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

Which of the following income are taxable under income tax?
1. Short-term capital gain
2. Providend fund receipt
3. Capital gain on sale of shares under Section 10(38)
4. Income of local authority
5. Interest received on government securities
6. Money found on the road
Select the correct answer using the options given below

The provision relating to clubbing of income where transfer of income is done without transferring the assets is given under:

Match the following.

List-I	List-II
a. Tax evasion	1. Is done a financial activity, which a person proposes to carry out in near future
b. Tax avoidance	2. Unrecorded sales
c. Tax planning	3. Is a device, which technically satisfies the requirement of the law, but in fact it is not in accordance with the legislative intent
d. Tax management	4. Takes steps to avail various tax incentives

Calculate the Gross Annual Value from the following details:
Municipal Value - Rs. 45,000
Fair Rental Value - Rs. 50,000
Standard Rent - Rs. 48,000 Actual Rent - Rs. 42,000

The coffee is grown, cured and further processed, then the tax liability for the agricultural income is:

Tax . . . . . . . . takes into account the loopholes of law.

The conversion of preference share into equity share

In case where profits are insufficient to absorb brought forward losses, current depreciation and current business losses, the same should be deducted in the order
1. Current scientific research expenditure [Section 35(1)].
2. Current depreciation [Section 32(1)].
3. Brought forward business losses [Section 72(1)].
4. Unabsorbed depreciation [Section 32(2)].
5. Unabsorbed investment allowance [Section 32A(3)(b)].
6. Unabsorbed development allowance [Section 33A(2)(b)].
7. Unabsorbed family planning promotion expenditure [Section 36(1)(I)].
8. Unabsorbed scientific research capital expenditure [Section 35(4)].

Under which of the methods of taxation is particular income taxed in only one of the two countries:

In case of conflict between the provisions of the DTAA and the Income Tax Act, 1961, then