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

61.
Which one of the following statements is not correct with reference to the assessment of firms?

A. All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961

B. Income of a firm is taxable at a flat rate of 30% without any exemption

C. Partner's share in the income of a firm is not chargeable to tax in the hands of partners

D. Remuneration paid to partners of a firm (assessed as such) is allowed as deduction subject to statutory limit

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62.
Which business losses are allowed?

A. Loss due to dacoits

B. Salary

C. Wages

D. None of these

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63.
Which of the following statements is/are true?
1. Tax-shield on depreciation and interest is an important variable both for the lessor and the lessee.
2. Lease transactions in India are governed by the Lease Act.
3. A lessee should evaluate the lease options against the buying option.
4. As per AS-19, financial lease is shown in the balance sheet of the lessee as an asset.
Choose the correct answer from the options given below:

A. 1, 3 and 4

B. Only 2

C. 2, 3 and 4

D. 1 and 4

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64.
Certain donations are deductible from GTI under section . . . . . . . . of Income Tax Act.

A. 80G

B. 80D

C. 80C

D. None of these

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65.
The 5^th character of the PAN indicate

A. first letter of the first name of the assessee

B. first letter of the middle name of the assessee

C. last letter of the first name of the assessee

D. first letter of the last name of the assessee

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66.
Which of the following number of parameters have been outlined by OECD to consider whether jurisdiction is tax haven or not?

A. One

B. Two

C. Four

D. Three

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67.
Match the following.

List-I List-II

a. Deduction in respect of income of cooperative societies 1. 100% of such income or Rs. 3,00,000, whichever is less

b. Deduction in respect of royalty on patent 2. Maximum of Rs. 10,000

c. Deduction in respect of interest on deposits in saving account 3. 100% of profit, but in some case amount is fixed at Rs. 50,000/Rs. 1,00,000

d. Deduction in respect of contribution to certain provident funds 4. Maximum of Rs. 1,50,000

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

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

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

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

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68.
Interest under Section 234A is payable by an assessee due to the following reason

A. defaults in furnishing return of income

B. defaults in payable of advance tax

C. defaults in installments of advance tax

D. defaults due to non-deduction tax at source

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69.
The carry forward of losses is permissible if the return of income for the year in which loss incurred is:

A. Filled on time

B. Not filled on time

C. Filed in advance

D. None of the above

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70.
Which of the followings are correct in context of Tax Deducted as Source?
1. Form 24Q-TDS on Salaries
2. Form 26Q-TDS on payments other than Salaries
3. Form 27Q-TDS on payments made to Non-Residents

A. 1 and 2

B. 2 and 3

C. 1 and 3

D. All of the above

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Deduction in respect of income of cooperative societies	1. 100% of such income or Rs. 3,00,000, whichever is less
b. Deduction in respect of royalty on patent	2. Maximum of Rs. 10,000
c. Deduction in respect of interest on deposits in saving account	3. 100% of profit, but in some case amount is fixed at Rs. 50,000/Rs. 1,00,000
d. Deduction in respect of contribution to certain provident funds	4. Maximum of Rs. 1,50,000

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

61. Which one of the following statements is not correct with reference to the assessment of firms?

Answer & Solution

62. Which business losses are allowed?

Answer & Solution

Answer & Solution

64. Certain donations are deductible from GTI under section . . . . . . . . of Income Tax Act.

Answer & Solution

65. The 5th character of the PAN indicate

Answer & Solution

66. Which of the following number of parameters have been outlined by OECD to consider whether jurisdiction is tax haven or not?

Answer & Solution

Answer & Solution

68. Interest under Section 234A is payable by an assessee due to the following reason

Answer & Solution

69. The carry forward of losses is permissible if the return of income for the year in which loss incurred is:

Answer & Solution

70. Which of the followings are correct in context of Tax Deducted as Source? 1. Form 24Q-TDS on Salaries 2. Form 26Q-TDS on payments other than Salaries 3. Form 27Q-TDS on payments made to Non-Residents

Answer & Solution

Read More Section(Income Tax and Corporate Tax)

61.
Which one of the following statements is not correct with reference to the assessment of firms?

62.
Which business losses are allowed?

64.
Certain donations are deductible from GTI under section . . . . . . . . of Income Tax Act.

65.
The 5^th character of the PAN indicate

66.
Which of the following number of parameters have been outlined by OECD to consider whether jurisdiction is tax haven or not?

68.
Interest under Section 234A is payable by an assessee due to the following reason

69.
The carry forward of losses is permissible if the return of income for the year in which loss incurred is:

70.
Which of the followings are correct in context of Tax Deducted as Source?
1. Form 24Q-TDS on Salaries
2. Form 26Q-TDS on payments other than Salaries
3. Form 27Q-TDS on payments made to Non-Residents