303 Unit Test Series
The term “Income” does not include ?
Profits and gains
Dividends
Voluntary Contributions
Remittance of savings from U.K
Yes, the
answer is correct.
Feedback:
Definition
of 'income' as given in section 2 (24) of the Income-tax Act, 1961 clearly
shows that income includes only positive incomes arising in form of some
receipts or profits or gains computed as per relevant provisions of the Act.
Accepted
Answers:
Remittance
of savings from U.K
Mr. Anil
Jain, partner of Jain and Jain, is assessable as
Firm
HUF
An individual
One person company
Yes, the
answer is correct.
Feedback:
Mr. Anil
Jain, partner of Jain and Jain, is assessable as an individual.
Accepted
Answers:
An
individual
Mr. James,
being foreign national, came to India first time on 01-02-2019 for seven
months. What will be his residential status for the previous year 2018-19?
Resident and Ordinarily Resident
Resident but Not Ordinarily Resident
Non-Resident
Resident
Yes, the
answer is correct.
Feedback:
The income
tax laws classify the residential status of an individual into three
categories, depending on the individual's stay in India in the relevant
financial year as well as his/her stay in the previous years. These categories
are:
1. Resident
and Ordinarily Resident (ROR)
2. Resident
but Not Ordinarily Resident (RNOR); ..
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at:
https://economictimes.indiatimes.com/wealth/tax/how-is-the-residential-status-of-an-individual-determined-for-income-tax/articleshow/71377045.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Accepted
Answers:
Resident and
Ordinarily Resident
The
incidence of income tax depends on ?
The citizenship of the tax-payer
The age of the taxpayer
The residential status of the
tax-payer
The nationality of the taxpayer
Yes, the
answer is correct.
Feedback:
The
incidence of income tax depends on The residential status of the tax-payer.
Accepted
Answers:
The
residential status of the tax-payer
Capital gain
arising on transfer of property situated in India is treated as ?
Income deemed to accrue or arise
in India
Foreign Income
Tax free income
Net of tax income
Yes, the
answer is correct.
Feedback:
Capital gain
arising on transfer of property situated in India is treated as an Income
deemed to accrue or arise in India.
Accepted Answers:
Income
deemed to accrue or arise in India
In direct
tax, the burden can be shifted
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
In the case
of direct tax, the burden can't be shifted by the taxpayer to someone else.
These are largely taxes on income or wealth.
Accepted
Answers:
FALSE
Direct taxes
are regressive in nature
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Direct taxes
are progressive, and a tax on income is what we refer to as a direct tax.
Accepted
Answers:
FALSE
The Income
Tax Act, 1961 came into force on the __________.
1st day of April, 1961
1st day of January, 1961
1st day of April, 1962
1st day of January, 1962
Yes, the
answer is correct.
Feedback:
The Income
Tax Act, 1961 came into force on the 1st
day of April, 1962.
Accepted
Answers:
1st day of April, 1962
Rates of
Income tax are fixed _____?
By an ordinance
Under the Income tax act
By the finance act
By CBDT
Yes, the
answer is correct.
Feedback:
Rates of
Income tax are fixed by the finance act, generally announced during budget
speech.
Accepted
Answers:
By the
finance act
A citizen of
India who leaves India for the purpose of employment may become resident only
if he stays in India at least for_______ days.
90
165
180
182
Yes, the
answer is correct.
Feedback:
In the event
an individual who is a citizen of India or person of Indian origin leaves India
for employment during an FY, he will qualify as a resident of India only if he
stays in India for 182 days or more.
Accepted
Answers:
182
The salary
of Member of Parliament shall be chargeable to tax under the head ?
Profits and gains from Business or Profession
Income from other sources
Salary Income
Capital gains
Yes, the
answer is correct.
Feedback:
Remuneration
received by MPs and MLAs is taxable under the head “Income from Other Sources”.
Accepted
Answers:
Income from
other sources
While
computing relief under section 89 in respect of gratuity received after
rendering service of more than 5 years but of less than 15 years, the amount of
gratuity shall be spread over past? years’ income.
2
3
4
5
Yes, the
answer is correct.
Feedback:
While
computing relief under section 89 in respect of gratuity received after
rendering service of more than 5 years but of less than 15 years, the amount of
gratuity shall be for 2 years.
Accepted
Answers:
2
Mr. Ajay is
a partner in Ajay Vijay & Co. He is a working partner and as per the terms
of partnership deed, he is paid a fixed monthly salary of Rs.30,000. In this
case, such salary shall be charged to tax under the head .
Salaries
Profits and gains of business or
profession
Other sources
Capital gains
Yes, the
answer is correct.
Feedback:
Profits and
gains of business or profession
Accepted
Answers:
Profits and
gains of business or profession
While
computing exemtption from House Rent Allowance, the term “salary” for that
purpose includes :
Basic salary only
Basic Salary and dearness allowance
Basic Salary, dearness allowance (if part of
retirement benefit)
Basic Salary, dearness allowance
(if part of the retirement benefit) and commission based on percentage of
turnover
Yes, the
answer is correct.
