Taxation Assignments

SCDL Taxation Assignments
SCDL PGDBA 4th Sem Assignments

SCDL 4th Sem Assignments/Papers of Taxation
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
Actual amount of Entertainment Allowance received. ,
Rs. 5,000 , 1/5th of Salary
Your Answer Actual amount of Entertainment Allowance received. ,
True/False
Question Income Tax Act, 1961 recognizes Written Down Value (WDV) method
as well as straight line method for the computation of depreciation u/s 32 this
act.
Correct
Answer
False
Your Answer False

Question Profits earned by an Industrial Undertaking engaged in other than
infrastructure development is available under Section 80IB for :-
Correct Answer
Operation of Ship , Hotels situated in hilly area, rural area or place of
pilgrimage , Company engaged in scientific and industrial research
Your Answer
Operation of Ship , Hotels situated in hilly area, rural
area or place of pilgrimage
Multiple Choice Single Answer

Question Which of the following expenditure is in the nature of revenue
expenditure?
Correct Answer
Expenditure incurred as discount on issue of debentures
Your Answer
Expenditure incurred as discount on issue of debentures
Select The Blank

Question If sum received is net of TDS then it is ________ to include in income
from other sources.
Correct Answer
Grossed up
Your Answer Grossed up
True/False
Question Interest paid on the loan for acquiring a capital asset will be
considered to be a part of cost of acquisition.
Correct Answer
True
Your Answer
True

Question Mr. A whose Gross Total Income, before allowing deductions under
Chapter VI-A is Rs. 1,45,000, wants to make the investments in the following
alternative forms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The
amount of rebate available to him u/s 88 is :-
Correct Answer
Rs. 18,000
Your Answer
Rs. 18,000

Question Interest on specified securities or premium on redemption is exempt
for :-
Correct Answer
Non resident Indian
Your Answer
Non resident Indian
True/False
Question As per section 2(11) of the Income Tax Act, Block of Assets includes
both tangible as well as intangible assets.
Correct Answer
True
Your Answer
True

Question Deductions in respect of Certain Incomes received under Section 80L
is available in respect of
Correct Answer
Interest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs)
Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Your Answer
Interest on Central or State Government Securities ,
Bank Interest

Question Tax liability of a person is based on :-
Correct Answer
Residential status
Your Answer
Residential status

Question For the purpose of income tax, the perquisites can be classified into :-
Correct Answer
Perquisites which are taxable in case of all types of employees , Perquisites
which are taxable only in the hands of specified employee
Your Answer
Perquisites which are taxable in case of all types of employees , Perquisites
which are taxable only in the hands of specified employee
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.
Correct Answer
182
Your Answer
182

Question Income earned in previous year is subjected to tax in :-
Correct Answer
Assessment year
Your Answer
Assessment year

Question Following professional institutions have their incomes exempt from
tax :-
Correct Answer
Town planning , Company secretary , Accounting
Taxation - 6
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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 Actual amount of Entertainment Allowance received.
,
True/False
Question Income Tax Act, 1961 recognizes Written Down Value
(WDV) method as well as straight line method for the
computation of depreciation u/s 32 this act.
Correct Answer False
Your Answer False
Question Profits earned by an Industrial Undertaking engaged
in other than infrastructure development is available
under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area,
rural
area or place of pilgrimage , Company engaged in
scientific and industrial research
Your Answer Operation of Ship , Hotels situated in hilly area, rural
Question Which of the following expenditure is in the nature of
revenue expenditure?
Correct Answer Expenditure incurred as discount on issue of
debentures
Your Answer Expenditure incurred as discount on issue of
debentures
Select The Blank
Question If sum received is net of TDS then it is ________ to
include in income from other sources.
Correct Answer Grossed up
True/False
Question Interest paid on the loan for acquiring a capital asset
will be considered to be a part of cost of acquisition.
Correct Answer True
Your Answer True
Question Mr. A whose Gross Total Income, before allowing
deductions under Chapter VI-A is Rs. 1,45,000, wants
to make the investments in the following alternative
forms Rs. 80,000 in PPF and Rs. 20,000 in
Infrastructure Bonds. The amount of rebate available
to him u/s 88 is :-
Correct Answer Rs. 18,000
Your Answer Rs. 18,000
Question Interest on specified securities or premium on
redemption is exempt for :-
Correct Answer Non resident Indian
Your Answer Non resident Indian
True/False
Question As per section 2(11) of the Income Tax Act, Block of
Assets includes both tangible as well as intangible
assets.
Correct Answer True
Your Answer True
Question Deductions in respect of Certain Incomes received
under Section 80L is available in respect of
Correct Answer Interest on Central or State Government Securities ,
Bank Interest
Your Answer Interest on Central or State Government Securities ,
Bank Interest
Correct Answer Residential status
Your Answer Residential status
Question For the purpose of income tax, the perquisites can be
classified into :-
Correct Answer Perquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the
hands of specified employee
Your Answer Perquisites which are taxable in case of all types of
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.
Correct Answer 182
Your Answer 182
Question Income earned in previous year is subjected to tax in
:-
Correct Answer Assessment year
Your Answer Assessment year
Question Following professional institutions have their incomes
exempt from tax :-
Correct Answer Town planning , Company secretary , Accounting
Your Answer Town planning , Company secretary , Accounting
Select The Blank
Question ________ of the Tax Audit Report refers to the details
of various payments which are allowed as deduction
only if they are actually paid for.
Correct Answer Section 43B Clause No-21
Your Answer Section 43B Clause No-21
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Short Term Capital Gains. , Long term Capital Gains
Select The Blank
Question To claim sec 10A deduction unit must be established
in ________.
Correct Answer Free Trade Zone
Your Answer Free Trade Zone
Question Assessment year is the period of 12 months starting
from :-
Correct Answer 1st April to 31st March
Your Answer 1st April to 31st March
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Your Answer Gross total income
Question If an employee does not avail of this leave travel
concession or assistance during a block of four
calendar years :-
Correct Answer Only one journey can be carried forward to the next
block.
Your Answer Only one journey can be carried forward to the next
block.
Select The Blank
Question To acquire PAN, a person shall apply in ________ to
the assessing officer.
Correct Answer Form No. 49A
Your Answer Form No. 49A
Question Deduction from Capital Gains under Section 54F is for
Capital Gains arising from transfer of :-
Correct Answer Any Long Term Capital Asset
Your Answer House Property
Select The Blank
Question Where an assessee files or submits the returns as per
provisions of section 139 or in response to the notice
under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Your Answer Scrutiny Assessment
Question Income of a professional association is exempt if its
objectives are :-
Correct Answer Supervision , Control , Encouragement
Your Answer Supervision , Control , Encouragement
True/False
Question While computing the profits from Business and
profession, the business or profession must be carried
out during the previous year.
Correct Answer True
Your Answer True
Question In respect of leave travel concession If Mr. A has
availed the exemption only once or has not availed
any exemption at all, in the block of four years i.e.
1998-2001 then :-
Correct Answer He can carry over the exemption to the next block
of
four years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next
block i.e. 2002.
Your Answer He can carry over the exemption to the next block of
block i.e. 2002.
Question The amount accumulated to the credit of the
employee's provident fund account is paid at the time
of :-
Correct Answer Retirement , Resignation
Your Answer Retirement , Resignation
Question From annual value, following deductions are allowed :-
Correct Answer Standard deduction , Interest on borrowed capital ,
Municipal taxes
Your Answer Interest on borrowed capital , Municipal taxes
Question As a general principle, the Basic Salary or Wages,
Dearness Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
Question From GTI of a company following deductions under
chapter VI A are allowed
Correct Answer 80 G Donations , 80 HHB profits and gains from
projects outside India , 80 IA profits and gains of
infrastructure companies
Your Answer 80 G Donations , 80 IA profits and gains of
Question Annual value of any one palace in possession of a
former ruler is :-
Correct Answer Exempt
Your Answer Taxable
Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard
Deduction will be Rs.________.
Correct Answer 20000
Your Answer 20000
Question The amount of accumulated interest on NSCs
purchased in the earlier years is assumed to be
reinvested :-
Correct Answer And qualifies for tax rebate under section 88.
Your Answer And qualifies for tax rebate under section 88.
Select The Blank
Question Deduction u/s ________B is available for 10
consequent assessment years from the year of
commencement of production.
Correct Answer 10
Your Answer 10
True/False
Question Income from subletting is treated as income from
house property.
Your Answer False
Select The Blank
Question Section 80U allows the deduction in respect of the
________ .
Correct Answer Permanent physical disability
Your Answer Permanent physical disability
Match The Following
Question Correct Answer Your Answer
Disallowable
Expenditure
Litigation Expenses in
connection with
recovery of a debt
which is not a trading
debt
connection with
recovery of a debt
debt
Business Includes trade,
commerce, or
Includes trade,
commerce, or
manufacture or any
adventure or concern
in the nature of trade,
commerce or
manufacture
manufacture or any
adventure or concern in
the nature of trade,
commerce or
manufacture
Profession Includes vocation Includes vocation
Capital Expenditure Expenditure incurred
by a company with the
issue of rights shares
Premium on
redemption of
Debentures
True/False
Question Any recreational facility provided by the employer to a
group of employees (not being restricted to a select
few employees) is not exempt from tax.
Your Answer False
True/False
Question In case of deductions for medical treatment under
Section 80DDB the amount of deduction will be
reduced by the amount received under an insurance
policy or the amount reimbursed by the employer.
Correct Answer True
Your Answer True
True/False
Question Any advance tax paid before 31st March is treated as
advance tax paid during the previous year.
Correct Answer True
Your Answer True
Question Municipal taxes paid is allowed as deduction from :-
Correct Answer Gross annual value
Your Answer Gross annual value
True/False
Question Entertainment Allowance received by the employees
from the private sector is taxable in the hands of the
employee.
Correct Answer True
Your Answer True
Match The Following
Any subscription made
to National Saving
Scheme
By an individual or a
HUF is eligible for
rebate u/s 88
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 RS.12,500
During the
Assessment Year
2005-2006, Mrs. A,
age 58 years, has the
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 Rs. 1,000
Any contribution made
to a Public Provident
Fund
Is eligible for rebate
u/s 88
Is eligible for rebate u/s
88
Question Following incomes of local authorities are exempt :-
Correct Answer Capital gains , Other income , House property
Your Answer Capital gains , Other income , House property
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
longterm
capital asset
Your Answer Within six months from the date of transfer of the
longterm
capital asset
True/False
Question Income from partnership firms is exempt from taxation
for the partners
Correct Answer True
Your Answer False
Wednesday, April 2, 2008
Taxation - 5

