TYBcom

Question bank Tax

1. Income Tax act extension to

a. Whole of India

b. India and Pakistan

c. Whole Of Maharashtra

d. Jammu and Kashmir

2. Gross tax liability is calculated on .......

a. Gross total income

b. Net taxable income

c. Income

d. Salary

3. Income tax is a tax on .......

a. Income

b. Profit

c. Turnover

d. Expenditure

4. Income tax act 1961 has 298......

a. Sections

b. Sub sections

c. Clauses

d. Sub clauses
5. ADP is the abbreviations used for ......

a. Association of persons

b. Association of realtors

c. Association of realtors

d. Association of professionals

6. The term HUF Stands For

a. Hindu Divided Family

b. Human and divided family

c. Hindu undivided family

d. Human individual family

7. A person by whom tax is payable under income tax act 1961 called as

a. Individual

b. Assessee

c. Tax receiver

d. Company

8.Income tax has ....... Schedules

a. 23

b. 14

c. 298

d. 40

9. Shivaji University is assessable under the income tax act as

a. Individual

b. An Artificial Judicial Persons

c. A local authority

d. company
10. Any sum of money received in excess of ₹ ....... without consideration is chargeable to tax

a. 5000

b. 50000

c. 5000000

d. 55000

11.previous year can be of .....12 months

a. More than

b. Less than

c. Only

d. Any

12. Income does not includes

a. Divided

b. Profits

c. capital Gains

d. Losses

13. ....... is expected to be a periodical monetary return

a. Salary

b. profit

c. Income

d. Interest

14. ....... received by wife is not taxable

a. pin money

b. Compensation

c. Gift

d. Awards
15. A firm is regarded as a unit of assessment as per

a. Income Tax Act

b. Partnership Act

c. Companies Act

d. Finance act

16. The Total of 5 heads of income under section 14 termed as

a. Total income

b. Net total income

c. Gross total income

d. Gross total income

17. Provisions applicable under each head of income are

a. same

b. Similar

c. Different

d. Correct

18. Leave salary received during the period of service is

a. Except under section 10 (10AA)

b. Except under section 10 (10A)

c. Taxable

d. Not Taxable

19. divided is Exempt in case

a. It is Paid by an Indian company

b. It is paid by a Foreign company

c. Decide by multinational company

d. It is paid by joint venture unit

20. Uncommuted pension received by a government employee is

a. Exempt

b. Taxable

c. 1/3 is exempt

d. 1/2 is exempt

21. Upper monetary limit for claiming exemption from graduate for others categories is

a. 500000

b. 1000000

c. 100000

d. 300000

22. Interest credited to RPF is

a. Fully exempt

b. Exempt upto 8.5% pa

c. Fully Taxable

d. Exempt upto 9.5% pa

23. Medical reimbursement by employer is not taxable up to

a. 5000

b. 10000

c. 15000

d. 20000

24. Compensation on termination of employment will be taxable under the heads

a. income from other sources

b. Income from salary

c. Not taxable as it is capital recepit

d. Fully Exempt
25. Kumari neither government employee nor covered under payment of gratuity act 1972. He has
completed 21 years and 8 months of service the number of completed years considered for gratuity
exemption shall be

a. 22 years

b. 21 years and 8 months

c. 21 years

d. Average of a and b

26. Municipal taxes deducted from

a. Net Annual Value

b. Municipal Valuation

c. Gross Annual Value

d. saved rent

27. Unrealized rent deduction from

a. GAV

b. NAV

C. Municipal valuation

d. Fair rent

28. Unadjusted loss from house property can be carried forward and said of in subsequent year
subject to limit of

a. 7 years

b. 8 years

c. 6 years

d. 9 years
29. A has 2 house property both are self occupied

a. Both house are SOHP

b.ONE is SOHP and Other is DLOP

c. One House is LOHP

d. Both a and b

30. Export incentives received by an assessee are

a. Exempt

b. Taxable as business income

c. Exempt upto certain limits

d. Not Taxable

31. Bonus paid to employee is allowed as deduction on

a. Accrual basis

b. Payment basis

c. Declaration

d. both a and b

32. Under the heads business or profession the method accounting which an assessee can follow shall
be

a. Mercantile system only

b. Cash System only

c. Mercantile or cash system

d. Hybrid system only

33. Which of the following tax is allowed as deduction while computi6the bussiness income

a. Wealth tax

b. Income tax

c. Sales tax

d. Gift tax
34.Where the amount of an expenditure claimed as deduction exceeds ₹ 20000 it should be paid by