Feedback:
Basic
Salary, dearness allowance (if part of the retirement benefit) and commission
based on percentage of turnover.
Accepted
Answers:
Basic
Salary, dearness allowance (if part of the retirement benefit) and commission
based on percentage of turnover
The value of
perquisite to the employee resulting from the use of any movable asset
(electronics items) belonging to the employer shall be determined at an asset
to the employer.
15%
10%
20%
40%
Yes, the
answer is correct.
Feedback:
10%
Accepted
Answers:
10%
Incomes on
which Income tax is not charged are called Exempted incomes
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
What is
Exempt Income? Any income earned which is not subject to income tax is called
exempt income.
Accepted
Answers:
TRUE
Incomes
absolutely exempt from Tax are listed under Sec 10.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
The
exemption under section 10 covers Leave travel allowance (LTA) Agriculture
Income, Life Insurance, Gratuity, leave encashment, Transport allowance etc.
Accepted
Answers:
TRUE
Advance
salary of an employee is taxed in the year _______
Of receipt
To which it becomes due
As decided by the employee
As decided by the employer
Yes, the
answer is correct.
Feedback:
Advance
salary received by an employee is taxed in the year of receipt. However, an
employee can claim relief under section 89 in respect of advance salary.
Accepted
Answers:
Of receipt
Under
section 89, an employee can claim relief from tax payable in respect of ____.
Arrears of salary
Bonus
Commission
Income from other sources
Yes, the
answer is correct.
Feedback:
According to
Section 89, if you get salary in arrears or advance in a financial year due to
which your total income for the year increases, which in turn increases your
taxable income, you can claim for relief under Section 89.
Accepted
Answers:
Arrears of
salary
Grautiy in
the case of employees of________ is fully exempt.
An organization covered by Payment of Gratuity
Act, 1972
An organization not covered by Payment of
Gratuity Act, 1972
Local Authority
Public sector undertakings
Yes, the
answer is correct.
Feedback:
Any
death-cum-retirement gratuity received by Central and State Government
employees, defence employees and employees of a local authority are exempt.
Accepted
Answers:
Local
Authority
Section 22
of the Act is the charging section for taxing any income under the head ?
Income from Other Sources
House Property
Profits and gains from Business or Profession
Capital Gains
Yes, the
answer is correct.
Feedback:
Section 22
of the Income Tax Act, 1961 requires that annual value of any property ,to
income-tax, shall be chargeable to income-tax under the head "Income from
house".property".
Accepted
Answers:
House
Property
When the
owner let out the house property and tenant used the same for carrying on his
own business, then under which head, the rental income in the hands of owner
shall be taxable?
Profit under Business or Profession
Income from House Property
Income from Other Sources
Income from Capital Gains
Yes, the
answer is correct.
Feedback:
Income from
House Property.
Accepted
Answers:
Income from
House Property
Gross Annual
Value of a self-occupied property is:
Fair Rent
Nil
Expected Rent
Market Price of Rent
Yes, the
answer is correct.
Feedback:
The gross
annual value of a self-occupied house is zero.
Accepted
Answers:
Nil
Which
element has relevance for determing Gross Annual Value of house property under
section 23?
Sub-Standard Ren
Standard Rent
Stressed Rent
Market Price of Rent
Yes, the
answer is correct.
Feedback:
First step
is to calculate the Gross Annual Value which will be higher of Municipal Value
or Fair Rental Value, but it cannot exceed the standard rent.
Accepted
Answers:
Standard
Rent
When the
property is not occupied by the individual during the whole previous year due
to employment, business or profession carried on at some other place then
computation shall be done as if it is property provided few conditions are
satisfied:
Let out
Self occupied
Partly let out, partly self-occupied
Vacant
Yes, the
answer is correct.
Feedback:
Self
occupied.
Accepted
Answers:
Self
occupied
House
property held for less than 36 months is Short term capital asset.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Capital
asset held for not more than 36 months immediately prior to the date of
transfer shall be deemed as short-term capital asset.
Accepted
Answers:
TRUE
Personal
property tax can be classified as direct tax?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
A direct tax
is a tax an individual or organization pays directly to the imposing entity. A
taxpayer, for example, pays direct taxes to the government for different
purposes, including real property tax, personal property tax, income tax, or
taxes on assets.
Accepted
Answers:
TRUE
Annual value
of a property being building or land appurtenant thereto of which the taxpayer
is______, is charged to tax under the head “Income from House Property”
provided it is not
Owner
Power of attorney holder
Sub-tenant
Holder in due course
Yes, the
answer is correct.
Feedback:
Annual value
of a property being building or land appurtenant thereto of which the taxpayer is owner, is
charged to tax under the head “Income from House Property”
Accepted
Answers:
Owner
Section
_______deals with the computation metholodogy when house property is owned by
more than one owner.
26
22
27
28
Yes, the
answer is correct.
Feedback:
Section 26
Accepted
Answers:
26
Under
section 25AA, arrears of rent shall be taxable in the year of________.
