BBAs Semester III Taxation Multiple Choice Questions

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...
(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Reaccredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
II - BBA [ 2013-16]
SEMESTER III
ALLIED: TAXATION - 316D
Multiple Choice Questions.
1. Which principle is meant to protect the tax - payers from unnecessary harassment by the tax officials?
A. principles of equity.
B. principles of certainty.
C. principle of convenience
D. principle of economy.
ANSWER: B
2. The new IT act was passed in the year__________.
A. 1916.
B. 1917.
C. 1918.
D. 1919.
ANSWER: C
3. Wealth tax is a ____________.
A. indirect tax
B. proportional tax
C. direct tax
D. regressive tax
ANSWER: C
4. Tax is __________ to the government.
A. profit.
B. loss.
C. revenue.
D. burden.
ANSWER: C
5. ________ assesse is also known as representative assessee.
A. Ordinary.
B. Deemed.
C. Default.
D. Assessee-in-default.
ANSWER: B
6. The gross total income is dealt Us_________ of income tax act 1961.
A. section 15.
1 of 36
8/1/2014 12:54 PM
B. section 14.
C. section 10.
D. section 12.
ANSWER: B
7. Which of the following is Indirect Tax?
A. Income Tax.
B. Wealth Tax.
C. Water Tax.
D. Sales Tax.
ANSWER: D
8. Ad-volorem tax is imposed on a commodity according to its ________.
A. value.
B. size.
C. weight.
D. none of these
ANSWER: A
9. Low tax rates are levied on essential goods for ______________.
A. enhancing standard of living of the people.
B. enhancing purchasing behaviour of the people.
C. reducing the prices of the goods.
D. enhancing the saving habit of the people.
ANSWER: A
10. The main objective of a government for imposing tax on the people of a country is _____________.
A. to prevent harmful consumption.
B. to ensure economic stability.
C. to raise the revenue of the government.
D. to control the trade cycle.
ANSWER: C
11. The government gives tax rebates on savings & investments for _____________.
A. ensuring economic stability.
B. increasing the standard of living of the people.
C. increasing the saving habit of the society.
D. accumulating the capital.
ANSWER: D
12. Mr. Raghu leaves India for the first time on 31st December during the previous year. What is his
residential status?
A. Resident and Ordinary resident.
B. Resident and Not-ordinary resident.
C. Non resident.
D. None of the above.
ANSWER: A
13. A person who fails to fulfill his tax liabilities is called as ________.
A. ordinary assessee.
B. demed assessee.
2 of 36
8/1/2014 12:54 PM
C. assessee in default.
D. representative assessee.
ANSWER: C
14. Average Rate of income tax is equal to ___________.
A. Total tax X Total Income.
B. Total tax Divided by Total income X100.
C. Total income Divided by Total tax X 100.
D. Total income X Tax rate.
ANSWER: B
15. For a deceased person without will, who is the deemed assessee?
A. Guardian.
B. Agent.
C. Executor.
D. Legal heir or the eldest of the family.
ANSWER: D
16. For a deceased person with will, who is the deemed assessee?
A. Guardian.
B. Agent.
C. Executor.
ANSWER: C
17. A person can be resident in __________ in the same financial year.
A. only one country.
B. more than one country.
C. their home country .
D. only two countries.
ANSWER: B
18. For an assessee to fulfill the basic condition, how many days should the assessee stay in India during
the current previous year__________.
A. 100 days.
B. 160 days.
C. 182 days.
D. 120 days.
ANSWER: C
19. Gift received from a person other than a relative or at the time of marriage or by will is taxable
provided the amount is above____________.
A. 10000.
B. 50000.
C. 15000.
D. 45000.
ANSWER: B
20. Dividend from an Indian company is not taxable Us ___________.
A. 10 .4.
B. 10. 34.
3 of 36
8/1/2014 12:54 PM
C. 15 ii.
D. 10. 5.
ANSWER: B
21. Income tax was introduced for the first time in the year___________.
A. 1922.
B. 1820.
C. 1860.
D. 1853.
ANSWER: C
22. For a non resident, who is the deemed assessee?
A. Guardian.
B. Agent.
C. Executor.
ANSWER: B
23. For a minor, who is the deemed assessee?
A. Guardian.
B. Agent.
C. Executor.
ANSWER: A
24. Section 6 of the income tax deals with__________.
A. income from salary.
B. income from house property.
C. income from business or profession.
D. residential status.
ANSWER: D
25. The head of the Hindu Un Divided family HUF is known as___________.
A. king.
B. karta.
C. coperceners.
D. none.
ANSWER: B
26. If the karta satisfies the additional conditions then the HUF will get the status as ___________.
A. resident.
B. ordinary resident.
C. non resident.
D. none.
ANSWER: B
27. ABC Ltd. is an Indian company situated in ludiana, identify the residential status.
A. Resident.
B. Non-resident.
C. Ordinary resident.
D. Not Ordinary Resident.
4 of 36
8/1/2014 12:54 PM
ANSWER: A
28. Identify the residential status of a partnership firm Indian based firm is having business in Delhi and
Mumbai which the business is controlled partly in Delhi and partly in Indonesia.
A. Resident.
B. Nonresident.
C. Ordinary resident.
D. Not Ordinary Resident.
ANSWER: A
29. In the Canon of Diversity_________ tax system is followed?
A. direct.
B. indirect.
C. multiple.
D. discriminatory.
ANSWER: C
30. The dividend from an Indian company is taxable in the hands of __________.
A. ordinary resident.
B. not ordinary resident.
C. non resident.
D. no one.
ANSWER: D
31. Income received outside India from any other source apart from business is taxable to __________.
A. ordinary resident.
B. not ordinary resident.
C. non resident.
D. no one.
ANSWER: A
32. ________ principle deals with cost of collection & it states that the cost of collection should be
minimum.
A. Canon of Equality.
B. Canon of Economy.
C. Canon of Certainty.
D. Canon of co ordination.
ANSWER: B
33. The abbrevation for HUF is____________.
A. Hindu Universal Fund.
B. Hindu Undivided Family.
C. Hindu United Family.
D. Hindu Undivided Form.
ANSWER: B
34. Income tax will be charged for the income of the previous financial year at the prescribed rate in the
current _________.
A. financial year.
B. previous year.
C. assessment year.
5 of 36
8/1/2014 12:54 PM
D. calendar year.
ANSWER: A
35. Section 15, 16 and 17 of the income tax act deals with_________.
A. house property income.
B. salary income.
C. business income.
D. professional income.
ANSWER: B
36. Any payment received by ___________ from employer is called salary.
A. an employer.
B. an employee.
C. an apprentice.
D. an executive.
ANSWER: B
37. _________ is paid for manual type of work for laborers.
A. Wages.
B. Income.
C. Salary.
D. Bonus.
ANSWER: A
38. _________ will be paid for administrative type of work.
A. Wages.
B. Income.
C. Salary.
D. Bonus.
ANSWER: C
39. A person can receive ___________ from more than one employer in a particular previous year
A. provident fund.
B. salary.
C. bonus.
D. perquisite.
ANSWER: B
40. Any amount surrendered under the voluntary surrender of salaries act 1961 will not constitute
_________ and hence it will not be included in the scope of Salary.
A. salary.
B. wages.
C. annuity.
D. advance salary.
ANSWER: A
41. Any salary received by a partner from the firm in which he is a partner is taxed under the
head____________.
A. business or profession.
B. other sources.
C. capital gains.
6 of 36
8/1/2014 12:54 PM
D. salary.
ANSWER: A
42. Any family pension received by the widow or legal heirs of the deceased employee is taxed under the
head ___________.
A. salary.
B. business or profession.
C. other sources.
D. none of the above.
ANSWER: C
43. Salary will be considered on _____________.
A. due basis.
B. dual basis.
C. both a and b.
D. monthly basis.
ANSWER: C
44. Allowances given to employees of United Nations organization are ______________.
A. fully taxable.
B. partly taxable.
C. partly exempted.
D. fully exempted.
ANSWER: D
45. Tiffin allowance is otherwise called as ___________.
A. meal allowance or refreshment allowance.
B. dearness allowance.
C. fringe benefit.
D. cost of living allowance.
ANSWER: A
46. In which state tribal area allowance is Rs.200 p.m?
A. Tamilnadu.
B. Assam.
C. Bihar.
D. All the above.
ANSWER: D
47. Section__________ provides the basis for computation of total income.
A. 5.
B. 4.
C. 24.
D. 25.
ANSWER: A
48. __________is based on the residential status of an assessee in the relevant previous year.
A. Total Income.
B. Total Salary.
C. Business Profit.
D. Capital Gains.
7 of 36
8/1/2014 12:54 PM
ANSWER: A
49. Total income comprises_________ heads of income.
A. 2.
B. 3.
C. 4.
D. 5.
ANSWER: D
50. The first and foremost heads of income chargeable to tax for an assessee is___________.
A. income from house property.
B. income from salary.
C. income from capital gain.
D. income from profession.
ANSWER: B
51. Section 80D of the income tax act deals with __________.
A. medical insurance premium.
B. life insurance premium.
C. contribution to pension scheme.
