Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations

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-5

Which of the following double taxation avoidance agreement (DTAA)emphasizes on residence principle?

A) UN Model B) US Model C) OECD Model D) Andean Model

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Which is the most useful method for setting a transfer price when very little value is added by the company that sells the product outside the group?

A) Resale price method B) Transactional net margin method C) Cost plus method D) Profit split method

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Paying guest's accommodation is chargeable under

A) income from house property B) profit and gains of business and profession C) income from other sources D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

According to Section 80G, donations made to, which of the following are eligible for 100% deduction without any qualifying limit?
1. National Defence Fund set-up by the Central Government
2. Prime Minister's National Relief Fund
3. Prime Minister's Armenia Earthquake Relief Fund
4. Africa (Public Contributions-India) Fund
5. National Foundation for Communal Harmony
6. Prime Minister's Drought Relief Fund
7. National Children's Fund
8. Indira Gandhi Memorial Trust
Select the correct answer using the options given below

A) 1, 4, 6 and 8 B) 4, 5, 7 and 8 C) 1, 2, 3, 4 and 5 D) 6, 7 and 8

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

The replacement may be of

A) defective parts B) entire machinery C) substantial part of the entire machinery D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

Which of the following statement/s is/are true in context of Advance Ruling?

A) Advance Ruling means that written opinion or authoritative decision by an Authority empowered to render it with regard to the tax consequences of a transaction or proposed transaction or an assessment in regard thereto B) It has been defined in section 245N(A) of the Income tax Act, 1961 as amended from time-to-time C) Both A and B D) None of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Tax . . . . . . . . is not valid.

A) Evasion B) Planning C) Avoidance D) Management

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

The meaning of exempted income is:

A) Not included in total income B) Agricultural income C) Not taxable under income tax D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

A person is liable to pay interest, if advance tax paid by him is less than

A) 99% or less B) 92% or less C) 95% or less D) 90%

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

To which of the following assessees, ITR- 1 (SAHAJ) is applicable to:

A) Income from salary/pension B) Income from one house property (excluding cases where loss is brought forward from previous years or loss to be carried forward) C) Income from other sources (excluding winnings from lottery, income from race horses and income chargeable to tax at special rates) D) All of the above

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board