On This Page
This set of Income Tax Law and Practice Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Law And Practice Set 4
Q1 | Which among the following is not an admissible expense:
- Income tax
- GST
- Bad debt
- Excise duty
Q2 | While computing the profit of a firm, interest allowed on partners’ capital is allowed:
- Up to 12%
- Up to 15%
- Up to 18%
- Up to 20%
Q3 | The deduction allowed in respect of payment made to an approved university for socialresearch is:
- 200%
- 150%
- 125%
- 100%
Q4 | For the purpose of income tax, depreciation is charged on:
- Market value
- Cost price
- WDV
- Book value
Q5 | Depreciation is not allowed on:
- Computer
- Furniture
- Land
- Machinery
Q6 | Unabsorbed depreciation can be carried forward for set-off up to:
- 5 years
- 8 years
- 10 years
- Any number of years
Q7 | The rate of depreciation applicable to intangible asset is:
- 5%
- 15%
- 20%
- 25%
Q8 | The rate of depreciation applicable to furniture is:
- 10%
- 15%
- 20%
- 5%
Q9 | The allowable depreciation on motor car is:
- 5%
- 25%
- 30%
- 40%
Q10 | What is the additional rate depreciation on new plant?
- 5%
- 10%
- 20%
- 25%
Q11 | The allowable rate of depreciation on computer is:
- 30%
- 40%
- 50%
- 60%
Q12 | Which among the following is not a capital asset?
- Jewellery
- Stock-in-trade
- Agricultural land
- Goodwill of a business
Q13 | Under which section, a firm is eligible for exemption in respect of long term capital gainarising from the sale of a residential house:
- Sec. 54
- S
- 54EC c. Sec. 54D
- Sec. 54F
Q14 | Income from the sale of a house hold furniture is a/an:
- Exempted income
- Taxable income
- Capital gain
- Income from house property
Q15 | Cost Inflation Index for the Financial Year 2018-19 is:
- 1024
- 272
- 1081
- 280
Q16 | For being long term capital gain, the asset should be retained by the assessee for a period of:
- 36 months
- More than 36 months
- 24 months
- 12 months
Q17 | Which among the following is not a capital asset?
- Household furniture
- Car for personal use
- Stock-in-trade
- All of these
Q18 | Capital gain on depreciation assets is always:
- LTCG
- STCG
- Tax free
- None of these
Q19 | For being a long term capital gain, the assessee should retain the shares for a period of:
- 12 months
- Less than 12 months
- More than 12 months
- None of these
Q20 | Capital gain arises from:
- Capital
- Stock
- Transfer of capital assets
- None of these
Q21 | Which among the following is not a capital asset?
- Goodwill of business
- Jewellery
- Car used for business purposes
- Agricultural land situated in a village
Q22 | Which among the following is not chargeable to tax under the head, income from othersources?
- Winnings from lottery
- Interest from bank
- Dividend from co-operative society
- Profit on sale of the goodwill of a business
Q23 | The deduction allowable in respect of family pension is:
- Entire amount of family pension
- 33 1/3 % of the family pension
- 33 1/3 % of the family pension or Rs: 15,000 whichever is less
- 30 % of the family pension or Rs: 15,000 whichever is less
Q24 | The inclusion of others’ income in the income of an assessee is called:
- Aggregation
- Clubbing
- Set-off
- None of these
Q25 | If marriage of parents subsists, the income of a minor child:
- Shall be included in the income of mother
- Shall be included in the income of father
- Shall included in the income of that parent whose total income is greater
- Shall included in the income of that parent whose total income is less