D. donations to scientific research development.
ANSWER: A
52. Rent free house provided by employer is a kind of _________.
A. allowance.
B. fringe benefit.
C. cost of living cost.
D. perquisites.
ANSWER: D
53. Perquisites are taxable in the hands of ____________.
A. all employees.
B. specified employees.
C. permanent employees.
D. temporary employees.
ANSWER: B
54. ___________ is a periodical payment received by the employee after the date of retirement.
A. Commuted pension.
B. Uncommuted pension.
C. Taxable pension.
D. Leave salary.
ANSWER: B
55. In countries like Singapore, Australia, New Zealand & Canada VAT is known as ____________.
A. GST.
B. TST.
C. LST.
D. CST.
ANSWER: A
8 of 36
8/1/2014 12:54 PM
56. Any expenditure in connection with winnings from lotteries, crosswords, crossword puzzles, races
including house race will be taxed under the head ________.
A. business.
B. profession.
C. other sources.
D. all the above.
ANSWER: D
57. Tiffin allowance is _________.
A. fully taxable.
B. partly taxable.
C. exempted from tax.
D. taxable in the hands of specified employees.
ANSWER: A
58. _________ allowance is given as compensation for the ban imposed.
A. Tiffin allowance.
B. Non practicing allowance.
C. Overtime allowance.
D. None.
ANSWER: B
59. House Rent Allowance will be given to the assessee by his ___________.
A. employer.
B. employee.
C. tax payer.
D. agent.
ANSWER: A
60. Under educational allowance Rs.________ per month per child for a maximum of two children is
exempted.
A. 100.
B. 200.
C. 300.
D. 400.
ANSWER: A
61. _________ allowance is fully taxable.
A. Overtime.
B. Deputation.
C. Tiffin.
D. Transport.
ANSWER: C
62. ________ allowance is Rs.300 per month per child up to a maximum of two children is exempted.
A. Hostel.
B. Transport.
C. Tiffin.
D. Education.
ANSWER: A
9 of 36
8/1/2014 12:54 PM
63. The term __________ means any benefit attached to the office.
A. perquisites.
B. income.
C. salary.
D. allowances.
ANSWER: A
64. Income from sub-letting a house property for business is taxable under the head ________.
A. other sources.
B. house property.
C. business.
D. profession.
ANSWER: A
65. Government securities can be classified into __________types.
A. 2.
B. 3.
C. 4.
D. 5.
ANSWER: A
66. _______ is introduced from the assessment year2006 to 2007.
A. Section80C.
B. Section 24C.
C. Section 24.
D. Section 25.
ANSWER: A
67. ________ is a partly exempted or partly taxable allowance.
A. Entertainment Allowance.
B. House Rent Allowance.
C. Transport Allowance.
D. All the above.
ANSWER: D
68. _________ is set up under provision of provident fund act 1925.
A. Statutory Provident Fund.
B. Recognised Provident Fund.
C. Unrecognised Provident Fund.
D. Provident Fund.
ANSWER: A
69. _________ is included in salary & it is deducted from gross salary for public sector employees.
A. Professional T ax.
B. Municipal Tax.
C. Entertainment Allowance.
D. House Rent Allowance.
ANSWER: A
70. ________ is a scheme where both employee & employer contributes equal sum of money.
A. Gratuity.
10 of 36
8/1/2014 12:54 PM
B. Pension.
C. Provident Fund.
D. Leave encashment.
ANSWER: C
71. _________ is a periodical payment received by an employee after his retirement.
A. Pension.
B. Gratuity.
C. Leave Encashment.
D. Provident Fund.
ANSWER: A
72. Section 80G of the income tax act deals with __________.
A. donations
B. life insurance premium.
C. contribution to pension scheme.
D. medical insurance premium.
ANSWER: A
73. Pension received monthly from any employer is ___________.
A. fully taxable.
B. partly taxable.
C. exempted.
D. taxable for all.
ANSWER: C
74. Gift is taxed if it exceeds ____________.
A. Rs.8000.
B. Rs.3000.
C. Rs.4000.
D. Rs.5000.
ANSWER: D
75. The actual amount spent by employer for gas and electricity on behalf of the employee, where
connection is in the name of employee is ____________.
A. fully taxable.
B. exempted.
C. partly taxable.
D. none.
ANSWER: A
76. Tax is a ___________ contribution.
A. voluntary.
B. compulsory.
C. confidential.
D. competitive.
ANSWER: B
77. Section 22 of the income tax act 1961 deals with_________.
A. house property income.
B. salary income.
11 of 36
8/1/2014 12:54 PM
C. annual income.
D. business income.
ANSWER: A
78. According to IT Act a person may be __________.
A. an individual.
B. a company.
C. a firm.
D. all the above.
ANSWER: D
79. Income from building used for business is taxed under the head _________.
A. house property.
B. business
C. other source.
D. profession .
ANSWER: B
80. Section23 deals with the calculation of ____________ under the head house property.
A. annual value.
B. gross annual value.
C. municipal value.
D. vacancy.
ANSWER: A
81. Self occupied house will always shows _____________.
A. loss of house property income.
B. profit in house property income.
C. profit as well as loss.
D. deficit.
ANSWER: A
82. Standard rent refers to the rent fixed by _____________.
A. rent control act.
B. local authority.
C. house property act.
D. government.
ANSWER: A
83. Actual rent refers to the rent which a property has been actually let out by the ___________.
A. owner.
B. person.
C. assessee.
D. tenant.
ANSWER: A
84. If the amount is available after deducting municipal tax or local tax paid by the owner is called as
__________.
A. Gross Annual Value.
B. Net Annual Value.
C. Annual Rent.
12 of 36
8/1/2014 12:54 PM
D. Unrealized Rent.
ANSWER: B
85. __________ refers to a part of depreciation, which cannot be allowed in a particular previous year due
to shortage or no profit.
A. Absorbed Depreciation.
B. Unabsorbed Depreciation.
C. Written Down Value.
D. Actual cost of an asset
ANSWER: B
86. Let out house refers to the house which has been let out by the owner to __________.
A. tenant.
B. assessee.
C. employer.
D. employee.
ANSWER: A
87. Which of the following is a part of exempted house property incomes?
A. income from farm house.
B. income from restaurant.
C. income from business.
D. income of a other sources.
ANSWER: A
88. Municipal Valuation is otherwise called as ____________.
A. Municipal Rental Value.
B. Net Annual Value.
C. Standard Rental Value.
D. Annual Rental Value.
ANSWER: A
89. A person may not have assessable income but may still be ____________.
A. HUF .
B. an individual.
C. assessee.
D. BOI.
ANSWER: C
90. Tax charged under business or profession will be paid by ____________.
A. assessee
B. house owner.
C. employee.
D. the one who carries business.
ANSWER: D
91. A local authority is taxable at flat rate of ___________.
A. income tax.
B. income earned.
C. income.
D. expenditure.
13 of 36
8/1/2014 12:54 PM
ANSWER: A
92. Incomes which accrue or arise outside India but are received directly into India are taxable in case of
____________.
A. resident only .
B. both ordinarily resident and NOR.
C. non resident .
D. all the assesses.
ANSWER: D
93. Income earned from illegal business will be taxed under _____________.
A. income tax act 1961.
B. income tax act 1962.
C. income tax act 1963.
D. companies act 1956.
ANSWER: A
94. Speculation business consists of ____________.
A. gambling.
B. speculative transactions.
C. tax evasion.
D. tax avoidance.
ANSWER: B
95. Income earned from a business in Australia but it has been controlled by India is taxable in the hands of
_________.
A. resident only.
B. both ordinarily resident and NOR .
C. non resident.
ANSWER: B
96. Income earned from a business in Australia is taxable in the hands of _________.
A. resident only .
C. nonresident.
ANSWER: A
97. The abbreviation of IFP is _____________.
A. Income from Profession.
B. Income from Politics.
C. Income from Press.
D. Income from Profits.
ANSWER: A
98. Under mercantile system of accounting all receipts and payments which are paid or due will be
considered to calculate _____________.
A. net profit .
B. net loss.
C. gross profit.
14 of 36
8/1/2014 12:54 PM
D. gross loss.
ANSWER: C
99. Which of the following is not a part of expenses expressly disallowed?
A. Wealth tax.
B. Income tax.
C. Gift tax.
D. Sales tax.
ANSWER: D
100. The acronym DEP under business and profession denotes ___________.
A. debenture.
B. depreciation.
C. department.
D. difference.
ANSWER: B
101. Vocation implies natural ability of a persons ____________.
A. important work.
B. particular work.
C. special work.
D. hard work.
ANSWER: B
102. Tax is to be levied on any ____________.
A. profit.
B. gain.
C. both a and b.
D. income of a person.
ANSWER: C
103. _________is not included in capital asset.
A. Raw materials.
B. House property.
C. Land.
D. Machinery.
ANSWER: A
104. Dividend declared by an Indian company is exempted in the hands of _________.
A. resident only.
C. nonresident.
ANSWER: D
105. Ornaments including jewels are _____________.
A. capital asset.
B. fictitious asset.
C. tangible asset.
D. intangible asset.
ANSWER: A
15 of 36
8/1/2014 12:54 PM
106. Under TNGST Act business does not include _______________.