Accrual
Agreement
Receipt
Understanding
Yes, the
answer is correct.
Feedback:
The amount
of arrears of rent received from a tenant or the unrealised rent realised
subsequently from a tenant, as the case may be, by an assessee shall be deemed
to be the income from house property in respect of the financial year in which
such rent is received or realised.
Accepted
Answers:
Receipt
Out of the
followings which one is not chargeable under the head "PGBP"?
Income from speculative transaction
Any sum received for not carrying out any
activity in relation to any business
Dividend income from a Foreign
Co.
Income derived by the trade, professional or
similar association from specified services
Yes, the
answer is correct.
Feedback:
Dividend
received from a foreign company will be included in the total income of the
taxpayer and will be charged to tax at the rates applicable to the taxpayer.
Accepted
Answers:
Dividend
income from a Foreign Co.
Out of
followings which one is not a qualifying expenditure for the purpose of
claiming deduction under section 35D (Amortisation of preliminary expenses)?
Expenses in connection with preparation of
feasibility report where work is done by assessee himself
Expenses in connection with market survey
where survey is done by a concern who is approved in this behalf by the Board.
Expenses in connection with
preparation of project report where work is done by chartered accountant who is
not approved in this behalf by the Board.
Expenses in connection with drafting of
memorandum and articles of association where work is done by company secretary
who is not approved in this behalf by the Board.
Yes, the
answer is correct.
Feedback:
Expenses in
connection with preparation of project report where work is done by chartered
accountant who is not approved in this behalf by the Board.
Accepted
Answers:
Expenses in
connection with preparation of project report where work is done by chartered
accountant who is not approved in this behalf by the Board.
Out of the
followings which shall be allowed as deduction while computing income under the
head PGBP?
Securities Transaction Tax
Income Tax
Corporate Dividend Tax
Interest under section 234 A/B/C of the Act
Yes, the
answer is correct.
Feedback:
Securities
Transaction Tax
Accepted
Answers:
Securities
Transaction Tax
Out of
followings who is not regarded as relative of Individual for the purpose of
section 40A(2)?
Husband
Brother in Law
Sister
Any lineal ascedent or descedent of an
Individual
Yes, the
answer is correct.
Feedback:
Brother in
law.
Accepted
Answers:
Brother in
Law
Which
compensation may not be chargeable under section 28 of the Act?
Compensation received by a person for
termination of management rights of an Indian company
Compensation received by a person for
termination of management rights of affairs in India of any other company
Compensation for termination of business
agency
Compensation at the time of
voluntary retirement of an employee
Yes, the
answer is correct.
Feedback:
Compensation
at the time of voluntary retirement of an employee.
Accepted
Answers:
Compensation
at the time of voluntary retirement of an employee
Any some
received under key man insurance policy taken on the life of the employee shall
be Taxable under the head Business or profession
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
The sum
received on such policy (except on the sad event of death of insured person)
shall be taxable as income under the head business or other sources. Any sum
received under a keyman policy is considered as business income u/s 28 (vi).
Accepted
Answers:
TRUE
Perquisite
is an example of rent free accomdation?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
In this case
the value of the perquisite in respect of rent free accommodation owned by the
employer depends upon the salary of the employee.
Accepted Answers:
TRUE
The
presumptive taxation scheme of section 44AD can be adopted by ______.
Resident Individual
Non-resident Individual
Private Limited Company
Limited Liability Partnership Firm
Yes, the
answer is correct.
Feedback:
The
presumptive taxation scheme of section 44AD can be opted by the resident
individual.
Accepted
Answers:
Resident
Individual
The
provisions relating to deduction for expenditure on in house research by
companies in special business is contained in section ________.
35 (2AB)
35(1) (ii)
35(2AA)
35(1)(iii)
Yes, the
answer is correct.
Feedback:
Section
35(1)(iii) of the Income-tax Act, 1961 - Scientific research expenditure -
Approved social science or statistical research associations or institutions.
Accepted
Answers:
35(1)(iii)
The weighted
deduction under various provisions of the head “profits and gains from business
or profession" shall not be available from AY________onwards.
2018-19
2020-21
2019-20
2021-22
Yes, the
answer is correct.
Feedback:
2021-22
Accepted Answers:
2021-22
Listed
equity shares shall be treated as long-term capital assets only if they were
held for a period of more than___________ months immediately preceding the date
of its transfer.
12
24
36
48
Yes, the
answer is correct.
Feedback:
if the same
is held for more than 12 months immediately preceding the.
Accepted
Answers:
12
While
measuring the indexed cost of acquisition, _________is irrelevant.
Cost of acquisition
Cost inflation index of the year
of improvement of capital asset
Cost inflation index of the year of
acquisition of capital asset
Cost inflation index of the year of transfer
of capital asset
Yes, the
answer is correct.
Feedback:
Cost
inflation index of the year of improvement of capital asset
Accepted
Answers:
Cost inflation
index of the year of improvement of capital asset
As per
section___________ , long-term capital gain arising in excess of Rs. 1 Lakh on
transfer of equity shares or units of equity oriented mutual fund or units of
business trust is chargeable to tax @ in the hands of any person, if specific
conditions are satisfied in this regard
10(38), 10%
112A, 20%
112A, 10%
111A, 15%
Yes, the
answer is correct.
