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

Usually there is a tendency among MNCs to adjust their international transactions in such a way that maximum profit arises in that country where the rate of tax is lowest and minimum profit arises in that country where the rate of tax is highest. Thus, there may be chances that MNC escape tax in those countries where the tax rate is more by adjusting their international transaction and declaring lesser profits in such country.
This is called as the issue of:

Family pension is taxable under the head

When expenses incurred on replacement of an asset are capitalised, it will

Taxes on income and on capital imposed on behalf of a contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied, are covered in the following model convention(s)

In case of issuance of PAN and card, the maximum period should be . . . . . . . . from the date of application.

Preliminary expenses incurred are allowed deduction in

Under the Income Tax Act, 1961 "block of assets" for the purpose of charging depreciation means:

Which of the following will be considered as tax planning effort?
1. Mr. A purchased a house for self-residence of Rs. 80 lakh by taking a loan of Rs. 60 lakh from SBI at 10% interest, instead of using his own funds.
2. Mr. A made investment in purchasing 12% redeemable debentures of TISCO worth Rs. 1.50 lakh
3. Mr. A purchased 100 gram gold biscuits on 2.5 lakh from SBI on the occasion of Diwali.
4. Mr. A invested Rs. 1 crore in purchasing 5 acres of agricultural land in his native village in Gaya.
Select the correct answer using the options given below

In exemption method:

The provisions relating to limitation of interest deduction in respect of debt issued by a non-resident associated enterprise would not apply, where the expenditure by way of interest or similar nature is