A. a research organization.
B. a non profit earning.
C. a printing house selling waste.
D. a repairing unit.
ANSWER: B
107. Sales tax is ____________.
A. direct tax.
B. indirect tax.
C. concession to the whole sales.
ANSWER: B
108. The first state to introduce sales tax in India is______________.
A. West Bengal.
B. Madras.
C. Orissa.
D. Rajasthan.
ANSWER: B
109. In Tamilnadu, sales tax introduced in the year ________.
A. 1956.
B. 1959.
C. 1962.
D. 1967.
ANSWER: B
110. Sales Tax Act was passed in Tamilnadu in the year __________.
A. 1947.
B. 1948.
C. 1958.
D. 1959.
ANSWER: D
111. Registration of dealers under TNGST Act is _______________.
A. section 2.
B. section 20.
C. section 21.
D. section 22.
ANSWER: B
112. Tax on essential commodities can be levied by _____________.
A. state government, as a matter of right.
B. state government, with the approval of the central government.
C. central government.
ANSWER: A
113. Self assessment can be made by the dealer himself when the total turnover does not exceed
16 of 36
8/1/2014 12:54 PM
_____________.
A. Rs.15 corers.
B. Rs.10 crores.
C. Rs.17 crores.
D. Rs.25 crores.
ANSWER: B
114. Important definitions are given by the TNGST Act in section _________.
A. 1.
B. 4.
C. 7.
D. 2.
ANSWER: D
115. The levy of the following is an indirect tax: ____________.
A. Income tax.
B. Wealth tax.
C. Sales tax.
D. Gift tax.
ANSWER: C
116. States are empowered to tax on sale or purchase of goods other than newspapers by
___________________.
A. entry 92.
B. entry 54.
C. entry 56.
D. entry 58.
ANSWER: B
117. Second schedule of TNGST Act, fixes the rates of tax in regard to _____________.
A. declared goods.
B. goods in general.
C. industrial goods.
D. raw materials.
ANSWER: A
118. First schedule in the TNGST Act deals with _______________.
A. single point tax goods.
B. multi point tax goods.
C. declared goods.
D. industrial goods.
ANSWER: A
119. Registration under the TNGST is compulsory when turnover exceeds ________.
A. Rs.75, 000.
B. Rs.1, 50,000.
C. Rs.3, 00,000.
D. Rs.3, 50,000.
ANSWER: C
120. Sales tax may be classified into ________________.
17 of 36
8/1/2014 12:54 PM
A. 2 categories.
B. 3 categories.
C. 4 categories.
D. 5 categories.
ANSWER: A
121. The general sales tax passed in Madras province in 1939 contained only __________.
A. 20 sections.
B. 22 sections.
C. 24 sections.
D. 25 sections.
ANSWER: B
122. Time limit for registration under TNGST is ________________.
A. within 30 days of commencement of business.
B. within 90 days of commencement of business.
C. no time limit.
ANSWER: A
123. Issues of permit to a registered dealer under TNGST __________________.
A. as per section 21.
B. as per section 21A.
C. as per section 22.
D. as per section 22A.
ANSWER: B
124. Turnover under TNGST is ______________________.
A. sales.
B. agreement amount of sales of goods.
C. agreement amount of sale or purchase of goods.
ANSWER: C
125. Central sales tax is applicable to goods sold or purchased is __________________.
A. inter state within the country.
B. inter district within the state.
C. inter town within the state.
D. inter village with in the state.
ANSWER: A
126. Central sales tax was introduced in the year ___________.
A. 1947.
B. 1956.
C. 1962.
D. 1967.
ANSWER: B
127. Under central sales tax Act, appropriate state means _____________.
A. all states in India.
B. the state where the dealer carries on his business.
18 of 36
8/1/2014 12:54 PM
C. United States of America.

