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-1 section-4

Tax free incomes are mentioned in which Section of the income tax act?

A) Section 80 B) Section 88 C) Section 10 D) Section 2

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Answer & Solution

Answer: Option C

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If a money gift is received from which of the following is not taxable under any head?

A) From any relatives B) On the occasion of the marriage of the individual C) Under a will or by way of inheritance D) All of the above

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Answer & Solution

Answer: Option D

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Which of the following statements are correct?
1. 30% depreciation is allowed on neon sign board.
2. Animals are used for business purposes. Hence, depreciation shall be allowed on them.
3. For the purpose of taxation, there should not be and indeed there is no distinction made between legal and illegal business.
Select the correct answer using the options given below

A) Only 1 B) Both 1 and 2 C) Only 3 D) Both 1 and 3

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Answer & Solution

Answer: Option C

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Which of the following is the type of assessment?

A) Self-assessment B) Regular assessment C) Best judgement assessment D) All of the above

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Answer & Solution

Answer: Option D

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According to Section 2(7) of Income Tax Act 'Assessee' means a person:

A) By whom any tax or other sum of money is payable B) By whom any proceeding under the Act has been taken C) Who is deemed to be an assessee in default under any provision of this Act D) All of the above

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Answer & Solution

Answer: Option D

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Match the items of the List-I with those of the List-II and indicate the correct answer:

List-I	List-II
a. Residential status of an individual	1. Section 10(13A)
b. Agricultural income	2. Section 10(10)
c. House rent allowance	3. Section 6
d. Gratuity	4. Section 10(1)

A) a-1, b-3, c-2, d-4 B) a-3, b-4, c-1, d-2 C) a-2, b-1, c-3, d-4 D) a-4, b-2, c-1, d-3

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Answer & Solution

Answer: Option B

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Which form is required to be filed in for applying for TAN?

A) Form 49B B) Form 49C C) A and B D) None of the above

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Answer & Solution

Answer: Option A

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Which of the following statement/s is/are true?

A) The return of income can be filed with the Income tax Department in electronic mode only B) A company can file its return electronically without digital signature C) Both A and B D) None of the above

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Answer & Solution

Answer: Option D

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If any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1^st day of April, 2006 but before 1^st of October 2009, the whole sum is taxable under the head:

A) Income from Other Sources B) Income from Business and Profession C) Income from Capital Gain D) None of the above

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Answer & Solution

Answer: Option A

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Tax treaty is part of international law; hence its interpretation should be based on a certain set of principles and rules of interpretation. Which convention is used globally for interpretation of tax treaties?

A) The UN model convention B) The OECD model convention C) Either A or B D) The Vienna convention

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Answer & Solution

Answer: Option D

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