a. Crossed cheque

b. Account paying cheque /draft

c. Cash

d. Draft

35. All the firm's will be charged to tax at the

a. Minimum marginal rate

b. Average rate

c. Maximum marginal rate

d. Same marginal rate

36. Payments to specified persons which are unreasonable are

a. Allowed u/s 40 A(2)

b. Allowed u/s 40 A (3)

c. Disallowed u/s 40 A (2)

d. Disallowed u/s 40 A (3)

37.Exemption under section 54 shall be available

a. All assessees

b. Individual only

c. Individual and HUF

d. Both a and b

38. The Legal Status of MS. Hima Das, Indian Sprint Runner is ……..

a. An individual
b. A body of individuals
c. A sportsman
d. Artificial jurdicial person
39. Personal 24 carat gold mangalsutra is ……….asset

a. Fixed
b. Capital
c. Current
d. Constant

40. Every Assessee is a person and ……..

a. Every person is also an assessee

b. Every person need not be an assessee
c. An individual is always an assessee
d. Every person is an Individual

41. Total income of a person is determined on the basis of his ……..

a. Citizenship
b. Residential Status
c. Marital Status
d. Leadership

42. In case of capital acquired on 1.4.1971., Fair Market Value of this capital asset is deterimined as on
………

a. 1.4.2001

b. 1.4.1981

c.1.4.1971

d. 1.4.1991

43.Deduation under section 80D in respect of medical insurance premium is allowed to ……….

a. An individual

b. Any Assessee

c. An individual and HUF

d. Any HUF
44. Share of profit received by a partner of partnership firm is ……..

a. Fully exempt

b. Fully taxable

c. Partly taxable

d. partly exempt

45. Uncommuted pension received by a government employee is …….

a. Exempt

b. taxable

c. 1/3 exempt

d. 1/2 exempt

46. The deduction under section 80E is allowed for payment of interest to the extent of ………

a. ₹25,000

b. ₹ 10,000

c. Any amount

d. ₹ 30,000

47.Award received from the government is ……….

a. Taxable

b. Exempt

c. Partly exempt

d. party taxable
48. A new business was set up on 01 -10 -2018. It’s First previous year will end on ……..

a. 31.03.2019

b. 30.09.2019

c.31.03.2020

d. 30.10.2019

49. Share of income received by a member of HUF from the HUF is ……..

a. Fully Exempt

b. Fully Taxable

c. 50 % Taxable

d. 50 % exempt

50. Agricultural income from land in Nepal is …… for an ordinarily resident individual

a.Taxable

b. Tax free

c. Exempt

d. partly taxable

51. Mr. pankaj paid fees for his school going daughter to king George school; Fees consisted of tuition
fees ₹ 5,000 and development fees ₹ 2000 . He is entitled to a deduction u/s 80C equal to ………

a. ₹ 5000

b.₹ 2000

c.₹ 3000

d.₹ 7000
52. In the owned building is let – out to be used as show room for display of goods, rent will be taxed as
……..

a. Business income

b. Income from house property

c. Income from other sources

d. PGBP

53. Profit arising on sale of personal platinum jewellery is ……..

a. Taxable as capital gains

b. Not taxable being non recurring in nature

c. Not taxable being personal asset

d. Taxable

54. Mr. Desai contributed for his girl child under the sukanya samridhi account scheme deduction ……

a. U/s 80C

b. U/s 80CCC

c. U/s 80 D

d. U/s 80CCD

55. Interest received on company debentures is ……….

a. Taxable

b. Taxfree

c. partly taxable

d. Partly exempt

56. …….. is not taxable

a. Profits in lieu of Salary

b. Gift from Father

c. Illegal income

d. Loss
57. Income earned in India by a ‘Non- Resident ʼ is ……..

