Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations

11.
Under Section 271 C of the Income Tax Act, 1961 the amount of penalty for failure to deduct tax at source is

A. 10% of tax which is otherwise deductible under Section 194 C

B. 100% of tax which is otherwise deductible under Section 194 C

C. 200% of tax which is otherwise deductible under Section 194 C

D. 300% of tax which is otherwise deductible under Section 194 C

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12.
Which Section of the Income Tax Act relates to claim deduction for the amount of interest received from Bank Saving Account?

A. 80TTA

B. 80E

C. 80U

D. 80C

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13.
Which two of the following are correct about TDS Certificates?
1. TDS on non-salary payment - Form 16
2. TDS on salary payment - Form 16 A
3. TDS on sale of property - Form 16 B
4. TDS on rent - Form 16 C
Choose the correct option from those given below:

A. 1 and 2

B. 3 and 4

C. 1 and 4

D. 2 and 3

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14.
Clubbing of income means:

A. Addition income of two partners

B. Inclusion of income of other person in assessee income

C. Total of income of various heads

D. Collection of income

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15.
From the following details calculate the taxable income of 'A' assuming that he is a 'Not Ordinarily Resident'
1. Received Rs. 1000 in India, which accrued in England
2. Rs. 6000 was untaxed foreign income of some earlier years which was brought to India during previous year
3. Rs. 2,000 earned in India but received in England
4. Rs. 10,000 earned and received in Africa bur brought to India

A. Rs. 19,000

B. Rs. 12,000

C. Rs. 9,000

D. Rs. 3,000

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16.
Return of income is submitted under which Section of Income Tax Act?

A. Section 138(1)

B. Section 142(1)

C. Section 139(1)

D. Section 129(1)

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17.
Expected rent shall be higher of:

A. Municipal value and standard rent

B. Fair rent and actual rent received

C. Standard rent and fair rent

D. Municipal value and fair rent

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18.
The term previous year means

A. Financial year

B. Accounting year

C. Calender year

D. Financial year just before assessment year

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19.
Following are the information for a house property:
Municipal value : Rs. 4,50,000
Fair rental value : Rs. 5,00,000
Standard rent : Rs. 4,80,000
Actual rent : Rs. 4,20,000
What is the gross annual value of the house property?

A. Rs. 4,80,000

B. Rs. 5,00,000

C. Rs. 4,20,000

D. Rs. 4,50,000

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20.
On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under section 10 AA of the Income Tax Act is allowed for

A. 5 years

B. 10 years

C. 15 years

D. Unlimited period

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

11. Under Section 271 C of the Income Tax Act, 1961 the amount of penalty for failure to deduct tax at source is

Answer & Solution

12. Which Section of the Income Tax Act relates to claim deduction for the amount of interest received from Bank Saving Account?

Answer & Solution

13. Which two of the following are correct about TDS Certificates? 1. TDS on non-salary payment - Form 16 2. TDS on salary payment - Form 16 A 3. TDS on sale of property - Form 16 B 4. TDS on rent - Form 16 C Choose the correct option from those given below:

Answer & Solution

14. Clubbing of income means:

Answer & Solution

Answer & Solution

16. Return of income is submitted under which Section of Income Tax Act?

Answer & Solution

17. Expected rent shall be higher of:

Answer & Solution

18. The term previous year means

Answer & Solution

19. Following are the information for a house property: Municipal value : Rs. 4,50,000 Fair rental value : Rs. 5,00,000 Standard rent : Rs. 4,80,000 Actual rent : Rs. 4,20,000 What is the gross annual value of the house property?

Answer & Solution

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

Answer & Solution

11.
Under Section 271 C of the Income Tax Act, 1961 the amount of penalty for failure to deduct tax at source is

12.
Which Section of the Income Tax Act relates to claim deduction for the amount of interest received from Bank Saving Account?

13.
Which two of the following are correct about TDS Certificates?
1. TDS on non-salary payment - Form 16
2. TDS on salary payment - Form 16 A
3. TDS on sale of property - Form 16 B
4. TDS on rent - Form 16 C
Choose the correct option from those given below:

14.
Clubbing of income means:

16.
Return of income is submitted under which Section of Income Tax Act?

17.
Expected rent shall be higher of:

18.
The term previous year means

19.
Following are the information for a house property:
Municipal value : Rs. 4,50,000
Fair rental value : Rs. 5,00,000
Standard rent : Rs. 4,80,000
Actual rent : Rs. 4,20,000
What is the gross annual value of the house property?

20.
On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under section 10 AA of the Income Tax Act is allowed for