ANSWER: B
128. The form which is issued by the assessing authority to a registered dealer is _____.
A. Form A.
B. Form C.
C. Form D.
ANSWER: B
129. The committee appointed by the government in 1968 to excusive and report on the rationalization and
simplification indirect taxes was headed by _____________.
A. Sri.L.K.Jha.
B. Sri.S.Boothalingam.
C. Sri R.Rajesekaran.
D. Sri Chelliah.
ANSWER: B
130. Applications for registration under the CST Act, shall be made in ____________.
A. Form A.
B. plain paper.
C. Form C.
D. Form D.
ANSWER: A
131. Inter state sales means ___________.
A. movement of goods from one state to another.
B. Passing through the territory of other state.
C. sale outside the state.
D. none of these.
ANSWER: A
132. The term Declared Goods have been defined in the central sales tax Act in section ______________.
A. 4.
B. 7.
C. 10.
D. 14.
ANSWER: D
133. Movement of goods from one state to another is ____________________.
A. outside state sales.
B. inter state sales.
C. export sales.
D. none of these.
ANSWER: B
134. This section in CST act deals with registration of dealers: _________.
A. section 5.
B. section 6.
C. section 7.
19 of 36
8/1/2014 12:54 PM
D. section 14.
ANSWER: C
135. Section 9 of CST Act deals with ___________________.
A. determination of turnover.
B. declaration of goods.
C. imposition of penalty.
D. levy and collection of tax.
ANSWER: D
136. Central sales tax is ________________.
A. a direct tax.
B. an indirect tax.
C. an expenditure tax.
D. all the above.
ANSWER: B
137. CST is a tax on sale of goods: __________.
A. within the state.
B. inter state.
C. foreign.
D. none of these.
ANSWER: B
138. The central sales tax Act, 1956 came into force on _______________.
A. december 1, 1956.
B. january 5, 1957.
C. february 4, 1957.
D. december 10, 1957.
ANSWER: B
139. Section 7 of the central sales tax act of 1956 deals with __________________.
A. registration of dealers.
B. place of business.
C. appropriate state.
D. inter state sales tax.
ANSWER: A
140. Procedure for registration under CST: _____________.
A. In Form A.
B. In Form B.
C. In Form C.
D. In Form D.
ANSWER: A
141. Section 8 of the central sales tax act, deals with __________________.
A. registration.
B. determination of turnover.
C. inter state tax.
D. levy and collection of tax.
ANSWER: C
20 of 36
8/1/2014 12:54 PM
142. Restriction on trade or commerce can be imposed by parliament in the ___________.

