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-4 section-7

Which of the following statements reflects the incorrect position?

A) Domestic tax laws are irrelevant while considering application of the provisions of a DTAA B) Provisions of Income Tax Act, 1961 empower the Union Government to enter into tax treaties for relieving double taxation C) Provisions of a DTAA overrides the provisions of domestic laws unless the latter are more beneficial for a taxpayer D) In the absence of a DTAA, domestic tax laws provide unilateral relief to tackle double taxation

Discuss

Answer & Solution

Answer: Option A

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

The amount received from the sale of agricultural land will be kept in the category of income of the following

A) Agricultural income B) Business income C) Capital gain D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

Which of the following is fully taxable allowance?

A) Overseas allowance B) Tribal area allowance C) House rent allowance D) Dearness allowance

Discuss

Answer & Solution

Answer: Option D

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

A separate article on 'Independent Personal Service' is present:

A) only in the OECD model convention B) only in the UN model convention C) only in the US model convention D) Both A and B

Discuss

Answer & Solution

Answer: Option B

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

The person under statutory obligation to file return

A) company or firm B) any university/college C) chief executive officer of every political party D) All of the above

Discuss

Answer & Solution

Answer: Option D

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

Income tax was levied in India first by the following

A) Sir Lucas Paciolo B) Sir Newton C) Sir James D) Sir James Wilson

Discuss

Answer & Solution

Answer: Option D

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

Minors income is clubbed to:

A) Father's income B) Mother's income C) Father's income or mother's income whichever is greater D) Both mother's and father's income

Discuss

Answer & Solution

Answer: Option C

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

In which Head, income from family pension is included under the Income Tax Act?

A) Income from Salary B) Income from other sources C) Income from Business & Profession D) Income from House property

Discuss

Answer & Solution

Answer: Option B

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

Under Section 194IB of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited U/S 44AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds

A) Rs. 50,000 per month B) Rs. 40,000 per month C) Rs. 25,000 per month D) Rs. 15,000 per month

Discuss

Answer & Solution

Answer: Option A

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

Which of the following statements are true in context of computing Minimum Alternative Tax?

A) This can be under Section 115B(a) of the Income Tax Act, 1961 B) The book profit need not to be increased by inter alia, the amount of deferred tax debited to the profit and loss account C) 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