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

71.
Rule of previous year does not applicable to-

A. Incase of closure of business

B. On transfer of property for tax avoidance

C. Non-resident shipping company

D. All of the above

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72.
A legal entity that exists in one jurisdiction but is owned or controlled primarily by taxpayers of different jurisdiction is called:

A. Collaborative foreign corporation

B. Controlled foreign corporation

C. Customised future company

D. Co-operative control society

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73.
As per Section 207, . . . . . . . . not having any income from business or profession is not liable to pay advance tax.

A. A resident individual who is of the age of below 60 years

B. A resident HUF

C. A non-resident individual

D. A resident senior citizen

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74.
On receipt of the notice from the Assessing Officer to pay advance tax, if the taxpayer's estimate is lower than the estimate of the Assessing Officer, then he has to send intimation through which of the following Form No. to the Assessing Officer?

A. 35

B. 34C

C. 34D

D. 28A

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75.
On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under Section 10AA of the Income Tax Act is allowed for

A. 5 years

B. 10 years

C. 15 years

D. unlimited period

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76.
Gross Total Income (GTI) is calculated under income tax act:

A. Under section 14

B. Under section 24

C. Under section 17

D. Under section 16

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77.
Match List-I with List-II:

List-I List-II

a. 80TTA 1. Deduction in respect of payment of interest on loan taken for higher education

b. 80CCD 2. Deduction in respect of interest on loan taken for residential house property

c. 80E 3. Deduction in respect of interest on deposits in savings account

d. 80EE 4. Deduction in respect of contribution to national pension system

Choose the correct option from those given below:

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

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

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

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

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78.
A person who fulfils one basic condition and one additional condition is

A. Resident

B. Non-resident

C. Not ordinary resident

D. None of these

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79.
A non-resident entity or the foreign company having an IT-enabled BPO in India, would be liable to tax in India only if:

A. The BPO unit constitutes it is permanent establishment

B. The BPO unit is not covered by the Safe-harbour rules

C. The foreign company is located in Non-Jurisclictional Area

D. There is no DTAA between India and the country to which the foreign company belongs

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80.
If a concern has surplus capacity and even decide to buy a product, it may require to sell a part of its plant and machinery. In such a case, it may be liable to

A. income tax

B. capital gain tax

C. deduct depreciation

D. None of these

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. 80TTA	1. Deduction in respect of payment of interest on loan taken for higher education
b. 80CCD	2. Deduction in respect of interest on loan taken for residential house property
c. 80E	3. Deduction in respect of interest on deposits in savings account
d. 80EE	4. Deduction in respect of contribution to national pension system

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

71. Rule of previous year does not applicable to-

Answer & Solution

72. A legal entity that exists in one jurisdiction but is owned or controlled primarily by taxpayers of different jurisdiction is called:

Answer & Solution

73. As per Section 207, . . . . . . . . not having any income from business or profession is not liable to pay advance tax.

Answer & Solution

74. On receipt of the notice from the Assessing Officer to pay advance tax, if the taxpayer's estimate is lower than the estimate of the Assessing Officer, then he has to send intimation through which of the following Form No. to the Assessing Officer?

Answer & Solution

75. On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under Section 10AA of the Income Tax Act is allowed for

Answer & Solution

76. Gross Total Income (GTI) is calculated under income tax act:

Answer & Solution

Answer & Solution

78. A person who fulfils one basic condition and one additional condition is

Answer & Solution

79. A non-resident entity or the foreign company having an IT-enabled BPO in India, would be liable to tax in India only if:

Answer & Solution

80. If a concern has surplus capacity and even decide to buy a product, it may require to sell a part of its plant and machinery. In such a case, it may be liable to

Answer & Solution

Read More Section(Income Tax and Corporate Tax)

71.
Rule of previous year does not applicable to-

72.
A legal entity that exists in one jurisdiction but is owned or controlled primarily by taxpayers of different jurisdiction is called:

73.
As per Section 207, . . . . . . . . not having any income from business or profession is not liable to pay advance tax.

74.
On receipt of the notice from the Assessing Officer to pay advance tax, if the taxpayer's estimate is lower than the estimate of the Assessing Officer, then he has to send intimation through which of the following Form No. to the Assessing Officer?

75.
On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under Section 10AA of the Income Tax Act is allowed for

76.
Gross Total Income (GTI) is calculated under income tax act:

78.
A person who fulfils one basic condition and one additional condition is

79.
A non-resident entity or the foreign company having an IT-enabled BPO in India, would be liable to tax in India only if:

80.
If a concern has surplus capacity and even decide to buy a product, it may require to sell a part of its plant and machinery. In such a case, it may be liable to