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-3 section-6

Education cess and secondary higher education cess is liable on

A) individual B) company C) all assessee D) HUF

Discuss

Answer & Solution

Answer: Option C

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In which of the following cases, dividend tax is not charged?
1. With effect from 1^st April, 2009, the amount of dividend paid to any person for, on behalf of the New Pension System Trust.
2. When the dividend is interim.
3. If such dividend is paid by accumulated profit.
4. If dividend distributed on or after 1^st April, 2005 out of income generated from special economic zone.
Select the correct answer using the options given below

A) Only 1 B) Both 1 and 4 C) Only 2 D) None of the above

Discuss

Answer & Solution

Answer: Option B

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Bond washing transaction is done

A) to reduce the tax liability B) to make poor happy C) to give money to wife D) None of these

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Answer & Solution

Answer: Option A

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Advance ruling can resolve complex issues arising under . . . . . . . . where a difference of opinion may exist.

A) Income Tax Act, 1961 B) DTAA C) Both A and B D) None of these

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Answer & Solution

Answer: Option C

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The term 'income' includes the following types of receipts

A) Legal B) Illegal C) Legal and illegal D) None of these

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Answer & Solution

Answer: Option C

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The daily allowance received by a Member of Parliament is

A) exempted B) to be included in total income for tax purposes C) taxable D) None of the above

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Answer & Solution

Answer: Option A

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Which one of the following statement is not correct?

A) A person may not have assessable income but still be an assessee B) In some cases, the assessment year and the previous year can be same C) An Indian company is always resident assessee D) Surcharge is additional tax calculated on total income

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Answer & Solution

Answer: Option D

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Salary received by a partner from partnership firm will be included in income from

A) salary B) business and profession C) house property D) None of the above

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Answer & Solution

Answer: Option B

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Medium of tax planning are

A) incentives B) deductions C) rebates D) All of these

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Answer & Solution

Answer: Option D

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The aggregate of income computed under each head, after giving effect to the provision for clubbing of income and set off of losses is known as

A) gross total income B) net total income C) taxable income D) net taxable income

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Answer & Solution

Answer: Option A

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