LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Multiple AnswerQuestion What are the factors to be considered in cluster analysis?Correct Answer Limited number of clusters due to limitation of market potential , Clusters are notwater tight compartment , Evaluating the quality of cluster is difficultYour Answer Limited number of clusters due to limitation of market potential , Clusters are notwater tight compartment , Evaluating the quality of cluster is difficultMultiple Choice Single AnswerQuestion Clarity of questions and instructions for filling the form is essential in :-Correct Answer Mail surveyYour Answer Data analysisMultiple Choice Single AnswerQuestion The technique through which objects/ cases are classified into relative homogeneousgroups or clusters is known as :-Correct Answer Cluster analysisYour Answer Cluster analysisMultiple Choice Single AnswerQuestion Mean or average value is used to estimate when data have been collected using :-Correct Answer Interval or ratio scaleYour Answer Interval or ratio scaleSelect The BlankQuestion In ________ method the research analyst is not concerned with cause and researchrelationship.Correct Answer DiagnosticYour Answer DiagnosticMultiple Choice Multiple AnswerQuestion Which are the New Delhi based Research Institutions?Correct Answer NRDC , CSIR , Cement Research Institute of IndiaYour Answer NRDC , CSIR , Cement Research Institute of IndiaMultiple Choice Single AnswerQuestion Market Research is done toCorrect Answer Explore the OpportunitiesYour Answer Explore the OpportunitiesTrue/FalseQuestion "Consumer Panel" is a specialized market research technique.Correct Answer FalseYour Answer FalseMatch The FollowingQuestion Correct Answer Your Answer"What might this be ?" Inkblot test Inkblot testAided Recall Depth Research Depth ResearchDoesn’t intend to tell Projective techniques Projective techniquesEase of construction Likert scale Likert scaleTrue/FalseQuestion In regression analysis, dependent variables can be expressed as a linear function ofimpendent variables.Correct Answer TrueYour Answer TrueTrue/FalseQuestion When company prepares a long range plan it is unpublished internal source ofinformation.Correct Answer TrueYour Answer TrueSelect The BlankQuestion Association technique is a type of ________.Correct Answer Projective technique

Your Answer Projective techniqueMultiple Choice Single AnswerQuestion The impact of promotional slogans on the consumers can be studied withCorrect Answer Association techniqueYour Answer Association techniqueTrue/FalseQuestion Brand image building is not important in case of industrial product for quality.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Which publications are used for research on Chemical Industry?Correct Answer Indian Chemical Directory , Chemical Industry News , Chemical & PetroChemicals JournalYour Answer Indian Chemical Directory , Chemical Industry News , Chemical & Petro ChemicalsJournalMultiple Choice Single AnswerQuestion Spreading the sample through the entire population following a regular pattern is knownas :-Correct Answer Systematic samplingYour Answer Systematic samplingSelect The BlankQuestion In absence of proper________ the market research becomes a data collection exercise.Correct Answer Problem DefinitionYour Answer AnalysisMultiple Choice Multiple AnswerQuestion Which institutions should be contacted for research on Paint Chemicals?Correct Answer National Chemical Laboratory, Pune , Industrial Research & Development Center, Building Research InstituteYour Answer National Chemical Laboratory, Pune , Industrial Research & Development Center ,Building Research InstituteMultiple Choice Multiple AnswerQuestion The objectives of marketing research areCorrect Answer To understand the consumer needs and wants , To explore the new markets , Toanalyze the competitorsYour Answer To understand the consumer needs and wants , To explore the new markets , Toanalyze the competitorsMultiple Choice Single AnswerQuestion Ultra violet ink is used to disguise customer coding. This activity is :-Correct Answer A disapproved methodYour Answer A disapproved methodSelect The BlankQuestion Through cluster analysis objects/cases are classified into relatively________ groupcalled cluster.Correct Answer HomogeneousYour Answer HomogeneousMatch The FollowingQuestion Correct Answer Your AnswerDangler POP POPPOP Communication medium Communication mediumOpinion Polls Daily basis Daily basisCorporate Image Study Advertising research Advertising researchMultiple Choice Multiple Answer

Question Ethical issues to be observed while writing a report are :-Correct Answer No deliberate misinterpretations , Marketing problems should be designed to suithidden agenda , Complete confidentiality and secrecy of dataYour Answer No deliberate misinterpretations , Marketing problems should be designed to suithidden agenda , Complete confidentiality and secrecy of dataSelect The BlankQuestion Multiple Choice is a ________type of question.Correct Answer Close endedYour Answer Close endedMultiple Choice Single AnswerQuestion The conjoint analysis helps to enable company's to :-Correct Answer Conduct brand swot analysisYour Answer Conduct brand swot analysisMultiple Choice Single AnswerQuestion In the Internet era, qualitative research is possible through :-Correct Answer Chat sessionsYour Answer Chat sessionsSelect The BlankQuestion ________is an important communication medium that helps recall advertising.Correct Answer Point of Purchase(POP)itemsYour Answer Point of Purchase(POP)itemsTrue/FalseQuestion In the Funnel approach, specific questions come first and general questions later.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion In resources for marketing research skilled staff plays an important role in :-Correct Answer Maintaining data , Dealing with different situation and problems , Timelycompletion of researchYour Answer Maintaining data , Dealing with different situation and problems , Timely completionof researchSelect The BlankQuestion Convenience Sampling is used for ________.Correct Answer Exploratory researchYour Answer Exploratory researchTrue/FalseQuestion The person conducting pharma research should be well qualified so that not to wasteDoctors time.Correct Answer TrueYour Answer TrueTrue/FalseQuestion The limitations with regression forecasting is that independent variables must beforecasted before forecasting the dependent variables.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Main features of Technical Report are :-Correct Answer Minute details of planning data collection , Analysis , InterpretationYour Answer Minute details of planning data collection , Analysis , InterpretationMultiple Choice Single AnswerQuestion How people allocate their time and money to certain products and factors is depicted byCorrect Answer Psychographic VariableYour Answer Psychographic VariableTrue/False

Question Question phrasing and structure are eliminated in Semantic differential scale.Correct Answer TrueYour Answer TrueTrue/FalseQuestion The popularity of Likert scale is due to its ease of construction and administration.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Which are the Export Promotion Councils?Correct Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem& Jewellery Export Promotion CouncilYour Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem &Jewellery Export Promotion CouncilTrue/FalseQuestion The written contract of a research should cover the penalty clause covering deficitssuch as delays, inadequate data.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion The producers in the sellers' market are also forced to take decisions based on themarket information becauseCorrect Answer The resources are scarceYour Answer The resources are scarceMultiple Choice Single AnswerQuestion Scale Intervals can be used forCorrect Answer AgeYour Answer AgeSelect The BlankQuestion Bibliography contains ________.Correct Answer Information of references and secondary dataYour Answer Information of references and secondary dataMultiple Choice Multiple AnswerQuestion Online survey methods include :-Correct Answer Email survey , HTML survey , Downloadable interactive surveysYour Answer Email survey , HTML survey , Downloadable interactive surveysMultiple Choice Single AnswerQuestion Data of market research cannot be maintained :-Correct Answer Without experienced and educated research staffYour Answer Without experienced and educated research staffMultiple Choice Multiple AnswerQuestion Pretesting of Questionnaire includes testing of :-Correct Answer Question content , Time taken to answer questions , CategorisationYour Answer Question content , Time taken to answer questions , CategorisationMultiple Choice Multiple AnswerQuestion Identification of Target Population is facilitated by :-Correct Answer Well defined research objectives , Alternative, reasonable/target populationdefinitions , Specifications for exclusion in target populationYour Answer Well defined research objectives , Alternative, reasonable/target populationdefinitions , Specifications for exclusion in target populationSelect The BlankQuestion ________are used for National Panel Studies.Correct Answer Quota controlsYour Answer Quota controlsSelect The BlankQuestion Finding out the number of vehicles at a given junction is a ________ method.Correct Answer Direct ObservationYour Answer Direct Observation

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Taxation - 4

Taxation-------------LIST OF ATTEMPTED QUESTIONS AND ANSWERSSelect The BlankQuestion The basic advantage of having an agent in the export market is ________.Correct Answer He is knowledgeable of the marketing conditionYour Answer He is knowledgeable of the marketing conditionMultiple Choice Multiple AnswerQuestion How does the customer know about the product & is influenced to buy it?Correct Answer Publicity , Advertising , Sales promotionYour Answer Publicity , Advertising , Sales promotionMultiple Choice Single AnswerQuestion Which of the following is not included in foreign environment?Correct Answer Local dimensionYour Answer Local dimensionMultiple Choice Single AnswerQuestion Why should a market researcher check a country's import tariffs when he isinvestigating it as an export market?Correct Answer It can affect the competitiveness of product against products made within themarketYour Answer It can affect the competitiveness of product against products made within themarketMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". What are thedistribution channels used for imports of silk products into USA market?Correct Answer Merchant intermediaries , Departmental storesYour Answer Merchant intermediaries , Departmental storesTrue/FalseQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental entered theUS market in 1970 with a moderate export of Rs.20 million.Correct Answer FalseYour Answer FalseMatch The FollowingQuestion Correct Answer Your AnswerIndirect exporting Home-based merchant CopyrightBusiness dimensions Channel network Channel networkLegal dimensions Copyright Use of patentLicensing arrangement Use of patent Home-based merchantMultiple Choice Single AnswerQuestion What is important to take pricing decision?Correct Answer CompetitionYour Answer CompetitionSelect The BlankQuestion In ________, the firm faces only one set of customers.Correct Answer Domestic marketingYour Answer Domestic marketingMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental was an activemember 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 CouncilMultiple Choice Single AnswerQuestion This question is based on the case study 'AB Enterprises'. What is the problem inadapting AB Enterprises product in the market?Correct Answer Novelty is lost due to ethnic character in AB EnterprisesYour Answer Novelty is lost due to ethnic character in AB EnterprisesMultiple Choice Multiple AnswerQuestion What are the important infrastructure factors in evaluating production site?Correct Answer Industrial site , Transportation & communicationYour Answer Industrial site , Transportation & communicationMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Which are the twoyears the imports of silk fabrics from Japan by USA was almost same?Correct Answer 1982 , 1983Your Answer 1982 , 1983Select The BlankQuestion ________dimensions include customs and practicesCorrect Answer BusinessYour Answer BusinessMultiple Choice Multiple AnswerQuestion What is the nature of direct export market?Correct Answer Concentrated , Large potential saleYour Answer Concentrated , Large potential saleMultiple Choice Single AnswerQuestion What does product-mix decision include?Correct Answer PackagingYour Answer PackagingMultiple Choice Multiple AnswerQuestion What are the internal sources of information?Correct Answer Sales record , Correspondence from salesmenYour Answer Sales record , Correspondence from salesmenTrue/FalseQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Mr.Patnaik felt that itwas high time that he appraises his agents' performance relating to the vast & expanding USmarket.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". What were the optionsMr.Patnaik had to operate in the US market?Correct Answer Opening a branch office , A subsidiary companyYour Answer Opening a branch office , A subsidiary companySelect The BlankQuestion In indirect export channel, the market is ________.Correct Answer DispersedYour Answer DispersedTrue/FalseQuestion Strategies suggested in the Medium Term Export Plan include product-marketpenetration strategy for existing products, product-market, diversification for new products & newmarkets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion 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 productTrue/FalseQuestion If foreign retailers are used, the products in question are industrial products rather thanconsumer products.Correct Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion How is the nature of international strategy?Correct Answer Depends on company's objectives , Varies from country to countryYour Answer Depends on company's objectives , Varies from country to countrySelect The BlankQuestion "make site booking" is a point of checklist of ________Correct Answer Before the fairYour Answer Before the fairMultiple Choice Single AnswerQuestion What marketing technique is used to know international marketing need?Correct Answer Marketing information & researchYour Answer Marketing information & researchMultiple Choice Multiple AnswerQuestion What are the benefits of participation in trade fair?Correct Answer To get to know about competition , To know about the extent of product adaptionYour Answer To get to know about competition , To know about the extent of product adaptionSelect The BlankQuestion Experience survey, which is also called as ________.Correct Answer Key informant surveyYour Answer Key informant surveyMultiple Choice Single AnswerQuestion What is a foreign agent?Correct Answer Independent middlemanYour Answer Independent middlemanMultiple Choice Single AnswerQuestion What does political environment include?Correct Answer Legal dimensionYour Answer Legal dimensionMatch The FollowingQuestion Correct Answer Your AnswerExternal factor Competitive profile Competitive profileEthnocentric orientation Overseas operation conducted from home country Overseas operationconducted from home countryPolycentric orientation Each market is unique Each market is uniqueTarget market Marketing strategy Marketing strategyTrue/FalseQuestion In marginal cost pricing for export, competition in foreign markets requires quotation of alower priceCorrect Answer TrueYour Answer TrueTrue/FalseQuestion Policies or regulations regarding quality control & inspection vary considerably betweennations.Correct Answer TrueYour Answer TrueSelect The BlankQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental Silk Private

Limited, is a ________ unit, was one of the leading Indian manufacturers & exporters of silkfabrics & made-upsCorrect Answer 100% export orientedYour Answer 100% export orientedSelect The BlankQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". The bulk of the tradewas handled by ________Correct Answer Central buying organizationsYour Answer Foreign agentsTrue/FalseQuestion If business is variable, the company will choose the purchasing or subcontractingalternatives.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion What is the meaning of offshore purchasing?Correct Answer Relationship between independent buyer & seller for exchange of good formoneyYour Answer Relationship between independent buyer & seller for exchange of good for moneySelect The BlankQuestion Many companies modify their products/promotion strategies to suit ________ of thepopulation of the different countries.Correct Answer Tastes & preferencesYour Answer Tastes & preferencesTrue/FalseQuestion Companies with smaller needs, an independent supplier will be less active.Correct Answer FalseYour Answer FalseTrue/FalseQuestion Catalogues contain a list of all competitors with product details.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion What is correct according to geocentric orientation?Correct Answer Companies view the entire world as a single market , Uniform inventorymanagement & trainingYour Answer Companies view the entire world as a single market , Uniform inventorymanagement & trainingTrue/FalseQuestion The area of change relates to product adaption requires upgradation of technology andhuge investment in brands.Correct Answer TrueYour Answer TrueSelect The BlankQuestion This question is based on the case study "Chow Flowers Co. Ltd.". ________ wasThailand's second largest export market for artificial flowers, mostly polyester or hand-wrapped.Correct Answer CanadaYour Answer CanadaMultiple Choice Single AnswerQuestion What are the similarities between domestic & international marketing?Correct Answer Satisfying consumers needYour Answer Satisfying consumers needMultiple Choice Single AnswerQuestion What is the need of marketing research for export-import trade?Correct Answer To reduce the distance between an exporter & his customers in terms ofmarketing

Your Answer To reduce the distance between an exporter & his customers in terms of marketingMultiple Choice Single AnswerQuestion What is the avenue of entry into foreign markets?Correct Answer Contract manufacturingYour Answer Contract manufacturingMultiple Choice Single AnswerQuestion What is the principal functional division of ministry of commerce & industry?Correct Answer Export Industries DivisionYour Answer Export Industries Division

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Wednesday, March 26, 2008

Taxation - 3

LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Multiple AnswerQuestion The entertainment allowance received by theGovernment employees is included in their salariesand the deduction is allowed to the extent of least ofthe following amounts :-Correct Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of SalaryYour Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of SalaryTrue/FalseQuestion Income Tax Act, 1961 recognizes Written Down Value(WDV) method as well as straight line method for thecomputation of depreciation u/s 32 this act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Profits earned by an Industrial Undertaking engagedin other than infrastructure development is availableunder Section 80IB for :-Correct Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimage , Company engaged inscientific and industrial researchYour Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimageMultiple Choice Single AnswerQuestion Which of the following expenditure is in the nature ofrevenue expenditure?Correct Answer Expenditure incurred as discount on issue ofdebenturesYour Answer Expenditure incurred as discount on issue ofdebenturesSelect The BlankQuestion If sum received is net of TDS then it is ________ toinclude in income from other sources.Correct Answer Grossed upYour Answer Grossed upTrue/False

Question Interest paid on the loan for acquiring a capital assetwill be considered to be a part of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowingdeductions under Chapter VI-A is Rs. 1,45,000, wantsto make the investments in the following alternativeforms Rs. 80,000 in PPF and Rs. 20,000 inInfrastructure Bonds. The amount of rebate availableto him u/s 88 is :-Correct Answer Rs. 18,000Your Answer Rs. 18,000Multiple Choice Single AnswerQuestion Interest on specified securities or premium onredemption is exempt for :-Correct Answer Non resident IndianYour Answer Non resident IndianTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block ofAssets includes both tangible as well as intangibleassets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Deductions in respect of Certain Incomes receivedunder Section 80L is available in respect ofCorrect Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestYour Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusMultiple Choice Multiple AnswerQuestion For the purpose of income tax, the perquisites can beclassified into :-Correct Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeYour Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeSelect The BlankQuestion For an individual as a citizen of India who leaves Indiain the relevant previous year for the purpose ofemployment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in

:-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Multiple AnswerQuestion Following professional institutions have their incomesexempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingSelect The BlankQuestion ________ of the Tax Audit Report refers to the detailsof various payments which are allowed as deductiononly if they are actually paid for.Correct Answer Section 43B Clause No-21Your Answer Section 43B Clause No-21Multiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsSelect The BlankQuestion To claim sec 10A deduction unit must be establishedin ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneMultiple Choice Single AnswerQuestion Assessment year is the period of 12 months startingfrom :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion If an employee does not avail of this leave travelconcession or assistance during a block of fourcalendar years :-Correct Answer Only one journey can be carried forward to the nextblock.Your Answer Only one journey can be carried forward to the nextblock.Select The BlankQuestion To acquire PAN, a person shall apply in ________ tothe assessing officer.Correct Answer Form No. 49AYour Answer Form No. 49AMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54F is forCapital Gains arising from transfer of :-Correct Answer Any Long Term Capital AssetYour Answer House PropertySelect The BlankQuestion Where an assessee files or submits the returns as perprovisions of section 139 or in response to the noticeunder section 142, the assessment officer undertakes________ as per section 143(2) and section 143(3).Correct Answer Scrutiny AssessmentYour Answer Scrutiny Assessment

Multiple Choice Multiple AnswerQuestion Income of a professional association is exempt if itsobjectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementTrue/FalseQuestion While computing the profits from Business andprofession, the business or profession must be carriedout during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A hasavailed the exemption only once or has not availedany 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 offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Your Answer He can carry over the exemption to the next block offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Multiple Choice Multiple AnswerQuestion The amount accumulated to the credit of theemployee's provident fund account is paid at the timeof :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital ,Municipal taxesYour Answer Interest on borrowed capital , Municipal taxesMultiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages,Dearness Allowance and Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion From GTI of a company following deductions underchapter VI A are allowedCorrect Answer 80 G Donations , 80 HHB profits and gains fromprojects outside India , 80 IA profits and gains ofinfrastructure companiesYour Answer 80 G Donations , 80 IA profits and gains ofinfrastructure companiesMultiple Choice Single AnswerQuestion Annual value of any one palace in possession of aformer ruler is :-Correct Answer ExemptYour Answer TaxableSelect The BlankQuestion If the Salary is more than Rs. 5,00,000, StandardDeduction will be Rs.________.Correct Answer 20000

Your Answer 20000Multiple Choice Single AnswerQuestion The amount of accumulated interest on NSCspurchased in the earlier years is assumed to bereinvested :-Correct Answer And qualifies for tax rebate under section 88.Your Answer And qualifies for tax rebate under section 88.Select The BlankQuestion Deduction u/s ________B is available for 10consequent assessment years from the year ofcommencement of production.Correct Answer 10Your Answer 10True/FalseQuestion Income from subletting is treated as income fromhouse property.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Section 80U allows the deduction in respect of the________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMatch The FollowingQuestion Correct Answer Your AnswerDisallowableExpenditureLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtBusiness Includes trade,commerce, orIncludes trade,commerce, ormanufacture or anyadventure or concernin the nature of trade,commerce ormanufacturemanufacture or anyadventure or concern inthe nature of trade,commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurredby a company with theissue of rights sharesPremium onredemption of

