Income Tax Set 5
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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