Taxation-Saroj2

Select The Blank

Question For an individual as a citizen of India who leaves India in the relevant previous year for the purpose of
employment has to be in India for ________ days or more during previous year.
Your Answer 182
Multiple Choice Single Answer
Question The due date prescribed for filing the returns of income in Form No. 2C is
Correct Answer 31st October of the respective Assessment year
Your Answer 31st October of the respective Previous year

Multiple Choice Single Answer

Question The payments for claiming the rebate u/s 88 should :-
Correct Answer Be made out of the income chargeable to tax.
Multiple Choice Single Answer
Question As per which provision and section, every person, company or any other person shall furnish his returns of
income in the prescribed form on or before the specified due date?
Correct Answer Section 139(1)

Select The Blank

Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim tax rebate of ________u/s 88C of the IT
Act.
Correct Answer Rs. 5,000
Your Answer Nil

Multiple Choice Multiple Answer

Question Rebate is allowed on any subscription made to National Saving Scheme by :-
Correct Answer An individual , A HUF
Your Answer An individual , A HUF , Partnership Firms

Multiple Choice Multiple Answer

Question For the purpose of taxability of perquisite a specified employee means :-
Correct Answer The person who is director of a company , The employee who has substantial interest in the
company by having 20% or more of the voting power , The employee whose income under the head salaries (including all
the taxable monetary payments of salary but excluding the value of any non-monetary benefits or perquisites), after
allowing deductions under Section 16, exceeds Rs. 50,000

Multiple Choice Multiple Answer

Question Following professional institutions have their incomes exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting
True/False
Question Deduction u/s 80E for repayment of loan taken for higher education is available if the loan must have
borrowed by the assessee himself or his Father
Correct Answer False

Multiple Choice Single Answer

Question Annual value of any one palace in possession of a former ruler is :-
Correct Answer Exempt

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 True/False
Question The consideration for transfer of Capital Asset is received by the transferor is not material while Capital gain
chargeable to tax.
Correct Answer True
Multiple Choice Multiple Answer
Question Any loans or deposits borrowed or repaid under section 269SS of the Act provides that the said provisions will
not apply to the loans or deposits accepted by :-
Correct Answer Banking company including cooperative bank and post office savings bank , Government , Government
company

Match The Following

Question Correct Answer Your Answer
Employee stock option plan ESOPS ESOPS
Uncommuted Pension Indicates the periodical payment of pension Indicates the periodical payment of pension

Commuted Pension Indicates the lump sum received in lieu of the periodical Indicates the lump sum
received in lieu of the periodical
Treatment of Perquisite Taxed in the hands of employee as taxable salary Taxed in the hands of employee as
taxable salary

True/False
Question A person who is a Senior Citizen who has attained the age of 65 years is not entitled to the rebate u/s 88 of
the Act.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question For Deduction u/s 54EC from Capital Gains the assessee should invest the whole or part of the capital gains
in the specified assets :-
Correct Answer Within six months from the date of transfer of the long-term capital asset

Select The Blank

Question Unabsorbed business loss can carried forward and set off in the subsequent Assessment Years subject to the
time limit of ________ Assessment years.
Correct Answer 8
Your Answer 3
Multipl
e Choice Single Answer
Question Mr. A whose Gross Total Income, before allowing deductions under Chapter VI-A is Rs. 2,40,000 wants to
make the investments in the following alternative forms Rs. 50,000 in PPF and Rs. 50,000 in Infrastructure Bonds. The
amount of rebate available to him u/s 88 is :-
Correct Answer Rs. 15,000

select The Blank

Question To claim sec 10A deduction unit must be established in ________.
Correct Answer Free Trade Zone

Select The Blank

Question Non resident individual satisfies ________ of the basic conditions.
Correct Answer None
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 Your Answer Any one
Match The Following
Question Correct Answer
Any subscription made to National Saving Scheme By an individual or a HUF is eligible for rebate u/s
88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 during the Assessment Year 2005-
2006. He invested Rs. 50,000 in the tax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y 2005-
2006.
RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross Total Income of Rs. 1,45,000
including the dividend from Indian companies amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the
said Assessment Year. her tax liabilit is
Rs. 1,000
Any contribution made to a Public Provident Fund Is eligible for rebate u/s 88

Multiple Choice Single Answer

Question Deduction from Capital Gains under Section 54 is for Capital Gains arising from transfer of :-
Correct Answer House Property

