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

31.
Two enterprises shall be considered as associated enterprises if at any time during the previous year, which of the following condition is satisfied?

A. Holding 25% voting power in another enterprise

B. Advancing of loan which is at least 51% of the book value of the assets of the borrower enterprise

C. Providing guarantee for at least 5% of the total borrowings of enterprise

D. Tapping at least 50% of raw material from the enterprise

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32.
Under the salary head, pension is:

A. Fully taxable

B. Partially taxable

C. Not taxable

D. None of the above

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33.
Who among the following is NOT included as "Person" as per section 2(31) of Income Tax Act?

A. An Individual being an NRI

B. A Hindu undivided family

C. An Association of persons or body of individuals whether incorporated or not

D. A Company

E. A Local Authority or Artificial Juridical Person

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34.
'Previous year' means

A. Financial year

B. Calendar year

C. Accounting year

D. The financial year preceding the assessment year

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35.
Government's contribution to the new pension scheme referred to in Section 80CCD is

A. An exempt income

B. Income chargeable to tax as salaries in full

C. 50% there of is income chargeable to tax as Salaries

D. Income chargeable to tax as income from other sources in full

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36.
Consider the following problem relating to a let-out house property:
Municipal value - Rs. 60,000
Fair rent - Rs. 68,000
Standard rent under the Rent Control Act - Rs. 62,000
Annual Rent received - Rs. 65,000
The Gross Annual Value of the property will be:

A. Rs. 68,000

B. Rs. 62,000

C. Rs. 65,000

D. Rs. 60,000

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37.
Division P is an investment centre within PC Ltd. Over which of the following is the manager of division P likely to have control?
1. Transfer prices
2. Level of stock in the division
3. Discretionary fixed costs incurred in the division
4. Apportioned head office costs

A. 1, 2, 3 and 4

B. 1, 2 and 3

C. 1 and 2

D. 2 and 3

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38.
The agricultural income is fully exempt from tax from:

A. Finance Act, 1973

B. Income Tax Act, 1961

C. Agricultural Act, 1981

D. None of the above

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39.
The total income of the assessee has been computed at Rs. 1,53,494.90 after rounding off, the total income will be taken as

A. Rs. 1,53,500

B. Rs. 1,53,490

C. Rs. 1,53,495

D. Rs. 1,53,400

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40.
An Advance Pricing Authority is an agreement between a tax payer and tax authority determining the transfer pricing methodology for pricing the tax payers international transactions for future years. The APA shall be valid for which of the following period as may be specified in the agreement?

A. For such period not exceeding 5 consecutive previous years

B. For such period not exceeding 10 consecutive previous years

C. For such period not exceeding 2 consecutive previous years

D. For such period not exceeding 3 consecutive previous years

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

31. Two enterprises shall be considered as associated enterprises if at any time during the previous year, which of the following condition is satisfied?

Answer & Solution

32. Under the salary head, pension is:

Answer & Solution

33. Who among the following is NOT included as "Person" as per section 2(31) of Income Tax Act?

Answer & Solution

34. 'Previous year' means

Answer & Solution

35. Government's contribution to the new pension scheme referred to in Section 80CCD is

Answer & Solution

36. Consider the following problem relating to a let-out house property: Municipal value - Rs. 60,000 Fair rent - Rs. 68,000 Standard rent under the Rent Control Act - Rs. 62,000 Annual Rent received - Rs. 65,000 The Gross Annual Value of the property will be:

Answer & Solution

37. Division P is an investment centre within PC Ltd. Over which of the following is the manager of division P likely to have control? 1. Transfer prices 2. Level of stock in the division 3. Discretionary fixed costs incurred in the division 4. Apportioned head office costs

Answer & Solution

38. The agricultural income is fully exempt from tax from:

Answer & Solution

39. The total income of the assessee has been computed at Rs. 1,53,494.90 after rounding off, the total income will be taken as

Answer & Solution

40. An Advance Pricing Authority is an agreement between a tax payer and tax authority determining the transfer pricing methodology for pricing the tax payers international transactions for future years. The APA shall be valid for which of the following period as may be specified in the agreement?

Answer & Solution

Read More Section(Income Tax and Corporate Tax)

31.
Two enterprises shall be considered as associated enterprises if at any time during the previous year, which of the following condition is satisfied?

32.
Under the salary head, pension is:

33.
Who among the following is NOT included as "Person" as per section 2(31) of Income Tax Act?

34.
'Previous year' means

35.
Government's contribution to the new pension scheme referred to in Section 80CCD is

36.
Consider the following problem relating to a let-out house property:
Municipal value - Rs. 60,000
Fair rent - Rs. 68,000
Standard rent under the Rent Control Act - Rs. 62,000
Annual Rent received - Rs. 65,000
The Gross Annual Value of the property will be:

37.
Division P is an investment centre within PC Ltd. Over which of the following is the manager of division P likely to have control?
1. Transfer prices
2. Level of stock in the division
3. Discretionary fixed costs incurred in the division
4. Apportioned head office costs

38.
The agricultural income is fully exempt from tax from:

39.
The total income of the assessee has been computed at Rs. 1,53,494.90 after rounding off, the total income will be taken as

40.
An Advance Pricing Authority is an agreement between a tax payer and tax authority determining the transfer pricing methodology for pricing the tax payers international transactions for future years. The APA shall be valid for which of the following period as may be specified in the agreement?