________.
- Chargeable to tax
- Exempt from tax
- Both of these
- None of (a) to (c)
Q20 | At the time of devolution ___________ would be the cost of the asset.
- FMV
- Historical cost
- higher of a and b
- none
Q21 | Capital gain tax shall not be chargeable on disposal of securities which are held for a periodof __________.
- one year
- two years
- three years
- six months
Q22 | ‘Derivatives’ is a general term for financial assets that are “derived” from other_______________.
- fixed assets
- current assets
- financial assets
- income
Q23 | Gain on disposal of immovable property is chargeable to at _____%, where holding periodis up to one year.
- 10
- 2
- 6
- 12
Q24 | A loss on the sale of jewellery is _______ under the head capital gain.
- recognized
- not recognized
- taxable
- none of above
Q25 | Maximum limit for the deduction of Life insurance premia from the gross total income is .
- Rs. 2,00,000
- Rs 1,50,000
- R s 1,00,000
- Rs 1,25,000