Feedback:
As per
Section 112A, long-term capital gains arising from transfer of an equity share,
or a unit of an equity oriented fund or a unit of a business trust shall be
taxed at 10% (without indexation) of such capital gains. The tax on capital
gains shall be levied in excess of Rs. 1 lakh.
Accepted
Answers:
112A, 10%
Generally,
long-term capital gain is charged to tax @ __________?
15%
25%
20%
30%
Yes, the
answer is correct.
Feedback:
20%
Accepted
Answers:
20%
To avail the
benefit of section 54, the asset transferred shall be _ ___________?
Short-term capital asset being residential
house property
Long-term capital asset being
residential house property
Any Short-term / long-term capital asset
Long-term capital asset being commercial
property
Yes, the
answer is correct.
Feedback:
The exemption
benefit under section 54 is available only to an individual or a Hindu
Undivided Family (HUF). The capital asset transferred should be a 'Residential
House Property'.
Accepted
Answers:
Long-term
capital asset being residential house property
Unlisted
securities (not being shares) held for not more than 36 months is treated as
short- term capital asset.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
According to
the provisions of section 2 (42A) of The Income Tax Act, ld AO held that sale
of shares of an unlisted company, if held for less than 36 months, the asset is
not a long term capital asset' but a short-term capital asset'.
Accepted
Answers:
TRUE
To avail the
benefit of section 54B, the assessee shall purchase another land within a
period of 2 years after the date of transfer of the eligible asset.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
To avail the
benefit of section 54B, the assessee shall purchase another land within a
period of 2 years after the date of transfer of the eligible asset.
Accepted
Answers:
TRUE
Listed
securities held for not more than ________, is treated as short-term capital
asset.
12
24
36
48
Yes, the
answer is correct.
Feedback:
12 months
Accepted
Answers:
12
Surplus on
sale of rural agricultural land is?
taxable under the head “ Income from Other
Sources”
taxable under the head “ Profits and gains
from business or profession”
not taxable as rural
agricultural land is not a capital asset
taxable only if transferor is a company
Yes, the
answer is correct.
Feedback:
not taxable
as rural agricultural land is not a capital asset.
Accepted
Answers:
not taxable
as rural agricultural land is not a capital asset
Under
section 45(2),__________ of the capital asset on the date on which it
was_______ shall be deemed ot be the full value of consideration.
Cost, purchased
The fair market value, purchased
The fair market value, converted
into stock- in-trade
Cost, converted into stock-in-trade
Yes, the answer
is correct.
Feedback:
The fair
market value, converted into stock- in-trade.
Accepted
Answers:
The fair
market value, converted into stock- in-trade
Sum of money
received by a person without consideration, the aggregate value of which
exceeds_____ during the previous year shall be charged to tax under the
head_______.
Rs. 10,000, Capital Gain
Rs. 25,000 , Income from other sources
Rs.50,000, Income from other
sources
Rs. 1,00,000, Profits and gains from business
or profession
Yes, the
answer is correct.
Feedback:
Section
56(2)(x) of Income Tax Act, provides that where a person receives any sum of
money without consideration, aggregate value of which exceeds Rs 50,000, it
shall be chargeable to tax under income from other sources.
Accepted
Answers:
Rs.50,000,
Income from other sources
If the
aggregate value of sum of money received without consideration during the year
exceeds Rs. 50,000, then ______shall be charged to tax.
such sum of money in excess of Rs. 50,000
such sum of money so received
such sum of money upto Rs. 50,000
such sum of money upto Rs. 30,000
Yes, the
answer is correct.
Feedback:
If the
aggregate value of gifts received during the year exceeds Rs. 50,000, then
total value of all such gifts received during the year will be charged to tax
(i.e. the total amount of gift and not the amount in excess of Rs. 50,000).
Accepted
Answers:
such sum of
money so received
The stamp
duty value of immovable property received by a person without consideration
shall be charged to tax if the same will exceed _________.
Rs. 5,00,000
Rs. 25,000
Rs. 50,000
Rs. 50,001
Yes, the
answer is correct.
Feedback:
the stamp
duty value/fair market value of the property would be taxable (provided the
stamp duty value exceeds Rs. 50,000/-, such difference would be taxable.
Accepted
Answers:
Rs. 50,000
If the
aggregate fair market value of movable properties received by the taxpayer
without consideration during the previous year exceeds Rs. 50,000, then_______
will be charged to tax.
Fair market value up to Rs. 50,000
Fair market value in excess of Rs. 50,000
Entire fair market value
Below market value
Yes, the
answer is correct.
Feedback:
Entire fair
market value.
Accepted
Answers:
Entire fair
market value
As per
section 2(22), dividend does not include ______?
