Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9

21.
Due to some dispute, the salary of a person is retained by an order of the court. Then, such salary will be

A. included in income under the head salaries

B. not included in income under the head salaries

C. exempted

D. None of the above

Answer & Solution Discuss in Board Save for Later

22.
Due date of furnishing return of income in case of a non-working partner shall be . . . . . . . . of the assessment year, whether the account of the firm are required to be audited or not.

A. 31^st July

B. 30^th September

C. 30^th October

D. 30^th November

Answer & Solution Discuss in Board Save for Later

23.
Match the following.

List-I List-II

a. When the assessee is in default or is deemed to be in default in making payment of tax, including the tax deducted at source 1. Section 271(1)C

b. Failure to pay the advance tax as directed by the assessing office 2. Section 273(1)

c. Concealment of particulars of income or furnishing of inaccurate particulars of income 3. Section 201(1)

A. a-1, b-2, c-3

B. a-3, b-2, c-1

C. a-3, b-1, c-2

D. a-2, b-1, c-3

Answer & Solution Discuss in Board Save for Later

24.
Nature of tax planning includes

A. legal

B. moral

C. honest effort

D. All of these

Answer & Solution Discuss in Board Save for Later

25.
Under the Income Tax Act, 1961, depreciation on machinery is charged on:

A. Purchase price of the machinery

B. Written down value of the machinery

C. Market price of the machinery

D. All of the above

Answer & Solution Discuss in Board Save for Later

26.
Which one of the following statement is true?

A. Different residential status in respect of different previous years of the same assessment year not possible

B. A resident in India cannot become resident in any other country for the same AY

C. Any sum received by an individual, as a member of a Hindu undivided family, shall be taxable in the hands of the member

D. All of the above

Answer & Solution Discuss in Board Save for Later

27.
The benefits of debt financing over equity financing are likely to be highest in which of the following situations?

A. High marginal tax rates and low non-interest tax benefits

B. Low marginal tax rates and low non-interest tax benefits

C. High marginal tax rates and high non-interest tax benefits

D. Low marginal tax rates and high non-interest tax benefits

Answer & Solution Discuss in Board Save for Later

28.
Capital gain on shifting of industrial undertaking from urban area to any special economic zone is

A. taxable

B. exempt

C. partly taxable

D. partly exempt

Answer & Solution Discuss in Board Save for Later

29.
Short-term capital gain other than covered under section 111A is charged to tax at:

A. 10%

B. 15%

C. 20%

D. Normal rate of tax which is determined on the basis of the total taxable income of the taxpayer

Answer & Solution Discuss in Board Save for Later

30.
If an asset is used for scientific research related to the business of assessee, is used in business for sometime and then sold, the selling price is deducted from the WDV of the block of asset. This will reduce

A. profit for that year

B. loss for that year

C. tax liability for that year

D. None of the above

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. When the assessee is in default or is deemed to be in default in making payment of tax, including the tax deducted at source	1. Section 271(1)C
b. Failure to pay the advance tax as directed by the assessing office	2. Section 273(1)
c. Concealment of particulars of income or furnishing of inaccurate particulars of income	3. Section 201(1)

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

21. Due to some dispute, the salary of a person is retained by an order of the court. Then, such salary will be

Answer & Solution

22. Due date of furnishing return of income in case of a non-working partner shall be . . . . . . . . of the assessment year, whether the account of the firm are required to be audited or not.

Answer & Solution

Answer & Solution

24. Nature of tax planning includes

Answer & Solution

25. Under the Income Tax Act, 1961, depreciation on machinery is charged on:

Answer & Solution

26. Which one of the following statement is true?

Answer & Solution

27. The benefits of debt financing over equity financing are likely to be highest in which of the following situations?

Answer & Solution

28. Capital gain on shifting of industrial undertaking from urban area to any special economic zone is

Answer & Solution

29. Short-term capital gain other than covered under section 111A is charged to tax at:

Answer & Solution

30. If an asset is used for scientific research related to the business of assessee, is used in business for sometime and then sold, the selling price is deducted from the WDV of the block of asset. This will reduce

Answer & Solution

Read More Section(Income Tax and Corporate Tax)

21.
Due to some dispute, the salary of a person is retained by an order of the court. Then, such salary will be

22.
Due date of furnishing return of income in case of a non-working partner shall be . . . . . . . . of the assessment year, whether the account of the firm are required to be audited or not.

24.
Nature of tax planning includes

25.
Under the Income Tax Act, 1961, depreciation on machinery is charged on:

26.
Which one of the following statement is true?

27.
The benefits of debt financing over equity financing are likely to be highest in which of the following situations?

28.
Capital gain on shifting of industrial undertaking from urban area to any special economic zone is

29.
Short-term capital gain other than covered under section 111A is charged to tax at:

30.
If an asset is used for scientific research related to the business of assessee, is used in business for sometime and then sold, the selling price is deducted from the WDV of the block of asset. This will reduce