DebenturesTrue/FalseQuestion Any recreational facility provided by the employer to agroup of employees (not being restricted to a selectfew employees) is not exempt from tax.Correct Answer FalseYour Answer FalseTrue/FalseQuestion In case of deductions for medical treatment underSection 80DDB the amount of deduction will bereduced by the amount received under an insurancepolicy or the amount reimbursed by the employer.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Any advance tax paid before 31st March is treated asadvance tax paid during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Municipal taxes paid is allowed as deduction from :-Correct Answer Gross annual valueYour Answer Gross annual valueTrue/FalseQuestion Entertainment Allowance received by the employeesfrom the private sector is taxable in the hands of theemployee.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerAny subscription madeto National SavingSchemeBy an individual or aHUF is eligible forrebate u/s 88By an individual or aHUF is eligible forrebate u/s 88Mr. A, a 70 years oldSenior Citizen, has theGross Total Income ofRs. 2,50,000 duringthe Assessment Year2005-2006. Heinvested Rs. 50,000 inthe tax saving bonds ofICICI on 10th June2004. His tax liabilityfor the A Y 2005-2006.RS.12,500 RS.12,500During theAssessment Year2005-2006, Mrs. A,age 58 years, has theGross Total Income of

Rs. 1,45,000 includingthe dividend fromIndian companiesamounting to Rs.10,000. She investsRs. 50,000 in PPFduring the saidAssessment Year. hertax liabilit isRs. 1,000 Rs. 1,000Any contribution madeto a Public ProvidentFundIs eligible for rebateu/s 88Is eligible for rebate u/s88Multiple Choice Multiple AnswerQuestion Following incomes of local authorities are exempt :-Correct Answer Capital gains , Other income , House propertyYour Answer Capital gains , Other income , House propertyMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains theassessee should invest the whole or part of the capitalgains in the specified assets :-Correct Answer Within six months from the date of transfer of the longtermcapital assetYour Answer Within six months from the date of transfer of the longtermcapital assetTrue/FalseQuestion Income from partnership firms is exempt from taxationfor the partnersCorrect Answer TrueYour Answer False

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Taxation - 2

LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Single AnswerQuestion 48 Deduction in respect of Contribution to certain pension funds is related to :-Correct Answer Section 80CCCYour Answer Section 80CCCTrue/FalseQuestion 49 The rebate u/s 88B is allowed before the rebate u/s 88 is allowed.Correct Answer TrueTAXATION9Your Answer FalseSelect The BlankQuestion 50 Expenditure incurred in connection with the local festivals like Diwali etc. are________ as business expenditure.Correct Answer AllowedYour Answer Allowed

Select The BlankQuestion 51 Deduction is available for income from foreign sources under Section 80RR ifsuch remuneration brought into India in convertible foreign exchange within aperiod of________ months from the end of the previous year.Correct Answer 6Your Answer 6Multiple Choice Multiple AnswerQuestion 52 Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsMultiple Choice Single AnswerQuestion 53 Income from winning from lotteries / crossword puzzles/ horse races is taxed atflat rate of :-Correct Answer 0.3Your Answer 0.35Select The BlankQuestion 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 ofbusiness.Correct Answer Amortized and written off to profit and loss accountYour Answer Amortized and written off to profit and loss accountSelect The BlankQuestion 55 Section 43B of the IT Act provides that the certain payments are allowed asdeduction only if they are ________.Correct Answer Actually paidYour Answer ReasonableMultiple Choice Multiple AnswerQuestion 56 The rebate u/s 88 is available to an :-TAXATION10Correct Answer Individual , Hindu Undivided Family.Your Answer Individual , Hindu Undivided Family.Multiple Choice Single AnswerQuestion 57 Income from other sources covers agricultural income from land situated :-Correct Answer Outside IndiaYour Answer Outside IndiaMultiple Choice Multiple AnswerQuestion 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 properlyfiled in , The return is accompanied by the tax audit report under section 44AB ,The return is accompanied by copies of required financial statements of theassesseeYour Answer The computation of income under each head, Gross Total Income are properlyfiled in , The return is accompanied by the tax audit report under section 44AB ,The return is accompanied by copies of required financial statements of theassesseeMultiple Choice Single AnswerQuestion 59 If an employee does not avail of this leave travel concession or assistanceduring 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 BlankQuestion 60 The person who does not deduct the tax source as required by the Act or afterdeducting fails to pay the tax as required by the Act, shall be liable to pay thesimple interest @________ % per month on the amount of such tax from thedate on which the tax was deductible till the date on which such tax is actuallypaid.

Correct Answer 1Your Answer 1.25Multiple Choice Multiple AnswerQuestion 61 The assessing officer may allot the Permanent Account Number(PAN) to :-Correct Answer Person whose Total Income during previous year exceeds the maximumamount, chargeable to tax , Person carrying on the business or professionwhose turnover exceeds Rs.5 lakhs in any previous year , Any other person bywhom tax is payableYour Answer Person carrying on the business or profession whose turnover exceeds Rs.5lakhs in any previous year , Any other person by whom tax is payable , Anyperson not applying for permanent account number but, tax is payable by himTAXATION11Multiple Choice Multiple AnswerQuestion 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 willbe allowed as deduction only when :-Correct Answer The amount of gratuity has actually become payable to the employees duringthe previous year , The provision has been made for the payment of a sum byway of contribution to an approval gratuity , The other than the above twosituations, any provision made for the payment of gratuity is not allowed asdeductionYour Answer The amount of gratuity has actually become payable to the employees duringthe previous year , The provision has been made for the payment of a sum byway of contribution to an approval gratuity , The other than the above twosituations, any provision made for the payment of gratuity is not allowed asdeductionMultiple Choice Multiple AnswerQuestion 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 substantialinterest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxablemonetary payments of salary but excluding the value of any non-monetarybenefits or perquisites), after allowing deductions under Section 16, exceedsRs. 50,000Your Answer The person who is director of a company , The employee who has substantialinterest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxablemonetary payments of salary but excluding the value of any non-monetarybenefits or perquisites), after allowing deductions under Section 16, exceedsRs. 50,000True/FalseQuestion 64 Sum received under a will / inheritance is not exempt.Correct Answer TrueYour Answer FalseSelect The BlankQuestion 65 It should be noted that the tax liability of an individual having the total income ofless than Rs ________ is Nil u/s 88D.Correct Answer 1,00,000Your Answer 1,00,000Match The FollowingQuestion 66 Correct Answer Your AnswerAll intangible assets likePatents, Trademarks, CopyRights, Licenses etc.Rate of depreciation is 25% Rate of depreciation is 25%Temporary Structures Rate of depreciation is 100% Rate of depreciation is 10%

TAXATION12Computers Rate of depreciation is 60% Rate of depreciation is 40%Containers made of glass orplastic used as refillsRate of depreciation is 40% Rate of depreciation is 60%Select The BlankQuestion 67 In case of foreign companies rate of tax is ________.Correct Answer 0.35Your Answer 0.35Multiple Choice Single AnswerQuestion 68 Which of the following expenditure is in the nature of revenue expenditure?Correct Answer Expenditure incurred as discount on issue of debenturesYour Answer Expenditure incurred as discount on issue of debenturesMultiple Choice Multiple AnswerQuestion 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 interestin the business or profession of the firm or any director or partner of suchcompany or firm or any relative of such person. , Any person who carries onbusiness or profession and in his business or profession the assessee or anypartner 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 interestin the business or profession of the firm or any director or partner of suchcompany or firm or any relative of such person. , Any person who carries onbusiness or profession and in his business or profession the assessee or anypartner of such firm or relative of such partner has substantial interest.Multiple Choice Single AnswerQuestion 70 For charging the income in the form of salaries :-Correct Answer There needs to be an employer-employee relationship between the payer andthe payee.Your Answer There needs to be an employer-employee relationship between the payer andthe payee.True/FalseQuestion 71 For claiming the deduction under section 80IA, the industrial undertaking shouldbe owned by a company registered in India or a consortium of such companies.Correct Answer TrueYour Answer TrueSelect The BlankQuestion 72 Any expenditure incurred by the assessee for any purpose which is ________or which is prohibited by law shall not be allowed as business expenditureTAXATION13Correct Answer OffenceYour Answer OffenceMultiple Choice Single AnswerQuestion 73 As a general principle, the Basic Salary or Wages, Dearness Allowance andBonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.True/FalseQuestion 74 Rebates as per the provisions of Section 88 of the Act are not available from thetax on long-term capital gains.Correct Answer TrueYour Answer TrueTrue/False

Question 75 MAT is applicable if there is a difference of 7.5% between net profit & bookprofit.Correct Answer TrueYour Answer FalseMultiple Choice Multiple AnswerQuestion 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 orany 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 orprofession, 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 orany 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 orprofession, the assessee himself or his relative has a substantial interest.Select The BlankQuestion 77 Deduction for remuneration from foreign sources for professors, teachers etcunder Section 80R is limited to ________% of such remuneration brought inIndia.Correct Answer 15Your Answer 10True/FalseQuestion 78 Any expenditure incurred for earning the income which is included under thehead income from other sources will be allowed as deduction from such incomeTAXATION14provided that certain conditions are satisfiedCorrect Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion 79 Deduction from Capital Gains from the transfer of residential house propertyunder Section 54 is available to :-Correct Answer Individual , HUFYour Answer Individual , HUF , CompanyTrue/FalseQuestion 80 Income earned & received outside India & remitted to India is taxable forresident & ordinary residentCorrect Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 81 Mr X has received Rs 200000 as income from salary, Rs 50000 income fromhouse property and he also received Rs 100000 income from specified units ofthe mutual fund. What will be his total incomeCorrect Answer Rs 250000Your Answer Rs 250000Multiple Choice Multiple AnswerQuestion 82 Standard deduction takes care of :-Correct Answer Repairs & maintenance , Insurance premium , Ground rentYour Answer Insurance premiumMatch The FollowingQuestion 83 Correct Answer Your AnswerIndividual partners & firms Are separate taxable entities Losses are shared equallyPartnership firm Companies can be partners Are separate taxable entitiesCompany partners Can not get salaries Companies can be partnersIndividual partners Can be partners in any number

of firmsCan be partners in any numberof firmsMultiple Choice Multiple AnswerTAXATION15Question 84 Capital Gains arise on account of excess of transfer consideration over thefollowing amountsCorrect Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly andexclusively in connection with the transferYour Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly andexclusively in connection with the transferTrue/FalseQuestion 85 Income of a mutual fund is taxable even if it is authorized by RBI.Correct Answer FalseYour Answer FalseSelect The BlankQuestion 86 If sum received is net of TDS then it is ________ to include in income from othersources.Correct Answer Grossed upYour Answer Grossed upMultiple Choice Multiple AnswerQuestion 87 What is the tax treatment of Statutory Provident Fund?Correct Answer Employer's Contribution to PF is not liable for any tax payment , Interestcredited to the employee's account is not liable for any tax payment. , The lumpsum received at the time of retirement or resignation or death is also exemptunder section 10(11) and 10(12).Your Answer Employer's Contribution to PF is not liable for any tax payment , Interestcredited to the employee's account is not liable for any tax payment. , The lumpsum received at the time of retirement or resignation or death is also exemptunder section 10(11) and 10(12).True/FalseQuestion 88 Interest paid on the loan for acquiring a capital asset will be considered to be apart of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 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.Multiple Choice Single AnswerQuestion 90 Deduction from Capital Gains under Section 54F is for Capital Gains arisingfrom transfer of :-Correct Answer Any Long Term Capital AssetTAXATION16Your Answer Any Long Term Capital AssetMultiple Choice Single AnswerQuestion 91 In case the assessee is not a company, a person(other than a company) who isfalling under One by Six economic criteria, the last date for filing the return isprescribed as :-Correct Answer 31st July of the Assessment yearYour Answer 31st July of the Assessment yearSelect The BlankQuestion 92 Registration charges in connection with the increasing of ________ sharecapital of the company is not allowed as revenue expenditure.Correct Answer Authorized

Your Answer AuthorizedTrue/FalseQuestion 93 The amount of telephone bills (including the mobile phone bills) of the employeereimbursed by the employer is taxable in the hands of the employee.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion 94 As per which provision and section, every person, company or any other personshall furnish his returns of income in the prescribed form on or before thespecified due date?Correct Answer Section 139(1)Your Answer Section 139(2)

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Labels: Taxation

Taxation - 1

TAXATION1LIST OF ATTEMPTED QUESTIONS AND ANSWERSSelect The BlankQuestion 1 Mr X a salaried employee has received total educational allowance of Rs 8,000for his four children, the maximum allowance exempt is ________ u/s 10(14) ofthe IT Act.Correct Answer Rs 2,400Your Answer Rs 2,400Multiple Choice Multiple AnswerQuestion2 What is the tax treatment of the Lump sum received from unrecognizedprovident 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'scontribution is taxable as "Income from Other Sources" , Employer'sContribution 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 fromsalaries" , Employee's contribution to PF is exempt from taxTrue/FalseQuestion 3 Software technology park means set up according to Software Technology ParkScheme framed by Ministry of Commerce & Industries.Correct Answer TrueYour Answer TrueSelect The BlankQuestion 4 It is mandatory for ________ to file a return even if there is loss or the income isnil.Correct Answer A companyYour Answer Persons under "One by Six" schemeMultiple Choice Multiple AnswerQuestion 5 Following professional institutions have their incomes exempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingMultiple Choice Multiple AnswerQuestion 6 Which of the following amounts credited to P & L Account but not taxable fromIncome tax Purposes as Profits from Business and Profession?Correct Answer Refund of Income tax , Capital Gains , Dividend IncomeYour Answer Refund of Income tax , Capital Gains , Dividend IncomeSelect The Blank

Question 7 ________ is the tax payable on the manufacturing of goods.Correct Answer Excise dutyYour Answer Excise dutySelect The BlankQuestion 8 The amount paid by the employer to the employee to meet the expenditure forresidential accommodation occupied by the employee is called ________.Correct Answer House rent allowanceYour Answer House rent allowanceMultiple Choice Multiple AnswerQuestion 9 Any amount deposited by an Individual or a HUF in 10 year or 15 year accountunder the Post Office Saving Bank (CTD) Rules, 1959. The account can be inthe 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 BlankQuestion 10 Section 80U allows the deduction in respect of the ________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMultiple Choice Single AnswerQuestion 11 Income of notified news agencies is exempt provided :-Correct Answer They apply their income for collection & distribution of newsYour Answer They apply their income for collection & distribution of newsMultiple Choice Single AnswerQuestion 12 The total amount of rebates under Section 88, Section 88B, Section 88C andSection 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.Multiple Choice Single AnswerQuestion 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.

Multiple Choice Multiple AnswerQuestion 14 Perquisites which are taxable only in the hands of specified employee includethe following categories of perquisites :-Correct Answer Motor Car , Services of sweeper, gardener, watchman or personal attendant ,Gas, electricity and water provided for personal consumptionYour Answer Motor Car , Services of sweeper, gardener, watchman or personal attendant ,Gas, electricity and water provided for personal consumptionMultiple Choice Single AnswerQuestion 15 The Central Government has introduced a new pension scheme for theemployees employed on or after 15th January, 2004. These employees arerequired to contribute 10% of their salaries to this pension scheme. How muchwill the Central Government contribute to the Fund?Correct Answer Equal amountYour Answer Equal amountTrue/FalseQuestion 16 In case of deductions for medical treatment under Section 80DDB the amount ofdeduction will be reduced by the amount received under an insurance policy orthe amount reimbursed by the employer.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 17 If any person fails to get the accounts audited by a Chartered Accountant andfails to submit the copy of such report under section 44AB, he will be liable topay the penalty equal to :-

Correct Answer 0.5% of sales turnover/gross receipts or Rs.1lakh whichever is lessYour Answer 0.5% of sales turnover/gross receipts or Rs.1lakh whichever is lessSelect The BlankQuestion 18 Section 35E of the Act applies to all the ________ engaged in the business ofprospecting for or extraction or production of certain specified minerals.Correct Answer Resident assesseesYour Answer Non-ordinary resident assesseesMultiple Choice Multiple AnswerQuestion 19 Profits earned by an Industrial Undertaking engaged in other than infrastructuredevelopment 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 researchYour Answer Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage, Company engaged in scientific and industrial researchTrue/FalseQuestion 20 Jewellery held by the assessee is not a Capital Asset.

Correct Answer FalseYour Answer FalseSelect The BlankQuestion 21 House rent allowance is exempt from the heading ________.Correct Answer Income from salariesYour Answer Income from salariesMultiple Choice Multiple AnswerQuestion 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 ProvidentFund 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 sumpayable by the assessee as interest on any loan or borrowing made by him fromany public financial institution or state financial corporation as per the terms ofthe agreementYour Answer Any employees contribution payable by the assessee towards any ProvidentFund 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 sumpayable by the assessee as interest on any loan or borrowing made by him fromany public financial institution or state financial corporation as per the terms ofthe agreementSelect The BlankQuestion 23 The rebate u/s ________ is available to a woman assessee below the age of 65years at any time during the previous years.Correct Answer 88CYour Answer 88BTrue/FalseQuestion 24 An deduction is allowed to an assesse as an employer in respect of contributionmade to any non-statutory fund under the section 40A(9).Correct Answer FalseYour Answer TrueTrue/FalseQuestion 25 Dividend received by the shareholder is treated as income chargeable to tax u/s10(34) of the IT Act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion 26 The assessee is required to quote PAN in :-

Correct Answer All returns to or correspondence with the Income Tax Authorities , All thechallans for the payment of any amount under the Act , All the documentspertaining to purchase, sale and bank transactionsYour Answer All returns to or correspondence with the Income Tax Authorities , All thechallans for the payment of any amount under the Act , All the documentspertaining to purchase, sale and bank transactionsMultiple Choice Single AnswerQuestion 27 Any person carrying on business or profession has to submit the Audit Report inprescribed form, signed by Chartered Accountant before 31st October of theassessment year, whether the return of income is filed or not. This is incompliance with :-Correct Answer Section 44AB of the ActYour Answer Section 44AB of the ActMultiple Choice Single AnswerQuestion 28 In case of the individual or HUF whose Gross Total Income, before deductionsunder 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 88Multiple Choice Single AnswerQuestion 29 If firm fails to submit copy of deed along with return of income :-Correct Answer It will not constitute a separate taxable entityYour Answer It will not constitute a separate taxable entityMultiple Choice Single AnswerQuestion 30 In order to avoid the cases of tax evasion on the part of the assessees, the Acthas provided for :-Correct Answer Tax deduction at sourceYour Answer Tax deduction at sourceMultiple Choice Multiple AnswerQuestion 31 Which of the following expenditures are expressly disallowed to be deductedwhile computing the profits from business and professionCorrect Answer Income Tax , Wealth TaxYour Answer Income Tax , Wealth TaxTrue/FalseQuestion 32 Section 80QQB is applicable to the individual resident who is an author of textbooks.Correct Answer FalseYour Answer False

Select The BlankQuestion 33 Section 35AC of the Act applies to any sum paid by the assessee to a publicsector company or a local authority or an association approved by the nationalcommittee for ________ for carrying out any project in upliftment of public.Correct Answer Promotion of social and economic welfareYour Answer Promotion of social and economic welfareMultiple Choice Single AnswerQuestion 34 Income from sub-letting of a house property is income from :-Correct Answer Other sourcesYour Answer SublettingMultiple Choice Multiple AnswerQuestion 35 Income of a professional association is exempt if its objectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementMultiple Choice Multiple AnswerQuestion 36 Choose capital expenditure from the following list :-Correct Answer Purchase of Building , Purchase of machineryYour Answer Purchase of Building , Construction of temporary structures , Purchase of

machineryTrue/FalseQuestion 37 Loss under the head Profits from Business or Profession can be adjustedagainst the Income from Salaries.Correct Answer FalseYour Answer FalseSelect The BlankQuestion 38 Deduction u/s 10A is ________ of export proportion of profits.Correct Answer 0.9Your Answer 0.9True/FalseQuestion 39 Rebates as per the provisions of Section 88C of the Act are not available fromthe tax on long-term capital gains.Correct Answer False

Your Answer FalseTrue/FalseQuestion 40 Dividend received from domestic company to its shareholders is taxable in thehands of the shareholder.Correct Answer FalseYour Answer TrueMatch The FollowingQuestion 41 Correct Answer Your AnswerSuper Annuation Fund This is an employee welfarescheme which is usuallyapplicable in case of verysenior employeesThis is an employee welfarescheme which is usuallyapplicable in case of very senioremployeesStatutory Provident Fund This is set up as per theprovisions of Provident FundAct, 1925. This is maintainedby Government organizations,local authorities, universitiesand educational institutions.This is set up as per theprovisions of Provident FundAct, 1925. This is maintained byGovernment organizations, localauthorities, universities andeducational institutions.Recognised Provident Fund This is the provident fund towhich the provisions ofEmployees Provident Fund andMiscellaneous Provisions Act,1952 apply.This is the provident fund towhich the provisions ofEmployees Provident Fund andMiscellaneous Provisions Act,1952 apply.Unrecognised Provident Fund The provident fund which is notrecognized by the income taxauthorities is called asunrecognized provident fund.