Any distribution by company to its
shareholders which entails the release of the assets of the company to the
extent of accumulated profits
Any distribution by a company to its
shareholders at the time of liquidation of a company to the extent of
accumulated profits
Any distribution of debenture (whether with or
without interest) to its shareholders to the extent of accumulated profits of
the company
Any payment made by a company
out of accumulated profits for buy back of its shares.
Yes, the
answer is correct.
Feedback:
Any payment
made by a company out of accumulated profits for buy back of its shares.
Accepted
Answers:
Any payment
made by a company out of accumulated profits for buy back of its shares.
Income from
other sources is a Residuary head of income.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Any income
which is not chargeable to tax under any other heads of income and which is not
to be excluded from the total income shall be chargeable to tax as residuary
income under the head “Income from Other Sources”.
Accepted
Answers:
TRUE
Profit on sale
of building is not an income from other sources?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
It is
charged under "Income from house proeprty".
Accepted
Answers:
TRUE
Dividend
received from a foreign company is charged to tax under the head_______.
Profits and gains from Business or Profession
House Property
Income from other sources
Capital gains
Yes, the
answer is correct.
Feedback:
Dividend
received from a foreign company will be included in the total income of the
taxpayer and will be charged to tax at the rates applicable to the taxpayer.
Accepted
Answers:
Income from
other sources
As per
section 57(iv), _________of interest received on compensation or enhanced
compensation is deductible subject to the condition that no other expenditure
is deductible against such income.
25%
50%
75%
100%
Yes, the
answer is correct.
Feedback:
50%
Accepted
Answers:
50%
Interest on
delayed compensation or enhanced compensation is:
taxable on accrual basis
taxable on receipt basis
exempt from tax
taxable depending upon the method of
accounting adopted by the assessee
Yes, the
answer is correct.
Feedback:
Interest
received on enhanced compensation is taxable as Income from other sources as
per section Section 57(iv) read with 56(2)(viii).
Accepted
Answers:
taxable on
receipt basis
The clubbing
provision enumerated under section 60 is applicable if
there is a revocable transfer of asset
Income is transferred without
transferring asset
there is an irrevocable transfer of asset
there
is a transfer
of asset by one
spouse to another
Yes, the
answer is correct.
Feedback:
Section 60
is applicable if the following conditions are satisfied: The taxpayer owns an
asset. The ownership of asset is not transferred by him.
Accepted
Answers:
Income is
transferred without transferring asset
Out of the
followings, which income is to be clubbed with the income of minor’s either
parents:
Income of Rs. 10,000/- earned by minor on
account of manual work
Income of Rs. 25,000/- earned by minor for excellent
dance performance in Tagore Hal
Bank Interest of Rs.35,000/- earned by minor
suffering from disability of nature referred to is section 80U
Bank Interest of Rs. 15,000/- on
deposit of Rs. 2,00,000 earned out of his skill and talent
Yes, the answer
is correct.
Feedback:
As per
section 64(1A) , income of minor child is clubbed with the income of his/her
parent (*). Income of minor child earned on account of manual work or any
activity involving application of his/her skill, knowledge, talent, experience,
etc. will not be clubbed with the income of his/her parent.
Accepted
Answers:
Bank
Interest of Rs. 15,000/- on deposit of Rs. 2,00,000 earned out of his skill and
talent
In order to
claim deduction under some of the provisions of section 80 C to 80 U, one of
the conditions is that payment has been made out of income chargeable to tax.
Out of the followings sections, to which section this condition is not
applicable:
Section 80 CCC
Section 80 D
Section 80 G
Section 80 E
Yes, the
answer is correct.
Feedback:
Section 80G
of the I-T Act allows donations made to specified relief funds and charitable
institutions as a deduction from gross total income. ... Also, even on
donations to notified entities, you can claim 100% deduction only on donations
to a specified list.
Accepted
Answers:
Section 80 G
Under which
section only individual can claim deduction:
Section 80 C
Section 80 CCC
Section 80 D
Section 80 DD
Yes, the
answer is correct.
Feedback:
Section
80CCC provides a deduction to an individual for any amount paid or deposited in
any annuity plan of LIC or any other insurer.
Accepted
Answers:
Section 80
CCC
Mr. Khanna
would like to insure the life of one of the family members. Mr. Khanna seeks
your advice that in whose name policy shall be taken so that he is entitled for
deduction under section 80 C.
Dependant Father
Dependent Brother-in-law
Dependent Sister
Independent Son
Yes, the
answer is correct.
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Independent
Son
Accepted
Answers:
Independent
Son
While
computing adjusted total income for the purpose of section 80 GG, following
shall not be reduced from Gross Total income:
Long term Capital Gain
Short Term Capital Gain under section 111A
Winning from lotteries
Gift from employee
Yes, the
answer is correct.
Feedback:
If you
receive money from winning the lottery, Online/TV game shows etc., it will be
taxable under the head Income from other Sources. The income will be taxable at
the flat rate of 30% which after adding cess will amount to 31.2%.
