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-8

. . . . . . . . neither refers to petty repairs nor the repairs carried out year to year, but it refers to the repairs carried out presently, whatever its cost may be

A) Maintenance B) Current maintenance C) Current repairs D) Repairs

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Answer: Option D

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Which of the following is not included in Agricultural Income?

A) Income from growing flowers B) Rent of Agricultural Land for agriculture work C) Income from purchasing of standing crop D) Income from agricultural work

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Answer: Option C

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Which one of the following statements concerning double taxation is correct?

A) If there is a double taxation agreement, then relief will never be available B) If there is a double taxation agreement, then relief will always be available C) It there is no double taxation agreement, then relief will never be available D) If there is no double taxation agreement, then relief will often not be available

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Answer: Option B

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Given that: Fair rent of a let-out house property is Rs. 75,000. Its Municipal value is Rs. 60,000, standard rent is Rs. 72,000 and actual rent received is Rs. 63,000. What is the Gross Annual Value of this house property?

A) Rs. 60,000 B) Rs. 63,000 C) Rs. 72,000 D) Rs. 75,000

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Answer: Option C

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The salary, remuneration or compensation received by the partners is taxable under the head:

A) Income from Other Sources B) Income from Business C) Salary D) None of the above

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Answer: Option B

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For the purpose of deduction under section 80DD, which of the following statements is/are true?

A) Assessee is either and individual or a HUF B) Assessee is resident of India C) Assessee has a dependent disable relative D) All of the above

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Answer: Option C

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On the occasion of marriage of Mr. Rahul, he received a gift of Rs. 75,000 from a relative. Such an amount shall be:

A) Taxable B) Non-taxable C) Taxable subject to standard deduction of 50% D) None of the above

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Answer: Option B

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Which of the following statements are true in context of 'dividend received from an Indian company'?

A) This dividend was exempt until 31^st March 2020 (Financial Year 2019-20). That was because the company declaring such dividend already paid dividend distribution tax (DDT)before making payment B) The Finance Act, 2020 changed the method of dividend taxation C) Both A and B D) None of the above

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Answer: Option C

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Dividend from an Indian company is not taxable. It is exempt under Section.

A) 10(10) B) 10(34) C) 10(2A) D) 2(AA)

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Answer: Option B

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What is the overriding problem with the three traditional methods when trying to set a transfer price?

A) They are too time-consuming B) External data may not be available C) They are too expensive D) Internal data may not be available

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Answer: Option B

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