Question What are the factors to be considered in cluster analysis?
Correct Answer Limited number of clusters due to limitation of
market potential , Clusters are not
water tight compartment , Evaluating the quality of cluster is
difficult
Your Answer Limited number of clusters due to limitation of market
potential , Clusters are not
water tight compartment , Evaluating the quality of cluster is
difficult
Question Clarity of questions and instructions for filling the form is
essential in :-
Correct Answer Mail survey
Your Answer Data analysis
Question The technique through which objects/ cases are classified
into relative homogeneous
groups or clusters is known as :-
Correct Answer Cluster analysis
Your Answer Cluster analysis
Question Mean or average value is used to estimate when data have
been collected using :-
Correct Answer Interval or ratio scale
Your Answer Interval or ratio scale
Select The Blank
Question In ________ method the research analyst is not
concerned with cause and research
relationship.
Correct Answer Diagnostic
Your Answer Diagnostic
Question Which are the New Delhi based Research Institutions?
Correct Answer NRDC , CSIR , Cement Research Institute of India
Your Answer NRDC , CSIR , Cement Research Institute of India
Question Market Research is done to
Correct Answer Explore the Opportunities
Your Answer Explore the Opportunities
True/False
Question "Consumer Panel" is a specialized market research
technique.
Your Answer False
Match The Following
"What might this be ?" Inkblot test Inkblot test
Aided Recall Depth Research Depth Research
Doesn’t intend to tell Projective techniques Projective techniques
Ease of construction Likert scale Likert scale
True/False
Question In regression analysis, dependent variables can be
expressed as a linear function of
impendent variables.
Correct Answer True
Your Answer True
True/False
Question When company prepares a long range plan it is
unpublished internal source of
information.
Correct Answer True
Your Answer True
Select The Blank
Question Association technique is a type of ________.
Correct Answer Projective technique
Your Answer Projective technique
Question The impact of promotional slogans on the consumers can
be studied with
Correct Answer Association technique
Your Answer Association technique
True/False
Question Brand image building is not important in case of industrial
product for quality.
Your Answer False
Question Which publications are used for research on Chemical
Industry?
Correct Answer Indian Chemical Directory , Chemical Industry News
, Chemical & Petro
Chemicals Journal
Your Answer Indian Chemical Directory , Chemical Industry News ,
Chemical & Petro Chemicals
Journal
Question Spreading the sample through the entire population
following a regular pattern is known
as :-
Correct Answer Systematic sampling
Your Answer Systematic sampling
Select The Blank
Question In absence of proper________ the market research
becomes a data collection exercise.
Correct Answer Problem Definition
Your Answer Analysis
Question Which institutions should be contacted for research on
Paint Chemicals?
Correct Answer National Chemical Laboratory, Pune , Industrial
Research & Development Center
, Building Research Institute
Your Answer National Chemical Laboratory, Pune , Industrial
Research & Development Center ,
Building Research Institute
Question The objectives of marketing research are
Correct Answer To understand the consumer needs and wants , To
explore the new markets , To
analyze the competitors
Your Answer To understand the consumer needs and wants , To
explore the new markets , To
analyze the competitors
Question Ultra violet ink is used to disguise customer coding. This
activity is :-
Correct Answer A disapproved method
Your Answer A disapproved method
Select The Blank
Question Through cluster analysis objects/cases are classified into
relatively________ group
called cluster.
Correct Answer Homogeneous
Your Answer Homogeneous
Match The Following
Dangler POP POP
POP Communication medium Communication medium
Opinion Polls Daily basis Daily basis
Corporate Image Study Advertising research Advertising research
Question Ethical issues to be observed while writing a report are :-
Correct Answer No deliberate misinterpretations , Marketing
problems should be designed to suit
hidden agenda , Complete confidentiality and secrecy of data
Your Answer No deliberate misinterpretations , Marketing problems
should be designed to suit
hidden agenda , Complete confidentiality and secrecy of data
Select The Blank
Question Multiple Choice is a ________type of question.
Correct Answer Close ended
Your Answer Close ended
Question The conjoint analysis helps to enable company's to :-
Correct Answer Conduct brand swot analysis
Your Answer Conduct brand swot analysis
Question In the Internet era, qualitative research is possible
through :-
Correct Answer Chat sessions
Your Answer Chat sessions
Select The Blank
Question ________is an important communication medium that
helps recall advertising.
Correct Answer Point of Purchase(POP)items
Your Answer Point of Purchase(POP)items
True/False
Question In the Funnel approach, specific questions come first and
general questions later.
Your Answer False
Question In resources for marketing research skilled staff plays an
important role in :-
Correct Answer Maintaining data , Dealing with different situation
and problems , Timely
completion of research
Your Answer Maintaining data , Dealing with different situation and
problems , Timely completion
of research
Select The Blank
Question Convenience Sampling is used for ________.
Correct Answer Exploratory research
Your Answer Exploratory research
True/False
Question The person conducting pharma research should be well
qualified so that not to waste
Doctors time.
Correct Answer True
Your Answer True
True/False
Question The limitations with regression forecasting is that
independent variables must be
forecasted before forecasting the dependent variables.
Correct Answer True
Your Answer True
Question Main features of Technical Report are :-
Correct Answer Minute details of planning data collection , Analysis ,
Interpretation
Your Answer Minute details of planning data collection , Analysis ,
Interpretation
Question How people allocate their time and money to certain
products and factors is depicted by
Correct Answer Psychographic Variable
Your Answer Psychographic Variable
True/False
Question Question phrasing and structure are eliminated in
Semantic differential scale.
Correct Answer True
Your Answer True
True/False
Question The popularity of Likert scale is due to its ease of
construction and administration.
Correct Answer True
Your Answer True
Question Which are the Export Promotion Councils?
Correct Answer Cashew Export Promotion Council , Handloom
Export Promotion Council , Gem
& Jewellery Export Promotion Council
Your Answer Cashew Export Promotion Council , Handloom Export
Promotion Council , Gem &
Jewellery Export Promotion Council
True/False
Question The written contract of a research should cover the
penalty clause covering deficits
such as delays, inadequate data.
Correct Answer True
Your Answer True
Question The producers in the sellers' market are also forced to
take decisions based on the
market information because
Correct Answer The resources are scarce
Your Answer The resources are scarce
Question Scale Intervals can be used for
Correct Answer Age
Your Answer Age
Select The Blank
Question Bibliography contains ________.
Correct Answer Information of references and secondary data
Your Answer Information of references and secondary data
Question Online survey methods include :-
Correct Answer Email survey , HTML survey , Downloadable
interactive surveys
Your Answer Email survey , HTML survey , Downloadable interactive
surveys
Question Data of market research cannot be maintained :-
Correct Answer Without experienced and educated research staff
Your Answer Without experienced and educated research staff
Question Pretesting of Questionnaire includes testing of :-
Correct Answer Question content , Time taken to answer questions ,
Categorisation
Your Answer Question content , Time taken to answer questions ,
Categorisation
Question Identification of Target Population is facilitated by :-
Correct Answer Well defined research objectives , Alternative,
reasonable/target population
definitions , Specifications for exclusion in target population
Your Answer Well defined research objectives , Alternative,
reasonable/target population
definitions , Specifications for exclusion in target population
Select The Blank
Question ________are used for National Panel Studies.
Correct Answer Quota controls
Your Answer Quota controls
Select The Blank
Question Finding out the number of vehicles at a given junction is a
________ method.
Correct Answer Direct Observation
Your Answer Direct Observation
at 6:34 AM 0 comments Links to this post
Labels: Taxation
Taxation - 4
Taxation
-------------
Select The Blank
Question The basic advantage of having an agent in the export
market is ________.
Correct Answer He is knowledgeable of the marketing condition
Your Answer He is knowledgeable of the marketing condition
Question How does the customer know about the product & is
influenced to buy it?
Correct Answer Publicity , Advertising , Sales promotion
Your Answer Publicity , Advertising , Sales promotion
Question Which of the following is not included in foreign
environment?
Correct Answer Local dimension
Your Answer Local dimension
Question Why should a market researcher check a country's import
tariffs when he is
investigating it as an export market?
Correct Answer It can affect the competitiveness of product against
products made within the
market
Your Answer It can affect the competitiveness of product against
products made within the
market
Question This question is based on the case study "Oriental Silk Pvt.
Ltd.". What are the
distribution channels used for imports of silk products into USA
market?
Correct Answer Merchant intermediaries , Departmental stores
Your Answer Merchant intermediaries , Departmental stores
True/False
Ltd.". Oriental entered the
US market in 1970 with a moderate export of Rs.20 million.
Your Answer False
Match The Following
Indirect exporting Home-based merchant Copyright
Business dimensions Channel network Channel network
Legal dimensions Copyright Use of patent
Licensing arrangement Use of patent Home-based merchant
Question What is important to take pricing decision?
Correct Answer Competition
Your Answer Competition
Select The Blank
Question In ________, the firm faces only one set of customers.
Correct Answer Domestic marketing
Your Answer Domestic marketing
Ltd.". Oriental was an active
member of some councils, which are those?
Correct Answer Apparel Export Promotion Council , Woolen Export
Promotion Council
Your Answer Apparel Export Promotion Council , Woolen Export
Promotion Council
Question This question is based on the case study 'AB Enterprises'.
What is the problem in
adapting AB Enterprises product in the market?
Correct Answer Novelty is lost due to ethnic character in AB
Enterprises
Your Answer Novelty is lost due to ethnic character in AB
Enterprises
Question What are the important infrastructure factors in evaluating
production site?
Correct Answer Industrial site , Transportation & communication
Your Answer Industrial site , Transportation & communication
Ltd.". Which are the two
years the imports of silk fabrics from Japan by USA was almost
same?
Correct Answer 1982 , 1983
Your Answer 1982 , 1983
Select The Blank
Question ________dimensions include customs and practices
Correct Answer Business
Your Answer Business
Question What is the nature of direct export market?
Correct Answer Concentrated , Large potential sale
Your Answer Concentrated , Large potential sale
Question What does product-mix decision include?
Correct Answer Packaging
Your Answer Packaging
Question What are the internal sources of information?
Correct Answer Sales record , Correspondence from salesmen
Your Answer Sales record , Correspondence from salesmen
True/False
Ltd.". Mr.Patnaik felt that it
was high time that he appraises his agents' performance relating to
the vast & expanding US
market.
Correct Answer True
Your Answer True
Ltd.". What were the options
Mr.Patnaik had to operate in the US market?
Correct Answer Opening a branch office , A subsidiary company
Your Answer Opening a branch office , A subsidiary company
Select The Blank
Question In indirect export channel, the market is ________.
Correct Answer Dispersed
Your Answer Dispersed
True/False
Question Strategies suggested in the Medium Term Export Plan
include product-market
penetration strategy for existing products, product-market,
diversification for new products & new
markets.
Correct Answer True
Your Answer True
Question Why is packaging so important for product planning?
Correct Answer As it enhances protection , As it gives shelf life for a
product
Your Answer As it enhances protection , As it gives shelf life for a
product
True/False
Question If foreign retailers are used, the products in question are
industrial products rather than
consumer products.
Your Answer True
Question How is the nature of international strategy?
Correct Answer Depends on company's objectives , Varies from
country to country
Your Answer Depends on company's objectives , Varies from
country to country
Select The Blank
Question "make site booking" is a point of checklist of ________
Correct Answer Before the fair
Your Answer Before the fair
Question What marketing technique is used to know international
marketing need?
Correct Answer Marketing information & research
Your Answer Marketing information & research
Question What are the benefits of participation in trade fair?
Correct Answer To get to know about competition , To know about
the extent of product adaption
Your Answer To get to know about competition , To know about the
extent of product adaption
Select The Blank
Question Experience survey, which is also called as ________.
Correct Answer Key informant survey
Your Answer Key informant survey
Question What is a foreign agent?
Correct Answer Independent middleman
Your Answer Independent middleman
Question What does political environment include?
Correct Answer Legal dimension
Your Answer Legal dimension
Match The Following
External factor Competitive profile Competitive profile
Ethnocentric orientation Overseas operation conducted from home
country Overseas operation
conducted from home country
Polycentric orientation Each market is unique Each market is unique
Target market Marketing strategy Marketing strategy
True/False
Question In marginal cost pricing for export, competition in foreign
markets requires quotation of a
lower price
Correct Answer True
Your Answer True
True/False
Question Policies or regulations regarding quality control &
inspection vary considerably between
nations.
Correct Answer True
Your Answer True
Select The Blank
Ltd.". Oriental Silk Private
Limited, is a ________ unit, was one of the leading Indian
manufacturers & exporters of silk
fabrics & made-ups
Correct Answer 100% export oriented
Your Answer 100% export oriented
Select The Blank
Ltd.". The bulk of the trade
was handled by ________
Correct Answer Central buying organizations
Your Answer Foreign agents
True/False
Question If business is variable, the company will choose the
purchasing or subcontracting
alternatives.
Correct Answer True
Your Answer True
Question What is the meaning of offshore purchasing?
Correct Answer Relationship between independent buyer & seller for
exchange of good for
money
Your Answer Relationship between independent buyer & seller for
exchange of good for money
Select The Blank
Question Many companies modify their products/promotion
strategies to suit ________ of the
population of the different countries.
Correct Answer Tastes & preferences
Your Answer Tastes & preferences
True/False
Question Companies with smaller needs, an independent supplier
will be less active.
Your Answer False
True/False
Question Catalogues contain a list of all competitors with product
details.
Your Answer False
Question What is correct according to geocentric orientation?
Correct Answer Companies view the entire world as a single
market , Uniform inventory
management & training
Your Answer Companies view the entire world as a single market ,
Uniform inventory
management & training
True/False
Question The area of change relates to product adaption requires
upgradation of technology and
huge investment in brands.
Correct Answer True
Your Answer True
Select The Blank
Question This question is based on the case study "Chow Flowers
Co. Ltd.". ________ was
Thailand's second largest export market for artificial flowers, mostly
polyester or hand-wrapped.
Correct Answer Canada
Your Answer Canada
Question What are the similarities between domestic & international
marketing?
Correct Answer Satisfying consumers need
Your Answer Satisfying consumers need
Question What is the need of marketing research for export-import
trade?
Correct Answer To reduce the distance between an exporter & his
customers in terms of
marketing
Your Answer To reduce the distance between an exporter & his
customers in terms of marketing
Question What is the avenue of entry into foreign markets?
Correct Answer Contract manufacturing
Your Answer Contract manufacturing
Question What is the principal functional division of ministry of
commerce & industry?
Correct Answer Export Industries Division
Your Answer Export Industries Division
Labels: Taxation
Wednesday, March 26, 2008
Taxation - 3