Accepted
Answers:
Winning from
lotteries
Income of
previous year is taxed in the immediately following assessment year. However,
income of a person leaving India who has no present intention of returning to
India is taxed in the previous year itself.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
As a general
rule, the income earned in the previous year is taxed only in the assessment
year but in the following cases, the income earned is taxed in the same year in
which it is earned or received. Such exceptions to the general rule are given
in Sections 172 and 174 to 176.
Accepted
Answers:
TRUE
Any saving
made by wife from money received from her husband for household expenses is
regarded as income of the wife.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
The amount
paid by you to your wife can be considered as gift which shall not attract
income tax under the provisions of Income-Tax Act, 1961. However, under
clubbing provisions of this Act, any income accrued to her on such amounts
would be clubbed in your income and you will have to pay tax on that.
Accepted
Answers:
FALSE
The
exemption available under section 10(32) of Act while clubbing minor’s income
is ______
Rs. 1,500
the amount of income clubbed
subject to maximum of Rs. 1,500
Rs. 1200
Rs 1800
Yes, the
answer is correct.
Feedback:
Section
10(32) of the Act entitles the parent under which the minor's income is being
clubbed to avail exemption of Rs. 1500 per child.
Accepted
Answers:
the amount
of income clubbed subject to maximum of Rs. 1,500
The
deduction under section 80QQB of the Income Tax Act is in respect of_________.
Interest income on debentures
income by way of royalty of
books
income by way of Royalty from patents
income from start-up activities
Yes, the
answer is correct.
Feedback:
Income by
way of royalty of books
Accepted
Answers:
income by
way of royalty of books
The return
of income is to be furnished in
ITNS 281
Form 26AS
Form 26Q
ITR 1 – to 7
Yes, the
answer is correct.
Feedback:
Under the
Income-tax Law, different forms of return of income are prescribed for
different classes of taxpayers. The return forms are known as ITR forms
(Income-tax Return Forms). Thus, the return of income is to be furnished in ITR
1 – to 7.
Accepted
Answers:
ITR 1 – to 7
As per
section 139(1), filing of returns is compulsory irrespective of whether profit
is earned or loss is incurred, in case of -
companies only
firms only
both companies and firms
All assessees
Yes, the
answer is correct.
Feedback:
both
companies and firms
Accepted Answers:
both
companies and firms
Interest
liability u/s 234B arises towards.
Non – payment of aggregate advance tax
Payment of advance tax < 95% of total
advance tax payable
Payment of advance tax < 90%
of total advance tax payable
Payment of advance tax = 90% of total advance
tax payable
Yes, the
answer is correct.
Feedback:
Interest
under section 234B- Default in payment of Advance Tax: If an assessee who is
liable to pay advance tax , but not paid the same or if the advance tax paid by
him is less than 90% of the assessed tax, he is liable to pay simple interest
at 1% every month or part of a month.
Accepted
Answers:
Payment of
advance tax < 90% of total advance tax payable
If the payee
does not furnish PAN and TDS under section 194, dividends shall be made
@________.
20%
15%
10%
Nil
Yes, the
answer is correct.
Feedback:
Tax is to be
deducted at the time of credit of such amount to account of payee or at the
time of payment whichever is earlier. Tax is to be deducted at the rate of 10%.
If the recipient of income doesn't furnish his PAN to deductor then TDS is to
be deducted @ 20%.
Accepted
Answers:
20%
The due date
for filing of a return of income for a company for Assessment Year 2020-21 is
31st July, 2020
30th September, 2020
31st October, 2020
31st August, 2020
Yes, the
answer is correct.
Feedback:
Generally ,
30th September 2020, if not extended by govt. notification.
Accepted
Answers:
30th
September, 2020
Completion
of Assessment means date of passing assessment orders.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
The
assessment is complete when an ASSESSMENT ORDER is passed by the assessing
officer.
Accepted
Answers:
TRUE
Income tax
authorities are grouped into two main wings, Administrative and Judicial.
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Income tax
authorities are grouped into two main wings, Administrative and Judicial.
Accepted
Answers:
TRUE
_________ is
the acknowledgement of filing the return of income.
ITR – 4
ITR – V
Form 26AS
Form 26QB
Yes, the
answer is correct.
Feedback:
ITR-V is
mailed to your inbox by the I-T Department after you have e-filed your return.
It is a 1-page verification document you must submit to the Income Tax
Department for them to start processing your return.
Accepted
Answers:
ITR – V
As per
__________ , it is compulsory for companies and firms to file a return of
income or loss for every previous year on or before the due date in the
prescribed form.
Section 139 (1)
Section 139 (2)
Section 193 (1)
Section 193 (2)
Yes, the
answer is correct.
Feedback:
According to
section 139(1) of the Income Tax Act, an assessee needs to file Income Tax
Return (ITR) on or before the due date of filing ITR when the total annual
income exceeds the maximum amount, which is not chargeable to income tax.
Accepted
Answers:
Section 139
(1)
Belated
return can be filed by an assessee earlier or before completion of assessment
and __________.
1 Year
2 years
3 years
4 years
Yes, the
answer is correct.
