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This set of Income Tax Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Set 5

Q1 | Rate of depreciation on non residential building is.......................
  • 10%.
  • 15%.
  • 20%.
  • 25%
Q2 | Rate of depreciation on furniture is........................
  • 5%
  • 15%
  • 10%
  • 20%
Q3 | Additional depreciation is allowed at half the rate, if the asset is used in the initial yearfor.................................
  • 195 days.
  • 199 days.
  • 360 days.
  • less than 180 days.
Q4 | Under section 44AB ‘specified date’ means, ...............................
  • 30th june
  • 30th september
  • 30th november
  • 31st december
Q5 | Income from sale of rural Agricultural land is..................
  • taxable capital gain.
  • exempted capital gain.
  • taxable income.
  • none of these.
Q6 | What is the time limit for holding of a Financial Asset, to be called Short Term Capital Asset?
  • not more than 6 months.
  • not more than 12 months.
  • not more than 24 months.
  • not more than 36 months.
Q7 | To be a long term capital asset, a non financial asset should be held more than................
  • 12 months.
  • 24 months.
  • 36 months.
  • 60 months.
Q8 | Shares held for less than 12 months are......................
  • short term capital asset.
  • long term capital asset.
  • exempted capital asset.
  • projected capital asset.
Q9 | House property held for less than 36 months is........................
  • long term capital asset.
  • short term capital asset.
  • exempted capital asset.
  • projected capital asset.
Q10 | Indexation is applicable to.......................
  • sale of short term capital assets.
  • sale of long term debentures.
  • sale of depreciable capital assets.
  • sale of long term capital assets which are not depreciable assets
Q11 | . Cost of long term debentures are.....................
  • eligible for indexing.
  • not eligible for indexing.
  • none of these.
  • all the above.
Q12 | What is the date on which Fair Market Value of capital assets acquired is determined?
  • 1.4.2001.
  • 1.4.1971.
  • 1.4.1981.
  • 1.4.1971.
Q13 | FMV on 1.4.81 is applicable to assets.......................
  • acquired prior to 1.4.81.
  • transferred prior to 1.4.81.
  • acquired after 1.4.81.
  • none of the above.
Q14 | Cost of improvement incurred prior to 1.4.81 is................
  • indexed separately.
  • indexed along with cost of acquisition.
  • ignored fully.
  • none of these.
Q15 | Cost inflation rules for the purpose of long term capital gain has been notified by central governmentevery year starting from the financial year..................
  • 1991-92.
  • 1985-86.
  • 1981-82.
  • 1975-76.
Q16 | Short term capital gain on sale of unlisted shares are.................
  • taxable.
  • exempted.
  • partially exempt
Q17 | Long term capital gain on sale of unlisted shares are........................
  • taxable.
  • exempted.
  • partially exempt
Q18 | Exemption u/s 54 is allowed when a residential house is sold and the investment is made in.............................
  • another residential house.
  • land.
  • shares.
  • jewellery.
Q19 | Which one of the following is not an admissible expense
  • income tax
  • excise duty
  • bad debt
  • sales tax
Q20 | Tax on short-term gain on sale of listed shares is................
  • 20%.
  • 25%.
  • 30%.
  • 15%.
Q21 | Statutory limit for exemption of compensation received at the time of voluntary retirement (VRS) is.............................
  • rs. 5,00,000.
  • rs. 8,00,000.
  • rs. 10,00,000.
  • rs. 15,00,000.
Q22 | Deduction from gross Total income is allowed under Sec. 80C up to lower of the Qualifying amount or a maximum of.
  • rs. 50,000.
  • rs. 80,000.
  • rs. 1,00,000.
  • rs. 2,00,000.
Q23 | Profits earned from an illegal business are..........................
  • taxable.
  • tax free.
  • ignored by tax authorities.
  • treated as other income.
Q24 | Contribution made to an approved research association is eligible for deduction up to.................
  • 50%.
  • 80%.
  • 100%.
  • 125%.
Q25 | Unabsorbed capital expenditure on scientific research can be carried forward for...............
  • 15 years.
  • 14 years.
  • 8 years.
  • 10