The provident fund which is notrecognized by the income taxauthorities is called asunrecognized provident fund.Multiple Choice Single AnswerQuestion 42 Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusSelect The BlankQuestion 43 The amount of compensation received or receivable by the employee from theemployer at the time of termination of his employment or at the time ofmodification of terms and conditions in connection with the employment is calledas ________.Correct Answer Terminal compensation.Your Answer Terminal compensation.Match The Following

Question 44 Correct Answer Your AnswerIntangible Capital Asset Tenancy Rights Tenancy RightsExcluded from ambit of termCapital AssetStock in Trade Land held for a period of 36months or moreShort Term Capital Asset Equity Shares held for a periodof Less than 36 monthsStock in TradeLong Term Capital Asset Land held for a period of 36months or moreBuildingMultiple Choice Multiple AnswerQuestion 45 The entertainment allowance received by the Government employees isincluded in their salaries and the deduction is allowed to the extent of least ofthe following amounts :-Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowancereceived.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowancereceived.True/FalseQuestion 46 Annual premium paid by the employer for the accident insurance policy taken bythe employer in the name of the employee is chargeable to tax.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion 47 Following condition needs to be satisfied for claiming the exemption underSection 54F :-Correct Answer The assessee is an individual or a HUFYour Answer The assesse is Firm

Multiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages, DearnessAllowance and Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Select The BlankQuestion If assessee owns more than one house properties, he can get benefitof nil annual value for any one house property ________.Correct Answer As per his choice

Your Answer As per his choiceTrue/FalseQuestion Any recreational facility provided by the employer to a group ofemployees (not being restricted to a select few employees) is notexempt from tax.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion What are the types of Provident Fund?Correct Answer Statutory Provident Fund , Recognized Provident Fund ,Unrecognized Provident FundYour Answer Statutory Provident Fund , Recognized Provident Fund ,Unrecognized Provident FundMultiple Choice Multiple AnswerQuestion The least of the following is the exemption available to an employee ifhe 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 theaccommodation is situated at any other place. , Actual amount ofHRA received by the employee. , Excess of rent paid over 10% of theSalary.Your Answer 50% of the Salary where such accommodation is situated in Mumbai,Kolkata, Chennai and Delhi and 40% of the Salary when theaccommodation is situated at any other place. , Actual amount ofHRA received by the employee. , Excess of rent paid over 10%of theSalary.Multiple Choice Multiple AnswerQuestion To get deduction of Rs 150000/- as interest on borrowed capitalassessee needs to satisfy conditions i.e. :-Correct Answer Borrowal is after 1st April 1999 , Construction is completed in 3 yearsYour Answer Borrowal is after 1st April 1999 , Construction is completed in 3 yearsMultiple Choice Multiple AnswerQuestion The entertainment allowance received by the Government employeesis included in their salaries and the deduction is allowed to the extentof least of the following amounts :-Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.Select The BlankQuestion Section 35AC of the Act applies to any sum paid by the assessee toa public sector company or a local authority or an associationapproved by the national committee for ________ for carrying outany project in upliftment of public.Correct Answer Promotion of social and economic welfareYour Answer Promotion of social and economic welfareMultiple Choice Single AnswerQuestion The provisions under section 44AB of the Act, is applicable to theperson carrying on the profession and whose gross receipts inprofession :-Correct Answer Exceeds Rs.10 lakhs in any previous yearYour Answer Exceeds Rs.40 lakhs in any previous yearMultiple Choice Multiple AnswerQuestion As per the provision of section 143(2) and 143(3) scrutinyassessment made by assessing officer in order to ensure that :-Correct Answer Assessee has not understated the income , Assessee has notoverstated the loss , Assessee has under paid the taxes

Your Answer Assessee has not understated the income , Assessee has notoverstated the loss , Assessee has under paid the taxes , Assesseehas not been allotted the PANMultiple Choice Single AnswerQuestion Annual value of any one palace in possession of a former ruler is :-Correct Answer ExemptYour Answer ExemptTrue/FalseQuestion Interest paid on the loan for acquiring a capital asset will not beconsidered to be a part of cost of acquisition.Correct Answer FalseYour Answer TrueMultiple Choice Single AnswerQuestion Previous year always ends on :-Correct Answer 31st MarchYour Answer 31st MarchMultiple Choice Multiple AnswerQuestion Perquisites which are taxable only in the hands of specified employeeinclude the following categories of perquisites :-Correct Answer Motor Car , Services of sweeper, gardener, watchman or personalattendant , Gas, electricity and water provided for personalconsumptionYour Answer Motor Car , Services of sweeper, gardener, watchman or personalattendant , Gas, electricity and water provided for personalconsumptionSelect The BlankQuestion Short term Capital Gains is taxed at ________.Correct Answer Normal Tax ratesYour Answer Normal Tax ratesMultiple Choice Single AnswerQuestion Income of notified news agencies is exempt provided :-Correct Answer They apply their income for collection & distribution of newsYour Answer They apply their income for collection & distribution of newsTrue/FalseQuestion Clause N0-30 of the Tax Audit requires that, if the cost Audit of thecompany carried out, the report of such audit should be enclosed tothe Tax Audit Report.Correct Answer TrueYour Answer TrueTrue/FalseQuestion If an assessee gets the salary from more than one employer duringan Assessment Year, Salary received from all the employers will beaggregated and then the Standard Deduction will be allowed.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion The amount accumulated to the credit of the employee's providentfund account is paid at the time of :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assesseesbefore 15th September of Previous year is :-Correct Answer 30% of advance tax payableYour Answer 30% of advance tax payableMultiple Choice Multiple AnswerQuestion Any loans or deposits borrowed or repaid under section 269SS of the

Act provides that the said provisions will not apply to the loans ordeposits accepted by :-Correct Answer Government , Government company , Banking company includingcooperative bank and post office savings bankYour Answer Government , Government company , Banking company includingcooperative bank and post office savings bankMultiple Choice Single AnswerQuestion The amount of advance tax payable by corporate assessees before15th March of Previous year is :-Correct Answer 100% of advance tax payableYour Answer 100% of advance tax payableMultiple Choice Single AnswerQuestion The due date prescribed for filing the returns of income in Form No.2C isCorrect Answer 31st October of the respective Assessment yearYour Answer 31st October of the respective Previous yearTrue/FalseQuestion The amount of expenses including membership fees and annual feesincurred by the employee on credit card and which are paid by theemployer shall be added as the perquisites unless the said expensesare incurred wholly and exclusively for official purposes.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion 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 TaxYour Answer Wealth Tax , Revenue expenditure , Personal expenditureMultiple Choice Single AnswerQuestion The provisions regarding set off and carry forward of loses arecontained 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.Multiple Choice Single AnswerQuestion A partnership firm is an agreement between not more than :-Correct Answer 20 personsYour Answer 20 personsMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54B is for Capital Gainsarising from transfer of :-Correct Answer Agricultural LandYour Answer Long Term Capital Asset other than House PropertySelect The BlankQuestion To acquire PAN, a person shall apply in ________ to the assessingofficer.Correct Answer Form No. 49AYour Answer Form No. 49AMultiple Choice Multiple AnswerQuestion Any amount deposited by an Individual or a HUF in 10 year or 15year 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. , Spouseof individualTrue/FalseQuestion While computing the profits from Business and profession, thebusiness or profession must be carried out during the previous year.

Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Following news agencies are specified by the Central Government asspecified news agencies :-Correct Answer UNI , PTIYour Answer PTI , NDTVSelect The BlankQuestion Any expenditure incurred by the assessee for any purpose which is________ or which is prohibited by law shall not be allowed asbusiness expenditureCorrect Answer OffenceYour Answer Anti socialTrue/FalseQuestion If assessee owns more than one house properties, annual value ofany one of the house property can be treated as nil, and such optioncan be changed year on year basis.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerSuperannuation Fund It is an employee welfareschemeIt is an employee welfareschemeStatutory Provident Fund This is set up as per theprovisions of ProvidentFund Act, 1925.This is set up as per theprovisions of Provident FundAct, 1925.Recognized Provident Fund the provisions ofEmployees Provident Fundand MiscellaneousProvisions Act, 1952 applyto this fund.the provisions of EmployeesProvident Fund andMiscellaneous ProvisionsAct, 1952 apply to this fund.Unrecognized ProvidentFundThe provident fund which isnot recognized by theincome tax authorities .The provident fund which isnot recognized by theincome tax authorities .Select The BlankQuestion If the Salary is more than Rs. 5,00,000, Standard Deduction will beRs.________.Correct Answer 20000Your Answer 20000Select The BlankQuestion Mr. Ram is employed by the Central Government as accountantwhose gross salary income is Rs 6,00,000. He can claim standarddeduction of Rs ________ u/s 16(i) of the IT Act.

Correct Answer Rs 20,000Your Answer Rs 20,000Match The FollowingQuestion Correct Answer Your AnswerDeduction in case ofpermanent physicaldisabilitySection 80U Section 80UDeductions for DonationsPaidSection 80G Section 80GDeduction for Rent Paid Section 80GG Section 80GGDeduction in respect ofInterest on Bank DepositsSection 80L Section 80LTrue/FalseQuestion The consideration for transfer of Capital Asset is received by thetransferor is not material while Capital gain chargeable to tax.Correct Answer TrueYour Answer TrueTrue/FalseQuestion The payments for claiming the tax rebate u/s 88 of the IT Act shouldbe made out of the income chargeable to tax.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In case of any contribution made by an individual or a HUF to notifiedunits of any approved mutual fund or of Unit Trust of India inaccordance with a notified scheme (Equity Linked Savings Scheme):-Correct Answer The maximum allowable limit is Rs. 10,000Your Answer Qualifies for tax rebate under section 88D.True/FalseQuestion Dividend received from domestic company to its shareholders istaxable in the hands of the shareholder.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Loss from the activity of owning and maintaining the race horses canbe carried forward and set off in the subsequent Assessment Yearssubject to the limit of ________ Assessment years.Correct Answer 4Your Answer 4Select The BlankQuestion If the property becomes the property of the assessee before________, the Fair Market Value of the property of the capital asseton that date will be considered to be the cost of acquisitionCorrect Answer 1st April 1981Your Answer 1st April 1991Select The BlankQuestion For an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for________ days or more during previous year.Correct Answer 182Your Answer 182Select The BlankQuestion After deducting interest on capital & remuneration to partners, firm is

required to pay tax @ ________Correct Answer Tax 35% + 2% SC +2% ECYour Answer Tax 35% + 2% SC +2% ECMultiple Choice Multiple AnswerQuestion Under the clause No-32 of the Act, in the Tax Audit Report, theAuditor is required to give the accounting calculation in ratios of :-Correct Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnoverYour Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnover

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Labels: Taxation (Set II)

Thursday, August 28, 2008

Taxation - 7

LIST OF ATTEMPTED QUESTIONS AND ANSWERSTrue/FalseQuestion Deductions for income tax, payable by the employed person ispermissible.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Proxy form should be deposited with the company :-Correct Answer 48 hours before the meetingYour Answer 48 hours before the meetingMatch The FollowingQuestion Correct Answer Your AnswerDeduction for absence ofdutySection 9 Section 9Deductions for payment toinsurance and post officeSection 7(2) Section 7(2)Amendment to pay bycheques1976 Amendment to pay by cashFine Section 8 Section 8Multiple Choice Single AnswerQuestion To whom does the payment of wages act apply to ?Correct Answer Persons employed in any factoryYour Answer Persons employed in any factorySelect The BlankQuestion A person who stands for directorship other than retiring directorhas to give notice to the company at least ________ before thedate of general meeting.Correct Answer 14 daysYour Answer 7 daysMultiple Choice Single AnswerQuestion Audit committee shall consist of not less than :-Correct Answer Three directorsYour Answer Three directorsTrue/FalseQuestion A temporary workman is not entitled to bonus though he worksfor a few days in the organisation.Correct Answer False

Your Answer FalseMultiple Choice Multiple AnswerQuestion Who is entitled to bonus?Correct Answer Temporary workmen , Part time employee , RetrenchedemployeeYour Answer Temporary workmen , Part time employee , RetrenchedemployeeMultiple Choice Single AnswerQuestion A director is deemed to be interested in a contract if he holdspaid up capital of the company exceeding :-Correct Answer 0.02Your Answer 0.02Select The BlankQuestion To avoid conflicts of interest, ________ committee woulddetermine the remuneration packages of the executive directors.Correct Answer RemunerationYour Answer ManagementMultiple Choice Single AnswerQuestion If an auditor after his appointment becomes subject to any of thedisqualifications, it is treated that the office is :-Correct Answer VacatedYour Answer VacatedSelect The BlankQuestion Free selling/drawl of foreign exchange to authorized dealer(AD)for ________.Correct Answer Current accountYour Answer Current accountMultiple Choice Single AnswerQuestion What is the minimum salary under which the persons arecovered in this act?Correct Answer Less than Rs 1600Your Answer Less than Rs 1200/-Multiple Choice Single AnswerQuestion In case a company has an executive director, how muchpercentage of the board of Directors should comprise ofindependent directors?Correct Answer 0.5Your Answer 0.5True/FalseQuestion Acquiring foreign security on gift is allowed.Correct Answer TrueYour Answer FalseTrue/FalseQuestion An employee employed through contractors on buildingoperations is entitled to bonus.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Borrowings for Indian companies are for :-Correct Answer In Rupees , On repatriation , Non-repatriationYour Answer In Rupees , On repatriationTrue/FalseQuestion An apprentice is not entitled to bonus.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion FEMA allows free selling of foreign exchange to/from whom from

current transaction?Correct Answer Authorised DealerYour Answer Authorised DealerMultiple Choice Single AnswerQuestion Define an employed person under section 2 of the act.Correct Answer Includes legal representative of a deceased employed personYour Answer Any establishmentSelect The BlankQuestion A member shall have right to apply for operations andmismanagement of the company provided application is madebymembers not less than ________ or by the members holdingnot less than one tenth of total number of shares in the sharecapital of the company.Correct Answer 100Your Answer 100Multiple Choice Multiple AnswerQuestion Who has not prescribed particular set of documentation forcurrent account remittances?Correct Answer RBI , Central Govt.Your Answer RBI , Central Govt.Select The BlankQuestion The uses and applications of the funds raised shall be disclosedto the audit committee on a ________basis.Correct Answer QuarterlyYour Answer YearlySelect The BlankQuestion For Special Resolution, votes cast in favour of the resolutionshould be ________ times more than votes cast against theresolution.Correct Answer 3Your Answer 3Multiple Choice Multiple AnswerQuestion Object Clauses are divided into :-Correct Answer Main Object , Object incidental or ancillary to Main , OtherObjectsYour Answer Main Object , Object incidental or ancillary to Main , OtherObjectsTrue/FalseQuestion Charge includes Mortgage.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion When was the factories act passed?Correct Answer In 1948Your Answer In 1948Multiple Choice Multiple AnswerQuestion Public limited company's directors have following conditions :-Correct Answer Minimum number is three , Should be individuals , Have soundmindYour Answer Minimum number is three , Should be individuals , Have soundmindTrue/FalseQuestion Government can authorise for supply of essential commodities atconcessional rates and pay wages in kind.Correct Answer TrueYour Answer TrueSelect The Blank

Question A ________ shall not be made for the appointment of two ormore persons as directors of the company by single resolution inany general meeting of public company, unless resolution hasbeen agreed by meeting without any vote being given against it.Correct Answer MotionYour Answer ResolutionSelect The BlankQuestion Preference shareholders have ________ to get dividend overequity share holders.Correct Answer Preferential rightYour Answer Preferential rightMultiple Choice Multiple AnswerQuestion What is the manner of fixation of minimum wages?Correct Answer Time work known as minimum time rate , Piece work known asminimum piece rate , Guaranteed time rate for those employedin piece work for the purpose of securing to such employees aminimum rate of wages on time work basisYour Answer Time work known as minimum time rate , Piece work known asminimum piece rate , Guaranteed time rate for those employedin piece work for the purpose of securing to such employees aminimum rate of wages on time work basisMultiple Choice Multiple AnswerQuestion Form No. 1 can be signed by :-Correct Answer Chartered Accountant , Cost & Works Accountant , AdvocateYour Answer Chartered Accountant , Cost & Works Accountant , AdvocateMultiple Choice Single AnswerQuestion When was the minimum wages act passed ?Correct Answer 1948Your Answer 1948Select The BlankQuestion Director has to vacate his office, if he has been ________ by acourt of any offence involving moral turpitude.Correct Answer ConvictedYour Answer ConvictedMatch The FollowingQuestion Correct Answer Your AnswerSection 2(vi) Wages WagesWages act 1936 1936Factories act 1948 1948Section 3 of wages act Every employerresponsible for payment toemployed personsEvery employerresponsible for payment toemployed personsMultiple Choice Single AnswerQuestion The Board of directors of the company has power to appoint anadditional director :-Correct Answer Up to maximum permissible limitYour Answer Up to maximum permissible limitSelect The BlankQuestion The Forms 8 &13 should be filed in ________ to ragistrar ofcompanies.Correct Answer TriplicateYour Answer TriplicateMultiple Choice Multiple AnswerQuestion Retiring director shall be deemed to be reappointed unless :-

Correct Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lostYour Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lostMultiple Choice Single AnswerQuestion Payment of wages act came into existence :-Correct Answer To ensure regular and timely payment of wages to employedpersonsYour Answer To ensure regular and timely payment of wages to employedpersonsMultiple Choice Single AnswerQuestion What is computed by the competent authority at concessionalrates?Correct Answer Cost of living allowance and cash valueYour Answer Cost of living allowance and cash valueMultiple Choice Single AnswerQuestion Minimum gap required between date of dispatch of notice anddate of AGM is :-Correct Answer 25 daysYour Answer 21 daysMultiple Choice Single AnswerQuestion In which case did the Bombay high court observe the generalpurpose of the act?Correct Answer Arvind mills ltd caseYour Answer Arvind mills ltd caseMultiple Choice Single AnswerQuestion Settlement of gift or lawful obligation shall be surrendered within:-Correct Answer Seven daysYour Answer Four daysMultiple Choice Multiple AnswerQuestion Board's Report shall include :-Correct Answer Dividend recommended , Financial position of the company ,Amounts transferred to ReservesYour Answer Dividend recommended , Taxes paid , Financial position of thecompanyTrue/FalseQuestion The independent director is a supplier of a service provider ofthe company.Correct Answer FalseYour Answer FalseSelect The BlankQuestion WOS can make payment of royalty by ________ route.Correct Answer Automatic routeYour Answer Automatic routeLIST OF ATTEMPTED QUESTIONS AND ANSWERSTrue/FalseQuestion Deductions for income tax, payable by the employed person ispermissible.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Proxy form should be deposited with the company :-Correct Answer 48 hours before the meetingYour Answer 48 hours before the meeting

Match The FollowingQuestion Correct Answer Your AnswerDeduction for absence ofdutySection 9 Section 9Deductions for payment toinsurance and post officeSection 7(2) Section 7(2)Amendment to pay bycheques1976 Amendment to pay by cashFine Section 8 Section 8Multiple Choice Single AnswerQuestion To whom does the payment of wages act apply to ?Correct Answer Persons employed in any factoryYour Answer Persons employed in any factorySelect The BlankQuestion A person who stands for directorship other than retiring directorhas to give notice to the company at least ________ before thedate of general meeting.Correct Answer 14 daysYour Answer 7 daysMultiple Choice Single AnswerQuestion Audit committee shall consist of not less than :-Correct Answer Three directorsYour Answer Three directorsTrue/FalseQuestion A temporary workman is not entitled to bonus though he worksfor a few days in the organisation.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Who is entitled to bonus?Correct Answer Temporary workmen , Part time employee , RetrenchedemployeeYour Answer Temporary workmen , Part time employee , RetrenchedemployeeMultiple Choice Single AnswerQuestion A director is deemed to be interested in a contract if he holdspaid up capital of the company exceeding :-Correct Answer 0.02Your Answer 0.02Select The BlankQuestion To avoid conflicts of interest, ________ committee woulddetermine the remuneration packages of the executive directors.Correct Answer RemunerationYour Answer ManagementMultiple Choice Single AnswerQuestion If an auditor after his appointment becomes subject to any of thedisqualifications, it is treated that the office is :-Correct Answer VacatedYour Answer VacatedSelect The BlankQuestion Free selling/drawl of foreign exchange to authorized dealer(AD)for ________.Correct Answer Current accountYour Answer Current account