Feedback:
As per the
Income Tax Act, a Revised Return can be filed up to the end of the assessment
year or before completion of the assessment, whichever is earlier. This means
that an assessee can file a revised return up to one year from the end of the
financial year.
Accepted
Answers:
1 Year
Under which
commitee GST has designed
Kelkar Committee
Narasimham Committee
Chidambaram
Committee
Basu Committee
Yes, the
answer is correct.
Feedback:
In 2005, the
Kelkar committee recommended rolling out GST as suggested by the 12th Finance
Commission.
Accepted
Answers:
Kelkar
Committee
GST laws are
implemented on the recommendations of
Central Government
GSTN
GST Council
President
Yes, the
answer is correct.
Feedback:
As per
Article 279A (4), the GST Council will make recommendations to the Union and
the States on important issues related to GST.
Accepted
Answers:
GST Council
GST- Goods
and Service Tax Act is established under which of the following Amendments of
the Constitution of India?
132nd Amendments of Constitution
196th Amendments of Constitution
101st Amendments of Constitution
77th Amendments of Constitution
Yes, the
answer is correct.
Feedback:
Officially
known as The Constitution (One Hundred and First Amendment) Act, 2016, this
amendment introduced a national Goods and Services Tax (GST) in India from 1
July 2017.
Accepted
Answers:
101st
Amendments of Constitution
The rate of
IGST is equal to the rate of
CGST
SGST
CGST plus the rate of SGST
SGST plus UTGST
Yes, the
answer is correct.
Feedback:
The Central
and the relevant State Government collect an equal proportion from the total
interest rate levied on the concerned goods or services.
Accepted
Answers:
CGST plus
the rate of SGST
The
incidence of tax on tax is called
Tax Cascading
Tax Pyramidding
Tax evasion
Indirect Tax
Yes, the
answer is correct.
Feedback:
A cascade
tax or cascading tax is a system that imposes sales taxes on products at each
successive stage in the supply chain from raw material to consumer purchase.
Accepted
Answers:
Tax
Cascading
GST can be
collected by
Any registered dealer
Any GST dealer
Any service provider
Any dealer
Yes, the
answer is correct.
Feedback:
Any GST
dealer
Accepted
Answers:
Any GST
dealer
In indirect
tax, the burden can be shifted to another peroson
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
In the case
of indirect tax, the burden of tax can be shifted by the taxpayer to someone
else.
Accepted
Answers:
TRUE
In
developing countries, indirect taxation brings more revenue than direct
taxation
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Yes, most
developing nation has regressive policy of collecting taxes.
Accepted
Answers:
TRUE
India has
choosen____dual model of dual GST
USA
UK
Japan
Canada
Yes, the
answer is correct.
Feedback:
India has
chosen the Canadian model of dual GST as it has a federal structure where the
Centre and states have the powers to levy and collect taxes.
Accepted
Answers:
Canada
GST is a
_______based tax on consumption of goods and services.
Duration
Destination
Development
Drive
Yes, the
answer is correct.
Feedback:
GST is a
destination based tax and levied at a single point at the time of consumption
of goods or services by the ultimate consumer.
Accepted
Answers:
Destination
“Supply”
includes import of services, if such import of service
is for a consideration
is for a consideration or not
is for a consideration and in the course or
furtherance of business
is for a consideration and
whether or not in the course or furtherance of business
Yes, the
answer is correct.
Feedback:
Services for
a consideration, whether or not in the course or furtherance of business is
treated as supply. Goods as well as services have been defined in the GST Law.
Accepted
Answers:
is for a
consideration and whether or not in the course or furtherance of business
Any job work
carried out by a job worker on another person’s goods shall be treated as
Supply of goods
Supply of services
Supply of services provided job work is
carried out by a job worker without any materia
Supply of services whether the
job work is to be carried out by a job worker with or without any material
Yes, the
answer is correct.
Feedback:
any
treatment or process applied to another person goods is to be treated as supply
of services.
Accepted
Answers:
Supply of
services whether the job work is to be carried out by a job worker with or
without any material
Which of the
following activity is deemed to be supply and liable to GST under the CGST Act,
2017?
Services by employee to employer
Functions performed by members of parliament
Supply of goods by unincorporated association
to a member thereof
Services of funeral
Yes, the
answer is correct.
Feedback:
There are no
taxes on funeral services for any religion.
Accepted
Answers:
Services of
funeral
A supply of
a package consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drinks and fruit juices when supplied for a single price is
Mixed supply
Composite supply
Commom supply
Continuous supply
Yes, the
answer is correct.
Feedback:
A supply of
a package consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drinks and fruit juices when supplied for a single price is a mixed
supply.
Accepted
Answers:
Mixed supply
A new mobile
handset is supplied for Rs.10,000 exchanging an old phone. Without exchange
offer the price of handset is Rs 25,000. Market Value of similar phones is
Rs.20,000. What is the value of supply?
Rs 10,000
Rs 20,000
Rs 25,000
Either Rs 25,000 or Rs 20,000
Yes, the
answer is correct.