A. personal interest.
B. public interest.
C. business.
D. profession.
ANSWER: B
143. Excise duty is levied and collected by _________________.
A. state government.
B. central government.
C. central and state government.
D. reserve bank of India.
ANSWER: C
144. Revenues from excise duty is appropriated by _________________.
A. state government.
B. central government.
C. central and state government.
D. planning commission.
ANSWER: C
145. Rates of Excise duty are given in ____________.
A. chapter X.
B. Sec 68.
C. rule 56A.
D. schedule I.
ANSWER: D
146. A license granted under the excise Act is valid for a maximum period of __________.
A. 5 years.
B. 10 years.
C. 3 years.
D. 7 years.
ANSWER: B
147. Excise duty is a duty imposed on _____________.
A. goods imported into India.
B. goods made in India.
C. goods sold in India.
ANSWER: B
148. Excisable goods means _____________.
A. all goods manufactured in factories.
B. goods specified in the first schedule of the central excise act.
C. goods specified in the fourth schedule of central excise act.
ANSWER: B
149. Factory according to central excise includes ______________.
21 of 36
8/1/2014 12:54 PM
A. place where goods manufactured are stocked.

B. place where any manufacturing process connected with production is ordinarily carried on.
C. place where workers relax.
ANSWER: B
150. In case of imposition of excise duties ____________.
A. Approved by state government is necessary.
B. Parliament approval is necessary.
C. No approval required.
D. Approval by prime minister is necessary.
ANSWER: B
151. Excise duty may be levied and collected y __________________.
A. State government.
B. Central government.
C. Government of a state.
D. both by Central and State government.
ANSWER: C
152. The Central Excise an salt act was introduced in the year _________.
A. 1934.
B. 1936.
C. 1942.
D. 1944.
ANSWER: D
153. The duty levied with reference to the value of the commodity manufactured is known as
____________________.
A. direct tax.
B. pro rata tax.
C. specific duty.
D. advalorem.
ANSWER: D
154. The duty levies on the value of the commodity is known as ___________________.
A. specific duty.
B. Advalorem duty.
C. both are correct.
D. both are wrong.
ANSWER: B
155. Excisable goods are subject to _________________.
A. sales tax.
B. customs duty.
C. excise duty.
D. none of these.
ANSWER: C
156. Excise duty is levied upon ______________.
A. sale of commodities.
22 of 36
8/1/2014 12:54 PM
B. export and import of goods.