Select The Blank

Question Deduction for remuneration from foreign sources for professors, teachers etc under Section 80R is limited to
________% of such remuneration brought in India.
Correct Answer 15
select
The Blank
Question Relief under section 89 is available to an employee in respect of the amount of salary received ________.
Correct Answer In advance or in arrears
Your Answer In the immediately succeeding year.
Select The Blank
Question AOP id formed when two or more ________ come together to earn income.
Correct Answer Persons

Multiple Choice Multiple Answer

Question Capital Gains arise on account of excess of transfer consideration over the following amounts
Correct Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and exclusively in connection
with the transfer

Multiple Choice Multiple Answer

Question Which of the following amounts credited to P & L Account but not taxable from Income tax Purposes as Profits
from Business and Profession? Correct
Answer Refund of Income tax , Capital Gains , Dividend Income

True/False
Question Rebates as per the provisions of Section 88 of the Act are not available from the tax on long-term capital
gains.
Correct Answer True
Select The Blank
Question If assessee owns more than one house properties, he can get benefit of nil annual value for any one house
property ________.
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Correct Answer As per his choice
Your Answer As per his choice

Multiple Choice Single Answer

Question What is the treatment of principal amount of loan borrowed for the purchase or construction of a residential
house?
Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000

Multiple Choice Multiple Answer

Question The provisions for payment of gratuity is not allowed under section 40A(7) but, under the head, profits from
business and profession, the amount of gratuity will be allowed as deduction only when :-

Correct Answer The amount of gratuity has actually become payable to the employees during the previous year , The
provision has been made for the payment of a sum by way of contribution to an approval gratuity , The other than the
above two situations, any provision made for the payment of gratuity is not allowed as deduction

Your Answer The amount of gratuity has actually become payable to the employees during the previous year , The
provision has been made for the payment of a sum by way of contribution to an approval gratuity

Multiple Choice Multiple Answer

Question If the Salary is less than Rs. 5,00,000, Standard Deduction will be the least of the following :-
Correct Answer 40% of the Salary , Rs. 30,000

Multiple Choice Single Answer

Question The amount of advance tax payable by non corporate assessees before 15th December of Previous year is :-
Correct Answer 60% of advance tax payable
Your Answer 100% of advance tax payable

Select The Blank

Question It should be noted that the tax liability of an individual having the total income of less than Rs ________ is Nil
u/s 88D.
Correct Answer 1,00,000

True/False
Question If assessee owns more than one house properties, annual value of any one of the house property can be
treated as nil, and such option can be changed year on year basis.
Correct Answer True

True/False
Question Income from subletting is treated as income from house property.
Correct Answer False

Multiple Choice Multiple Answer

Question Following persons are deemed to be an assessee :-
Correct Answer Legal heir of deceased person , Parents of minor assessee , Agent of NRI
Your Answer Legal heir of deceased person , Parents of minor assessee , Agent of NRI

Multiple Choice Single Answer

Question Income of notified news agencies is exempt provided :-
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 Correct Answer They apply their income for collection & distribution of news
Your Answer They apply their income for collection & distribution of news

Select The Blank

Question The rebate u/s 88B is available to an individual who has attained the age of ________ or more at any time
during the previous year.
Correct Answer 65

Multiple Choice Multiple Answer

Question What is the tax treatment of the Lump sum received from unrecognized provident fund on the retirement or
resignation or death of the employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest on employee's contribution is taxable as
"Income from Other Sources" , Employer's Contribution to PF and interest thereon is taxable as "Income from salaries"

True/False
Question Any advance tax paid before 31st March is treated as advance tax paid during the previous year.
Correct Answer True

True/False
Question A woman assessee below the age of 65 years is also entitled to rebate u/s 88.
Correct Answer True

Multiple Choice Single Answer

Question Rent for other amenities like lift, electricity, telephone etc. is taxed under the heading :-
Correct Answer Income from other sources
Your Answer Income from salaries

Multiple Choice Single Answer

Question The amount of advance tax payable by non corporate assessees before 15th June of Previous year is :-
Correct Answer Nil
Your Answer 100% of advance tax payable

Multiple Choice Multiple Answer

Question The entertainment allowance received by the Government employees is included in their salaries and the
deduction is allowed to the extent of least of the following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowance received.

True/False
Question Loss from house property can be adjusted against the income from any other house property.
Correct Answer True

True/False
Question Annual premium paid by the employer for the accident insurance policy taken by the employer in the name of
the employee is chargeable to tax.
Correct Answer False

Multiple Choice Single Answer

Question Annual return for TDS from Salaries is to be filed in :-
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Correct Answer Form No. 24