,
True/False
Your Answer False
rural
debentures
debentures
Select The Blank
True/False
Correct Answer True
Your Answer True
to him u/s 88 is :-
True/False
assets.
Correct Answer True
Your Answer True
Bank Interest
Bank Interest
classified into :-
Select The Blank
Correct Answer 182
Your Answer 182
:-
exempt from tax :-
Select The Blank
Select The Blank
in ________.
from :-
calendar years :-
block.
block.
Select The Blank
Select The Blank
objectives are :-
True/False
Correct Answer True
Your Answer True
1998-2001 then :-
of
block i.e. 2002.
block i.e. 2002.
of :-
Municipal taxes
former ruler is :-
Your Answer Taxable
Select The Blank
Your Answer 20000
reinvested :-
Select The Blank
Correct Answer 10
Your Answer 10
True/False
house property.
Your Answer False
Select The Blank
________ .
Match The Following
Disallowable
Expenditure
connection with
recovery of a debt
debt
connection with
recovery of a debt
debt
commerce, or
Includes trade,
commerce, or
manufacture or any
commerce or
manufacture
manufacture or any
commerce or
manufacture
Premium on
redemption of
Debentures
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True
True/False
employee.
Correct Answer True
Your Answer True
Match The Following
to National Saving
Scheme
HUF is eligible for
rebate u/s 88
HUF is eligible for
rebate u/s 88
Rs. 2,50,000 during
the Assessment Year
2005-2006. He
ICICI on 10th June
for the A Y 2005-2006.
RS.12,500 RS.12,500
During the
Assessment Year
2005-2006, Mrs. A,
the dividend from
Indian companies
amounting to Rs.
10,000. She invests
Rs. 50,000 in PPF
during the said
tax liabilit is
Rs. 1,000 Rs. 1,000
Fund
u/s 88
88
longterm
capital asset
longterm
capital asset
True/False
for the partners
Correct Answer True
Your Answer False
Labels: Taxation
Taxation - 2