Multiple Choice Single AnswerQuestion What is the minimum salary under which the persons arecovered in this act?Correct Answer Less than Rs 1600Your Answer Less than Rs 1200/-Multiple Choice Single AnswerQuestion In case a company has an executive director, how muchpercentage of the board of Directors should comprise ofindependent directors?Correct Answer 0.5Your Answer 0.5True/FalseQuestion Acquiring foreign security on gift is allowed.Correct Answer TrueYour Answer FalseTrue/FalseQuestion An employee employed through contractors on buildingoperations is entitled to bonus.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Borrowings for Indian companies are for :-Correct Answer In Rupees , On repatriation , Non-repatriationYour Answer In Rupees , On repatriationTrue/FalseQuestion An apprentice is not entitled to bonus.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion FEMA allows free selling of foreign exchange to/from whom fromcurrent transaction?Correct Answer Authorised DealerYour Answer Authorised DealerMultiple Choice Single AnswerQuestion Define an employed person under section 2 of the act.Correct Answer Includes legal representative of a deceased employed personYour Answer Any establishmentSelect The BlankQuestion A member shall have right to apply for operations andmismanagement of the company provided application is madebymembers not less than ________ or by the members holdingnot less than one tenth of total number of shares in the sharecapital of the company.Correct Answer 100Your Answer 100Multiple Choice Multiple AnswerQuestion Who has not prescribed particular set of documentation forcurrent account remittances?Correct Answer RBI , Central Govt.Your Answer RBI , Central Govt.Select The BlankQuestion The uses and applications of the funds raised shall be disclosedto the audit committee on a ________basis.Correct Answer QuarterlyYour Answer YearlySelect The BlankQuestion For Special Resolution, votes cast in favour of the resolution

should be ________ times more than votes cast against theresolution.Correct Answer 3Your Answer 3Multiple Choice Multiple AnswerQuestion Object Clauses are divided into :-Correct Answer Main Object , Object incidental or ancillary to Main , OtherObjectsYour Answer Main Object , Object incidental or ancillary to Main , OtherObjectsTrue/FalseQuestion Charge includes Mortgage.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion When was the factories act passed?Correct Answer In 1948Your Answer In 1948Multiple Choice Multiple AnswerQuestion Public limited company's directors have following conditions :-Correct Answer Minimum number is three , Should be individuals , Have soundmindYour Answer Minimum number is three , Should be individuals , Have soundmindTrue/FalseQuestion Government can authorise for supply of essential commodities atconcessional rates and pay wages in kind.Correct Answer TrueYour Answer TrueSelect The BlankQuestion A ________ shall not be made for the appointment of two ormore persons as directors of the company by single resolution inany general meeting of public company, unless resolution hasbeen agreed by meeting without any vote being given against it.Correct Answer MotionYour Answer ResolutionSelect The BlankQuestion Preference shareholders have ________ to get dividend overequity share holders.Correct Answer Preferential rightYour Answer Preferential rightMultiple Choice Multiple AnswerQuestion What is the manner of fixation of minimum wages?Correct Answer Time work known as minimum time rate , Piece work known asminimum piece rate , Guaranteed time rate for those employedin piece work for the purpose of securing to such employees aminimum rate of wages on time work basisYour Answer Time work known as minimum time rate , Piece work known asminimum piece rate , Guaranteed time rate for those employedin piece work for the purpose of securing to such employees aminimum rate of wages on time work basisMultiple Choice Multiple AnswerQuestion Form No. 1 can be signed by :-Correct Answer Chartered Accountant , Cost & Works Accountant , AdvocateYour Answer Chartered Accountant , Cost & Works Accountant , AdvocateMultiple Choice Single AnswerQuestion When was the minimum wages act passed ?

Correct Answer 1948Your Answer 1948Select The BlankQuestion Director has to vacate his office, if he has been ________ by acourt of any offence involving moral turpitude.Correct Answer ConvictedYour Answer ConvictedMatch The FollowingQuestion Correct Answer Your AnswerSection 2(vi) Wages WagesWages act 1936 1936Factories act 1948 1948Section 3 of wages act Every employerresponsible for payment toemployed personsEvery employerresponsible for payment toemployed personsMultiple Choice Single AnswerQuestion The Board of directors of the company has power to appoint anadditional director :-Correct Answer Up to maximum permissible limitYour Answer Up to maximum permissible limitSelect The BlankQuestion The Forms 8 &13 should be filed in ________ to ragistrar ofcompanies.Correct Answer TriplicateYour Answer TriplicateMultiple Choice Multiple AnswerQuestion Retiring director shall be deemed to be reappointed unless :-Correct Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lostYour Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lostMultiple Choice Single AnswerQuestion Payment of wages act came into existence :-Correct Answer To ensure regular and timely payment of wages to employedpersonsYour Answer To ensure regular and timely payment of wages to employedpersonsMultiple Choice Single AnswerQuestion What is computed by the competent authority at concessionalrates?Correct Answer Cost of living allowance and cash valueYour Answer Cost of living allowance and cash valueMultiple Choice Single AnswerQuestion Minimum gap required between date of dispatch of notice anddate of AGM is :-Correct Answer 25 daysYour Answer 21 daysMultiple Choice Single AnswerQuestion In which case did the Bombay high court observe the generalpurpose of the act?Correct Answer Arvind mills ltd caseYour Answer Arvind mills ltd case

Multiple Choice Single AnswerQuestion Settlement of gift or lawful obligation shall be surrendered within:-Correct Answer Seven daysYour Answer Four daysMultiple Choice Multiple AnswerQuestion Board's Report shall include :-Correct Answer Dividend recommended , Financial position of the company ,Amounts transferred to ReservesYour Answer Dividend recommended , Taxes paid , Financial position of thecompanyTrue/FalseQuestion The independent director is a supplier of a service provider ofthe company.Correct Answer FalseYour Answer FalseSelect The BlankQuestion WOS can make payment of royalty by ________ route.Correct Answer Automatic routeYour Answer Automatic route

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Labels: Taxation (Set II)

Taxation - 6

LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Multiple AnswerQuestion The entertainment allowance received by theGovernment employees is included in their salariesand the deduction is allowed to the extent of least ofthe following amounts :-Correct Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of SalaryYour Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of SalaryTrue/FalseQuestion Income Tax Act, 1961 recognizes Written Down Value(WDV) method as well as straight line method for thecomputation of depreciation u/s 32 this act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Profits earned by an Industrial Undertaking engagedin other than infrastructure development is availableunder Section 80IB for :-Correct Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimage , Company engaged inscientific and industrial researchYour Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimageMultiple Choice Single AnswerQuestion Which of the following expenditure is in the nature ofrevenue expenditure?Correct Answer Expenditure incurred as discount on issue ofdebentures

Your Answer Expenditure incurred as discount on issue ofdebenturesSelect The BlankQuestion If sum received is net of TDS then it is ________ toinclude in income from other sources.Correct Answer Grossed upYour Answer Grossed upTrue/FalseQuestion Interest paid on the loan for acquiring a capital assetwill be considered to be a part of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowingdeductions under Chapter VI-A is Rs. 1,45,000, wantsto make the investments in the following alternativeforms Rs. 80,000 in PPF and Rs. 20,000 inInfrastructure Bonds. The amount of rebate availableto him u/s 88 is :-Correct Answer Rs. 18,000Your Answer Rs. 18,000Multiple Choice Single AnswerQuestion Interest on specified securities or premium onredemption is exempt for :-Correct Answer Non resident IndianYour Answer Non resident IndianTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block ofAssets includes both tangible as well as intangibleassets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Deductions in respect of Certain Incomes receivedunder Section 80L is available in respect ofCorrect Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestYour Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusMultiple Choice Multiple AnswerQuestion For the purpose of income tax, the perquisites can beclassified into :-Correct Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeYour Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeSelect The Blank

Question For an individual as a citizen of India who leaves Indiain the relevant previous year for the purpose ofemployment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in:-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Multiple AnswerQuestion Following professional institutions have their incomesexempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingSelect The BlankQuestion ________ of the Tax Audit Report refers to the detailsof various payments which are allowed as deductiononly if they are actually paid for.Correct Answer Section 43B Clause No-21Your Answer Section 43B Clause No-21Multiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsSelect The BlankQuestion To claim sec 10A deduction unit must be establishedin ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneMultiple Choice Single AnswerQuestion Assessment year is the period of 12 months startingfrom :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion If an employee does not avail of this leave travelconcession or assistance during a block of fourcalendar years :-Correct Answer Only one journey can be carried forward to the nextblock.Your Answer Only one journey can be carried forward to the nextblock.Select The BlankQuestion To acquire PAN, a person shall apply in ________ tothe assessing officer.Correct Answer Form No. 49AYour Answer Form No. 49AMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54F is forCapital Gains arising from transfer of :-Correct Answer Any Long Term Capital Asset

Your Answer House PropertySelect The BlankQuestion Where an assessee files or submits the returns as perprovisions of section 139 or in response to the noticeunder section 142, the assessment officer undertakes________ as per section 143(2) and section 143(3).Correct Answer Scrutiny AssessmentYour Answer Scrutiny AssessmentMultiple Choice Multiple AnswerQuestion Income of a professional association is exempt if itsobjectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementTrue/FalseQuestion While computing the profits from Business andprofession, the business or profession must be carriedout during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A hasavailed the exemption only once or has not availedany 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 offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Your Answer He can carry over the exemption to the next block offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Multiple Choice Multiple AnswerQuestion The amount accumulated to the credit of theemployee's provident fund account is paid at the timeof :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital ,Municipal taxesYour Answer Interest on borrowed capital , Municipal taxesMultiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages,Dearness Allowance and Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion From GTI of a company following deductions underchapter VI A are allowedCorrect Answer 80 G Donations , 80 HHB profits and gains fromprojects outside India , 80 IA profits and gains ofinfrastructure companiesYour Answer 80 G Donations , 80 IA profits and gains ofinfrastructure companiesMultiple Choice Single Answer

Question Annual value of any one palace in possession of aformer ruler is :-Correct Answer ExemptYour Answer TaxableSelect The BlankQuestion If the Salary is more than Rs. 5,00,000, StandardDeduction will be Rs.________.Correct Answer 20000Your Answer 20000Multiple Choice Single AnswerQuestion The amount of accumulated interest on NSCspurchased in the earlier years is assumed to bereinvested :-Correct Answer And qualifies for tax rebate under section 88.Your Answer And qualifies for tax rebate under section 88.Select The BlankQuestion Deduction u/s ________B is available for 10consequent assessment years from the year ofcommencement of production.Correct Answer 10Your Answer 10True/FalseQuestion Income from subletting is treated as income fromhouse property.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Section 80U allows the deduction in respect of the________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMatch The FollowingQuestion Correct Answer Your AnswerDisallowableExpenditureLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtBusiness Includes trade,commerce, orIncludes trade,commerce, ormanufacture or anyadventure or concernin the nature of trade,commerce ormanufacturemanufacture or anyadventure or concern inthe nature of trade,

commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurredby a company with theissue of rights sharesPremium onredemption ofDebenturesTrue/FalseQuestion Any recreational facility provided by the employer to agroup of employees (not being restricted to a selectfew employees) is not exempt from tax.Correct Answer FalseYour Answer FalseTrue/FalseQuestion In case of deductions for medical treatment underSection 80DDB the amount of deduction will bereduced by the amount received under an insurancepolicy or the amount reimbursed by the employer.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Any advance tax paid before 31st March is treated asadvance tax paid during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Municipal taxes paid is allowed as deduction from :-Correct Answer Gross annual valueYour Answer Gross annual valueTrue/FalseQuestion Entertainment Allowance received by the employeesfrom the private sector is taxable in the hands of theemployee.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerAny subscription madeto National SavingSchemeBy an individual or aHUF is eligible forrebate u/s 88By an individual or aHUF is eligible forrebate u/s 88Mr. A, a 70 years oldSenior Citizen, has theGross Total Income ofRs. 2,50,000 duringthe Assessment Year2005-2006. Heinvested Rs. 50,000 inthe tax saving bonds ofICICI on 10th June

2004. His tax liabilityfor the A Y 2005-2006.RS.12,500 RS.12,500During theAssessment Year2005-2006, Mrs. A,age 58 years, has theGross Total Income ofRs. 1,45,000 includingthe dividend fromIndian companiesamounting to Rs.10,000. She investsRs. 50,000 in PPFduring the saidAssessment Year. hertax liabilit isRs. 1,000 Rs. 1,000Any contribution madeto a Public ProvidentFundIs eligible for rebateu/s 88Is eligible for rebate u/s88Multiple Choice Multiple AnswerQuestion Following incomes of local authorities are exempt :-Correct Answer Capital gains , Other income , House propertyYour Answer Capital gains , Other income , House propertyMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains theassessee should invest the whole or part of the capitalgains in the specified assets :-Correct Answer Within six months from the date of transfer of the longtermcapital assetYour Answer Within six months from the date of transfer of the longtermcapital assetTrue/FalseQuestion Income from partnership firms is exempt from taxationfor the partnersCorrect Answer TrueYour Answer False

LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Single AnswerQuestion Foreign allowance received by an Indian national is exempt if it is paid by:-Correct Answer Government of IndiaYour Answer Government of IndiaMultiple Choice Multiple AnswerQuestion For the purpose of section 80IA, the term eligible business means :-Correct Answer Developing, maintaining or operating any infrastructure facilitywhere the term infrastructure facility means a road (including a toll road, a bridge or arail system) or a highway project or a water supply project. , Developing, maintaining oroperating an industrial park or special economic zones notified by the CentralGovernment , Generation or distribution of powerYour Answer Developing, maintaining or operating an industrial park or special

economic zones notified by the Central Government , Generation or distribution of power, Developing, maintaining or operating any infrastructure facility where the terminfrastructure facility means a road (including a toll road, a bridge or a rail system) or ahighway project or a water supply project.True/FalseQuestion For being resident of India, a person must be citizen of India.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion The due date prescribed for filing the returns of income in Form No. 2C isCorrect Answer 31st October of the respective Assessment yearYour Answer 31st October of the respective Assessment yearMultiple Choice Single AnswerQuestion The amount of accumulated interest on NSCs purchased in the earlieryears 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.True/FalseQuestion A person who is a Senior Citizen who has attained the age of 65 years isnot entitled to the rebate u/s 88 of the Act.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion The total amount of rebates under Section 88, Section 88B, Section 88Cand 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.True/FalseQuestion A company is resident of India if in any previous year it is an IndianCompany even though control & management are situated outside India.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion From GTI of a company following deductions under chapter VI A areallowedCorrect Answer 80 G Donations , 80 HHB profits and gains from projects outsideIndia , 80 IA profits and gains of infrastructure companiesYour Answer 80 G Donations , 80 HHB profits and gains from projects outsideIndia , 80 IA profits and gains of infrastructure companiesTrue/FalseQuestion Clause N0-30 of the Tax Audit requires that, if the cost Audit of thecompany carried out, the report of such audit should be enclosed to the Tax Audit Report.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerDeductions of Rent, Rates, Repairs, Taxes and Insurance on Buildings are availableu/s 30 u/s 30Deduction of Depreciation is available u/s 32 u/s 32General deductions are allowed as deductions while calculating profits from business andprofession u/s 37 u/s 37Deductions of Repairs & maintenance of machinery, plant & furniture are availableu/s 31 u/s 31Multiple Choice Single AnswerQuestion In case of any contribution made by an individual or a HUF to notifiedunits of any approved mutual fund or of Unit Trust of India in accordance with a notifiedscheme (Equity Linked Savings Scheme) :-

Correct Answer The maximum allowable limit is Rs. 10,000Your Answer The maximum allowable limit is Rs. 10,000True/FalseQuestion The value of benefit resulting from the payment made by the employer ina club for any expenditure incurred by the employee shall be taken as perquisites unlessthe said expenses are incurred wholly and exclusively for official purposes.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion What is the treatment of principal amount of loan borrowed for thepurchase or construction of a residential house?Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000True/FalseQuestion Rebates as per the provisions of Section 88 of the Act are not availablefrom the tax on longterm capital gains.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Following specific incomes are taxable under the heading income fromother sources :-Correct Answer Winning from betting , Interest on securities of local authority ,Bonus from key man insurance policyYour Answer Winning from betting , Interest on securities of local authorityTrue/FalseQuestion Deductions available as per the provisions of Chapter VI of the Act are notavailable for the long-term capital gains.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Income earned & received outside India & remitted to India is taxable forresident & ordinary residentCorrect Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion What is the due date for filing Annual return for TDS from Salaries?Correct Answer 30th June of Assessment YearYour Answer 30th June of Assessment YearMultiple Choice Multiple AnswerQuestion The least of the following is the exemption available to an employee if heis in receipt of house rent allowance :-Correct Answer 50% of the Salary where such accommodation is situated inMumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation issituated at any other place. , Actual amount of HRA received by the employee. , Excessof rent paid over 10% of the Salary.Your Answer 50% of the Salary where such accommodation is situated inMumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation issituated at any other place. , Actual amount of HRA received by the employee.Select The BlankQuestion If the CC of the engine is more than 1..6 liters and the motor car is ownedor hired by the employer and is used partly of official and partly for personal purposesand if running and maintenance expenses are borne by the employee then the value ofperquisite will be Rs.________ per month plus Rs.600 if car is chauffer driven car.Correct Answer 600Your Answer 600Multiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages, Dearness Allowance

and Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion Under the clause No-32 of the Act, in the Tax Audit Report, the Auditor isrequired to give the accounting calculation in ratios of :-Correct Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnoverYour Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnoverMultiple Choice Single AnswerQuestion If taxable income is less than 7.5% of book profit, income tax is payable@ of :-Correct Answer 0.1Your Answer 0.1Select The BlankQuestion In case of foreign companies rate of tax is ________.Correct Answer 0.35Your Answer 0.2True/FalseQuestion Interest is payable by the assessee for not paying the Advance tax or if theAdvance tax paid by the assessee is less than 80% of the Assessed tax after adjusting theamount of TDS and Advance tax PaidCorrect Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion 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 employeeYour Answer Perquisites which are taxable in case of all types of employees ,Perquisites which are taxable only in the hands of specified employeeMultiple Choice Single AnswerQuestion Loss from owning and maintaining race horses can be adjusted against :-Correct Answer Only the income arising out of the same activityYour Answer Only the income arising out of the same activityMultiple Choice Single AnswerQuestion Municipal taxes are payable on :-Correct Answer Municipal valuationYour Answer Municipal valuationTrue/FalseQuestion Dividend received from domestic company to its shareholders is taxable inthe hands of the shareholder.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Company means any ________ Company.Correct Answer IndianYour Answer Domestic CompanyMultiple Choice Multiple AnswerQuestion Section 35D applies to the preliminary expenses incurred by a company,which consists of :-Correct Answer Expenditure in connection with the preparation offeasibility/project report, engineering services, or conducting market survey , Legalcharges and fees for registering the company as per the provisions of company Act, 1956, Charges in connection with drafting and printing of memorandum of association andArticles of AssociationYour Answer Expenditure in connection with the preparation offeasibility/project report, engineering services, or conducting market survey , Legalcharges and fees for registering the company as per the provisions of company Act, 1956

