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

Income Tax and Corporate Tax MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Income Tax and Corporate Tax MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-2 section-1

Each section contains 100 MCQs on Income Tax and Corporate Tax .
11
Under Section 271 C of the Income Tax Act, 1961 the amount of penalty for failure to deduct tax at source is
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Answer & Solution
Answer: Option B
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12
Which Section of the Income Tax Act relates to claim deduction for the amount of interest received from Bank Saving Account?
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Answer & Solution
Answer: Option A
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13
Which two of the following are correct about TDS Certificates?
1. TDS on non-salary payment - Form 16
2. TDS on salary payment - Form 16 A
3. TDS on sale of property - Form 16 B
4. TDS on rent - Form 16 C
Choose the correct option from those given below:
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Answer & Solution
Answer: Option B
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14
Clubbing of income means:
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Answer: Option B
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15
From the following details calculate the taxable income of 'A' assuming that he is a 'Not Ordinarily Resident'
1. Received Rs. 1000 in India, which accrued in England
2. Rs. 6000 was untaxed foreign income of some earlier years which was brought to India during previous year
3. Rs. 2,000 earned in India but received in England
4. Rs. 10,000 earned and received in Africa bur brought to India
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Answer & Solution
Answer: Option D
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16
Return of income is submitted under which Section of Income Tax Act?
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Answer: Option C
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17
Expected rent shall be higher of:
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Answer: Option D
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18
The term previous year means
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Answer: Option D
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19
Following are the information for a house property:
Municipal value : Rs. 4,50,000
Fair rental value : Rs. 5,00,000
Standard rent : Rs. 4,80,000
Actual rent : Rs. 4,20,000
What is the gross annual value of the house property?
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Answer & Solution
Answer: Option A
Solution:
To determine the gross annual value (GAV) of a house property, we consider the following values: Municipal Value: Rs. 4,50,000
Fair Rental Value: Rs. 5,00,000
Standard Rent: Rs. 4,80,000
Actual Rent Received: Rs. 4,20,000

Step-by-Step Calculation: Step 1: Compare the Municipal Value and the Fair Rental Value and take the higher value.
Higher Value (Municipal vs. Fair Rental): Rs. 5,00,000

Step 2: Compare the value obtained in Step 1 with the Standard Rent and take the lower value.
Lower Value (Higher Value from Step 1 vs. Standard Rent): Rs. 4,80,000

Step 3: Compare the value obtained in Step 2 with the Actual Rent Received and take the higher value.
Higher Value (Lower Value from Step 2 vs. Actual Rent): Rs. 4,80,000

Therefore, the gross annual value of the house property is Rs. 4,80,000.
20
On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under section 10 AA of the Income Tax Act is allowed for
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Answer: Option C
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