Question 48 Deduction in respect of Contribution to certain pension
funds is related to :-
Correct Answer Section 80CCC
Your Answer Section 80CCC
True/False
Question 49 The rebate u/s 88B is allowed before the rebate u/s 88
is allowed.
Correct Answer True
TAXATION
9
Your Answer False
Select The Blank
Question 50 Expenditure incurred in connection with the local
festivals like Diwali etc. are
________ as business expenditure.
Correct Answer Allowed
Your Answer Allowed
Select The Blank
Question 51 Deduction is available for income from foreign sources
under Section 80RR if
such remuneration brought into India in convertible foreign
exchange within a
period of________ months from the end of the previous year.
Correct Answer 6
Your Answer 6
Question 52 Short Term Capital Loss can be adjusted against :-
Question 53 Income from winning from lotteries / crossword
puzzles/ horse races is taxed at
flat rate of :-
Correct Answer 0.3
Your Answer 0.35
Select The Blank
Question 54 Section 35D of the Act provides that the preliminary
expenses can be ________
over a period of 5 years commencing from the year of
commencement of
business.
Correct Answer Amortized and written off to profit and loss account
Your Answer Amortized and written off to profit and loss account
Select The Blank
Question 55 Section 43B of the IT Act provides that the certain
payments are allowed as
deduction only if they are ________.
Correct Answer Actually paid
Your Answer Reasonable
Question 56 The rebate u/s 88 is available to an :-
TAXATION
10
Correct Answer Individual , Hindu Undivided Family.
Your Answer Individual , Hindu Undivided Family.
Question 57 Income from other sources covers agricultural income
from land situated :-
Correct Answer Outside India
Your Answer Outside India
Question 58 A return is considered to be defective returns under
section 139(9) unless :-
Correct Answer The computation of income under each head, Gross
Total Income are properly
filed in , The return is accompanied by the tax audit report under
section 44AB ,
The return is accompanied by copies of required financial
statements of the
assessee
Your Answer The computation of income under each head, Gross
Total Income are properly
filed in , The return is accompanied by the tax audit report under
section 44AB ,
The return is accompanied by copies of required financial
statements of the
assessee
Question 59 If an employee does not avail of this leave travel
concession or assistance
during a block of four calendar years :-
block.
block.
Select The Blank
Question 60 The person who does not deduct the tax source as
required by the Act or after
deducting fails to pay the tax as required by the Act, shall be liable
to pay the
simple interest @________ % per month on the amount of such tax
from the
date on which the tax was deductible till the date on which such tax
is actually
paid.
Correct Answer 1
Your Answer 1.25
Question 61 The assessing officer may allot the Permanent Account
Number(PAN) to :-
Correct Answer Person whose Total Income during previous year
exceeds the maximum
amount, chargeable to tax , Person carrying on the business or
profession
whose turnover exceeds Rs.5 lakhs in any previous year , Any other
person by
whom tax is payable
Your Answer Person carrying on the business or profession whose
turnover exceeds Rs.5
lakhs in any previous year , Any other person by whom tax is
payable , Any
person not applying for permanent account number but, tax is
payable by him
TAXATION
11
Question 62 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 , The other than the
above two
situations, any provision made for the payment of gratuity is not
allowed as
deduction
Question 63 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
Your 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
exceeds
Rs. 50,000
True/False
Question 64 Sum received under a will / inheritance is not exempt.
Correct Answer True
Your Answer False
Select The Blank
Question 65 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
Your Answer 1,00,000
Match The Following
Question 66 Correct Answer Your Answer
All intangible assets like
Patents, Trademarks, Copy
Rights, Licenses etc.
Rate of depreciation is 25% Rate of depreciation is 25%
Temporary Structures Rate of depreciation is 100% Rate of
depreciation is 10%
TAXATION
12
Computers Rate of depreciation is 60% Rate of depreciation is 40%
Containers made of glass or
plastic used as refills
Rate of depreciation is 40% Rate of depreciation is 60%
Select The Blank
Question 67 In case of foreign companies rate of tax is ________.
Correct Answer 0.35
Your Answer 0.35
Question 68 Which of the following expenditure is in the nature of
debentures
debentures
Question 69 For the purpose of Section 40 A (2) of the IT Act, if
assessee is a firm, the term
"Specified Persons" may include :-
Correct Answer Any partner of the firm or his relative , Any person
having the substantial interest
in the business or profession of the firm or any director or partner
of such
company or firm or any relative of such person. , Any person who
carries on
business or profession and in his business or profession the
assessee or any
partner of such firm or relative of such partner has substantial
interest.
Your Answer Any partner of the firm or his relative , Any person
having the substantial interest
in the business or profession of the firm or any director or partner
of such
company or firm or any relative of such person. , Any person who
carries on
business or profession and in his business or profession the
assessee or any
partner of such firm or relative of such partner has substantial
interest.
Question 70 For charging the income in the form of salaries :-
Correct Answer There needs to be an employer-employee
relationship between the payer and
the payee.
Your Answer There needs to be an employer-employee relationship
between the payer and
the payee.
True/False
Question 71 For claiming the deduction under section 80IA, the
industrial undertaking should
be owned by a company registered in India or a consortium of such
companies.
Correct Answer True
Your Answer True
Select The Blank
Question 72 Any expenditure incurred by the assessee for any
purpose which is ________
or which is prohibited by law shall not be allowed as business
expenditure
TAXATION
13
Correct Answer Offence
Your Answer Offence
Question 73 As a general principle, the Basic Salary or Wages,
Dearness Allowance and
Bonus / Commission is :-
True/False
Question 74 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
Your Answer True
True/False
Question 75 MAT is applicable if there is a difference of 7.5%
between net profit & book
profit.
Correct Answer True
Your Answer False
Question 76 For the purpose of Section 40 A (2) of the IT Act, if
assessee is an individual,
the term "Specified Persons" may include :-
Correct Answer Any relative of such individual , Any person
(individual, company, firm etc.)
having a substantial interest in the business or profession of the
individual or
any director or partner of such company or firm or any relative of
such person. ,
Any person who carries on a business or profession and in his
business or
profession, the assessee himself or his relative has a substantial
interest.
Your Answer Any relative of such individual , Any person (individual,
company, firm etc.)
having a substantial interest in the business or profession of the
individual or
any director or partner of such company or firm or any relative of
such person. ,
Any person who carries on a business or profession and in his
business or
profession, the assessee himself or his relative has a substantial
interest.
Select The Blank
Question 77 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
Your Answer 10
True/False
Question 78 Any expenditure incurred for earning the income which
is included under the
head income from other sources will be allowed as deduction from
such income
TAXATION
14
provided that certain conditions are satisfied
Correct Answer True
Your Answer True
Question 79 Deduction from Capital Gains from the transfer of
residential house property
under Section 54 is available to :-
Correct Answer Individual , HUF
Your Answer Individual , HUF , Company
True/False
Question 80 Income earned & received outside India & remitted to
India is taxable for
resident & ordinary resident
Correct Answer True
Your Answer True
Question 81 Mr X has received Rs 200000 as income from salary, Rs
50000 income from
house property and he also received Rs 100000 income from
specified units of
the mutual fund. What will be his total income
Correct Answer Rs 250000
Your Answer Rs 250000
Question 82 Standard deduction takes care of :-
Correct Answer Repairs & maintenance , Insurance premium ,
Ground rent
Your Answer Insurance premium
Match The Following
Individual partners & firms Are separate taxable entities Losses are
shared equally
Partnership firm Companies can be partners Are separate taxable
entities
Company partners Can not get salaries Companies can be partners
Individual partners Can be partners in any number
of firms
Can be partners in any number
of firms
TAXATION
15
Question 84 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
Your Answer Cost of acquisition , Cost of improvement ,
Expenditure incurred wholly and
exclusively in connection with the transfer
True/False
Question 85 Income of a mutual fund is taxable even if it is
authorized by RBI.
Your Answer False
Select The Blank
Question 86 If sum received is net of TDS then it is ________ to
include in income from other
sources.
Question 87 What is the tax treatment of Statutory Provident Fund?
Correct Answer Employer's Contribution to PF is not liable for any
tax payment , Interest
credited to the employee's account is not liable for any tax
payment. , The lump
sum received at the time of retirement or resignation or death is
also exempt
under section 10(11) and 10(12).
Your Answer Employer's Contribution to PF is not liable for any tax
payment , Interest
credited to the employee's account is not liable for any tax
payment. , The lump
also exempt
under section 10(11) and 10(12).
True/False
Question 88 Interest paid on the loan for acquiring a capital asset
will be considered to be a
part of cost of acquisition.
Correct Answer True
Your Answer True
Question 89 What is the manner in which Income from Salaries is
taxable?
Correct Answer Due basis or 'receipt' basis whichever is earlier.
Your Answer Due basis or 'receipt' basis whichever is earlier.
Question 90 Deduction from Capital Gains under Section 54F is for
Capital Gains arising
from transfer of :-
TAXATION
16
Your Answer Any Long Term Capital Asset
Question 91 In case the assessee is not a company, a person(other
than a company) who is
falling under One by Six economic criteria, the last date for filing
the return is
prescribed as :-
Correct Answer 31st July of the Assessment year
Your Answer 31st July of the Assessment year
Select The Blank
Question 92 Registration charges in connection with the increasing
of ________ share
capital of the company is not allowed as revenue expenditure.
Correct Answer Authorized
Your Answer Authorized
True/False
Question 93 The amount of telephone bills (including the mobile
phone bills) of the employee
reimbursed by the employer is taxable in the hands of the
employee.
Your Answer False
Question 94 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)
Your Answer Section 139(2)
Labels: Taxation
Taxation - 1
TAXATION
1
Select The Blank
Question 1 Mr X a salaried employee has received total educational
allowance of Rs 8,000
for his four children, the maximum allowance exempt is ________
u/s 10(14) of
the IT Act.
Correct Answer Rs 2,400
Your Answer Rs 2,400
Question2 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"
Your Answer 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" , Employee's contribution to PF is exempt from tax
True/False
Question 3 Software technology park means set up according to
Software Technology Park
Scheme framed by Ministry of Commerce & Industries.
Correct Answer True
Your Answer True
Select The Blank
Question 4 It is mandatory for ________ to file a return even if
there is loss or the income is
nil.
Correct Answer A company
Your Answer Persons under "One by Six" scheme
Question 5 Following professional institutions have their incomes
exempt from tax :-
Question 6 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
Your Answer Refund of Income tax , Capital Gains , Dividend
Income
Select The Blank
Question 7 ________ is the tax payable on the manufacturing of

goods.
Correct Answer Excise duty
Your Answer Excise duty
Select The Blank
Question 8 The amount paid by the employer to the employee to
meet the expenditure for
residential accommodation occupied by the employee is called
________.
Correct Answer House rent allowance
Your Answer House rent allowance
Question 9 Any amount deposited by an Individual or a HUF in 10
year or 15 year account
under the Post Office Saving Bank (CTD) Rules, 1959. The account
can be in
the name of :-
Correct Answer The individual himself , A minor of whom he is the
guardian.
Your Answer The individual himself , A minor of whom he is the
guardian.
Select The Blank
Question 10 Section 80U allows the deduction in respect of the
________ .
Question 11 Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution
of news
Your Answer They apply their income for collection & distribution of
news
Question 12 The total amount of rebates under Section 88, Section
88B, Section 88C and
Section 88D of the Act. shall :-
Correct Answer Not exceed the amount of tax calculated on the
total income.
Your Answer Not exceed the amount of tax calculated on the total
income.
Question 13 What is the treatment of Uncommuted Pension?
Correct Answer It is taxable as Income from Salaries.
Your Answer It is taxable as Income from Salaries.

Question 14 Perquisites which are taxable only in the hands of
specified employee include
the following categories of perquisites :-
Correct Answer Motor Car , Services of sweeper, gardener,
watchman or personal attendant ,
Gas, electricity and water provided for personal consumption
Your Answer Motor Car , Services of sweeper, gardener, watchman
or personal attendant ,
Gas, electricity and water provided for personal consumption
Question 15 The Central Government has introduced a new pension
scheme for the
employees employed on or after 15th January, 2004. These
employees are
required to contribute 10% of their salaries to this pension scheme.
How much
will the Central Government contribute to the Fund?
Correct Answer Equal amount
Your Answer Equal amount
True/False
Question 16 In case of deductions for medical treatment under
Section 80DDB the amount of
deduction will be reduced by the amount received under an
insurance policy or
the amount reimbursed by the employer.
Correct Answer True
Your Answer True
Question 17 If any person fails to get the accounts audited by a
Chartered Accountant and
fails to submit the copy of such report under section 44AB, he will
be liable to
pay the penalty equal to :-
Correct Answer 0.5% of sales turnover/gross receipts or Rs.1lakh
whichever is less
Your Answer 0.5% of sales turnover/gross receipts or Rs.1lakh
whichever is less
Select The Blank
Question 18 Section 35E of the Act applies to all the ________
engaged in the business of
prospecting for or extraction or production of certain specified
minerals.
Correct Answer Resident assessees
Your Answer Non-ordinary resident assessees
Question 19 Profits earned by an Industrial Undertaking engaged in
other than infrastructure
development is available under Section 80IB for :-
rural area or place of pilgrimage
, Company engaged in scientific and industrial research
, Company engaged in scientific and industrial research
True/False
Question 20 Jewellery held by the assessee is not a Capital Asset.