, Charges in connection with drafting and printing of memorandum of association andArticles of AssociationMultiple Choice Multiple AnswerQuestion Perquisites which are taxable only in the hands of specified employeeinclude the following categories of perquisites :-Correct Answer Motor Car , Services of sweeper, gardener, watchman or personalattendant , Gas, electricity and water provided for personal consumptionYour Answer Motor Car , Gas, electricity and water provided for personalconsumption , Amount spent on training of employees or fees paid for refreshermanagement courseSelect The BlankQuestion Loss under the head Income from Capital Gains, to the extent it is longterm capital loss can be carried forward and set off in the subsequent Assessment Yearsagainst the ________ subject to the limit of 8 Assessment years.Correct Answer Long term Capital GainsYour Answer Long term Capital GainsMultiple Choice Single AnswerQuestion For charging the income in the form of salaries :-Correct Answer There needs to be an employer-employee relationship between thepayer and the payee.Your Answer There needs to be an employer-employee relationship between thepayer and the payee.True/FalseQuestion The amount of telephone bills (including the mobile phone bills) of theemployee reimbursed by the employer is exempt from tax.Correct Answer TrueYour Answer TrueTrue/FalseQuestion The amount of expenses including membership fees and annual feesincurred by the employee on credit card and which are paid by the employer shall beadded as the perquisites unless the said expenses are incurred wholly and exclusively forofficial purposes.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion The amount of advance tax payable by corporate assessees before 15thSeptember of Previous year is :-Correct Answer 45% of advance tax payableYour Answer 45% of advance tax payableMultiple Choice Single AnswerQuestion As per which provision and section, every person, company or any otherperson shall furnish his returns of income in the prescribed form on or before thespecified due date?Correct Answer Section 139(1)Your Answer Section 139(1)Select The BlankQuestion ________ is the tax payable on the manufacturing of goods.Correct Answer Excise dutyYour Answer Sales taxMultiple Choice Single AnswerQuestion The return of income is required to be filed by all the companies, exceptthose covered under section 25 of the companies Act,1956 in the :-Correct Answer Form No. 1Your Answer Form No. 1Match The FollowingQuestion Correct Answer Your AnswerDisallowable Expenditure Litigation Expenses in connection with recovery of a debt

which is not a trading debt Litigation Expenses in connection with recovery of a debtwhich is not a trading debtBusiness Includes trade, commerce, or manufacture or any adventure or concern inthe nature of trade, commerce or manufacture Includes trade, commerce, ormanufacture or any adventure or concern in the nature of trade, commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurred by a company with the issue of rights sharesExpenditure incurred by a company with the issue of rights sharesMultiple Choice Single AnswerQuestion The sum total of all the heads of income clubbed together gives theamount of :-Correct Answer Gross Total IncomeYour Answer Gross Total IncomeSelect The BlankQuestion Short term Capital Gains is taxed at ________.Correct Answer Normal Tax ratesYour Answer Normal Tax ratesMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital , Municipal taxesYour Answer Standard deduction , Interest on borrowed capital , Municipal taxesMultiple Choice Multiple AnswerQuestion The rebate u/s 88 is available to an :-Correct Answer Individual , Hindu Undivided Family.Your Answer Individual , Hindu Undivided Family.Taxation-Saroj2Select The BlankQuestion For an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion The due date prescribed for filing the returns of income in Form No. 2C isCorrect Answer 31st October of the respective Assessment yearYour Answer 31st October of the respective Previous yearMultiple Choice Single AnswerQuestion 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.Multiple Choice Single AnswerQuestion As per which provision and section, every person, company or any otherperson shall furnish his returns of income in the prescribed form on or before thespecified due date?Correct Answer Section 139(1)Your Answer Section 139(1)Select The BlankQuestion Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim taxrebate of ________u/s 88C of the IT Act.Correct Answer Rs. 5,000Your Answer NilMultiple Choice Multiple AnswerQuestion Rebate is allowed on any subscription made to National Saving Scheme by :-Correct Answer An individual , A HUFYour Answer An individual , A HUF , Partnership FirmsMultiple Choice Multiple Answer

Question For the purpose of taxability of perquisite a specified employee means :-Correct Answer The person who is director of a company , The employee who hassubstantial interest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxable monetarypayments of salary but excluding the value of any non-monetary benefits or perquisites),after allowing deductions under Section 16, exceeds Rs. 50,000Your Answer The person who is director of a company , The employee who hassubstantial interest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxable monetarypayments of salary but excluding the value of any non-monetary benefits or perquisites),after allowing deductions under Section 16, exceeds Rs. 50,000Multiple Choice Multiple AnswerQuestion Following professional institutions have their incomes exempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingTrue/FalseQuestion Deduction u/s 80E for repayment of loan taken for higher education isavailable if the loan must have borrowed by the assessee himself or his FatherCorrect Answer FalseYour Answer FalseTrue/FalseQuestion The consideration for transfer of Capital Asset is received by the transferor isnot material while Capital gain chargeable to tax.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Any loans or deposits borrowed or repaid under section 269SS of the Actprovides that the said provisions will not apply to the loans or deposits accepted by :-Correct Answer Banking company including cooperative bank and post office savingsbank , Government , Government companyYour Answer Government , Government company , Banking company includingcooperative bank and post office savings bankMatch The FollowingQuestion Correct Answer Your AnswerEmployee stock option plan ESOPS ESOPSUncommuted Pension Indicates the periodical payment of pension Indicates theperiodical payment of pensionCommuted Pension Indicates the lump sum received in lieu of the periodicalIndicates the lump sum received in lieu of the periodicalTreatment of Perquisite Taxed in the hands of employee as taxable salary Taxed inthe hands of employee as taxable salaryTrue/FalseQuestion A person who is a Senior Citizen who has attained the age of 65 years is notentitled to the rebate u/s 88 of the Act.Correct Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains the assessee should invest thewhole or part of the capital gains in the specified assets :-Correct Answer Within six months from the date of transfer of the long-term capitalassetYour Answer Within six months from the date of transfer of the long-term capital assetSelect The BlankQuestion Unabsorbed business loss can carried forward and set off in the subsequentAssessment Years subject to the time limit of ________ Assessment years.Correct Answer 8Your Answer 3

Multiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowing deductions under ChapterVI-A is Rs. 2,40,000 wants to make the investments in the following alternative formsRs. 50,000 in PPF and Rs. 50,000 in Infrastructure Bonds. The amount of rebate availableto him u/s 88 is :-Correct Answer Rs. 15,000Your Answer Rs. 15,000Multiple Choice Single AnswerQuestion Annual value of any one palace in possession of a former ruler is :-Correct Answer ExemptYour Answer ExemptMatch The FollowingQuestion Correct Answer Your AnswerAny subscription made to National Saving SchemeBy an individual or a HUF is eligible for rebate u/s 88 By an individual or a HUF iseligible for rebate u/s 88Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 duringthe Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICIon 10th June 2004. His tax liability for the A Y 2005-2006.RS.12,500 RS.12,500During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross TotalIncome 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 isRs. 1,000 Rs. 1,000Any contribution made to a Public Provident FundIs eligible for rebate u/s 88 Is eligible for rebate u/s 88Select The BlankQuestion To claim sec 10A deduction unit must be established in ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneSelect The BlankQuestion Non resident individual satisfies ________ of the basic conditions.Correct Answer NoneYour Answer Any oneMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54 is for Capital Gains arisingfrom transfer of :-Correct Answer House PropertyYour Answer House PropertySelect The BlankQuestion Deduction for remuneration from foreign sources for professors, teachers etcunder Section 80R is limited to ________% of such remuneration brought in India.Correct Answer 15Your Answer 15Select The BlankQuestion Relief under section 89 is available to an employee in respect of the amountof salary received ________.Correct Answer In advance or in arrearsYour Answer In the immediately succeeding year.Select The BlankQuestion AOP id formed when two or more ________ come together to earn income.Correct Answer PersonsYour Answer PersonsMultiple Choice Multiple AnswerQuestion Capital Gains arise on account of excess of transfer consideration over thefollowing amountsCorrect Answer Cost of acquisition , Cost of improvement , Expenditure incurred

wholly and exclusively in connection with the transferYour Answer Cost of acquisition , Cost of improvement , Expenditure incurred whollyand exclusively in connection with the transferMultiple Choice Multiple AnswerQuestion Which of the following amounts credited to P & L Account but not taxablefrom Income tax Purposes as Profits from Business and Profession?Correct Answer Refund of Income tax , Capital Gains , Dividend IncomeYour Answer Refund of Income tax , Capital Gains , Dividend IncomeTrue/FalseQuestion Rebates as per the provisions of Section 88 of the Act are not available fromthe tax on long-term capital gains.Correct Answer TrueYour Answer TrueSelect The BlankQuestion If assessee owns more than one house properties, he can get benefit of nilannual value for any one house property ________.Correct Answer As per his choiceYour Answer As per his choiceMultiple Choice Single AnswerQuestion What is the treatment of principal amount of loan borrowed for the purchaseor construction of a residential house?Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Multiple Choice Multiple AnswerQuestion 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 beallowed as deduction only when :-Correct Answer The amount of gratuity has actually become payable to the employeesduring the previous year , The provision has been made for the payment of a sum by wayof contribution to an approval gratuity , The other than the above two situations, anyprovision made for the payment of gratuity is not allowed as deductionYour Answer The amount of gratuity has actually become payable to the employeesduring the previous year , The provision has been made for the payment of a sum by wayof contribution to an approval gratuityMultiple Choice Multiple AnswerQuestion If the Salary is less than Rs. 5,00,000, Standard Deduction will be the least ofthe following :-Correct Answer 40% of the Salary , Rs. 30,000Your Answer 40% of the Salary , Rs. 30,000Multiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assessees before 15thDecember of Previous year is :-Correct Answer 60% of advance tax payableYour Answer 100% of advance tax payableSelect The BlankQuestion It should be noted that the tax liability of an individual having the totalincome of less than Rs ________ is Nil u/s 88D.Correct Answer 1,00,000Your Answer 1,00,000True/FalseQuestion If assessee owns more than one house properties, annual value of any one ofthe house property can be treated as nil, and such option can be changed year on yearbasis.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Income from subletting is treated as income from house property.

Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Following persons are deemed to be an assessee :-Correct Answer Legal heir of deceased person , Parents of minor assessee , Agent ofNRIYour Answer Legal heir of deceased person , Parents of minor assessee , Agent of NRIMultiple Choice Single AnswerQuestion Income of notified news agencies is exempt provided :-Correct Answer They apply their income for collection & distribution of newsYour Answer They apply their income for collection & distribution of newsSelect The BlankQuestion 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 65Your Answer 65Multiple Choice Multiple AnswerQuestion What is the tax treatment of the Lump sum received from unrecognizedprovident fund on the retirement or resignation or death of the employee?Correct Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources" , Employer'sContribution to PF and interest thereon is taxable as "Income from salaries"Your Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources" , Employer'sContribution to PF and interest thereon is taxable as "Income from salaries"True/FalseQuestion Any advance tax paid before 31st March is treated as advance tax paid duringthe previous year.Correct Answer TrueYour Answer TrueTrue/FalseQuestion A woman assessee below the age of 65 years is also entitled to rebate u/s 88.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Rent for other amenities like lift, electricity, telephone etc. is taxed under theheading :-Correct Answer Income from other sourcesYour Answer Income from salariesMultiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assessees before 15thJune of Previous year is :-Correct Answer NilYour Answer 100% of advance tax payableMultiple Choice Multiple AnswerQuestion The entertainment allowance received by the Government employees isincluded in their salaries and the deduction is allowed to the extent of least of thefollowing amounts :-Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowancereceived.True/FalseQuestion Loss from house property can be adjusted against the income from any otherhouse property.Correct Answer TrueYour Answer True

True/FalseQuestion Annual premium paid by the employer for the accident insurance policytaken by the employer in the name of the employee is chargeable to tax.Correct Answer FalseYour Answer TrueMultiple Choice Single AnswerQuestion Annual return for TDS from Salaries is to be filed in :-Correct Answer Form No. 24Your Answer Form No. 24

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Labels: Taxation (Set III)

Taxation - 9

LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Multiple AnswerQuestion The entertainment allowance received by the Government employees isincluded in their salaries and the deduction is allowed to the extent of least of thefollowing amounts :-Correct Answer Actual amount of Entertainment Allowance received. , Rs. 5,000 ,1/5th of SalaryYour Answer Actual amount of Entertainment Allowance received. , Rs. 5,000 ,1/5th of SalaryTrue/FalseQuestion Income Tax Act, 1961 recognizes Written Down Value (WDV) method aswell as straight line method for the computation of depreciation u/s 32 this act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Profits earned by an Industrial Undertaking engaged in other thaninfrastructure development is available under Section 80IB for :-Correct Answer Operation of Ship , Hotels situated in hilly area, rural area or placeof pilgrimage , Company engaged in scientific and industrial researchYour Answer Operation of Ship , Hotels situated in hilly area, rural area or placeof pilgrimageMultiple Choice Single AnswerQuestion Which of the following expenditure is in the nature of revenueexpenditure?Correct Answer Expenditure incurred as discount on issue of debenturesYour Answer Expenditure incurred as discount on issue of debenturesSelect The BlankQuestion If sum received is net of TDS then it is ________ to include in incomefrom other sources.Correct Answer Grossed upYour Answer Grossed upTrue/FalseQuestion Interest paid on the loan for acquiring a capital asset will be considered tobe a part of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowing deductions underChapter VI-A is Rs. 1,45,000, wants to make the investments in the following alternativeforms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The amount of rebateavailable to him u/s 88 is :-

Correct Answer Rs. 18,000Your Answer Rs. 18,000Multiple Choice Single AnswerQuestion Interest on specified securities or premium on redemption is exempt for :-Correct Answer Non resident IndianYour Answer Non resident IndianTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block of Assets includes bothtangible as well as intangible assets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Deductions in respect of Certain Incomes received under Section 80L isavailable in respect ofCorrect Answer Interest on Central or State Government Securities , Interest onNational Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestYour Answer Interest on Central or State Government Securities , Interest onNational Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusMultiple Choice Multiple AnswerQuestion 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 employeeYour Answer Perquisites which are taxable in case of all types of employees ,Perquisites which are taxable only in the hands of specified employeeSelect The BlankQuestion For an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in :-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Multiple AnswerQuestion Following professional institutions have their incomes exempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingSelect The BlankQuestion ________ of the Tax Audit Report refers to the details of variouspayments which are allowed as deduction only if they are actually paid for.Correct Answer Section 43B Clause No-21Your Answer Section 43B Clause No-21Multiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsSelect The BlankQuestion To claim sec 10A deduction unit must be established in ________.Correct Answer Free Trade ZoneYour Answer Free Trade Zone

Multiple Choice Single AnswerQuestion Assessment year is the period of 12 months starting from :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion If an employee does not avail of this leave travel concession or assistanceduring 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 BlankQuestion To acquire PAN, a person shall apply in ________ to the assessing officer.Correct Answer Form No. 49AYour Answer Form No. 49AMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54F is for Capital Gainsarising from transfer of :-Correct Answer Any Long Term Capital AssetYour Answer House PropertySelect The BlankQuestion Where an assessee files or submits the returns as per provisions of section139 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 AssessmentYour Answer Scrutiny AssessmentMultiple Choice Multiple AnswerQuestion Income of a professional association is exempt if its objectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementTrue/FalseQuestion While computing the profits from Business and profession, the business orprofession must be carried out during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A has availed the exemptiononly 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 thenext block i.e. 2002.Your 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 thenext block i.e. 2002.Multiple Choice Multiple AnswerQuestion The amount accumulated to the credit of the employee's provident fundaccount is paid at the time of :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital , Municipal taxesYour Answer Interest on borrowed capital , Municipal taxesMultiple Choice Single Answer

Question As a general principle, the Basic Salary or Wages, Dearness Allowanceand Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion From GTI of a company following deductions under chapter VI A areallowedCorrect Answer 80 G Donations , 80 HHB profits and gains from projects outsideIndia , 80 IA profits and gains of infrastructure companiesYour Answer 80 G Donations , 80 IA profits and gains of infrastructurecompaniesMultiple Choice Single AnswerQuestion Annual value of any one palace in possession of a former ruler is :-Correct Answer ExemptYour Answer TaxableSelect The BlankQuestion If the Salary is more than Rs. 5,00,000, Standard Deduction will beRs.________.Correct Answer 20000Your Answer 20000Multiple Choice Single AnswerQuestion The amount of accumulated interest on NSCs purchased in the earlieryears 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 BlankQuestion Deduction u/s ________B is available for 10 consequent assessment yearsfrom the year of commencement of production.Correct Answer 10Your Answer 10True/FalseQuestion Income from subletting is treated as income from house property.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Section 80U allows the deduction in respect of the ________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMatch The FollowingQuestion Correct Answer Your AnswerDisallowable Expenditure Litigation Expenses in connection with recovery of a debtwhich is not a trading debt Litigation Expenses in connection with recovery of a debtwhich is not a trading debtBusiness Includes trade, commerce, or manufacture or any adventure or concern inthe nature of trade, commerce or manufacture Includes trade, commerce, ormanufacture or any adventure or concern in the nature of trade, commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurred by a company with the issue of rights sharesPremium on redemption of DebenturesTrue/FalseQuestion Any recreational facility provided by the employer to a group ofemployees (not being restricted to a select few employees) is not exempt from tax.Correct Answer FalseYour Answer FalseTrue/FalseQuestion 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 orthe amount reimbursed by the employer.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Any advance tax paid before 31st March is treated as advance tax paidduring the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Municipal taxes paid is allowed as deduction from :-Correct Answer Gross annual valueYour Answer Gross annual valueTrue/FalseQuestion Entertainment Allowance received by the employees from the privatesector is taxable in the hands of the employee.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerAny subscription made to National Saving Scheme By an individual or a HUF is eligiblefor rebate u/s 88 By an individual or a HUF is eligible for rebate u/s 88Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 duringthe Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICIon 10th June 2004. His tax liability for the A Y 2005-2006. RS.12,500 RS.12,500During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross TotalIncome 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 isRs. 1,000 Rs. 1,000Any contribution made to a Public Provident Fund Is eligible for rebate u/s 88 Iseligible for rebate u/s 88Multiple Choice Multiple AnswerQuestion Following incomes of local authorities are exempt :-Correct Answer Capital gains , Other income , House propertyYour Answer Capital gains , Other income , House propertyMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains the assessee should invest thewhole or part of the capital gains in the specified assets :-Correct Answer Within six months from the date of transfer of the long-termcapital assetYour Answer Within six months from the date of transfer of the long-termcapital assetTrue/FalseQuestion Income from partnership firms is exempt from taxation for the partnersCorrect Answer TrueYour Answer False

Select The BlankQuestion For an individual as a citizen of India who leaves India in therelevant previous year for the purpose of employment has to be in India for________ days or more during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion The due date prescribed for filing the returns of income in Form

No. 2C isCorrect Answer 31st October of the respective Assessment yearYour Answer 31st October of the respective Previous yearMultiple Choice Single AnswerQuestion 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.Multiple Choice Single AnswerQuestion As per which provision and section, every person, company or anyother person shall furnish his returns of income in the prescribed form on orbefore the specified due date?Correct Answer Section 139(1)Your Answer Section 139(1)Select The BlankQuestion Mrs. X of 45 years has received salary of Rs 5,50,000 she canclaim tax rebate of ________u/s 88C of the IT Act.Correct Answer Rs. 5,000Your Answer NilMultiple Choice Multiple AnswerQuestion Rebate is allowed on any subscription made to National SavingScheme by :-Correct Answer An individual , A HUFYour Answer An individual , A HUF , Partnership FirmsMultiple Choice Multiple AnswerQuestion For the purpose of taxability of perquisite a specified employeemeans :-Correct Answer The person who is director of a company , The employeewho has substantial interest in the company by having 20% or more of thevoting power , The employee whose income under the head salaries (includingall the taxable monetary payments of salary but excluding the value of any nonmonetarybenefits or perquisites), after allowing deductions under Section 16,exceeds Rs. 50,000Your Answer The person who is director of a company , The employee whohas substantial interest in the company by having 20% or more of the votingpower , The employee whose income under the head salaries (including all thetaxable monetary payments of salary but excluding the value of any nonmonetarybenefits or perquisites), after allowing deductions under Section 16,exceeds Rs. 50,000Multiple Choice Multiple AnswerQuestion Following professional institutions have their incomes exempt fromtax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingTrue/FalseQuestion Deduction u/s 80E for repayment of loan taken for highereducation is available if the loan must have borrowed by the assessee himselfor his FatherCorrect Answer FalseYour Answer FalseTrue/FalseQuestion The consideration for transfer of Capital Asset is received by thetransferor is not material while Capital gain chargeable to tax.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Any loans or deposits borrowed or repaid under section 269SS ofthe Act provides that the said provisions will not apply to the loans or deposits

accepted by :-Correct Answer Banking company including cooperative bank and postoffice savings bank , Government , Government companyYour Answer Government , Government company , Banking companyincluding cooperative bank and post office savings bankMatch The FollowingQuestion Correct Answer Your AnswerEmployee stock option plan ESOPS ESOPSUncommuted Pension Indicates the periodical payment of pensionIndicates the periodical payment of pensionCommuted Pension Indicates the lump sum received in lieu of theperiodical Indicates the lump sum received in lieu of the periodicalTreatment of Perquisite Taxed in the hands of employee as taxable salaryTaxed in the hands of employee as taxable salaryTrue/FalseQuestion A person who is a Senior Citizen who has attained the age of 65years is not entitled to the rebate u/s 88 of the Act.Correct Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains the assessee shouldinvest the whole or part of the capital gains in the specified assets :-Correct Answer Within six months from the date of transfer of the long-termcapital assetYour Answer Within six months from the date of transfer of the long-termcapital assetSelect The BlankQuestion Unabsorbed business loss can carried forward and set off in thesubsequent Assessment Years subject to the time limit of ________Assessment years.Correct Answer 8Your Answer 3Multiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowing deductionsunder Chapter VI-A is Rs. 2,40,000 wants to make the investments in thefollowing alternative forms Rs. 50,000 in PPF and Rs. 50,000 in InfrastructureBonds. The amount of rebate available to him u/s 88 is :-Correct Answer Rs. 15,000Your Answer Rs. 15,000Multiple Choice Single AnswerQuestion Annual value of any one palace in possession of a former ruler is :-Correct Answer ExemptYour Answer ExemptMatch The FollowingQuestion Correct Answer Your AnswerAny subscription made to National Saving SchemeBy an individual or a HUF is eligible for rebate u/s 88 By an individual or aHUF is eligible for rebate u/s 88Mr. 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 thetax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y2005-2006.RS.12,500 RS.12,500During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the GrossTotal Income of Rs. 1,45,000 including the dividend from Indian companiesamounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the saidAssessment Year. her tax liabilit is

Rs. 1,000 Rs. 1,000Any contribution made to a Public Provident FundIs eligible for rebate u/s 88 Is eligible for rebate u/s 88Select The BlankQuestion To claim sec 10A deduction unit must be established in ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneSelect The BlankQuestion Non resident individual satisfies ________ of the basic conditions.Correct Answer NoneYour Answer Any oneMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54 is for CapitalGains arising from transfer of :-Correct Answer House PropertyYour Answer House PropertySelect The BlankQuestion Deduction for remuneration from foreign sources for professors,teachers etc under Section 80R is limited to ________% of such remunerationbrought in India.Correct Answer 15Your Answer 15Select The BlankQuestion Relief under section 89 is available to an employee in respect of theamount of salary received ________.Correct Answer In advance or in arrearsYour Answer In the immediately succeeding year.Select The BlankQuestion AOP id formed when two or more ________ come together to earnincome.Correct Answer PersonsYour Answer PersonsMultiple Choice Multiple AnswerQuestion Capital Gains arise on account of excess of transfer considerationover the following amountsCorrect Answer Cost of acquisition , Cost of improvement , Expenditureincurred wholly and exclusively in connection with the transferYour Answer Cost of acquisition , Cost of improvement , Expenditureincurred wholly and exclusively in connection with the transferMultiple Choice Multiple AnswerQuestion Which of the following amounts credited to P & L Account but nottaxable from Income tax Purposes as Profits from Business and Profession?Correct Answer Refund of Income tax , Capital Gains , Dividend IncomeYour Answer Refund of Income tax , Capital Gains , Dividend IncomeTrue/FalseQuestion Rebates as per the provisions of Section 88 of the Act are notavailable from the tax on long-term capital gains.Correct Answer TrueYour Answer TrueSelect The BlankQuestion If assessee owns more than one house properties, he can get benefitof nil annual value for any one house property ________.Correct Answer As per his choiceYour Answer As per his choiceMultiple Choice Single AnswerQuestion What is the treatment of principal amount of loan borrowed for thepurchase or construction of a residential house?

Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Multiple Choice Multiple AnswerQuestion The provisions for payment of gratuity is not allowed under section40A(7) but, under the head, profits from business and profession, the amount ofgratuity will be allowed as deduction only when :-Correct Answer The amount of gratuity has actually become payable to theemployees during the previous year , The provision has been made for thepayment of a sum by way of contribution to an approval gratuity , The otherthan the above two situations, any provision made for the payment of gratuity isnot allowed as deductionYour Answer The amount of gratuity has actually become payable to theemployees during the previous year , The provision has been made for thepayment of a sum by way of contribution to an approval gratuityMultiple Choice Multiple AnswerQuestion If the Salary is less than Rs. 5,00,000, Standard Deduction will bethe least of the following :-Correct Answer 40% of the Salary , Rs. 30,000Your Answer 40% of the Salary , Rs. 30,000Multiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assesseesbefore 15th December of Previous year is :-Correct Answer 60% of advance tax payableYour Answer 100% of advance tax payableSelect The BlankQuestion It should be noted that the tax liability of an individual having thetotal income of less than Rs ________ is Nil u/s 88D.Correct Answer 1,00,000Your Answer 1,00,000True/FalseQuestion If assessee owns more than one house properties, annual value ofany one of the house property can be treated as nil, and such option can bechanged year on year basis.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Income from subletting is treated as income from house property.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Following persons are deemed to be an assessee :-Correct Answer Legal heir of deceased person , Parents of minor assessee ,Agent of NRIYour Answer Legal heir of deceased person , Parents of minor assessee ,Agent of NRIMultiple Choice Single AnswerQuestion Income of notified news agencies is exempt provided :-Correct Answer They apply their income for collection & distribution ofnewsYour Answer They apply their income for collection & distribution of newsSelect The BlankQuestion The rebate u/s 88B is available to an individual who has attainedthe age of ________ or more at any time during the previous year.Correct Answer 65Your Answer 65Multiple Choice Multiple AnswerQuestion What is the tax treatment of the Lump sum received from

unrecognized provident fund on the retirement or resignation or death of theemployee?Correct Answer Employee's contribution to PF is exempt from tax , Intereston employee's contribution is taxable as "Income from Other Sources" ,Employer's Contribution to PF and interest thereon is taxable as "Income fromsalaries"Your Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources" ,Employer's Contribution to PF and interest thereon is taxable as "Income fromsalaries"True/FalseQuestion Any advance tax paid before 31st March is treated as advance taxpaid during the previous year.Correct Answer TrueYour Answer TrueTrue/FalseQuestion A woman assessee below the age of 65 years is also entitled torebate u/s 88.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Rent for other amenities like lift, electricity, telephone etc. is taxedunder the heading :-Correct Answer Income from other sourcesYour Answer Income from salariesMultiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assesseesbefore 15th June of Previous year is :-Correct Answer NilYour Answer 100% of advance tax payableMultiple Choice Multiple AnswerQuestion The entertainment allowance received by the Governmentemployees is included in their salaries and the deduction is allowed to theextent of least of the following amounts :-Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.True/FalseQuestion Loss from house property can be adjusted against the income fromany other house property.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Annual premium paid by the employer for the accident insurancepolicy taken by the employer in the name of the employee is chargeable to tax.Correct Answer FalseYour Answer TrueMultiple Choice Single AnswerQuestion Annual return for TDS from Salaries is to be filed in :-Correct Answer Form No. 24Your Answer Form No. 24

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Labels: Taxation (Set IV)

Taxation - 11

LIST OF ATTEMPTED QUESTIONS AND ANSWERSSelect The BlankQuestion Monetory Limit for deduction for royalty income of authors under Section80QQB is Rs.________.Correct Answer 300000Your Answer 300000Multiple Choice Single AnswerQuestion Income from winning from lotteries / crossword puzzles/ horse races istaxed at flat rate of :-Correct Answer 0.3Your Answer 0.3Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in :-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Single AnswerQuestion Mediclaim premium u/s Section 80D should be paid byCorrect Answer ChequeYour Answer Cheque or CashTrue/FalseQuestion Any sum payable by the assessee by way of tax, duty, cess or fee isallowed as deduction even though they are not actually paid.Correct Answer FalseYour Answer TrueTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block of Assets includes bothtangible as well as intangible assets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion 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 lumpsum received at the time of retirement or resignation or death is also exempt undersection 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 lumpsum received at the time of retirement or resignation or death is also exempt undersection 10(11) and 10(12).Select The BlankQuestion The aggregate amount of all the expenditure falling under the headpreliminary expenses incurred under section 3________, for an Indian company theaggregate of all the expenditure can be 5% of the cost of project or 5% of capitalemployed whichever is higher.Correct Answer 5% of the cost of project or 5% of capital employedYour Answer 5% of the cost of project or 7% of capital employedMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion Previous year always ends on :-Correct Answer 31st MarchYour Answer 31st MarchMultiple Choice Single Answer

Question Rates of income tax are prescribed by :-Correct Answer The Finance ActYour Answer OrdinanceSelect The BlankQuestion If assessee owns more than one house properties, he can get benefit of nilannual value for any one house property ________.Correct Answer As per his choiceYour Answer House which is first purchasedMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Gross total incomeMultiple Choice Multiple AnswerQuestion Choose capital expenditure from the following list :-Correct Answer Purchase of Building , Purchase of machineryYour Answer Purchase of Building , Construction of temporary structures ,Purchase of machineryMultiple Choice Multiple AnswerQuestion Rebate is allowed on any subscription made to National Saving Schemeby :-Correct Answer An individual , A HUFYour Answer An individual , A HUFMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A has availed the exemptiononly 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 thenext block i.e. 2002.Your 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 thenext block i.e. 2002.True/FalseQuestion Loss under the head Profits from Business or Profession can be adjustedagainst the Income from Salaries.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion The amount paid by the employer to the employee on his retirement istaxed as :-Correct Answer Income from SalariesYour Answer Income from SalariesSelect The BlankQuestion For an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182True/FalseQuestion Bad Debts recovered not allowed as deduction in earlier years is nottaxable in any year.Correct Answer TrueYour Answer FalseMultiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Long term Capital Gains , Short Term Capital Gains.

Multiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assessees before15th March of Previous year is :-Correct Answer 100% of advance tax payableYour Answer 100% of advance tax payableMultiple Choice Multiple AnswerQuestion An assessee can claim deduction under section 35 in relation to theexpenditure incurred on scientific research in the field of natural gas or applied sciencesif :-Correct Answer Any revenue expenses incurred by the assessee for carrying out thescientific research provided that such research is related to his business , Any capitalexpenses incurred by the assesse himself for carrying out the scientific research providedthat such research is related to his business , The assesse is a company engaged in thebusiness of bio-technology or any other notified product a weighted deduction of 150% isallowed in respect of in-house research and development expensed, till 31st March, 2005Your Answer Any revenue expenses incurred by the assessee for carrying out thescientific research provided that such research is related to his business , The assesse is acompany engaged in the business of bio-technology or any other notified product aweighted deduction of 150% is allowed in respect of in-house research and developmentexpensed, till 31st March, 2005Select The BlankQuestion Registration charges in connection with the increasing of ________ sharecapital of the company is not allowed as revenue expenditure.Correct Answer AuthorizedYour Answer IssuedTrue/FalseQuestion If a person is required to quote the PAN and he quotes or intimates a falsenumber then he may be liable to pay a penalty of Rs. 25000.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion What is the tax treatment of the Lump sum received from unrecognizedprovident fund on the retirement or resignation or death of the employee?Correct Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources" , Employer'sContribution to PF and interest thereon is taxable as "Income from salaries"Your Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources"Select The BlankQuestion If the person responsible for deducting the tax at source and paying thesame to the credit of Central Government has not been allotted the Tax DeductionAccount Number (TAN), he shall within ________ from the end of the month in whichthe tax was deducted, apply for the allotment of TAN Number.Correct Answer One monthYour Answer Fifteen daysMatch The FollowingQuestion Correct Answer Your AnswerDeduction in case of permanent physical disability Section 80U Section 80UDeductions for Donations Paid Section 80G Section 80GDeduction for Rent Paid Section 80GG Section 80GGDeduction in respect of Interest on Bank Deposits Section 80L Section 80LTrue/FalseQuestion If the capital asset becomes the property of the assessee by virtue of gift orwill, the period for which the capital asset is held by the previous owner should beexcluded while deciding the holding period.Correct Answer FalseYour Answer True

True/FalseQuestion Amount paid by the employer in respect of any leave standing to the creditof the employee after the date of furnishing return of income, this sum was payable in theprevious year is allowed as deduction.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Under section 43B, Clause N0-21 provides that the details of variouspayments are allowed as deductions only if they are actually paid but, where if theassessee follows the ________, the payments can be claimed on due basis.Correct Answer Mercantile system of accountingYour Answer Cash system of accountingTrue/FalseQuestion A woman assessee below the age of 65 years is also entitled to rebate u/s88.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Income received by following assesses is taxable in India :-Correct Answer Resident , Non resident , Resident but not ordinary residentYour Answer Resident , Resident but not ordinary residentMultiple Choice Single AnswerQuestion Any premium paid by the assessee by Cheque as an employer to effect orkeep in force an insurance on the health of his employees is :-Correct Answer Allowed as expenses while calculating profits from business andprofessionYour Answer Is allowed as a deduction under Section 80GSelect The BlankQuestion Where an assessee files or submits the returns as per provisions of section139 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 AssessmentYour Answer Scrutiny AssessmentMultiple Choice Multiple AnswerQuestion Assessee gets deduction of interest paid on borrowed capital even if he :-Correct Answer Takes possession later on , Acquires later onYour Answer Takes possession later on , Acquires later onMatch The FollowingQuestion Correct Answer Your AnswerPerquisites 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 bythe employer to the employee, either free of cost or at the concessional rateHouse Rent Allowance This indicates the amount paid by the employer to theemployee to meet the expenditure for residential accommodation occupied by theemployee This indicates the amount paid by the employer to the employee to meetthe expenditure for residential accommodation occupied by the employeeRetrenchment Compensation Compensation received by a worker at the time ofretrenchment Compensation received by a worker at the time of retrenchmentTraveling Allowance Any allowance granted to meet the cost of travel on tour or ontransfer of duty. Any allowance granted to meet the cost of travel on tour or ontransfer of duty.Select The BlankQuestion Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim taxrebate of ________u/s 88C of the IT Act.Correct Answer Rs. 5,000Your Answer Rs. 20,000Multiple Choice Single Answer

Question Assessment year is the period of 12 months starting from :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion If notified news agency distributes its income amongst its members then :-Correct Answer Whole of its income will be taxableYour Answer It will have to pay tax on distributed profitsMultiple Choice Single AnswerQuestion Deduction in respect of Contribution to certain pension funds u/s 80CCCis available to :-Correct Answer IndividualsYour Answer IndividualsTrue/FalseQuestion Income from subletting is treated as income from house property.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion In case of Payment of Interest on Securities no tax is required to bededucted under the following circumstances :-Correct Answer If the debentures are issued by a widely held company and thedebentures are listed on a stock exchange and if the amount of interest does not exceedRs. 2,500 during the financial year. , If the interest paid is on State or CentralGovernment Securities, If the debentures are issued by an institution, authority, PublicSector Company or cooperative society as the Central Government may notify.Your Answer If the interest paid is on State or Central Government Securities , Ifthe debentures are issued by a widely held company and the debentures are listed on astock exchange and if the amount of interest does not exceed Rs.5,000 during thefinancial year.Select The BlankQuestion Expenditure incurred by an assessee on advertisement in any brochure,tract, pamphlet or like published by a ________shall not be allowed as businessexpenditure.Correct Answer Political partyYour Answer Company

Select The BlankQuestion 1 Mr X a salaried employee has received total educational allowance of Rs 8,000for his four children, the maximum allowance exempt is ________ u/s 10(14) ofthe IT Act.Correct Answer Rs 2,400Your Answer Rs 2,400Multiple Choice Multiple AnswerQuestion2 What is the tax treatment of the Lump sum received from unrecognizedprovident 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'scontribution is taxable as "Income from Other Sources" , Employer'sContribution 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 fromsalaries" , Employee's contribution to PF is exempt from taxTrue/FalseQuestion 3 Software technology park means set up according to Software Technology ParkScheme framed by Ministry of Commerce & Industries.Correct Answer TrueYour Answer TrueSelect The BlankQuestion 4 It is mandatory for ________ to file a return even if there is loss or the income is

nil.Correct Answer A companyYour Answer Persons under "One by Six" schemeMultiple Choice Multiple AnswerQuestion 5 Following professional institutions have their incomes exempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingMultiple Choice Multiple AnswerQuestion 6 Which of the following amounts credited to P & L Account but not taxable fromIncome tax Purposes as Profits from Business and Profession?Correct Answer Refund of Income tax , Capital Gains , Dividend IncomeYour Answer Refund of Income tax , Capital Gains , Dividend IncomeSelect The Blank

Question 7 ________ is the tax payable on the manufacturing of goods.Correct Answer Excise dutyYour Answer Excise dutySelect The BlankQuestion 8 The amount paid by the employer to the employee to meet the expenditure forresidential accommodation occupied by the employee is called ________.Correct Answer House rent allowanceYour Answer House rent allowanceMultiple Choice Multiple AnswerQuestion 9 Any amount deposited by an Individual or a HUF in 10 year or 15 year accountunder the Post Office Saving Bank (CTD) Rules, 1959. The account can be inthe 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 BlankQuestion 10 Section 80U allows the deduction in respect of the ________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMultiple Choice Single AnswerQuestion 11 Income of notified news agencies is exempt provided :-Correct Answer They apply their income for collection & distribution of newsYour Answer They apply their income for collection & distribution of newsMultiple Choice Single AnswerQuestion 12 The total amount of rebates under Section 88, Section 88B, Section 88C andSection 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.Multiple Choice Single AnswerQuestion 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.

Multiple Choice Multiple AnswerQuestion 14 Perquisites which are taxable only in the hands of specified employee includethe following categories of perquisites :-Correct Answer Motor Car , Services of sweeper, gardener, watchman or personal attendant ,Gas, electricity and water provided for personal consumptionYour Answer Motor Car , Services of sweeper, gardener, watchman or personal attendant ,Gas, electricity and water provided for personal consumptionMultiple Choice Single AnswerQuestion 15 The Central Government has introduced a new pension scheme for theemployees employed on or after 15th January, 2004. These employees arerequired to contribute 10% of their salaries to this pension scheme. How much

will the Central Government contribute to the Fund?Correct Answer Equal amountYour Answer Equal amountTrue/FalseQuestion 16 In case of deductions for medical treatment under Section 80DDB the amount ofdeduction will be reduced by the amount received under an insurance policy orthe amount reimbursed by the employer.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 17 If any person fails to get the accounts audited by a Chartered Accountant andfails to submit the copy of such report under section 44AB, he will be liable topay the penalty equal to :-Correct Answer 0.5% of sales turnover/gross receipts or Rs.1lakh whichever is lessYour Answer 0.5% of sales turnover/gross receipts or Rs.1lakh whichever is lessSelect The BlankQuestion 18 Section 35E of the Act applies to all the ________ engaged in the business ofprospecting for or extraction or production of certain specified minerals.Correct Answer Resident assesseesYour Answer Non-ordinary resident assesseesMultiple Choice Multiple AnswerQuestion 19 Profits earned by an Industrial Undertaking engaged in other than infrastructuredevelopment 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 researchYour Answer Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage, Company engaged in scientific and industrial researchTrue/FalseQuestion 20 Jewellery held by the assessee is not a Capital Asset.