a. Tax free in india

b. Taxable in india

c. Not an income

d. Exempt

58.Employer’s contribution to Recoginsed Provident fund account of an employee in excess of the

prescribed limit is taxable as income from ……

a. Salary

b. Other sources

c. Business

d.profit

59. Reimbursement by employer of the expenses incurred by the employee for employer’s business is
…….

a. taxable as income from business

b. Not taxable at all

c. Taxable as income from salary

d. exempt

60.If the residential property acquired on 01-04-1970 is sold during previous year 2018-2019, its cost
of a acquisition is taken at Fair Market Value as on ………

a. 01.04.1981

b.01.04.2001

c.01.04.1970

d.01.04.1980
61.If a part of commercial property is let out and the balance part of property is retained by the owner
for his business , the rent received will be ……..

a. Income from House Property

b. Income from Business

c. Not an Income

d. Income from other sources

62. The Standard deduction on a family pension of ₹1,20,000 will be ……..

a. ₹40,000

b.₹15,000

c. Nil

d.₹30,000

63. If an assessee invests ₹ 70,000 in public provident Fund ,he is entitled to a deduction under section
80 C of …….

a. ₹70,000

b. ₹ 1,00,000

c. Nil

d. ₹ 50,000

64.Mr. Arjun earns savings bank interest of ₹ 12,000 during the previous year 2018-2019. He is entitled
to a deduction under section 80 TTA of …….

a. ₹12,000

b. ₹ 10,000

c. Nil

d. ₹ 15,000
65. If Mr. Suresh, age 62 years pays mediclaim premium of ₹ 25,000, he is entitled to a deduction under
section 80D of ………

a. ₹ 30,000

b.₹ 25,000

c.₹ 15,000

d.₹20,000

66. Income earned by minor on the investments made by his father is taxed in the hand of

a. A minor

b. His Father

c. No Person

d. A major

67. Commission on sales received in addition to salary by a salesman is Income from

a. Business

b. Salary

c. Other Sources

d. Profit

68.Mediclaim premium paid by employer on the medical health policy of the employee is

a. Taxable perquisite

b. Taxfree perquisite

c. Not a perquisite

d.Exempt

69.If the residential property held for 23 months is hold, the resultant capital Gain will be

a.Long term

b. Short term

C. Medium term

d. Fixed
70. Gift of ₹51,000 received from a friend is taxable to the extent of

a. ₹ 1,000

b.₹51,000

c. ₹45,000

d.₹50,000

71.Rent received from open plot of land is

a. Income from house property

b. Income from Business

c. Income from other sources

d.

72.The standard deduction on a family pension of ₹1,50,000 will be

a.₹ 50,000

b.₹ 15,000

c.₹1,00,000

d.₹1,50,000

73. If an assessee pays life insurance premium of ₹ 90,000, he is entitled to a deduction under section
80U of

a. ₹90,000

b.₹ 1,00,000

c.₹1,90,000

d. ₹80,000
74. Mr. Anil is a person with a physical disability of 50%. He is entitled to a deduction under section 80U
of

a.₹ 50,000

b.₹ 1,00,000

c.₹1,50,000

d.₹2,00,000

75. Mr. Dinkar earns savings Bank Interest of ₹ 90,000 during the previous year 2018-2019. He is entitled
to a deduction under section 80 TTA of

a. ₹ 90,000

b.₹ 10,000

c.₹1,00,000

d.₹1,90,000

76. Gift Received by Mr. Sharad from grand mother of his wife ₹ 1,00,000 is

a. Fully Taxable

b. Fully Exempt

c. Exempt upto ₹50,000 only

d. Exempt upto ₹ 20,000 only

77. Deduction Under Section 80DD in the Case of Dependent with servere disability (85%) shall be
allowed

a. To the extent of actual expenditure

b.₹1,25,000 irrespective of actual expenditure

c.₹ 50,000

d.₹ 1,00, 000

78. Mr. Satish , who is a practising Chartered Accountant , and also a full time lecturer in college. He was
appointed as advisor of college in Income Tax matters and was paid ₹ 25,000 as professional fees.
These fees would be taxable under the head

a. Income from Business and professional

b. Income from other sources

c. Income from Salary .