Your Answer False
Select The Blank
Question 21 House rent allowance is exempt from the heading
________.
Correct Answer Income from salaries
Your Answer Income from salaries
Question 22 The various payments which are referred as deductions
under section 43B,
Clause No-21 are :-
Correct Answer Any employees contribution payable by the
assessee towards any Provident
Fund or Superannuation Fund or Gratuity Fund for the welfare of
the employees
, Any sum payable by the assessee by way of tax duty, cess or fee ,
Any sum
payable by the assessee as interest on any loan or borrowing made
by him from
any public financial institution or state financial corporation as per
the terms of
the agreement
Your Answer Any employees contribution payable by the assessee
towards any Provident
Fund or Superannuation Fund or Gratuity Fund for the welfare of
the employees
, Any sum payable by the assessee by way of tax duty, cess or fee ,
Any sum
payable by the assessee as interest on any loan or borrowing made
by him from
any public financial institution or state financial corporation as per
the terms of
the agreement
Select The Blank
Question 23 The rebate u/s ________ is available to a woman
assessee below the age of 65
years at any time during the previous years.
Correct Answer 88C
Your Answer 88B
True/False
Question 24 An deduction is allowed to an assesse as an employer
in respect of contribution
made to any non-statutory fund under the section 40A(9).
Your Answer True
True/False
Question 25 Dividend received by the shareholder is treated as
income chargeable to tax u/s
10(34) of the IT Act.
Your Answer False
Question 26 The assessee is required to quote PAN in :-
Correct Answer All returns to or correspondence with the Income

Tax Authorities , All the
challans for the payment of any amount under the Act , All the
documents
pertaining to purchase, sale and bank transactions
Your Answer All returns to or correspondence with the Income Tax
Authorities , All the
challans for the payment of any amount under the Act , All the
documents
pertaining to purchase, sale and bank transactions
Question 27 Any person carrying on business or profession has to
submit the Audit Report in
prescribed form, signed by Chartered Accountant before 31st
October of the
assessment year, whether the return of income is filed or not. This
is in
compliance with :-
Correct Answer Section 44AB of the Act
Your Answer Section 44AB of the Act
Question 28 In case of the individual or HUF whose Gross Total
Income, before deductions
under Chapter VI-A, is more than Rs. 5,00,000, then :-
Correct Answer No rebate will be available u/s 88.
Your Answer Rebate will be available u/s 88
Question 29 If firm fails to submit copy of deed along with return of
income :-
Correct Answer It will not constitute a separate taxable entity
Your Answer It will not constitute a separate taxable entity
Question 30 In order to avoid the cases of tax evasion on the part
of the assessees, the Act
has provided for :-
Correct Answer Tax deduction at source
Your Answer Tax deduction at source
Question 31 Which of the following expenditures are expressly
disallowed to be deducted
while computing the profits from business and profession
Correct Answer Income Tax , Wealth Tax
Your Answer Income Tax , Wealth Tax
True/False
Question 32 Section 80QQB is applicable to the individual resident
who is an author of text
books.
Your Answer False
Select The Blank

Question 33 Section 35AC of the Act applies to any sum paid by the
assessee to a public
sector company or a local authority or an association approved by
the national
committee for ________ for carrying out any project in upliftment
of public.
Correct Answer Promotion of social and economic welfare
Your Answer Promotion of social and economic welfare
Question 34 Income from sub-letting of a house property is income
from :-
Correct Answer Other sources
Your Answer Subletting
Question 35 Income of a professional association is exempt if its
objectives are :-
Question 36 Choose capital expenditure from the following list :-
Correct Answer Purchase of Building , Purchase of machinery
Your Answer Purchase of Building , Construction of temporary
structures , Purchase of
machinery
True/False
Question 37 Loss under the head Profits from Business or Profession
can be adjusted
against the Income from Salaries.
Your Answer False
Select The Blank
Question 38 Deduction u/s 10A is ________ of export proportion of
profits.
Correct Answer 0.9
Your Answer 0.9
True/False
Question 39 Rebates as per the provisions of Section 88C of the Act
are not available from
the tax on long-term capital gains.
Your Answer False

True/False
Question 40 Dividend received from domestic company to its
shareholders is taxable in the
hands of the shareholder.
Your Answer True
Match The Following
Super Annuation Fund This is an employee welfare
scheme which is usually
applicable in case of very
senior employees
This is an employee welfare
scheme which is usually
applicable in case of very senior
employees
Statutory Provident Fund This is set up as per the
provisions of Provident Fund
Act, 1925. This is maintained
by Government organizations,
local authorities, universities
and educational institutions.
This is set up as per the
Act, 1925. This is maintained by
Government organizations, local
authorities, universities and
educational institutions.
Recognised Provident Fund This is the provident fund to
which the provisions of
Employees Provident Fund and
Miscellaneous Provisions Act,
1952 apply.
This is the provident fund to
which the provisions of
Employees Provident Fund and
Miscellaneous Provisions Act,
1952 apply.
Unrecognised Provident Fund The provident fund which is not
recognized by the income tax
authorities is called as
unrecognized provident fund.
The provident fund which is not
recognized by the income tax
authorities is called as
unrecognized provident fund.
Question 42 Tax liability of a person is based on :-
Select The Blank
Question 43 The amount of compensation received or receivable by
the employee from the
employer at the time of termination of his employment or at the
time of
modification of terms and conditions in connection with the
employment is called
as ________.
Correct Answer Terminal compensation.
Your Answer Terminal compensation.
Match The Following

Intangible Capital Asset Tenancy Rights Tenancy Rights
Excluded from ambit of term
Capital Asset
Stock in Trade Land held for a period of 36
months or more
Short Term Capital Asset Equity Shares held for a period
of Less than 36 months
Stock in Trade
Long Term Capital Asset Land held for a period of 36
months or more
Building
Question 45 The entertainment allowance received by the
Government employees is
included in their salaries and the deduction is allowed to the extent
of least of
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of
Entertainment Allowance
received.
Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of
Entertainment Allowance
received.
True/False
Question 46 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.
Your Answer False
Question 47 Following condition needs to be satisfied for claiming
the exemption under
Section 54F :-
Correct Answer The assessee is an individual or a HUF
Your Answer The assesse is Firm

Dearness
Allowance and Bonus / Commission is :-
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 ________.
Correct Answer As per his choice
Your Answer As per his choice
True/False
group of
employees (not being restricted to a select few employees) is not
exempt from tax.
Your Answer False
Question What are the types of Provident Fund?
Correct Answer Statutory Provident Fund , Recognized Provident
Fund ,
Unrecognized Provident Fund
Your Answer Statutory Provident Fund , Recognized Provident
Fund ,
Unrecognized Provident Fund
Question The least of the following is the exemption available to an
employee if
he is in receipt of house rent allowance :-
Correct Answer 50% of the Salary where such accommodation is
situated in Mumbai,
Kolkata, Chennai and Delhi and 40% of the Salary when the
accommodation is situated at any other place. , Actual amount of
HRA received by the employee. , Excess of rent paid over 10% of
the
Salary.
Your Answer 50% of the Salary where such accommodation is
situated in Mumbai,
Kolkata, Chennai and Delhi and 40% of the Salary when the
accommodation is situated at any other place. , Actual amount of
HRA received by the employee. , Excess of rent paid over 10%of
the
Salary.
Question To get deduction of Rs 150000/- as interest on borrowed
capital
assessee needs to satisfy conditions i.e. :-
Correct Answer Borrowal is after 1st April 1999 , Construction is
completed in 3 years
Your Answer Borrowal is after 1st April 1999 , Construction is
completed in 3 years
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 :-
Entertainment
Allowance received.
Entertainment
Allowance received.
Select The Blank
Question Section 35AC of the Act applies to any sum paid by the
assessee to
a public sector company or a local authority or an association
approved by the national committee for ________ for carrying out
any project in upliftment of public.
Correct Answer Promotion of social and economic welfare
Your Answer Promotion of social and economic welfare
Question The provisions under section 44AB of the Act, is applicable
to the
person carrying on the profession and whose gross receipts in
profession :-
Correct Answer Exceeds Rs.10 lakhs in any previous year
Your Answer Exceeds Rs.40 lakhs in any previous year
Question As per the provision of section 143(2) and 143(3) scrutiny
assessment made by assessing officer in order to ensure that :-
Correct Answer Assessee has not understated the income ,
Assessee has not
overstated the loss , Assessee has under paid the taxes
Your Answer Assessee has not understated the income , Assessee
has not
overstated the loss , Assessee has under paid the taxes , Assessee
has not been allotted the PAN
Question Annual value of any one palace in possession of a former
ruler is :-
Your Answer Exempt
True/False
Question Interest paid on the loan for acquiring a capital asset will
not be
considered to be a part of cost of acquisition.
Your Answer True
Question Previous year always ends on :-
Correct Answer 31st March
Your Answer 31st March
Question Perquisites which are taxable only in the hands of specified
employee
include the following categories of perquisites :-
Correct Answer Motor Car , Services of sweeper, gardener,
watchman or personal
attendant , Gas, electricity and water provided for personal
consumption
Your Answer Motor Car , Services of sweeper, gardener, watchman
or personal
attendant , Gas, electricity and water provided for personal
consumption
Select The Blank
Question Short term Capital Gains is taxed at ________.
Correct Answer Normal Tax rates
Your Answer Normal Tax rates
Question Income of notified news agencies is exempt provided :-
of news
news
True/False
Question Clause N0-30 of the Tax Audit requires that, if the cost
Audit of the
company carried out, the report of such audit should be enclosed to
the Tax Audit Report.
Correct Answer True
Your Answer True
True/False
Question If an assessee gets the salary from more than one
employer during
an Assessment Year, Salary received from all the employers will be
aggregated and then the Standard Deduction will be allowed.
Correct Answer True
Your Answer True
Question The amount accumulated to the credit of the employee's
provident
fund account is paid at the time of :-
Question The amount of advance tax payable by non corporate
assessees
before 15th September of Previous year is :-
Correct Answer 30% of advance tax payable
Your Answer 30% of advance tax payable
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 Government , Government company , Banking
company including
cooperative bank and post office savings bank
Your Answer Government , Government company , Banking
company including
cooperative bank and post office savings bank
Question The amount of advance tax payable by corporate
assessees before
15th March of Previous year is :-
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
True/False
Question The amount of expenses including membership fees and
annual fees
incurred by the employee on credit card and which are paid by the
employer shall be added as the perquisites unless the said expenses
are incurred wholly and exclusively for official purposes.
Correct Answer True
Your Answer True
Question Which of the following expenses should be debited to P & L
Account,
but disallowed for Income tax purpose?
Correct Answer Wealth Tax , Personal expenditure , Income Tax
Your Answer Wealth Tax , Revenue expenditure , Personal
expenditure
Question The provisions regarding set off and carry forward of loses
are
contained in :-
Correct Answer Sections 70 to 80 of the Income Tax Act, 1961.
Your Answer Sections 70 to 80 of the Income Tax Act, 1961.
Question A partnership firm is an agreement between not more
than :-
Correct Answer 20 persons
Your Answer 20 persons
Question Deduction from Capital Gains under Section 54B is for
Capital Gains
arising from transfer of :-
Correct Answer Agricultural Land
Your Answer Long Term Capital Asset other than House Property
Select The Blank
Question To acquire PAN, a person shall apply in ________ to the
assessing
officer.
Question Any amount deposited by an Individual or a HUF in 10
year or 15
year account under the Post Office Saving Bank (CTD) Rules, 1959.
The account can be in the name of :-
Correct Answer The individual himself , A minor of whom he is the
guardian.
Your Answer The individual himself , A minor of whom he is the
guardian. , Spouse
of individual
True/False
Question While computing the profits from Business and profession,
the
business or profession must be carried out during the previous year.
Correct Answer True
Your Answer True
Question Following news agencies are specified by the Central
Government as
specified news agencies :-
Correct Answer UNI , PTI
Your Answer PTI , NDTV
Select The Blank
Question Any expenditure incurred by the assessee for any purpose
which is
________ or which is prohibited by law shall not be allowed as
business expenditure
Correct Answer Offence
Your Answer Anti social
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
Your Answer True
Match The Following
Superannuation Fund It is an employee welfare
scheme
It is an employee welfare
scheme
Statutory Provident Fund This is set up as per the
provisions of Provident
Fund Act, 1925.
This is set up as per the
Act, 1925.
Recognized Provident Fund the provisions of
Employees Provident Fund
and Miscellaneous
Provisions Act, 1952 apply
to this fund.
the provisions of Employees
Provident Fund and
Miscellaneous Provisions
Act, 1952 apply to this fund.
Unrecognized Provident
Fund
The provident fund which is
not recognized by the
income tax authorities .
The provident fund which is
not recognized by the
income tax authorities .
Select The Blank
Deduction will be
Rs.________.
Your Answer 20000
Select The Blank
Question Mr. Ram is employed by the Central Government as
accountant
whose gross salary income is Rs 6,00,000. He can claim standard
deduction of Rs ________ u/s 16(i) of the IT Act.
Correct Answer Rs 20,000
Your Answer Rs 20,000
Match The Following
Deduction in case of
permanent physical
disability
Section 80U Section 80U
Deductions for Donations
Paid
Section 80G Section 80G
Deduction for Rent Paid Section 80GG Section 80GG
Deduction in respect of
Interest on Bank Deposits
Section 80L Section 80L
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
Your Answer True
True/False
Question The payments for claiming the tax rebate u/s 88 of the IT
Act should
be made out of the income chargeable to tax.
Correct Answer True
Your Answer True
Question In case of any contribution made by an individual or a HUF
to notified
units of any approved mutual fund or of Unit Trust of India in
accordance with a notified scheme (Equity Linked Savings Scheme)
:-
Correct Answer The maximum allowable limit is Rs. 10,000
Your Answer Qualifies for tax rebate under section 88D.
True/False
Question Dividend received from domestic company to its
shareholders is
taxable in the hands of the shareholder.
Your Answer False
Select The Blank
Question Loss from the activity of owning and maintaining the race
horses can
be carried forward and set off in the subsequent Assessment Years
subject to the limit of ________ Assessment years.
Correct Answer 4
Your Answer 4
Select The Blank
Question If the property becomes the property of the assessee
before
________, the Fair Market Value of the property of the capital asset
on that date will be considered to be the cost of acquisition
Correct Answer 1st April 1981
Your Answer 1st April 1991
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.
Correct Answer 182
Your Answer 182
Select The Blank
Question After deducting interest on capital & remuneration to
partners, firm is
required to pay tax @ ________
Correct Answer Tax 35% + 2% SC +2% EC
Your Answer Tax 35% + 2% SC +2% EC
Question Under the clause No-32 of the Act, in the Tax Audit
Report, the
Auditor is required to give the accounting calculation in ratios of :-
Correct Answer Gross profit/turnover , Net profit/turnover , Stock in
trade/turnover
Your Answer Gross profit/turnover , Net profit/turnover , Stock in
trade/turnover
Labels: Taxation (Set II)
Thursday, August 28, 2008
Taxation - 7