C. manufacture of commodities.
D. interstate sale.
ANSWER: C
157. Two important features of goods for the purpose of excise are_________________.
A. moveable and marketable.
B. moveable and flexible.
C. fixed and exportable.
D. fixed and durable.
ANSWER: A
158. Valuation of excisable goods is found in ___________________.
A. section 5.
B. section 4.
C. section 6.
D. section 7.
ANSWER: B
159. MODVAT scheme was introduced in ________________.
A. 1996.
B. 1995.
C. 1984.
D. 1986.
ANSWER: D
160. Excise duty is levied __________________________.
A. on the goods manufactured.
B. on the goods entered into the place.
C. on the goods imported.
D. none of these.
ANSWER: A
161. Excise duty levied on the basis of measure of commodity is ________________.
A. specific duty.
B. basic excise duty.
C. compounded duty.
D. none of these.
ANSWER: A
162. Excisable goods are valued according to section ____ of the central excise act.
A. 4.
B. 5.
C. 6.
D. 7.
ANSWER: A
163. Once the duty is paid, the goods are called ______________.
A. duty paid goods.
B. special goods.
C. excisable goods.
23 of 36
8/1/2014 12:54 PM
D. specific goods.
ANSWER: A
164. The central excise duty is imposed under the provision of _____________________.
A. the central excise and salt act.
B. finance bill.
C. special act of parliament.
D. constitution act.
ANSWER: A
165. Specific duties revenue yield is of _____________.
A. static in nature.
B. fixed.
C. flexible.
D. semi flexible.
ANSWER: C
166. Excise duty was first levied on _________________.
A. iron.
B. jute.
C. cotton yarn.
D. none of these.
ANSWER: B
167. Valuation of excisable goods for the purpose of charging duty of excise is dealt in
__________________.
A. section 4.
B. section 7.
C. section 6.
D. section 5.
ANSWER: A
168. The levy of an indirect tax is ___________________.
A. central excise duty.
B. income tax.
C. wealth tax.
D. gift tax.
ANSWER: A
169. The number of items included in the schedule to the central excise act 1944 is _____.
A. 187.
B. 157.
C. 147.
D. 137.
ANSWER: A
170. In the case of unmanufactured goods, excise duty is collected from __________.
A. brokers.
B. whole sale dealers.
C. commission agent.
24 of 36
8/1/2014 12:54 PM
ANSWER: C
171. Protective duties are levied under customs tariff act on the recommendation of __________________.
A. finance commission.
B. tariff commission.
C. fiscal commission.
D. planning commission.
ANSWER: B
172. Rates of export duties are given under ________________.
A. first schedule.
B. second schedule.
C. gazette notification.
ANSWER: B
173. The payment of drawback is governed by _________________.
A. The central excise act.
B. customs act.
C. Tamilnadu sales tax act.
D. Central sales tax act.
ANSWER: B
174. The power of central government to notify goods under customs act is provided in
________________.
A. section 11A.
B. section 11B.
C. section 11C.
D. section 11D.
ANSWER: B
175. The customs act was introduced in the year ______________.
A. 1942.
B. 1947.
C. 1952.
D. 1962.
ANSWER: D
176. Any goods which are chargeable to duty and on which duty has not paid is _________.
A. export goods.
B. import goods.
C. prohibited goods.
D. dutiable goods.
ANSWER: D
177. Bill of entry under customs act is submitted by ______________.
A. an exporter.
B. a business agent.
C. an importer.
ANSWER: C
25 of 36
8/1/2014 12:54 PM
178. The customs Act 1962 is divided into ______________.

A. 14 chapters.
B. 15 chapters.
C. 16 chapters.
D. 17 chapters.
ANSWER: D
179. The charging section in customs act is ______________.
A. value of goods.
B. weight of goods.
C. units of goods.
ANSWER: A
180. The section which deals with levy of customs duty is _____________.
A. section 12.
B. section 13.
C. section 14.
D. section 15.
ANSWER: A
181. Valuation of goods under the customs act dealt with _________.
A. section 10.
B. section 12.
C. section 14.
D. section 15.
ANSWER: C
182. Deficit financing is spending.
A. by getting foreign aid .
B. less than what is needed.
C. in excess of revenue .
D. by borrowing from abroad .
ANSWER: C
183. VAT relates to rationalization of tax structure in ________.
A. sales tax.
B. income tax.
C. excise duty.
D. gift tax.
ANSWER: A
184. Companies pay Corporation Tax on their _______________.
A. investment.
B. production.
C. sales proceeds.
D. incomes.
ANSWER: D
185. Fiscal deficit in the Union Budget means _______________.
26 of 36
8/1/2014 12:54 PM
A. The difference between current expenditure and current revenue.

B. The sum of budgetary deficit and net increase in internal and external borrowings.
C. Net increase in Union Governments borrowings from the Reserve Bank of India.
D. The sum of monetized deficit and budgetary deficit.
ANSWER: B
186. Inflation implies ________________.
A. rise in budget deficit.
B. rise in money supply.
C. rise in general price index.
D. rise in prices of consumer goods.
ANSWER: C
187. The Reserve Bank of India issues ___________.
A. all the currency notes.
B. all the currency notes except the one rupee.
C. all the currency notes except the hundred rupee note.
D. only notes of Rs. 10 and above note.
ANSWER: B
188. Deficit financing creates additional paper currency to fill the gap between expenditure and revenue.
This device aims at economic development but if it fails, it generates ______________.
A. inflation.
B. devaluation.
C. deflation.
D. demonetization.
ANSWER: A
189. Reserve Bank of India was set up in ____________.
A. 1935.
B. 1949.
C. 1951.
D. 1955.
ANSWER: A
190. Inflation can be connected by _______.
A. surplus budget.
B. increase in taxation.
C. reduction in public expenditure.
D. All the above.
ANSWER: D
191. Credit Rationing in India is done by ________.
A. RBI.
B. SBI.
C. LIC.
D. UTI.
ANSWER: A
192. Open market operations by a Central Bank involves _______________.
A. increase or decrease of discount rate.
27 of 36
8/1/2014 12:54 PM
B. raising or lowering of marginal requirements.