Feedback:
Rs 25,000
Accepted
Answers:
Rs 25,000
Transfer of
the title in goods is a supply of goods?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Any transfer
of the title in goods is a supply of goods. Under present law, transfer of
title in goods is not a service and hence liable to VAT only. Any transfer of
goods or of right in goods or of undivided share in goods without the transfer
of title thereof, is a supply of services.
Accepted
Answers:
TRUE
Transfer of
right in goods or of undivided share in goods ‘without the transfer of title’
is a supply of services?
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Under
present law, transfer of title in goods is not a service and hence liable to
VAT only.
Accepted
Answers:
TRUE
The
provisions relating to meaning and scope of supply are contained in ---------
of the CGST Act.
Chapter I
Chapter II
Chapter III
Chapter IV
Yes, the
answer is correct.
Feedback:
The
provisions relating to meaning and scope of supply are contained in Chapter III
of the Act read with various Schedules given under the said Act.
Accepted
Answers:
Chapter III
________ of
the CGST Act, 2017 specifies activities to be treated as supply of goods or
supply of services.
Schedule IV
Chapter II
Chapter I
Schedule III
Yes, the
answer is correct.
Feedback:
Transactions
Treated as Supply under GST Even If Made Without Consideration. Transactions
between related persons and other activities of GST Schedule I will be treated
as supply even if made without any consideration.
Accepted
Answers:
Chapter I
________refers
to receipt of goods or services or both whether by purchase, acquisition or any
other means with or without consideration.
Outward supply
Inward supply
Taxable supply
Non taxable supply
Yes, the
answer is correct.
Feedback:
As per
section (67), 'Inward Supply' in relation to a person, shall mean receipt of
goods or services or both whether by purchase, acquisition or any other means
with or without consideration.
Accepted
Answers:
Inward
supply
Input tax
credit shall be allowed only against
Any tax payable
Output tax
Composite tax
Refund
Yes, the
answer is correct.
Feedback:
Input tax
credit shall be allowed only against composite tax.
Accepted
Answers:
Composite
tax
Where the
goods are received in lots or instalments input tax credit can be claimed
upon reciept of first lot
upon receipt of the last lot
Any time at the option of the supplier
after full payment of price
Yes, the
answer is correct.
Feedback:
In the event
of goods that are covered under an invoice that is sent on consignment are not
received in a single installment but in different lots, the ITC on those goods
can only be claimed on the receipt of the last installment/lot.
Accepted
Answers:
upon receipt
of the last lot
Details of
outward supply shall be furnished in
GSTR 3
GSTR 2
GSTR 1A
GSTR1
Yes, the
answer is correct.
Feedback:
Every
registered person required to furnish the details of outward supplies of goods
or services or both under section 37, shall furnish such details in FORM GSTR-1
electronically through the Common Portal either directly or through a
Facilitation Centre notified by Commissioner.
Accepted
Answers:
GSTR1
E-commerce
operators should submit return of TCS
Monthly
Every 3 months
Every year
Monthly and Annually
Yes, the
answer is correct.
Feedback:
E-commerce
operators have to file GSTR-8 by 10th of the next month in which the tax was
collected. This return will only be filed once the tax collected has been
deposited to the respective credit of the government.
Accepted
Answers:
Monthly and
Annually
If a person
liable to be registered has operation in more than one State, he should
Obtain registration in all states
obtain registration in any one
state
registration is optional
Registration not mandatory
Yes, the
answer is correct.
Feedback:
if you carry
your business from two different locations, you need to obtain a separate GST
registration for each individual location.
Accepted
Answers:
Obtain
registration in all states
Whether
definition of Inputs includes capital goods
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
Input means
any goods other than capital goods and which are used or intended to be used in
the course or furtherance of business.
Accepted
Answers:
TRUE
Is Input tax
fully restricted in case of switchover from taxable to exempt supplies
TRUE
FALSE
Yes, the
answer is correct.
Feedback:
In case of
switchover from taxable to exempt transactions or from Regular to composition,
input tax credit is fully restricted.
Accepted
Answers:
TRUE
Input tax
credit shall be allowed only on the support of
Delivery note
Payment slip
Credit note
Tax invoice
Yes, the
answer is correct.
Feedback:
A tax
invoice is an invoice sent by the registered dealer to the purchaser showing
the amount of tax payable.
Accepted
Answers:
Tax invoice
TAN refers
to
Tax Deduction and Collection
Account Number
Tax acknowldegemet number
Tax accouting Number
Tax Assessement Number
Yes, the
answer is correct.
Feedback:
Tax
Deduction Account Number or Tax Collection Account Number is a 10-digit alpha-
numeric number issued by the Income-tax Department.
Accepted
Answers:
Tax
Deduction and Collection Account Number
The proper
officer may assess the tax liability on the basis of available information,
evidences which is called
Best judgement assessment
Provisional assessment
Self assessment
Protective assessmen
Yes, the
answer is correct.
Feedback:
In the best
judgment assessment, an assessing officer assesses based on his reasoning and
using the information available. The assessment will be made without any having
any bias.
Accepted
Answers:
Best
judgement assessment
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