True/False
Question Deductions for income tax, payable by the employed
person is
permissible.
Correct Answer True
Your Answer True
Question Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting
Your Answer 48 hours before the meeting
Match The Following
Deduction for absence of
duty
Section 9 Section 9
Deductions for payment to
insurance and post office
Section 7(2) Section 7(2)
Amendment to pay by
cheques
1976 Amendment to pay by cash
Fine Section 8 Section 8
Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your Answer Persons employed in any factory
Select The Blank
Question A person who stands for directorship other than retiring
director
has to give notice to the company at least ________ before the
date of general meeting.
Correct Answer 14 days
Your Answer 7 days
Question Audit committee shall consist of not less than :-
Correct Answer Three directors
Your Answer Three directors
True/False
Question A temporary workman is not entitled to bonus though he
works
for a few days in the organisation.
Your Answer False
Question Who is entitled to bonus?
Correct Answer Temporary workmen , Part time employee ,
Retrenched
employee
Your Answer Temporary workmen , Part time employee ,
Retrenched
employee
Question A director is deemed to be interested in a contract if he
holds
paid up capital of the company exceeding :-
Correct Answer 0.02
Your Answer 0.02
Select The Blank
Question To avoid conflicts of interest, ________ committee would
determine the remuneration packages of the executive directors.
Correct Answer Remuneration
Your Answer Management
Question If an auditor after his appointment becomes subject to any
of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated
Your Answer Vacated
Select The Blank
Question Free selling/drawl of foreign exchange to authorized
dealer(AD)
for ________.
Correct Answer Current account
Your Answer Current account
Question What is the minimum salary under which the persons are
covered in this act?
Correct Answer Less than Rs 1600
Your Answer Less than Rs 1200/-
Question In case a company has an executive director, how much
percentage of the board of Directors should comprise of
independent directors?
Correct Answer 0.5
Your Answer 0.5
True/False
Question Acquiring foreign security on gift is allowed.
Correct Answer True
Your Answer False
True/False
Question An employee employed through contractors on building
operations is entitled to bonus.
Your Answer False
Question Borrowings for Indian companies are for :-
Correct Answer In Rupees , On repatriation , Non-repatriation
Your Answer In Rupees , On repatriation
True/False
Question An apprentice is not entitled to bonus.
Correct Answer True
Your Answer True
Question FEMA allows free selling of foreign exchange to/from
whom from
current transaction?
Correct Answer Authorised Dealer
Your Answer Authorised Dealer
Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased
employed person
Your Answer Any establishment
Select The Blank
Question A member shall have right to apply for operations and
mismanagement of the company provided application is made
bymembers not less than ________ or by the members holding
not less than one tenth of total number of shares in the share
capital of the company.
Correct Answer 100
Your Answer 100
Question Who has not prescribed particular set of documentation for
current account remittances?
Correct Answer RBI , Central Govt.
Your Answer RBI , Central Govt.
Select The Blank
Question The uses and applications of the funds raised shall be
disclosed
to the audit committee on a ________basis.
Correct Answer Quarterly
Your Answer Yearly
Select The Blank
Question For Special Resolution, votes cast in favour of the
resolution
should be ________ times more than votes cast against the
resolution.
Correct Answer 3
Your Answer 3
Question Object Clauses are divided into :-
Correct Answer Main Object , Object incidental or ancillary to Main ,
Other
Objects
Your Answer Main Object , Object incidental or ancillary to Main ,
Other
Objects
True/False
Question Charge includes Mortgage.
Correct Answer True
Your Answer True
Question When was the factories act passed?
Correct Answer In 1948
Your Answer In 1948
Question Public limited company's directors have following
conditions :-
Correct Answer Minimum number is three , Should be individuals ,
Have sound
mind
Your Answer Minimum number is three , Should be individuals ,
Have sound
mind
True/False
Question Government can authorise for supply of essential
commodities at
concessional rates and pay wages in kind.
Correct Answer True
Your Answer True
Select The Blank
Question A ________ shall not be made for the appointment of two
or
more persons as directors of the company by single resolution in
any general meeting of public company, unless resolution has
been agreed by meeting without any vote being given against it.
Correct Answer Motion
Your Answer Resolution
Select The Blank
Question Preference shareholders have ________ to get dividend
over
equity share holders.
Correct Answer Preferential right
Your Answer Preferential right
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece
work known as
minimum piece rate , Guaranteed time rate for those employed
in piece work for the purpose of securing to such employees a
minimum rate of wages on time work basis
Your Answer Time work known as minimum time rate , Piece work
known as
Question Form No. 1 can be signed by :-
Correct Answer Chartered Accountant , Cost & Works Accountant ,
Advocate
Your Answer Chartered Accountant , Cost & Works Accountant ,
Advocate
Question When was the minimum wages act passed ?
Correct Answer 1948
Your Answer 1948
Select The Blank
Question Director has to vacate his office, if he has been ________
by a
court of any offence involving moral turpitude.
Correct Answer Convicted
Your Answer Convicted
Match The Following
Section 2(vi) Wages Wages
Wages act 1936 1936
Factories act 1948 1948
Section 3 of wages act Every employer
responsible for payment to
employed persons
Every employer
employed persons
Question The Board of directors of the company has power to
appoint an
additional director :-
Correct Answer Up to maximum permissible limit
Your Answer Up to maximum permissible limit
Select The Blank
Question The Forms 8 &13 should be filed in ________ to ragistrar
of
companies.
Correct Answer Triplicate
Your Answer Triplicate
Question Retiring director shall be deemed to be reappointed unless
:-
Correct Answer He has expressed his unwillingness to be re-
appointed , He is
disqualified for appointment , Resolution for reappointment has
been put to vote & lost
Your Answer He has expressed his unwillingness to be re-
appointed , He is
Question Payment of wages act came into existence :-
Correct Answer To ensure regular and timely payment of wages to
employed
persons
Your Answer To ensure regular and timely payment of wages to
employed
persons
Question What is computed by the competent authority at
concessional
rates?
Correct Answer Cost of living allowance and cash value
Your Answer Cost of living allowance and cash value
Question Minimum gap required between date of dispatch of notice
and
date of AGM is :-
Your Answer 21 days
Question In which case did the Bombay high court observe the
general
purpose of the act?
Correct Answer Arvind mills ltd case
Your Answer Arvind mills ltd case
Question Settlement of gift or lawful obligation shall be surrendered
within
:-
Correct Answer Seven days
Your Answer Four days
Question Board's Report shall include :-
Correct Answer Dividend recommended , Financial position of the
company ,
Amounts transferred to Reserves
Your Answer Dividend recommended , Taxes paid , Financial
position of the
company
True/False
Question The independent director is a supplier of a service provider
of
the company.
Your Answer False
Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Automatic route
True/False
Question Deductions for income tax, payable by the employed
person is
permissible.
Correct Answer True
Your Answer True
Question Proxy form should be deposited with the company :-
Correct Answer 48 hours before the meeting
Your Answer 48 hours before the meeting
Match The Following
Deduction for absence of
duty
Section 9 Section 9
Deductions for payment to
insurance and post office
Section 7(2) Section 7(2)
Amendment to pay by
cheques
1976 Amendment to pay by cash
Fine Section 8 Section 8
Question To whom does the payment of wages act apply to ?
Correct Answer Persons employed in any factory
Your Answer Persons employed in any factory
Select The Blank
Question A person who stands for directorship other than retiring
director
has to give notice to the company at least ________ before the
date of general meeting.
Your Answer 7 days
Question Audit committee shall consist of not less than :-
Correct Answer Three directors
Your Answer Three directors
True/False
Question A temporary workman is not entitled to bonus though he
works
for a few days in the organisation.
Your Answer False
Question Who is entitled to bonus?
Correct Answer Temporary workmen , Part time employee ,
Retrenched
employee
Your Answer Temporary workmen , Part time employee ,
Retrenched
employee
Question A director is deemed to be interested in a contract if he
holds
paid up capital of the company exceeding :-
Correct Answer 0.02
Your Answer 0.02
Select The Blank
Question To avoid conflicts of interest, ________ committee would
determine the remuneration packages of the executive directors.
Correct Answer Remuneration
Your Answer Management
Question If an auditor after his appointment becomes subject to any
of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated
Your Answer Vacated
Select The Blank
Question Free selling/drawl of foreign exchange to authorized
dealer(AD)
for ________.
Correct Answer Current account
Your Answer Current account
Question What is the minimum salary under which the persons are
covered in this act?
Correct Answer Less than Rs 1600
Your Answer Less than Rs 1200/-
Question In case a company has an executive director, how much
percentage of the board of Directors should comprise of
independent directors?
Correct Answer 0.5
Your Answer 0.5
True/False
Question Acquiring foreign security on gift is allowed.
Correct Answer True
Your Answer False
True/False
Question An employee employed through contractors on building
operations is entitled to bonus.
Your Answer False
Question Borrowings for Indian companies are for :-
Correct Answer In Rupees , On repatriation , Non-repatriation
Your Answer In Rupees , On repatriation
True/False
Question An apprentice is not entitled to bonus.
Correct Answer True
Your Answer True
Question FEMA allows free selling of foreign exchange to/from
whom from
current transaction?
Correct Answer Authorised Dealer
Your Answer Authorised Dealer
Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased
employed person
Your Answer Any establishment
Select The Blank
Question A member shall have right to apply for operations and
mismanagement of the company provided application is made
bymembers not less than ________ or by the members holding
not less than one tenth of total number of shares in the share
capital of the company.
Correct Answer 100
Your Answer 100
Question Who has not prescribed particular set of documentation for
current account remittances?
Correct Answer RBI , Central Govt.
Your Answer RBI , Central Govt.
Select The Blank
Question The uses and applications of the funds raised shall be
disclosed
to the audit committee on a ________basis.
Correct Answer Quarterly
Your Answer Yearly
Select The Blank
Question For Special Resolution, votes cast in favour of the
resolution
should be ________ times more than votes cast against the
resolution.
Correct Answer 3
Your Answer 3
Question Object Clauses are divided into :-
Correct Answer Main Object , Object incidental or ancillary to Main ,
Other
Objects
Your Answer Main Object , Object incidental or ancillary to Main ,
Other
Objects
True/False
Question Charge includes Mortgage.
Correct Answer True
Your Answer True
Question When was the factories act passed?
Correct Answer In 1948
Your Answer In 1948
Question Public limited company's directors have following
conditions :-
Correct Answer Minimum number is three , Should be individuals ,
Have sound
mind
Your Answer Minimum number is three , Should be individuals ,
Have sound
mind
True/False
Question Government can authorise for supply of essential
commodities at
concessional rates and pay wages in kind.
Correct Answer True
Your Answer True
Select The Blank
Question A ________ shall not be made for the appointment of two
or
more persons as directors of the company by single resolution in
any general meeting of public company, unless resolution has
been agreed by meeting without any vote being given against it.
Correct Answer Motion
Your Answer Resolution
Select The Blank
Question Preference shareholders have ________ to get dividend
over
equity share holders.
Correct Answer Preferential right
Your Answer Preferential right
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece
work known as
Your Answer Time work known as minimum time rate , Piece work
known as
Question Form No. 1 can be signed by :-
Correct Answer Chartered Accountant , Cost & Works Accountant ,
Advocate
Your Answer Chartered Accountant , Cost & Works Accountant ,
Advocate
Question When was the minimum wages act passed ?
Correct Answer 1948
Your Answer 1948
Select The Blank
Question Director has to vacate his office, if he has been ________
by a
court of any offence involving moral turpitude.
Correct Answer Convicted
Your Answer Convicted
Match The Following
Section 2(vi) Wages Wages
Wages act 1936 1936
Factories act 1948 1948
Section 3 of wages act Every employer
employed persons
Every employer
employed persons
Question The Board of directors of the company has power to
appoint an
additional director :-
Correct Answer Up to maximum permissible limit
Your Answer Up to maximum permissible limit
Select The Blank
Question The Forms 8 &13 should be filed in ________ to ragistrar
of
companies.
Correct Answer Triplicate
Your Answer Triplicate
Question Retiring director shall be deemed to be reappointed unless
:-
Correct Answer He has expressed his unwillingness to be re-
appointed , He is
Your Answer He has expressed his unwillingness to be re-
appointed , He is
Question Payment of wages act came into existence :-
Correct Answer To ensure regular and timely payment of wages to
employed
persons
Your Answer To ensure regular and timely payment of wages to
employed
persons
Question What is computed by the competent authority at
concessional
rates?
Correct Answer Cost of living allowance and cash value
Your Answer Cost of living allowance and cash value
Question Minimum gap required between date of dispatch of notice
and
date of AGM is :-
Your Answer 21 days
Question In which case did the Bombay high court observe the
general
purpose of the act?
Correct Answer Arvind mills ltd case
Your Answer Arvind mills ltd case
Question Settlement of gift or lawful obligation shall be surrendered
within
:-
Correct Answer Seven days
Your Answer Four days
Question Board's Report shall include :-
Correct Answer Dividend recommended , Financial position of the
company ,
Amounts transferred to Reserves
Your Answer Dividend recommended , Taxes paid , Financial
position of the
company
True/False
Question The independent director is a supplier of a service provider
of
the company.
Your Answer False
Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Automatic route
at 9:30 PM 0 comments Links to this post
Labels: Taxation (Set II)
Taxation - 6

