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

51.
Long-term capital loss can be set-off from which of the following?

A. Short-term capital gain only

B. Long-term capital gain only

C. Income from business and profession

D. Capital gain head of income

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52.
The maximum amount of exemption of compensation received at the time of voluntary retirement U/S 10(10C) of the Income Tax Act, 1961, is:

A. Rs. 1,00,000

B. Rs. 2,50,000

C. Rs. 5,00,000

D. Rs. 10,00,000

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53.
Which of the following statements are true about SAHAJ?

A. SAHAJ is applicable to an ordinarily Resident individual having salary or pension income or income from one house property (not a case of brought forward loss or loss to be carried forward)

B. Alternatively, SAHAJ is applicable to income from other sources (not being lottery winnings and income from race horses and in come chargeable to tax at special rates)

C. An individual who is a director in a company or has held equity shares of an unlisted company shall not be eligible to use ITR-1

D. All of the above

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54.
The monetary amount used to record inter-company transactions is called

A. exchange rate

B. transfer price

C. conversion rate

D. incremental cost

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55.
Which of the following TAN represents the initial of the name of the TAN holder who can be a company, firm, individual, etc.?

A. Third alphabet

B. Fourth alphabet

C. Fifth alphabet

D. None of the above

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56.
Tax planning is

A. ethical

B. legal

C. Both A and B

D. None of these

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57.
Interest on capital paid by a firm to its partners, under the Income Tax Act, 1961, is allowed:

A. 6%

B. 12%

C. 15%

D. 18%

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58.
If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is:

A. Not allowable as a deduction in computing profits and gains of business or profession

B. Fully deductible as revenue expenditure in the year in which it is incurred

C. Not deductible but is eligible to be treated as an intangible asset in respect of which depreciation can be claimed

D. Allowed as a deduction over five successive previous year in which amalgamation or demerger takes place

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59.
Which of the following articles in a Double Taxation Avoidance Agreement is absolutely essential to prevent treaty shopping?

A. Most Favoured Nation Clause

B. Non-Discrimination

C. Limitation of benefits

D. Residential status

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60.
Match the following countries with the types of Double Taxation Avoidance Agreement signed by India with them:

Country Type of Agreement

a. Austria 1. Limited Agreement

b. Bahamas 2. Comprehensive Agreements

c. Lebanon 3. Comprehensive Agreements/Limited Multilateral Agreement

d. Sri Lanka 4. Tax Information Exchange Agreement

Choose the correct option from those given below:

A. a-4, b-2, c-1, d-3

B. a-2, b-4, c-1, d-3

C. a-2, b-4, c-3, d-1

D. a-1, b-2, c-3, d-4

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1 2 3 4 5 6 7 8 9 10

Country	Type of Agreement
a. Austria	1. Limited Agreement
b. Bahamas	2. Comprehensive Agreements
c. Lebanon	3. Comprehensive Agreements/Limited Multilateral Agreement
d. Sri Lanka	4. Tax Information Exchange Agreement

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

51. Long-term capital loss can be set-off from which of the following?

Answer & Solution

52. The maximum amount of exemption of compensation received at the time of voluntary retirement U/S 10(10C) of the Income Tax Act, 1961, is:

Answer & Solution

53. Which of the following statements are true about SAHAJ?

Answer & Solution

54. The monetary amount used to record inter-company transactions is called

Answer & Solution

55. Which of the following TAN represents the initial of the name of the TAN holder who can be a company, firm, individual, etc.?

Answer & Solution

56. Tax planning is

Answer & Solution

57. Interest on capital paid by a firm to its partners, under the Income Tax Act, 1961, is allowed:

Answer & Solution

58. If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is:

Answer & Solution

59. Which of the following articles in a Double Taxation Avoidance Agreement is absolutely essential to prevent treaty shopping?

Answer & Solution

Answer & Solution

Read More Section(Income Tax and Corporate Tax)

51.
Long-term capital loss can be set-off from which of the following?

52.
The maximum amount of exemption of compensation received at the time of voluntary retirement U/S 10(10C) of the Income Tax Act, 1961, is:

53.
Which of the following statements are true about SAHAJ?

54.
The monetary amount used to record inter-company transactions is called

55.
Which of the following TAN represents the initial of the name of the TAN holder who can be a company, firm, individual, etc.?

56.
Tax planning is

57.
Interest on capital paid by a firm to its partners, under the Income Tax Act, 1961, is allowed:

58.
If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is:

59.
Which of the following articles in a Double Taxation Avoidance Agreement is absolutely essential to prevent treaty shopping?