Correct Answer FalseYour Answer FalseSelect The BlankQuestion 21 House rent allowance is exempt from the heading ________.Correct Answer Income from salariesYour Answer Income from salariesMultiple Choice Multiple AnswerQuestion 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 ProvidentFund 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 sumpayable by the assessee as interest on any loan or borrowing made by him fromany public financial institution or state financial corporation as per the terms ofthe agreementYour Answer Any employees contribution payable by the assessee towards any ProvidentFund 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 sumpayable by the assessee as interest on any loan or borrowing made by him fromany public financial institution or state financial corporation as per the terms ofthe agreementSelect The BlankQuestion 23 The rebate u/s ________ is available to a woman assessee below the age of 65years at any time during the previous years.Correct Answer 88CYour Answer 88BTrue/False

Question 24 An deduction is allowed to an assesse as an employer in respect of contributionmade to any non-statutory fund under the section 40A(9).Correct Answer FalseYour Answer TrueTrue/FalseQuestion 25 Dividend received by the shareholder is treated as income chargeable to tax u/s10(34) of the IT Act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion 26 The assessee is required to quote PAN in :-

Correct Answer All returns to or correspondence with the Income Tax Authorities , All thechallans for the payment of any amount under the Act , All the documentspertaining to purchase, sale and bank transactionsYour Answer All returns to or correspondence with the Income Tax Authorities , All thechallans for the payment of any amount under the Act , All the documentspertaining to purchase, sale and bank transactionsMultiple Choice Single AnswerQuestion 27 Any person carrying on business or profession has to submit the Audit Report inprescribed form, signed by Chartered Accountant before 31st October of theassessment year, whether the return of income is filed or not. This is incompliance with :-Correct Answer Section 44AB of the ActYour Answer Section 44AB of the ActMultiple Choice Single AnswerQuestion 28 In case of the individual or HUF whose Gross Total Income, before deductionsunder 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 88Multiple Choice Single AnswerQuestion 29 If firm fails to submit copy of deed along with return of income :-Correct Answer It will not constitute a separate taxable entityYour Answer It will not constitute a separate taxable entityMultiple Choice Single AnswerQuestion 30 In order to avoid the cases of tax evasion on the part of the assessees, the Acthas provided for :-Correct Answer Tax deduction at sourceYour Answer Tax deduction at sourceMultiple Choice Multiple AnswerQuestion 31 Which of the following expenditures are expressly disallowed to be deductedwhile computing the profits from business and professionCorrect Answer Income Tax , Wealth TaxYour Answer Income Tax , Wealth TaxTrue/FalseQuestion 32 Section 80QQB is applicable to the individual resident who is an author of textbooks.Correct Answer FalseYour Answer False

Select The BlankQuestion 33 Section 35AC of the Act applies to any sum paid by the assessee to a publicsector company or a local authority or an association approved by the nationalcommittee for ________ for carrying out any project in upliftment of public.Correct Answer Promotion of social and economic welfareYour Answer Promotion of social and economic welfareMultiple Choice Single Answer

Question 34 Income from sub-letting of a house property is income from :-Correct Answer Other sourcesYour Answer SublettingMultiple Choice Multiple AnswerQuestion 35 Income of a professional association is exempt if its objectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementMultiple Choice Multiple AnswerQuestion 36 Choose capital expenditure from the following list :-Correct Answer Purchase of Building , Purchase of machineryYour Answer Purchase of Building , Construction of temporary structures , Purchase ofmachineryTrue/FalseQuestion 37 Loss under the head Profits from Business or Profession can be adjustedagainst the Income from Salaries.Correct Answer FalseYour Answer FalseSelect The BlankQuestion 38 Deduction u/s 10A is ________ of export proportion of profits.Correct Answer 0.9Your Answer 0.9True/FalseQuestion 39 Rebates as per the provisions of Section 88C of the Act are not available fromthe tax on long-term capital gains.Correct Answer False

Your Answer FalseTrue/FalseQuestion 40 Dividend received from domestic company to its shareholders is taxable in thehands of the shareholder.Correct Answer FalseYour Answer TrueMatch The FollowingQuestion 41 Correct Answer Your AnswerSuper Annuation Fund This is an employee welfarescheme which is usuallyapplicable in case of verysenior employeesThis is an employee welfarescheme which is usuallyapplicable in case of very senioremployeesStatutory Provident Fund This is set up as per theprovisions of Provident FundAct, 1925. This is maintainedby Government organizations,local authorities, universitiesand educational institutions.This is set up as per theprovisions of Provident FundAct, 1925. This is maintained byGovernment organizations, localauthorities, universities andeducational institutions.Recognised Provident Fund This is the provident fund towhich the provisions ofEmployees Provident Fund and

Miscellaneous Provisions Act,1952 apply.This is the provident fund towhich the provisions ofEmployees Provident Fund andMiscellaneous Provisions Act,1952 apply.Unrecognised Provident Fund The provident fund which is notrecognized by the income taxauthorities is called asunrecognized provident fund.The provident fund which is notrecognized by the income taxauthorities is called asunrecognized provident fund.Multiple Choice Single AnswerQuestion 42 Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusSelect The BlankQuestion 43 The amount of compensation received or receivable by the employee from theemployer at the time of termination of his employment or at the time ofmodification of terms and conditions in connection with the employment is calledas ________.Correct Answer Terminal compensation.Your Answer Terminal compensation.Match The Following

Question 44 Correct Answer Your AnswerIntangible Capital Asset Tenancy Rights Tenancy RightsExcluded from ambit of termCapital AssetStock in Trade Land held for a period of 36months or moreShort Term Capital Asset Equity Shares held for a periodof Less than 36 monthsStock in TradeLong Term Capital Asset Land held for a period of 36months or moreBuildingMultiple Choice Multiple AnswerQuestion 45 The entertainment allowance received by the Government employees isincluded in their salaries and the deduction is allowed to the extent of least ofthe following amounts :-Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowancereceived.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowancereceived.True/FalseQuestion 46 Annual premium paid by the employer for the accident insurance policy taken bythe employer in the name of the employee is chargeable to tax.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion 47 Following condition needs to be satisfied for claiming the exemption underSection 54F :-

Correct Answer The assessee is an individual or a HUFYour Answer The assesse is Firm

Multiple Choice Single AnswerQuestion 48 Deduction in respect of Contribution to certain pension funds is related to :-Correct Answer Section 80CCCYour Answer Section 80CCCTrue/FalseQuestion 49 The rebate u/s 88B is allowed before the rebate u/s 88 is allowed.Correct Answer TrueTAXATION9Your Answer FalseSelect The BlankQuestion 50 Expenditure incurred in connection with the local festivals like Diwali etc. are________ as business expenditure.Correct Answer AllowedYour Answer AllowedSelect The BlankQuestion 51 Deduction is available for income from foreign sources under Section 80RR ifsuch remuneration brought into India in convertible foreign exchange within aperiod of________ months from the end of the previous year.Correct Answer 6Your Answer 6Multiple Choice Multiple AnswerQuestion 52 Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsMultiple Choice Single AnswerQuestion 53 Income from winning from lotteries / crossword puzzles/ horse races is taxed atflat rate of :-Correct Answer 0.3Your Answer 0.35Select The BlankQuestion 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 ofbusiness.Correct Answer Amortized and written off to profit and loss accountYour Answer Amortized and written off to profit and loss accountSelect The BlankQuestion 55 Section 43B of the IT Act provides that the certain payments are allowed asdeduction only if they are ________.Correct Answer Actually paidYour Answer ReasonableMultiple Choice Multiple AnswerQuestion 56 The rebate u/s 88 is available to an :-TAXATION10Correct Answer Individual , Hindu Undivided Family.Your Answer Individual , Hindu Undivided Family.Multiple Choice Single AnswerQuestion 57 Income from other sources covers agricultural income from land situated :-Correct Answer Outside IndiaYour Answer Outside IndiaMultiple Choice Multiple AnswerQuestion 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 theassesseeYour Answer The computation of income under each head, Gross Total Income are properlyfiled in , The return is accompanied by the tax audit report under section 44AB ,The return is accompanied by copies of required financial statements of theassesseeMultiple Choice Single AnswerQuestion 59 If an employee does not avail of this leave travel concession or assistanceduring 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 BlankQuestion 60 The person who does not deduct the tax source as required by the Act or afterdeducting fails to pay the tax as required by the Act, shall be liable to pay thesimple interest @________ % per month on the amount of such tax from thedate on which the tax was deductible till the date on which such tax is actuallypaid.Correct Answer 1Your Answer 1.25Multiple Choice Multiple AnswerQuestion 61 The assessing officer may allot the Permanent Account Number(PAN) to :-Correct Answer Person whose Total Income during previous year exceeds the maximumamount, chargeable to tax , Person carrying on the business or professionwhose turnover exceeds Rs.5 lakhs in any previous year , Any other person bywhom tax is payableYour Answer Person carrying on the business or profession whose turnover exceeds Rs.5lakhs in any previous year , Any other person by whom tax is payable , Anyperson not applying for permanent account number but, tax is payable by himTAXATION11Multiple Choice Multiple AnswerQuestion 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 willbe allowed as deduction only when :-Correct Answer The amount of gratuity has actually become payable to the employees duringthe previous year , The provision has been made for the payment of a sum byway of contribution to an approval gratuity , The other than the above twosituations, any provision made for the payment of gratuity is not allowed asdeductionYour Answer The amount of gratuity has actually become payable to the employees duringthe previous year , The provision has been made for the payment of a sum byway of contribution to an approval gratuity , The other than the above twosituations, any provision made for the payment of gratuity is not allowed asdeductionMultiple Choice Multiple AnswerQuestion 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 substantialinterest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxablemonetary payments of salary but excluding the value of any non-monetarybenefits or perquisites), after allowing deductions under Section 16, exceedsRs. 50,000Your Answer The person who is director of a company , The employee who has substantialinterest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxablemonetary payments of salary but excluding the value of any non-monetary

benefits or perquisites), after allowing deductions under Section 16, exceedsRs. 50,000True/FalseQuestion 64 Sum received under a will / inheritance is not exempt.Correct Answer TrueYour Answer FalseSelect The BlankQuestion 65 It should be noted that the tax liability of an individual having the total income ofless than Rs ________ is Nil u/s 88D.Correct Answer 1,00,000Your Answer 1,00,000Match The FollowingQuestion 66 Correct Answer Your AnswerAll intangible assets likePatents, Trademarks, CopyRights, Licenses etc.Rate of depreciation is 25% Rate of depreciation is 25%Temporary Structures Rate of depreciation is 100% Rate of depreciation is 10%TAXATION12Computers Rate of depreciation is 60% Rate of depreciation is 40%Containers made of glass orplastic used as refillsRate of depreciation is 40% Rate of depreciation is 60%Select The BlankQuestion 67 In case of foreign companies rate of tax is ________.Correct Answer 0.35Your Answer 0.35Multiple Choice Single AnswerQuestion 68 Which of the following expenditure is in the nature of revenue expenditure?Correct Answer Expenditure incurred as discount on issue of debenturesYour Answer Expenditure incurred as discount on issue of debenturesMultiple Choice Multiple AnswerQuestion 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 interestin the business or profession of the firm or any director or partner of suchcompany or firm or any relative of such person. , Any person who carries onbusiness or profession and in his business or profession the assessee or anypartner 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 interestin the business or profession of the firm or any director or partner of suchcompany or firm or any relative of such person. , Any person who carries onbusiness or profession and in his business or profession the assessee or anypartner of such firm or relative of such partner has substantial interest.Multiple Choice Single AnswerQuestion 70 For charging the income in the form of salaries :-Correct Answer There needs to be an employer-employee relationship between the payer andthe payee.Your Answer There needs to be an employer-employee relationship between the payer andthe payee.True/FalseQuestion 71 For claiming the deduction under section 80IA, the industrial undertaking shouldbe owned by a company registered in India or a consortium of such companies.Correct Answer TrueYour Answer True

Select The BlankQuestion 72 Any expenditure incurred by the assessee for any purpose which is ________or which is prohibited by law shall not be allowed as business expenditureTAXATION13Correct Answer OffenceYour Answer OffenceMultiple Choice Single AnswerQuestion 73 As a general principle, the Basic Salary or Wages, Dearness Allowance andBonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.True/FalseQuestion 74 Rebates as per the provisions of Section 88 of the Act are not available from thetax on long-term capital gains.Correct Answer TrueYour Answer TrueTrue/FalseQuestion 75 MAT is applicable if there is a difference of 7.5% between net profit & bookprofit.Correct Answer TrueYour Answer FalseMultiple Choice Multiple AnswerQuestion 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 orany 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 orprofession, 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 orany 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 orprofession, the assessee himself or his relative has a substantial interest.Select The BlankQuestion 77 Deduction for remuneration from foreign sources for professors, teachers etcunder Section 80R is limited to ________% of such remuneration brought inIndia.Correct Answer 15Your Answer 10True/FalseQuestion 78 Any expenditure incurred for earning the income which is included under thehead income from other sources will be allowed as deduction from such incomeTAXATION14provided that certain conditions are satisfiedCorrect Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion 79 Deduction from Capital Gains from the transfer of residential house propertyunder Section 54 is available to :-Correct Answer Individual , HUFYour Answer Individual , HUF , CompanyTrue/FalseQuestion 80 Income earned & received outside India & remitted to India is taxable forresident & ordinary resident

Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 81 Mr X has received Rs 200000 as income from salary, Rs 50000 income fromhouse property and he also received Rs 100000 income from specified units ofthe mutual fund. What will be his total incomeCorrect Answer Rs 250000Your Answer Rs 250000Multiple Choice Multiple AnswerQuestion 82 Standard deduction takes care of :-Correct Answer Repairs & maintenance , Insurance premium , Ground rentYour Answer Insurance premiumMatch The FollowingQuestion 83 Correct Answer Your AnswerIndividual partners & firms Are separate taxable entities Losses are shared equallyPartnership firm Companies can be partners Are separate taxable entitiesCompany partners Can not get salaries Companies can be partnersIndividual partners Can be partners in any numberof firmsCan be partners in any numberof firmsMultiple Choice Multiple AnswerTAXATION15Question 84 Capital Gains arise on account of excess of transfer consideration over thefollowing amountsCorrect Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly andexclusively in connection with the transferYour Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly andexclusively in connection with the transferTrue/FalseQuestion 85 Income of a mutual fund is taxable even if it is authorized by RBI.Correct Answer FalseYour Answer FalseSelect The BlankQuestion 86 If sum received is net of TDS then it is ________ to include in income from othersources.Correct Answer Grossed upYour Answer Grossed upMultiple Choice Multiple AnswerQuestion 87 What is the tax treatment of Statutory Provident Fund?Correct Answer Employer's Contribution to PF is not liable for any tax payment , Interestcredited to the employee's account is not liable for any tax payment. , The lumpsum received at the time of retirement or resignation or death is also exemptunder section 10(11) and 10(12).Your Answer Employer's Contribution to PF is not liable for any tax payment , Interestcredited to the employee's account is not liable for any tax payment. , The lumpsum received at the time of retirement or resignation or death is also exemptunder section 10(11) and 10(12).True/FalseQuestion 88 Interest paid on the loan for acquiring a capital asset will be considered to be apart of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 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.Multiple Choice Single AnswerQuestion 90 Deduction from Capital Gains under Section 54F is for Capital Gains arisingfrom transfer of :-Correct Answer Any Long Term Capital AssetTAXATION16Your Answer Any Long Term Capital AssetMultiple Choice Single AnswerQuestion 91 In case the assessee is not a company, a person(other than a company) who isfalling under One by Six economic criteria, the last date for filing the return isprescribed as :-Correct Answer 31st July of the Assessment yearYour Answer 31st July of the Assessment yearSelect The BlankQuestion 92 Registration charges in connection with the increasing of ________ sharecapital of the company is not allowed as revenue expenditure.Correct Answer AuthorizedYour Answer AuthorizedTrue/FalseQuestion 93 The amount of telephone bills (including the mobile phone bills) of the employeereimbursed by the employer is taxable in the hands of the employee.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion 94 As per which provision and section, every person, company or any other personshall furnish his returns of income in the prescribed form on or before thespecified due date?Correct Answer Section 139(1)Your Answer Section 139(2)

Multiple Choice Multiple AnswerQuestion The entertainment allowance received by theGovernment employees is included in their salariesand the deduction is allowed to the extent of least ofthe following amounts :-Correct Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of SalaryYour Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of SalaryTrue/FalseQuestion Income Tax Act, 1961 recognizes Written Down Value(WDV) method as well as straight line method for thecomputation of depreciation u/s 32 this act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Profits earned by an Industrial Undertaking engagedin other than infrastructure development is availableunder Section 80IB for :-Correct Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimage , Company engaged inscientific and industrial researchYour Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimage

Multiple Choice Single AnswerQuestion Which of the following expenditure is in the nature ofrevenue expenditure?Correct Answer Expenditure incurred as discount on issue ofdebenturesYour Answer Expenditure incurred as discount on issue ofdebenturesSelect The BlankQuestion If sum received is net of TDS then it is ________ toinclude in income from other sources.Correct Answer Grossed upYour Answer Grossed upTrue/FalseQuestion Interest paid on the loan for acquiring a capital assetwill be considered to be a part of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowingdeductions under Chapter VI-A is Rs. 1,45,000, wantsto make the investments in the following alternativeforms Rs. 80,000 in PPF and Rs. 20,000 inInfrastructure Bonds. The amount of rebate availableto him u/s 88 is :-Correct Answer Rs. 18,000Your Answer Rs. 18,000Multiple Choice Single AnswerQuestion Interest on specified securities or premium onredemption is exempt for :-Correct Answer Non resident IndianYour Answer Non resident IndianTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block ofAssets includes both tangible as well as intangibleassets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Deductions in respect of Certain Incomes receivedunder Section 80L is available in respect ofCorrect Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestYour Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusMultiple Choice Multiple AnswerQuestion For the purpose of income tax, the perquisites can beclassified into :-Correct Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in the

hands of specified employeeYour Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeSelect The BlankQuestion For an individual as a citizen of India who leaves Indiain the relevant previous year for the purpose ofemployment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in:-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Multiple AnswerQuestion Following professional institutions have their incomesexempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingSelect The BlankQuestion ________ of the Tax Audit Report refers to the detailsof various payments which are allowed as deductiononly if they are actually paid for.Correct Answer Section 43B Clause No-21Your Answer Section 43B Clause No-21Multiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsSelect The BlankQuestion To claim sec 10A deduction unit must be establishedin ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneMultiple Choice Single AnswerQuestion Assessment year is the period of 12 months startingfrom :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion If an employee does not avail of this leave travelconcession or assistance during a block of fourcalendar years :-Correct Answer Only one journey can be carried forward to the nextblock.Your Answer Only one journey can be carried forward to the nextblock.Select The BlankQuestion To acquire PAN, a person shall apply in ________ tothe assessing officer.Correct Answer Form No. 49A

Your Answer Form No. 49AMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54F is forCapital Gains arising from transfer of :-Correct Answer Any Long Term Capital AssetYour Answer House PropertySelect The BlankQuestion Where an assessee files or submits the returns as perprovisions of section 139 or in response to the noticeunder section 142, the assessment officer undertakes________ as per section 143(2) and section 143(3).Correct Answer Scrutiny AssessmentYour Answer Scrutiny AssessmentMultiple Choice Multiple AnswerQuestion Income of a professional association is exempt if itsobjectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementTrue/FalseQuestion While computing the profits from Business andprofession, the business or profession must be carriedout during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A hasavailed the exemption only once or has not availedany 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 offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Your Answer He can carry over the exemption to the next block offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Multiple Choice Multiple AnswerQuestion The amount accumulated to the credit of theemployee's provident fund account is paid at the timeof :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital ,Municipal taxesYour Answer Interest on borrowed capital , Municipal taxesMultiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages,Dearness Allowance and Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion From GTI of a company following deductions underchapter VI A are allowedCorrect Answer 80 G Donations , 80 HHB profits and gains from

projects outside India , 80 IA profits and gains ofinfrastructure companiesYour Answer 80 G Donations , 80 IA profits and gains ofinfrastructure companiesMultiple Choice Single AnswerQuestion Annual value of any one palace in possession of aformer ruler is :-Correct Answer ExemptYour Answer TaxableSelect The BlankQuestion If the Salary is more than Rs. 5,00,000, StandardDeduction will be Rs.________.Correct Answer 20000Your Answer 20000Multiple Choice Single AnswerQuestion The amount of accumulated interest on NSCspurchased in the earlier years is assumed to bereinvested :-Correct Answer And qualifies for tax rebate under section 88.Your Answer And qualifies for tax rebate under section 88.Select The BlankQuestion Deduction u/s ________B is available for 10consequent assessment years from the year ofcommencement of production.Correct Answer 10Your Answer 10True/FalseQuestion Income from subletting is treated as income fromhouse property.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Section 80U allows the deduction in respect of the________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMatch The FollowingQuestion Correct Answer Your AnswerDisallowableExpenditureLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtBusiness Includes trade,commerce, orIncludes trade,commerce, ormanufacture or anyadventure or concernin the nature of trade,

commerce ormanufacturemanufacture or anyadventure or concern inthe nature of trade,commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurredby a company with theissue of rights sharesPremium onredemption ofDebenturesTrue/FalseQuestion Any recreational facility provided by the employer to agroup of employees (not being restricted to a selectfew employees) is not exempt from tax.Correct Answer FalseYour Answer FalseTrue/FalseQuestion In case of deductions for medical treatment underSection 80DDB the amount of deduction will bereduced by the amount received under an insurancepolicy or the amount reimbursed by the employer.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Any advance tax paid before 31st March is treated asadvance tax paid during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Municipal taxes paid is allowed as deduction from :-Correct Answer Gross annual valueYour Answer Gross annual valueTrue/FalseQuestion Entertainment Allowance received by the employeesfrom the private sector is taxable in the hands of theemployee.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerAny subscription madeto National SavingSchemeBy an individual or aHUF is eligible forrebate u/s 88By an individual or aHUF is eligible forrebate u/s 88Mr. A, a 70 years oldSenior Citizen, has theGross Total Income ofRs. 2,50,000 during

the Assessment Year2005-2006. Heinvested Rs. 50,000 inthe tax saving bonds ofICICI on 10th June2004. His tax liabilityfor the A Y 2005-2006.RS.12,500 RS.12,500During theAssessment Year2005-2006, Mrs. A,age 58 years, has theGross Total Income ofRs. 1,45,000 includingthe dividend fromIndian companiesamounting to Rs.10,000. She investsRs. 50,000 in PPFduring the saidAssessment Year. hertax liabilit isRs. 1,000 Rs. 1,000Any contribution madeto a Public ProvidentFundIs eligible for rebateu/s 88Is eligible for rebate u/s88Multiple Choice Multiple AnswerQuestion Following incomes of local authorities are exempt :-Correct Answer Capital gains , Other income , House propertyYour Answer Capital gains , Other income , House propertyMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains theassessee should invest the whole or part of the capitalgains in the specified assets :-Correct Answer Within six months from the date of transfer of the longtermcapital assetYour Answer Within six months from the date of transfer of the longtermcapital assetTrue/FalseQuestion Income from partnership firms is exempt from taxationfor the partnersCorrect Answer TrueYour Answer False

LIST OF ATTEMPTED QUESTIONS AND ANSWERSSelect The BlankQuestion The basic advantage of having an agent in the export market is ________.Correct Answer He is knowledgeable of the marketing conditionYour Answer He is knowledgeable of the marketing conditionMultiple Choice Multiple AnswerQuestion How does the customer know about the product & is influenced to buy it?