,
True/False
Your Answer False
rural
debentures
debentures
Select The Blank
True/False
Correct Answer True
Your Answer True
to him u/s 88 is :-
True/False
assets.
Correct Answer True
Your Answer True
Bank Interest
Bank Interest
classified into :-
Select The Blank
Correct Answer 182
Your Answer 182
:-
exempt from tax :-
Select The Blank
Select The Blank
in ________.
from :-
calendar years :-
block.
block.
Select The Blank
Select The Blank
objectives are :-
True/False
Correct Answer True
Your Answer True
1998-2001 then :-
of
block i.e. 2002.
block i.e. 2002.
of :-
Municipal taxes
former ruler is :-
Your Answer Taxable
Select The Blank
Your Answer 20000
reinvested :-
Select The Blank
Correct Answer 10
Your Answer 10
True/False
house property.
Your Answer False
Select The Blank
________ .
Match The Following
Disallowable
Expenditure
connection with
recovery of a debt
debt
connection with
recovery of a debt
debt
commerce, or
Includes trade,
commerce, or
manufacture or any
commerce or
manufacture
manufacture or any
commerce or
manufacture
Premium on
redemption of
Debentures
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
True/False
Correct Answer True
Your Answer True
True/False
employee.
Correct Answer True
Your Answer True
Match The Following
to National Saving
Scheme
HUF is eligible for
rebate u/s 88
HUF is eligible for
rebate u/s 88
Rs. 2,50,000 during
the Assessment Year
2005-2006. He
ICICI on 10th June
for the A Y 2005-2006.
RS.12,500 RS.12,500
During the
Assessment Year
2005-2006, Mrs. A,
the dividend from
Indian companies
amounting to Rs.
10,000. She invests
Rs. 50,000 in PPF
during the said
tax liabilit is
Rs. 1,000 Rs. 1,000
Fund
u/s 88
88
longterm
capital asset
longterm
capital asset
True/False
for the partners
Correct Answer True
Your Answer False
Select The Blank

