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-8 section-2

Which two of the following are correct about TDS Certificates?
(1) TDS on non-salary payment Form 16
(2) TDS on salary payment Form 16A
(3) TDS on sale of property Form 16 B
(4) TDS on rent Form 16 C

A) 1 and 2 B) 3 and 4 C) 1 and 4 D) 1 and 3

Discuss

Answer & Solution

Answer: Option B

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Methods of the tax planning are

A) capital gain B) income from property C) income from other source D) All of the above

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Answer & Solution

Answer: Option D

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Which of the following statement is true?
1. The tax rate on STCG is 10%.
2. The tax rate on LTCG is 15%.
3. The tax rate on casual income is 30%.
4. The tax rate on dividend received from domestic company is 10%.

A) 1 and 2 are true B) 2 and 4 are true C) 3 and 4 are true D) All statements are true

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Answer & Solution

Answer: Option C

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Where a person derives income from a nation with which India does not have a DTAA, such person is given credit in India in the following manner.

A) Entire tax paid in the foreign country is allowed as deduction B) Tax paid in the foreign country on income which is doubly taxed, is allowed as deduction C) Tax paid on income which is doubly taxed, is allowed as deduction, at the Indian rate of tax only D) Tax paid on income which is doubly taxed, is allowed as deduction, at the Indian rate of tax or rate of tax of the foreign country, which ever is lower

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Answer & Solution

Answer: Option D

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"Tax planning is a moral way of tax saving, in it a tax payer reduce tax liability honestly and it's a long-term process." This definition is given by

A) Prof Colder B) Prof Dalton C) Alderson D) Andrew

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Answer & Solution

Answer: Option A

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The share of the partner in the income of the partnership firm will be

A) Taxable B) Tax free C) Completely tax free D) Partial tax free

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Answer & Solution

Answer: Option C

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Return of income is submitted under which of the following sections?

A) U/S 139(3) B) U/S 139(1) C) U/S 145 D) U/S 143

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Answer & Solution

Answer: Option B

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To reduce tax liability, in case of income is high in relevant years, the pace of repair and renewal can be

A) neutral B) slower C) faster D) None of these

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Answer & Solution

Answer: Option C

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Assessment U/S 143 shall be computed from the end of relevant assessment year

A) within 18 months B) within 21 months C) within 12 months D) within 30 months

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Answer & Solution

Answer: Option C

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The due date of first installment of advance tax by assessee other than companies is:

A) 15^th April B) 15^th June C) 15^th September D) 15^th December

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Answer & Solution

Answer: Option B

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