Taxation_7

Match The Following

Question Correct Answer Your Answer

Intangible Capital Asset Tenancy Rights Equity Shares held for a period of Less than 36 months
Excluded from ambit of term Capital Asset Stock in Trade Land
Short Term Capital Asset Equity Shares held for a period of Less than 36 months Stock in Trade land
Long Term Capital Asset Land held for a period of 36 months or more Land held for a period of 36 months or more

Select The Blank

Question Long term Capital Gains is taxed at ________.
Correct Answer 0.1

Select The Blank

Question Free meals provided by the employer during the office hours provided that the value per meal does not exceed
Rs. ________.
Correct Answer 50
Your Answer 25

True/False
Question Professional Tax paid by a person carrying on the business is allowed as business expenditure.
Correct Answer True

Match The Following

Question Correct Answer Your Answer
Retrenchment Compensation Exemption can be claimed u/s 10(10B) of the Income Tax Act Terminal Compensation

Salary or wages for the purpose of calculating Death-Cum -Retirement Gratuity. Basic Salary plus Dearness allowance
Basic Salary plus Dearness allowance

Any 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. Terminal
Compensation Treated as income from other sources.

Any Death-Cum-Retirement Gratuity received Treated as income from salary Treated as income from salary

True/False
Question Dividend received by the shareholder is treated as income chargeable to tax u/s 10(34) of the IT Act.
Correct Answer False

Select The Blank

Question The valuation of perquisites in the case of interest free loans or the loans at the concessional rate of interest
will be the sum equal to the interest calculated at the rate charges by State Bank of India, on the first day of the relevant
previous year in respect of the loans for the same purpose. Such interest is calculated on the ________ monthly balance.
Correct Answer Maximum outstanding

Multiple Choice Multiple Answer

Question For the purpose of calculating the value of perquisite of residential accommodation the term salary does not
include :-
Correct Answer Dearness Allowance , Employer's contribution to Provident Fund , Allowances which are exempt from
tax
Your Answer Dearness Allowance , Employer's contribution to Provident Fund
Multiple Choice Multiple Answer
Question Following incomes are deemed to have accrued or arisen in India :-
Correct Answer Salary earned in India even if paid outside India , Salary paid by Government to Indian national for
services rendered outside India , Tax deducted in India

True/False
Question Any sum payable by the assessee as interest on any loan borrowed by him from any state financial corporation
as per the terms on the agreement is not allowed as deduction from profit as per P & L account, if they are actually paid
before the due date of furnishing return of income.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer

Question What is the treatment of the perquisite in the form of Gas, electricity and water supplied to the employee?
Correct Answer If the facility of gas, electricity and water is supplied by the employer to the employee purchasing the
same from an outside agency, the valuation of perquisite will be the charges paid by the employer to the outside agency
supplying gas, electricity and water. , If the facility in the form of gas, electricity and water is supplied by the employer
out of his own resources, the valuation of perquisite will be the manufacturing cost per unit incurred by the employer.

Select The Blank

Question Dividends from the ________ is an exempt income and hence will not be included in the Taxable income.
Correct Answer Indian Companies

Multiple Choice Multiple Answer

Question 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

Multiple Choice Single Answer

Question If the capital gains arise on account of compulsory acquisition of the capital asset under any law and any
compensation is paid for such acquisition :-
Correct Answer The capital gains liability will be computed in the previous year in which the compensation or the part
thereof is first received

Multiple Choice Multiple Answer

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

Multiple Choice Single Answer

Question The head of income in the form of Income from Salaries is applicable in respect of the :-
Correct Answer Remuneration received by an employee from the employer

Select The Blank

Question As per the Clause N0-30 of the Act ________ requires company engaged in production, mining, and
manufacturing activities should maintain proper books of accounts showing the particulars of utilization of material,
labour or any other item.
Correct Answer Section 209 of the Companies Act,1956

Multiple Choice Multiple Answer

Question A domestic company has following features :-
Correct Answer It is an Indian Co. , It can be any other Co. , Has made prescribed arrangements for declaration and
payment of dividend
Multiple Choice Single Answer
Question For filing the returns of income, Form No. 2C is to be filled in by :-
Correct Answer Persons falling under One by Six Scheme

Multiple Choice Multiple Answer

Question 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.

True/False
Question Refund of Income tax is taxable as Income from other sources.
Correct Answer False

Select The Blank

Question Prior period interest is calculated from the date of ________ to the date of completion.
Correct Answer Borrowing
Your Answer Borrowing

Question Capital Gains are chargeable to Income Tax if there is any profit or gain arising from the transfer of a :-
Correct Answer Capital Asset