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-5 section-3

Tax planning is done

A) before tax management B) after tax management C) during tax management D) never

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Answer & Solution

Answer: Option B

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'International transaction' is a transaction between:

A) Two or more unrelated enterprises either or both of whom are residents in India B) Two or more associated enterprises, either or both of whom are residents in India C) Two or more associated enterprises, either or both of whom are non-residents or not in India D) None of the above

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Answer: Option C

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Percentage involved in production and sale of tea, agricultural income is considered to be-

A) 10% B) 40% C) 60% D) 90%

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Answer: Option C

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Which of the following is not a condition to be fulfilled for relief to be granted under section 91 of the Income Tax Act?

A) The assessee must be resident of India during the previous year in respect of which the income is taxable B) The income accrues or arises to the assessee outside India C) The assessee has not paid tax on the income in the foreign country D) The income isn't deemed to accrue or arise in India

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Answer: Option C

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Revision of assessment ordered is covered under Section

A) 145 B) 155 C) 263 D) 175

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Answer: Option C

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Deduction allowed under Section 80C, towards any sum paid an individual to effect or to keep an insurance on the life of

A) an individual B) an individual spouse C) any child of such individual, children may be married/unmarried, dependent/not dependent D) All of the above

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Answer: Option D

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Under what head is the salary of an MP taxable?

A) Salary B) Profit from business and profession C) Capital gain D) Income from other source

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Answer: Option D

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Loss from speculation business cannot be set off against profit from any non-speculation business, however:

A) Loss from non-speculative business can be set off against speculation income B) Loss from non-speculative business cannot be set off against speculation income C) Profit from non-speculative business can be set off against speculation income D) None of the above

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Answer: Option A

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What are the incomes are considered as an agricultural income?

A) Any rent received from land which is used for agricultural purpose B) Any income derived from such land by agricultural operations C) Income attributable to farm house D) All of the above

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Answer: Option D

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Which of the losses cannot be carried forward, if the return of loss is not submitted in time?

A) Capital loss B) Business loss (speculative or otherwise) C) Loss from the activity of owing and maintaining race horses D) All of the above

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Answer: Option D

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