d. Income From House Property

79. If full office building used for business purpose is given on rental basis, the income arising therefrom
is taxable as

a. Business income

b. Income From other sources.

c. Income From house property

d. Income from Salary

80. Mr. Rajiv acting as an agent of Microsoft Ltd. USA, received ₹ 10,000 for termination of his agency
from Miscrosoft Ltd. This receipt is

a. Not taxable being capital receipt

b. Fully taxable being capital receipt

c. Exempt upto ₹5,00,000 being retrenchment compensation

d. Fully Exempt upto 50,000

81.Family pension received by widow of deceased employee is taxed as

a. Income from Salary

b. Income from business

c. Income From other sources

d. Income from house Property

82.Deduction Under Section 80C for tution fees shall be allowed if the same are paid

a. For full time education in school and college in india only

b. Even for part time education in school and college in india

c. Even for full/part time education in college abroad

d. For part time education in school

83. Entertainment allowance in case of government employee is :

a. Fully Exempt

b. fully taxable

c. Deductible upto certain limits mentioned in sec.16 (ii)

d. Partly Exempt

84.Nagpur Unviersity is assessable under the Income Tax Act as :

a. A local Authority

b. An Artificial Juridical person

c. An individual

d. Body of individual

85.Share of Income received by a member of HUF is :

a. Fully Exempt

b. fully taxable

c. 60% Taxable

d.50 % Taxable

86.Captian Gain arises from the transfer of :

a. Any Asset

b. Any Fixed Asset

c. Any Captial Asset

d. Any Fictitioius assets

87. A new business was set up on 01.012019. It’s First Previous year will end on.

a. 31.03.2019

b.31.12.2019

c. 31.03.2018

d.31.06.2019

88. Mumbai University is assessed to Income Tax as.

a. An individual

b. An Artificial Juridicial persons

c. A local Authority

d. Body of Individual

89. Total Income of a persons is determined on the basis of .

a. Citizenship

b. Residential Status

c. Both Citizenship and Residential Status

d. Marital status

90.Uncommuted Pension received by a Government Employee is.

a. Taxable

b.Except

c. partly taxable

d. Partly exempt

91.Captial Asset for the purpose of capital gain does not include.

a. Stock in trade

b. Residential flat used for commercial purpose

c. shares and securities

d. Short – term securities

92. Standard deductions on family pension is limited to ₹ 15,000 or

a. 25% of such pension whichever is less

b. 33 1/3% of such pension

c. 50% of such pension whichever is less

d. 60 1/3% of such pension

93.Deduction on account of Entertainment Allowance is allowed to

a. Non – Government employees

b. Government Employees

c. Both Government Employee s and Non- Government employees.

d. No one.

94. Mr. Mangesh, a chartered accountant lets out his ownership office to another chartered accountant,
rent received by him is.

a. Income from Biusiness

b. Income from House property

c. Income from other source

d. Income from salary

95.Mr. Sunil, a businessman paid professional fees ₹ 25,000 by bearer cheque . This is allowed as
business expenditure to the extent of.

a. ₹ 20,000

b.₹ 25,000

c.₹ 30,000

d.₹ Nil

96. Donation to Chief Minister’s Relief Fund is.

a. allowed as business expenditure

b. Not allowed as business expenditure

c. Partly allowed as business expenditure

d. Deduction U/S 80C

97. A new business was set up on 01.10.2018.It’s first previous year will end on :

a.31.03.2019

b.30.03.2019

c.30.06.2019

d.31.12.2018

98.Pune University is assessed to Income Tax as :

a. An individual

b. An Artificial Juridical persons

c. A local Authority

d. Body of Individual

99.Dividend received is exempt if it is received from :

a. An Indian company

b. A Co- operative bank

c. Any Company

d. A foreign company

100. Capital Gain arises out of transfer of :

a. Capital Asset

b. Any Asset

c. Capital and Liability

d. Any Liability