Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations

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91.
Tax haven is a place where:

A. tax rates are very high

B. there is no tax on income

C. tax rates are very low

D. there is no tax on income or tax rates are very low

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92.
Which of the following provision under Income Tax Act, 1961 reflects for the set off loss from one head against income from another head is given?

A. Section 70

B. Section 71

C. Section 72

D. Section 73

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93.
Mr James, a citizen of US, arrived in India for the first time on 1^st July, 2018 and left for Nepal on 15^th December, 2018. He arrived to India again on 1^st January, 2019 and stayed till the end of the financial year 2018-19. His residential status for the assessment year 2019-20 is

A. resident (ordinarily resident)

B. not ordinarily resident

C. non-resident

D. None of the above

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94.
When compared to a multilateral transfer pricing agreement. What is the main advantage of a unilateral agreement?

A. It will eliminate the need to keep transfer pricing documentation

B. It is quicker to negotiate

C. It will enhance a company's profitability

D. It will ensure no transfer pricing disputes arise

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95.
Which of the following would not be considered as a permanent home in context of tie-breaker rule for dual residency?

A. Accommodation taken on rent for occupation

B. Hotel accommodation provided for the purpose of prolonged employment

C. Self-occupied house co-owned with spouse

D. None of the above

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96.
Who do people often define to tax evasion?

A. As a victimless crime

B. As a pointless battle that waste resources

C. As a crusade against the rich

D. As a crime against the taxpayer

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97.
Source rule of taxation provides that income is to be taxed

A. in the country of residence of taxpayer

B. in the country in which such income originates

C. Both A and B

D. None of the above

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98.
Tax rates on the basis of slab system are applicable for the following assessee.

A. Company

B. Partnership firm

C. Limited liability partnership firm

D. Hindu Undivided Family

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99.
In case of salary, the liability to deduct tax at source arise

A. when employees account is credited with the salary due to him, which due to some reason not paid

B. only at the time of payment

C. when it is due or at the time of payment

D. only in the last three months of the financial year

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100.
If recipient of income fails to furnish his Permanent Account Number to deductor of tax, the tax shall be deducted

A. at the rate specified in the relevant section

B. at the rate or rates in forces

C. at the rate of 20%

D. higher of the above rate

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Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations | Commerce

91. Tax haven is a place where:

Answer & Solution

92. Which of the following provision under Income Tax Act, 1961 reflects for the set off loss from one head against income from another head is given?

Answer & Solution

93. Mr James, a citizen of US, arrived in India for the first time on 1st July, 2018 and left for Nepal on 15th December, 2018. He arrived to India again on 1st January, 2019 and stayed till the end of the financial year 2018-19. His residential status for the assessment year 2019-20 is

Answer & Solution

94. When compared to a multilateral transfer pricing agreement. What is the main advantage of a unilateral agreement?

Answer & Solution

95. Which of the following would not be considered as a permanent home in context of tie-breaker rule for dual residency?

Answer & Solution

96. Who do people often define to tax evasion?

Answer & Solution

97. Source rule of taxation provides that income is to be taxed

Answer & Solution

98. Tax rates on the basis of slab system are applicable for the following assessee.

Answer & Solution

99. In case of salary, the liability to deduct tax at source arise

Answer & Solution

100. If recipient of income fails to furnish his Permanent Account Number to deductor of tax, the tax shall be deducted

Answer & Solution

Read More Section(Income Tax and Corporate Tax)

91.
Tax haven is a place where:

92.
Which of the following provision under Income Tax Act, 1961 reflects for the set off loss from one head against income from another head is given?

93.
Mr James, a citizen of US, arrived in India for the first time on 1^st July, 2018 and left for Nepal on 15^th December, 2018. He arrived to India again on 1^st January, 2019 and stayed till the end of the financial year 2018-19. His residential status for the assessment year 2019-20 is

94.
When compared to a multilateral transfer pricing agreement. What is the main advantage of a unilateral agreement?

95.
Which of the following would not be considered as a permanent home in context of tie-breaker rule for dual residency?

96.
Who do people often define to tax evasion?

97.
Source rule of taxation provides that income is to be taxed

98.
Tax rates on the basis of slab system are applicable for the following assessee.

99.
In case of salary, the liability to deduct tax at source arise

100.
If recipient of income fails to furnish his Permanent Account Number to deductor of tax, the tax shall be deducted