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-7
Each section contains 100 MCQs on
Income Tax and Corporate Tax .
Which of the following tax related decisions are important in case of shut down or continue decisions?
1. If the business is discontinued, the business losses and unabsorbed depreciation still can be carry forwarded and set off against profits and gains of business or profession. (in the case of unabsorbed depreciation - set off against income under any head)
2. The benefit of deductions under section 33AB (Tea Development Account/Coffee Development Account/Rubber Development Account) and 115VT (Reserve for shipping business) may be withdrawn and liable to tax for the year in which business is discontinued.
3. If the business is discontinued and the assets used for scientific research and family planning are sold, the selling price to the extent of deduction claimed shall be deemed as the profits of the previous year in which such assets are sold.
4. If a person is running more than one business the loss-making business should not be discontinued but operated in a minimal way so that the losses and expenses like retrenchment compensation, interest on borrowed funds, bad debts, etc. adjusted with profit making units.
Tax is . . . . . . . . at source by the seller from the buyer at the time of debiting the amount to account of the buyer or the receipt of payment which ever is earlier.
If the aggregate agricultural income of the assessee is up to Rs. 5,000, we can disclose the agricultural income in the income tax return (ITR) 1. But if the agricultural income exceeds Rs. 5,000, then which of the following form is applied?
The following exemption acts mandate that house should be purchased by assessee and it does not stipulate that house should be purchased in name of assessee. Property purchased by assessee in joint name with his wife for 'shagun' purpose because of fact that assessee was physically handicapped and the whole consideration was paid by assessee, assessee entitled to exemption under the same act. What is the act?
