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

The Company may have the residential status as:

The term casual income does not include

Where more than one price is determined by the most appropriate method, the arm's length price shall be taken to be:

The income arrived after deductions under Section 80C to 80U from gross total income is known as

Deduction allowed from annual value is:

Which of the following statements are true in context of Minimum Alternate Tax (MAT)?
(1) MAT is applied when the taxable income calculated according to the I-T Act provisions is found to be less than 15.5% (plus surcharge and cess as applicable) of the book profit under the Companies Act, 2013.
(2) MAT was reduced in September 2019, from 18.5% to 15%.
(3) MAT is levied on book profit, unlike normal corporation tax, which is levied on taxable profit.
(4) No MAT would be imposed on new domestic manufacturing company (incorporated on or after 1^st October 2019).

Consider the following statements.
Statement-I: Legal agreements between two countries govern how both the countries tax earnings.
Statement-II: International Law may determine how and whether companies can operate in a certain locale.

Match the items of the List-I with those of the List-II and indicate the correct answer:

List-I	List-II
a. Residential status of an individual	1. Section 10(13A)
b. Agricultural income	2. Section 10(10)
c. House rent allowance	3. Section 6
d. Gratuity	4. Section 10(1)

Which of the following incomes is NOT taxable as per Income Tax Act?

In case of replacement of a part only, the expenditure for such replacement is . . . . . . . . in computing the income.