C. sale and purchase of government securities.
D. changing the reserve ratio up and down.
ANSWER: C
193. The marginal tax rate is _____________.
A. The additional tax you pay divided by your total income.
B. your total income divided by the total amount of tax you pay.
C. the tax rate you pay on any additional income that you earn.
D. the total amount of tax you pay divided by your total income.
ANSWER: A
194. A tax whose burden, expressed as a percentage of income, falls as income increases is a
_______________.
A. benefits received tax.
B. progressive tax.
C. proportional tax.
D. regressive tax.
ANSWER: A
195. Tax incidence is the ________________.
A. ultimate distribution of a taxs burden.
B. structure of the tax.
C. measure of the impact the tax has on employment and output.
D. behavior of shifting the tax to another party.
ANSWER: A
196. Where a tax can be shifted, the incidence depends on _____________.
A. elasticity of demand and supply.
B. how many producers are there.
C. who is legally obliged to pay the tax.
D. whether there is perfect or imperfect information.
ANSWER: B
197. An example of an indirect tax is _____________.
A. VAT.
B. income tax.
C. inheritance tax.
D. a tax on profits.
ANSWER: C
198. A withholding tax is ________________.
A. An indirect tax, that is, a tax that is borne by a taxpayer who did not directly generate the income that
serves as the source of the pass income.
B. A direct tax, that is, a tax that is borne by a taxpayer who generated the income that serves as the
source of the active income.
C. A form of double taxation.
ANSWER: A
199. The impact and incidence falls on the same person in ____________.
28 of 36
8/1/2014 12:54 PM
A. direct tax.
B. property tax.
C. wealth tax.
D. gift tax.
ANSWER: A
200. Ability to pay principal is based on canon of __________.
A. canon of certainty.
B. canon of elasticity.
C. canon of equality.
D. canon of elasticity.
ANSWER: C
201. Federation means ________________.
A. taxability.
B. form of government.
C. principle of taxation.
D. finance.
ANSWER: B
202. Taxation matters are looked upon by ___________.
A. central government.
B. state government.
C. union territory.
D. central and state government.
ANSWER: D
203. In India we follow ______________ type of tax system.
A. proportional.
B. progressive.
C. regressive.
D. federal.
ANSWER: D
204. Majority of the collection comes from ______________ for the government.
A. direct tax.
B. indirect tax.
C. property tax.
D. wealth tax.
ANSWER: B
205. To pay indirect tax one has to __________ the commodity.
A. trade.
B. sell.
C. purchase.
D. export.
ANSWER: C
206. ___________ taxes are preferred by the public.
A. direct.
B. indirect.
29 of 36
8/1/2014 12:54 PM
C. both.
D. none of these.
ANSWER: B
207. Central excise duty is payable on ________________.
A. imported goods.
B. exported goods.
C. manufactured goods.
D. assembled goods.
ANSWER: C
208. Duty payable on assessable value includes ______________.
A. research and development.
B. marketing cost.
C. bank interest.
D. dealers margin.
ANSWER: A
209. Speculation business consists of ____________.
A. speculative transactions.
B. gambling.
C. tax evasion.
D. tax avoidance.
ANSWER: A
210. Income earned from a business in Australia but it has been controlled by India is taxable in the hands
of _________.
A. resident only .
B. both ordinarily resident and NOR .
C. nonresident .
ANSWER: B
211. Income earned from a business in Australia is taxable in the hands of _________.
A. resident only .
C. nonresident .
ANSWER: A
212. The abbreviation of IFP is _____________.
A. Income from Profession.
B. Income from Politics.
C. Income from Press.
D. Income from Profits.
ANSWER: A
213. Under mercantile system of accounting all receipts and payments which are paid or due will be
considered to calculate _____________.
A. net profit .
B. net loss.
30 of 36
8/1/2014 12:54 PM
C. gross profit.
D. gross loss.
ANSWER: C
214. The term business, profession or vocation is taken in the same sense for __________.
A. calculation of income.
B. calculation of deduction.
C. calculation of tax.
D. calculation of profit.
ANSWER: A
215. The acronym DEP under business and profession denotes ___________.
A. debenture.
B. depreciation.
C. department.
D. difference.
ANSWER: B
216. Vocation implies natural ability of a persons ____________.
A. important work.
B. particular work.
C. special work.
D. hard work.
ANSWER: B
217. Tax is to be levied on any ____________.
A. profit.
B. gain.
C. both a and b.
D. income of a person.
ANSWER: C
218. __________is not included in capital asset.
A. Raw materials.
B. House property.
C. Land.
D. Machinery.
ANSWER: A
219. Dividend declared by an Indian company is exempted in the hands of _________.
A. resident only.
C. nonresident.
ANSWER: D
220. Ornaments including jewels are _____________.
A. capital asset.
B. fictitious asset.
C. tangible asset.
D. intangible asset.
31 of 36
8/1/2014 12:54 PM
ANSWER: A
221. Dividend declared by a foreign company but received in India is taxable in the hands of __________.
A. ordinary resident
C. nonresident .
ANSWER: D
222. ___________ is fully taxable.
A. Capital gain.
B. Capital asset.
C. Capital loss.
D. Both a and b.
ANSWER: A
223. The word __________ represent the sale.
A. transfer.
B. profit.
C. gain.
D. loss.
ANSWER: A
224. The gratuity will be received by ____________.
A. an employee.
B. retired employee.
C. government employee.
D. private employee.
ANSWER: B
225. Expenses debited in P and L which is not related to business is _____________.
A. allowed.
B. disallowed.
C. illegal.
D. exempted.
ANSWER: B
226. Income which accrue or arise outside India and also received outside India is taxable in case of
__________.
A. resident only.
B. not ordinarily resident.
C. both ordinarily resident and NOR.
ANSWER: A
227. _______of the income tax act 1961 provides for the administration and judicial authority for
administration of this act.
A. Section 118.
B. Section 117.
C. Section116.
D. Section 112.
32 of 36
8/1/2014 12:54 PM
ANSWER: C
228. Abbreviate CBDT.
A. Control Board of Direct Tax.
B. Central Board of Direct Tax.
C. Central Bureau of Direct Tax.
D. Control Bureau of Direct Tax.
ANSWER: B
229. CBDT is constituted under the provision of central board of revenue act___________.
A. 1963.
B. 1973.
C. 1967.
D. 1992.
ANSWER: A
230. ___________ governments may appoint such persons as it thinks fit to be income tax authority.
A. Central.
B. State.
C. local.
D. Both 1and 2.
ANSWER: A
231. The jurisdiction of commissioner is to be determined by the CBDT keeping in the view
of___________.
A. area.
B. person.
C. capacity of the persons.
D. all the above.
ANSWER: D
232. Excise duty can be levied on those goods which are _________.
A. manufactured in India.
B. sold in India.
C. removed from the factory.
D. none of these.
ANSWER: A
233. Dutiable goods means ____________.
A. goods are subject to central excise duty.
B. goods which are exempted from excise duty.
C. non - excisable goods.
D. goods not at all mentioned in the central excise tariff
ANSWER: A
234. Income Tax activities relating to search and seizure come under ____________.
A. section 133.
B. section 131.
C. section 132.
D. section 134.
ANSWER: C
33 of 36
8/1/2014 12:54 PM
235. PAN denotes _____________.