the
relevant previous year for the purpose of employment has to be in
India for
________ days or more during previous year.
Correct Answer 182
Your Answer 182
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
Question The payments for claiming the rebate u/s 88 should :-
Correct Answer Be made out of the income chargeable to tax.
Your Answer Be made out of the income chargeable to tax.
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)
Your 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.
Your Answer Nil
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
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 nonmonetary
exceeds Rs. 50,000
Your 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
nonmonetary
exceeds Rs. 50,000
exempt from
tax :-
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
Your Answer False
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
Your Answer True
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
Your Answer Government , Government company , Banking
company
including cooperative bank and post office savings bank
Match The Following
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.
Your Answer True
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 :-
long-term
capital asset
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
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 :-
Question Annual value of any one palace in possession of a former
ruler is :-
Your Answer Exempt
Match The Following
Any subscription made to National Saving Scheme
By an individual or a HUF is eligible for rebate u/s 88 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
AY
2005-2006.
RS.12,500 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 Rs. 1,000
Any contribution made to a Public Provident Fund
Is eligible for rebate u/s 88 Is eligible for rebate u/s 88
Select The Blank
Question To claim sec 10A deduction unit must be established in
________.
Select The Blank
Question Non resident individual satisfies ________ of the basic
conditions.
Correct Answer None
Your Answer Any one
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
Your 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
Your Answer Persons
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
Your Answer Cost of acquisition , Cost of improvement ,
Expenditure
incurred wholly and exclusively in connection with the transfer
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
Your 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
Your Answer True
Select The Blank
get benefit
of nil annual value for any one house property ________.
Your Answer As per his choice
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
Your Answer Rebate u/s 88 for such amount not exceeding Rs.
20,000
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
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
Your Answer 40% of the Salary , Rs. 30,000
assessees
before 15th December of Previous year is :-
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
Your 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
Your Answer True
True/False
Question Income from subletting is treated as income from house
property.
Your Answer False
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
Question Income of notified news agencies is exempt provided :-
of
news
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
Your Answer 65
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?
Interest
on employee's contribution is taxable as "Income from Other
Sources" ,
"Income from
salaries"
Your Answer Employee's contribution to PF is exempt from tax ,
Interest on
employee's contribution is taxable as "Income from Other
Sources" ,
"Income from
salaries"
True/False
advance tax
paid during the previous year.
Correct Answer True
Your 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
Your Answer True
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
assessees
before 15th June of Previous year is :-
Correct Answer Nil
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 :-
Entertainment
Allowance received.
Entertainment
Allowance received.
True/False
Question Loss from house property can be adjusted against the
income from
any other house property.
Correct Answer True
Your 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.
Your Answer True
Question Annual return for TDS from Salaries is to be filed in :-
Correct Answer Form No. 24
Your Answer Form No. 24
Labels: Taxation (Set IV)
Taxation - 11

Select The Blank
Question Monetory Limit for deduction for royalty income of authors
under Section
80QQB is Rs.________.
Your Answer 300000
Question Income from winning from lotteries / crossword puzzles/
horse races is
taxed at flat rate of :-
Correct Answer 0.3
Your Answer 0.3
Question Income earned in previous year is subjected to tax in :-
Question Mediclaim premium u/s Section 80D should be paid by
Correct Answer Cheque
Your Answer Cheque or Cash
True/False
Question Any sum payable by the assessee by way of tax, duty,
cess or fee is
allowed as deduction even though they are not actually paid.
Your Answer True
True/False
Assets includes both
tangible as well as intangible assets.
Correct Answer True
Your Answer True
Question What is the tax treatment of Statutory Provident Fund?
Correct Answer Employer's Contribution to PF is not liable for any
tax payment ,
Interest credited to the employee's account is not liable for any tax
payment. , The lump
also exempt under
section 10(11) and 10(12).
Your Answer Employer's Contribution to PF is not liable for any tax
payment ,
Interest credited to the employee's account is not liable for any tax
payment. , The lump
also exempt under
section 10(11) and 10(12).
Select The Blank
Question The aggregate amount of all the expenditure falling under
the head
preliminary expenses incurred under section 3________, for an
Indian company the
aggregate of all the expenditure can be 5% of the cost of project or
5% of capital
employed whichever is higher.
Correct Answer 5% of the cost of project or 5% of capital employed
Your Answer 5% of the cost of project or 7% of capital employed
Question Previous year always ends on :-
Correct Answer 31st March
Your Answer 31st March
Question Rates of income tax are prescribed by :-
Correct Answer The Finance Act
Your Answer Ordinance
Select The Blank
get benefit of nil
annual value for any one house property ________.
Your Answer House which is first purchased
Question Choose capital expenditure from the following list :-
Correct Answer Purchase of Building , Purchase of machinery
Your Answer Purchase of Building , Construction of temporary
structures ,
Purchase of machinery
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
Question In respect of leave travel concession If Mr. A has availed
the exemption
only once or has not availed any exemption at all, in the block of
four years i.e. 1998-
2001 then :-
of four years i.e.
2002-2005 provided that he avails the exemption of LTC in the first
calendar year of the
next block i.e. 2002.
four years i.e.
2002-2005 provided that he avails the exemption of LTC in the first
calendar year of the
next block i.e. 2002.
True/False
Question Loss under the head Profits from Business or Profession
can be adjusted
against the Income from Salaries.
Your Answer False
Question The amount paid by the employer to the employee on his
retirement is
taxed as :-
Correct Answer Income from Salaries
Your Answer Income from Salaries
Select The Blank
the relevant
previous year for the purpose of employment has to be in India for
________ days or
Correct Answer 182
Your Answer 182
True/False
Question Bad Debts recovered not allowed as deduction in earlier
years is not
taxable in any year.
Correct Answer True
Your Answer False
Your Answer Long term Capital Gains , Short Term Capital Gains.
assessees before
15th March of Previous year is :-
Question An assessee can claim deduction under section 35 in
relation to the
expenditure incurred on scientific research in the field of natural gas
or applied sciences
if :-
Correct Answer Any revenue expenses incurred by the assessee for
carrying out the
scientific research provided that such research is related to his
business , Any capital
expenses incurred by the assesse himself for carrying out the
scientific research provided
that such research is related to his business , The assesse is a
company engaged in the
business of bio-technology or any other notified product a weighted
deduction of 150% is
allowed in respect of in-house research and development expensed,
till 31st March, 2005
Your Answer Any revenue expenses incurred by the assessee for
carrying out the
scientific research provided that such research is related to his
business , The assesse is a
company engaged in the business of bio-technology or any other
notified product a
weighted deduction of 150% is allowed in respect of in-house
research and development
expensed, till 31st March, 2005
Select The Blank
Question Registration charges in connection with the increasing of
________ share
capital of the company is not allowed as revenue expenditure.
Correct Answer Authorized
Your Answer Issued
True/False
Question If a person is required to quote the PAN and he quotes or
intimates a false
number then he may be liable to pay a penalty of Rs. 25000.
Your Answer False
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?
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"
Your Answer Employee's contribution to PF is exempt from tax ,
Interest on
employee's contribution is taxable as "Income from Other Sources"
Select The Blank
Question If the person responsible for deducting the tax at source
and paying the
same to the credit of Central Government has not been allotted the
Tax Deduction
Account Number (TAN), he shall within ________ from the end of
the month in which
the tax was deducted, apply for the allotment of TAN Number.
Correct Answer One month
Your Answer Fifteen days
Match The Following
Deduction in case of permanent physical disability Section 80U
Section 80U
Deductions for Donations Paid Section 80G Section 80G
Deduction for Rent Paid Section 80GG Section 80GG
Deduction in respect of Interest on Bank Deposits Section 80L
Section 80L
True/False
Question If the capital asset becomes the property of the assessee
by virtue of gift or
will, the period for which the capital asset is held by the previous
owner should be
excluded while deciding the holding period.
Your Answer True
True/False
Question Amount paid by the employer in respect of any leave
standing to the credit
of the employee after the date of furnishing return of income, this
sum was payable in the
previous year is allowed as deduction.
Your Answer False
Select The Blank
Question Under section 43B, Clause N0-21 provides that the details
of various
payments are allowed as deductions only if they are actually paid
but, where if the
assessee follows the ________, the payments can be claimed on
due basis.
Correct Answer Mercantile system of accounting
Your Answer Cash system of accounting
True/False
Question A woman assessee below the age of 65 years is also
entitled to rebate u/s
88.
Correct Answer True
Your Answer True
Question Income received by following assesses is taxable in
India :-
Correct Answer Resident , Non resident , Resident but not ordinary
resident
Your Answer Resident , Resident but not ordinary resident
Question Any premium paid by the assessee by Cheque as an
employer to effect or
keep in force an insurance on the health of his employees is :-
Correct Answer Allowed as expenses while calculating profits from
business and
profession
Your Answer Is allowed as a deduction under Section 80G
Select The Blank
provisions of section
139 or in response to the notice under section 142, the assessment
officer undertakes
Question Assessee gets deduction of interest paid on borrowed
capital even if he :-
Correct Answer Takes possession later on , Acquires later on
Your Answer Takes possession later on , Acquires later on
Match The Following
Perquisites Indicate benefits or amenities provided by the employer
to the employee,
either free of cost or at the concessional rate Indicate benefits or
amenities provided by
the employer to the employee, either free of cost or at the
concessional rate
House Rent Allowance This indicates the amount paid by the
employer to the
employee to meet the expenditure for residential accommodation
occupied by the
employee This indicates the amount paid by the employer to the
employee to meet
the expenditure for residential accommodation occupied by the
employee
Retrenchment Compensation Compensation received by a worker at
the time of
retrenchment Compensation received by a worker at the time of
retrenchment
Traveling Allowance Any allowance granted to meet the cost of
travel on tour or on
transfer of duty. Any allowance granted to meet the cost of travel
on tour or on
transfer of duty.
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.
from :-
Question If notified news agency distributes its income amongst its
members then :-
Correct Answer Whole of its income will be taxable
Your Answer It will have to pay tax on distributed profits
Question Deduction in respect of Contribution to certain pension
funds u/s 80CCC
is available to :-
Correct Answer Individuals
Your Answer Individuals
True/False
Question Income from subletting is treated as income from house
property.
Your Answer False
Question In case of Payment of Interest on Securities no tax is
required to be
deducted under the following circumstances :-
Correct Answer If the debentures are issued by a widely held
company and the
debentures are listed on a stock exchange and if the amount of
interest does not exceed
Rs. 2,500 during the financial year. , If the interest paid is on State
or Central
Government Securities, If the debentures are issued by an
institution, authority, Public
Sector Company or cooperative society as the Central Government
may notify.
Your Answer If the interest paid is on State or Central Government
Securities , If
the debentures are issued by a widely held company and the
debentures are listed on a
stock exchange and if the amount of interest does not exceed
Rs.5,000 during the
financial year.
Select The Blank
Question Expenditure incurred by an assessee on advertisement in
any brochure,
tract, pamphlet or like published by a ________shall not be allowed
as business
expenditure.
Correct Answer Political party
Your Answer Company

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Wednesday, April 2, 2008

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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Wednesday, March 26, 2008

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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Question 7 ________ is the tax payable on the manufacturing of

Multiple Choice Multiple Answer

Correct Answer False

Correct Answer All returns to or correspondence with the Income

Select The Blank

Your Answer False

Question 44 Correct Answer Your Answer

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Labels: Taxation (Set II)

Thursday, August 28, 2008

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Labels: Taxation (Set IV)

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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