A. Perfect Account Number.
B. Permanent Account Number.
C. Permanent Allowance Number.
D. Perfect Allowance number.
ANSWER: B
236. Dividend paid by an Indian company is _________.
A. Taxable in India in the hands of the recipient.
B. Exempt in the hands of recipient.
C. Taxable in the hands of the company and exempt in the hands of the recipient.
ANSWER: C
237. _______of income is nothing but calculation of total income and its tax liability.
A. Ascertainment.
B. Assessment.
C. Earning.
D. Procurement.
ANSWER: B
238. Under ______assessment, the assessee himself makes an assessment about his tax liability before filing
his return of income.
A. self.
B. regular.
C. usual.
D. best judgement.
ANSWER: A
239. Which of the following duties is covered under the first schedule of the central excise tariff act?
A. Basic excise duty.
B. Special excise duty.
C. Additional excise duty.
D. Education cess.
ANSWER: A
240. TRO refers to___________.
A. Tax Recovery Officer.
B. Trust Resource Officer.
C. Task Resource Officer.
D. Transport Recovery Officer.
ANSWER: A
241. Inspector of income tax is appointed by his ________of income tax.
A. commissioner.
B. joint commissioner.
C. director general.
D. chief inspector.
ANSWER: A
34 of 36
8/1/2014 12:54 PM
242. Agricultural income is exempted, provided the ____________.

A. Land is situated in India.
B. Land is situated in any rural area India.
C. Land is situated whether in India or outside India.
D. Land is situated in any urban area India.
ANSWER: A
243. _________assessment comes into picture when the assessing officer is not clear above the person who
has received the in come.
A. Self.
B. Regular.
C. Protective.
D. Best Judgment.
ANSWER: C
244. _________ assessment is left to the discretion of the assessing officer, where he has to consider all
relevant material that are needed to make an assessment of total income or loss.
A. Protective.
B. Regular.
C. Best judgment.
D. Self.
ANSWER: C
245. MRP product assemble value will be calculated as ________.
A. Transaction basis.
B. MRF less abatement.
C. percentage of tariff value.
D. none of these.
ANSWER: B
246. A local authority has earned income from the supply of commodities outside its own jurisdictional
area. It is ___________.
A. exempted.
B. taxable.
C. eligible for deduction under sec 80.
D. not eligible for deduction.
ANSWER: B
247. _________refers to complaint expressed to the superior authority regarding the justice done by a
subordinate to a particular person.
A. Appeal.
B. Revision.
C. Grievance.
D. Problem.
ANSWER: A
248. ___________refers to legal in nature and is entirely different from tax and tax avoidance.
A. Tax planning.
B. Revision.
C. Appeal.
D. Complaint.
35 of 36
8/1/2014 12:54 PM
ANSWER: A
249. Assessable does not include one of the following ____________.
A. cost of material.
B. cost of insurance.
C. cost of transportation.
D. interest on delayed payments
ANSWER: D
250. Municipal tax, if to be calculated on percentage basis, it should be calculated on ___________.
A. annual rent.
B. fair rent .
C. standard rent.
D. municipal valuation.
ANSWER: D
Staff Name
Deepa.J.
36 of 36
8/1/2014 12:54 PM

BBAs Semester III Taxation Multiple Choice Questions

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

BBAs Semester III Taxation Multiple Choice Questions

Hochgeladen von

Copyright:

Verfügbare Formate

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

106. Under TNGST Act business does not include _______________.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

C. United States of America.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

142. Restriction on trade or commerce can be imposed by parliament in the ___________.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

A. place where goods manufactured are stocked.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

B. export and import of goods.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

178. The customs Act 1962 is divided into ______________.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

A. The difference between current expenditure and current revenue.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

B. raising or lowering of marginal requirements.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

235. PAN denotes _____________.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

242. Agricultural income is exempted, provided the ____________.

http://172.16.2.20/printqp.php?heading=II - BBA [ 2013-16], SEMESTER...

Das könnte Ihnen auch gefallen