Correct Answer Publicity , Advertising , Sales promotionYour Answer Publicity , Advertising , Sales promotionMultiple Choice Single AnswerQuestion Which of the following is not included in foreign environment?Correct Answer Local dimensionYour Answer Local dimensionMultiple Choice Single AnswerQuestion Why should a market researcher check a country's import tariffs when he isinvestigating it as an export market?Correct Answer It can affect the competitiveness of product against products made within themarketYour Answer It can affect the competitiveness of product against products made within themarketMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". What are thedistribution channels used for imports of silk products into USA market?Correct Answer Merchant intermediaries , Departmental storesYour Answer Merchant intermediaries , Departmental storesTrue/FalseQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental entered theUS market in 1970 with a moderate export of Rs.20 million.Correct Answer FalseYour Answer FalseMatch The FollowingQuestion Correct Answer Your AnswerIndirect exporting Home-based merchant CopyrightBusiness dimensions Channel network Channel networkLegal dimensions Copyright Use of patentLicensing arrangement Use of patent Home-based merchantMultiple Choice Single AnswerQuestion What is important to take pricing decision?Correct Answer CompetitionYour Answer CompetitionSelect The BlankQuestion In ________, the firm faces only one set of customers.Correct Answer Domestic marketingYour Answer Domestic marketingMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental was an activemember of some councils, which are those?Correct Answer Apparel Export Promotion Council , Woolen Export Promotion CouncilYour Answer Apparel Export Promotion Council , Woolen Export Promotion CouncilMultiple Choice Single AnswerQuestion This question is based on the case study 'AB Enterprises'. What is the problem inadapting AB Enterprises product in the market?Correct Answer Novelty is lost due to ethnic character in AB EnterprisesYour Answer Novelty is lost due to ethnic character in AB EnterprisesMultiple Choice Multiple AnswerQuestion What are the important infrastructure factors in evaluating production site?Correct Answer Industrial site , Transportation & communicationYour Answer Industrial site , Transportation & communicationMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Which are the twoyears the imports of silk fabrics from Japan by USA was almost same?Correct Answer 1982 , 1983Your Answer 1982 , 1983

Select The BlankQuestion ________dimensions include customs and practicesCorrect Answer BusinessYour Answer BusinessMultiple Choice Multiple AnswerQuestion What is the nature of direct export market?Correct Answer Concentrated , Large potential saleYour Answer Concentrated , Large potential saleMultiple Choice Single AnswerQuestion What does product-mix decision include?Correct Answer PackagingYour Answer PackagingMultiple Choice Multiple AnswerQuestion What are the internal sources of information?Correct Answer Sales record , Correspondence from salesmenYour Answer Sales record , Correspondence from salesmenTrue/FalseQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Mr.Patnaik felt that itwas high time that he appraises his agents' performance relating to the vast & expanding USmarket.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". What were the optionsMr.Patnaik had to operate in the US market?Correct Answer Opening a branch office , A subsidiary companyYour Answer Opening a branch office , A subsidiary companySelect The BlankQuestion In indirect export channel, the market is ________.Correct Answer DispersedYour Answer DispersedTrue/FalseQuestion Strategies suggested in the Medium Term Export Plan include product-marketpenetration strategy for existing products, product-market, diversification for new products & newmarkets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Why is packaging so important for product planning?Correct Answer As it enhances protection , As it gives shelf life for a productYour Answer As it enhances protection , As it gives shelf life for a productTrue/FalseQuestion If foreign retailers are used, the products in question are industrial products rather thanconsumer products.Correct Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion How is the nature of international strategy?Correct Answer Depends on company's objectives , Varies from country to countryYour Answer Depends on company's objectives , Varies from country to countrySelect The BlankQuestion "make site booking" is a point of checklist of ________Correct Answer Before the fairYour Answer Before the fair

Multiple Choice Single AnswerQuestion What marketing technique is used to know international marketing need?Correct Answer Marketing information & researchYour Answer Marketing information & researchMultiple Choice Multiple AnswerQuestion What are the benefits of participation in trade fair?Correct Answer To get to know about competition , To know about the extent of product adaptionYour Answer To get to know about competition , To know about the extent of product adaptionSelect The BlankQuestion Experience survey, which is also called as ________.Correct Answer Key informant surveyYour Answer Key informant surveyMultiple Choice Single AnswerQuestion What is a foreign agent?Correct Answer Independent middlemanYour Answer Independent middlemanMultiple Choice Single AnswerQuestion What does political environment include?Correct Answer Legal dimensionYour Answer Legal dimensionMatch The FollowingQuestion Correct Answer Your AnswerExternal factor Competitive profile Competitive profileEthnocentric orientation Overseas operation conducted from home country Overseas operationconducted from home countryPolycentric orientation Each market is unique Each market is uniqueTarget market Marketing strategy Marketing strategyTrue/FalseQuestion In marginal cost pricing for export, competition in foreign markets requires quotation of alower priceCorrect Answer TrueYour Answer TrueTrue/FalseQuestion Policies or regulations regarding quality control & inspection vary considerably betweennations.Correct Answer TrueYour Answer TrueSelect The BlankQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental Silk PrivateLimited, is a ________ unit, was one of the leading Indian manufacturers & exporters of silkfabrics & made-upsCorrect Answer 100% export orientedYour Answer 100% export orientedSelect The BlankQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". The bulk of the tradewas handled by ________Correct Answer Central buying organizationsYour Answer Foreign agentsTrue/FalseQuestion If business is variable, the company will choose the purchasing or subcontractingalternatives.Correct Answer TrueYour Answer TrueMultiple Choice Single Answer

Question What is the meaning of offshore purchasing?Correct Answer Relationship between independent buyer & seller for exchange of good formoneyYour Answer Relationship between independent buyer & seller for exchange of good for moneySelect The BlankQuestion Many companies modify their products/promotion strategies to suit ________ of thepopulation of the different countries.Correct Answer Tastes & preferencesYour Answer Tastes & preferencesTrue/FalseQuestion Companies with smaller needs, an independent supplier will be less active.Correct Answer FalseYour Answer FalseTrue/FalseQuestion Catalogues contain a list of all competitors with product details.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion What is correct according to geocentric orientation?Correct Answer Companies view the entire world as a single market , Uniform inventorymanagement & trainingYour Answer Companies view the entire world as a single market , Uniform inventorymanagement & trainingTrue/FalseQuestion The area of change relates to product adaption requires upgradation of technology andhuge investment in brands.Correct Answer TrueYour Answer TrueSelect The BlankQuestion This question is based on the case study "Chow Flowers Co. Ltd.". ________ wasThailand's second largest export market for artificial flowers, mostly polyester or hand-wrapped.Correct Answer CanadaYour Answer CanadaMultiple Choice Single AnswerQuestion What are the similarities between domestic & international marketing?Correct Answer Satisfying consumers needYour Answer Satisfying consumers needMultiple Choice Single AnswerQuestion What is the need of marketing research for export-import trade?Correct Answer To reduce the distance between an exporter & his customers in terms ofmarketingYour Answer To reduce the distance between an exporter & his customers in terms of marketingMultiple Choice Single AnswerQuestion What is the avenue of entry into foreign markets?Correct Answer Contract manufacturingYour Answer Contract manufacturingMultiple Choice Single AnswerQuestion What is the principal functional division of ministry of commerce & industry?Correct Answer Export Industries DivisionYour Answer Export Industries Division

Multiple Choice Multiple AnswerQuestion 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 difficultYour Answer Limited number of clusters due to limitation of market potential , Clusters are notwater tight compartment , Evaluating the quality of cluster is difficultMultiple Choice Single AnswerQuestion Clarity of questions and instructions for filling the form is essential in :-Correct Answer Mail surveyYour Answer Data analysisMultiple Choice Single AnswerQuestion The technique through which objects/ cases are classified into relative homogeneousgroups or clusters is known as :-Correct Answer Cluster analysisYour Answer Cluster analysisMultiple Choice Single AnswerQuestion Mean or average value is used to estimate when data have been collected using :-Correct Answer Interval or ratio scaleYour Answer Interval or ratio scaleSelect The BlankQuestion In ________ method the research analyst is not concerned with cause and researchrelationship.Correct Answer DiagnosticYour Answer DiagnosticMultiple Choice Multiple AnswerQuestion Which are the New Delhi based Research Institutions?Correct Answer NRDC , CSIR , Cement Research Institute of IndiaYour Answer NRDC , CSIR , Cement Research Institute of IndiaMultiple Choice Single AnswerQuestion Market Research is done toCorrect Answer Explore the OpportunitiesYour Answer Explore the OpportunitiesTrue/FalseQuestion "Consumer Panel" is a specialized market research technique.Correct Answer FalseYour Answer FalseMatch The FollowingQuestion Correct Answer Your Answer"What might this be ?" Inkblot test Inkblot testAided Recall Depth Research Depth ResearchDoesn’t intend to tell Projective techniques Projective techniquesEase of construction Likert scale Likert scaleTrue/FalseQuestion In regression analysis, dependent variables can be expressed as a linear function ofimpendent variables.Correct Answer TrueYour Answer TrueTrue/FalseQuestion When company prepares a long range plan it is unpublished internal source ofinformation.Correct Answer TrueYour Answer TrueSelect The BlankQuestion Association technique is a type of ________.Correct Answer Projective techniqueYour Answer Projective techniqueMultiple Choice Single AnswerQuestion The impact of promotional slogans on the consumers can be studied withCorrect Answer Association techniqueYour Answer Association technique

True/FalseQuestion Brand image building is not important in case of industrial product for quality.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Which publications are used for research on Chemical Industry?Correct Answer Indian Chemical Directory , Chemical Industry News , Chemical & PetroChemicals JournalYour Answer Indian Chemical Directory , Chemical Industry News , Chemical & Petro ChemicalsJournalMultiple Choice Single AnswerQuestion Spreading the sample through the entire population following a regular pattern is knownas :-Correct Answer Systematic samplingYour Answer Systematic samplingSelect The BlankQuestion In absence of proper________ the market research becomes a data collection exercise.Correct Answer Problem DefinitionYour Answer AnalysisMultiple Choice Multiple AnswerQuestion Which institutions should be contacted for research on Paint Chemicals?Correct Answer National Chemical Laboratory, Pune , Industrial Research & Development Center, Building Research InstituteYour Answer National Chemical Laboratory, Pune , Industrial Research & Development Center ,Building Research InstituteMultiple Choice Multiple AnswerQuestion The objectives of marketing research areCorrect Answer To understand the consumer needs and wants , To explore the new markets , Toanalyze the competitorsYour Answer To understand the consumer needs and wants , To explore the new markets , Toanalyze the competitorsMultiple Choice Single AnswerQuestion Ultra violet ink is used to disguise customer coding. This activity is :-Correct Answer A disapproved methodYour Answer A disapproved methodSelect The BlankQuestion Through cluster analysis objects/cases are classified into relatively________ groupcalled cluster.Correct Answer HomogeneousYour Answer HomogeneousMatch The FollowingQuestion Correct Answer Your AnswerDangler POP POPPOP Communication medium Communication mediumOpinion Polls Daily basis Daily basisCorporate Image Study Advertising research Advertising researchMultiple Choice Multiple AnswerQuestion Ethical issues to be observed while writing a report are :-Correct Answer No deliberate misinterpretations , Marketing problems should be designed to suithidden agenda , Complete confidentiality and secrecy of dataYour Answer No deliberate misinterpretations , Marketing problems should be designed to suit

hidden agenda , Complete confidentiality and secrecy of dataSelect The BlankQuestion Multiple Choice is a ________type of question.Correct Answer Close endedYour Answer Close endedMultiple Choice Single AnswerQuestion The conjoint analysis helps to enable company's to :-Correct Answer Conduct brand swot analysisYour Answer Conduct brand swot analysisMultiple Choice Single AnswerQuestion In the Internet era, qualitative research is possible through :-Correct Answer Chat sessionsYour Answer Chat sessionsSelect The BlankQuestion ________is an important communication medium that helps recall advertising.Correct Answer Point of Purchase(POP)itemsYour Answer Point of Purchase(POP)itemsTrue/FalseQuestion In the Funnel approach, specific questions come first and general questions later.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion In resources for marketing research skilled staff plays an important role in :-Correct Answer Maintaining data , Dealing with different situation and problems , Timelycompletion of researchYour Answer Maintaining data , Dealing with different situation and problems , Timely completionof researchSelect The BlankQuestion Convenience Sampling is used for ________.Correct Answer Exploratory researchYour Answer Exploratory researchTrue/FalseQuestion The person conducting pharma research should be well qualified so that not to wasteDoctors time.Correct Answer TrueYour Answer TrueTrue/FalseQuestion The limitations with regression forecasting is that independent variables must beforecasted before forecasting the dependent variables.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Main features of Technical Report are :-Correct Answer Minute details of planning data collection , Analysis , InterpretationYour Answer Minute details of planning data collection , Analysis , InterpretationMultiple Choice Single AnswerQuestion How people allocate their time and money to certain products and factors is depicted byCorrect Answer Psychographic VariableYour Answer Psychographic VariableTrue/FalseQuestion Question phrasing and structure are eliminated in Semantic differential scale.Correct Answer TrueYour Answer TrueTrue/FalseQuestion The popularity of Likert scale is due to its ease of construction and administration.

Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Which are the Export Promotion Councils?Correct Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem& Jewellery Export Promotion CouncilYour Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem &Jewellery Export Promotion CouncilTrue/FalseQuestion The written contract of a research should cover the penalty clause covering deficitssuch as delays, inadequate data.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion The producers in the sellers' market are also forced to take decisions based on themarket information becauseCorrect Answer The resources are scarceYour Answer The resources are scarceMultiple Choice Single AnswerQuestion Scale Intervals can be used forCorrect Answer AgeYour Answer AgeSelect The BlankQuestion Bibliography contains ________.Correct Answer Information of references and secondary dataYour Answer Information of references and secondary dataMultiple Choice Multiple AnswerQuestion Online survey methods include :-Correct Answer Email survey , HTML survey , Downloadable interactive surveysYour Answer Email survey , HTML survey , Downloadable interactive surveysMultiple Choice Single AnswerQuestion Data of market research cannot be maintained :-Correct Answer Without experienced and educated research staffYour Answer Without experienced and educated research staffMultiple Choice Multiple AnswerQuestion Pretesting of Questionnaire includes testing of :-Correct Answer Question content , Time taken to answer questions , CategorizationYour Answer Question content , Time taken to answer questions , CategorizationMultiple Choice Multiple AnswerQuestion Identification of Target Population is facilitated by :-Correct Answer Well defined research objectives , Alternative, reasonable/target populationdefinitions , Specifications for exclusion in target populationYour Answer Well defined research objectives , Alternative, reasonable/target populationdefinitions , Specifications for exclusion in target populationSelect The BlankQuestion ________are used for National Panel Studies.Correct Answer Quota controlsYour Answer Quota controlsSelect The BlankQuestion Finding out the number of vehicles at a given junction is a ________ method.Correct Answer Direct ObservationYour Answer Direct Observation

Multiple Choice Multiple AnswerQuestion The entertainment allowance received by theGovernment employees is included in their salariesand 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 SalaryYour Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of SalaryTrue/FalseQuestion Income Tax Act, 1961 recognizes Written Down Value(WDV) method as well as straight line method for thecomputation of depreciation u/s 32 this act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Profits earned by an Industrial Undertaking engagedin other than infrastructure development is availableunder Section 80IB for :-Correct Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimage , Company engaged inscientific and industrial researchYour Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimageMultiple Choice Single AnswerQuestion Which of the following expenditure is in the nature ofrevenue expenditure?Correct Answer Expenditure incurred as discount on issue ofdebenturesYour Answer Expenditure incurred as discount on issue ofdebenturesSelect The BlankQuestion If sum received is net of TDS then it is ________ toinclude in income from other sources.Correct Answer Grossed upYour Answer Grossed upTrue/FalseQuestion Interest paid on the loan for acquiring a capital assetwill be considered to be a part of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowingdeductions under Chapter VI-A is Rs. 1,45,000, wantsto make the investments in the following alternativeforms Rs. 80,000 in PPF and Rs. 20,000 inInfrastructure Bonds. The amount of rebate availableto him u/s 88 is :-Correct Answer Rs. 18,000Your Answer Rs. 18,000Multiple Choice Single AnswerQuestion Interest on specified securities or premium onredemption is exempt for :-Correct Answer Non resident IndianYour Answer Non resident IndianTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block ofAssets includes both tangible as well as intangibleassets.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Deductions in respect of Certain Incomes receivedunder Section 80L is available in respect ofCorrect Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestYour Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusMultiple Choice Multiple AnswerQuestion For the purpose of income tax, the perquisites can beclassified into :-Correct Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeYour Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeSelect The BlankQuestion For an individual as a citizen of India who leaves Indiain the relevant previous year for the purpose ofemployment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in:-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Multiple AnswerQuestion Following professional institutions have their incomesexempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingSelect The BlankQuestion ________ of the Tax Audit Report refers to the detailsof various payments which are allowed as deductiononly if they are actually paid for.Correct Answer Section 43B Clause No-21Your Answer Section 43B Clause No-21Multiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsSelect The BlankQuestion To claim sec 10A deduction unit must be establishedin ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneMultiple Choice Single Answer

Question Assessment year is the period of 12 months startingfrom :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion If an employee does not avail of this leave travelconcession or assistance during a block of fourcalendar years :-Correct Answer Only one journey can be carried forward to the nextblock.Your Answer Only one journey can be carried forward to the nextblock.Select The BlankQuestion To acquire PAN, a person shall apply in ________ tothe assessing officer.Correct Answer Form No. 49AYour Answer Form No. 49AMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54F is forCapital Gains arising from transfer of :-Correct Answer Any Long Term Capital AssetYour Answer House PropertySelect The BlankQuestion Where an assessee files or submits the returns as perprovisions of section 139 or in response to the noticeunder section 142, the assessment officer undertakes________ as per section 143(2) and section 143(3).Correct Answer Scrutiny AssessmentYour Answer Scrutiny AssessmentMultiple Choice Multiple AnswerQuestion Income of a professional association is exempt if itsobjectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementTrue/FalseQuestion While computing the profits from Business andprofession, the business or profession must be carriedout during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A hasavailed the exemption only once or has not availedany 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 offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Your Answer He can carry over the exemption to the next block offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.

Multiple Choice Multiple AnswerQuestion The amount accumulated to the credit of theemployee's provident fund account is paid at the timeof :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital ,Municipal taxesYour Answer Interest on borrowed capital , Municipal taxesMultiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages,Dearness Allowance and Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion From GTI of a company following deductions underchapter VI A are allowedCorrect Answer 80 G Donations , 80 HHB profits and gains fromprojects outside India , 80 IA profits and gains ofinfrastructure companiesYour Answer 80 G Donations , 80 IA profits and gains ofinfrastructure companiesMultiple Choice Single AnswerQuestion Annual value of any one palace in possession of aformer ruler is :-Correct Answer ExemptYour Answer TaxableSelect The BlankQuestion If the Salary is more than Rs. 5,00,000, StandardDeduction will be Rs.________.Correct Answer 20000Your Answer 20000Multiple Choice Single AnswerQuestion The amount of accumulated interest on NSCspurchased in the earlier years is assumed to bereinvested :-Correct Answer And qualifies for tax rebate under section 88.Your Answer And qualifies for tax rebate under section 88.Select The BlankQuestion Deduction u/s ________B is available for 10consequent assessment years from the year ofcommencement of production.Correct Answer 10Your Answer 10True/FalseQuestion Income from subletting is treated as income fromhouse property.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Section 80U allows the deduction in respect of the________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMatch The Following

Question Correct Answer Your AnswerDisallowableExpenditureLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtBusiness Includes trade,commerce, orIncludes trade,commerce, ormanufacture or anyadventure or concernin the nature of trade,commerce ormanufacturemanufacture or anyadventure or concern inthe nature of trade,commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurredby a company with theissue of rights sharesPremium onredemption ofDebenturesTrue/FalseQuestion Any recreational facility provided by the employer to agroup of employees (not being restricted to a selectfew employees) is not exempt from tax.Correct Answer FalseYour Answer FalseTrue/FalseQuestion In case of deductions for medical treatment underSection 80DDB the amount of deduction will bereduced by the amount received under an insurancepolicy or the amount reimbursed by the employer.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Any advance tax paid before 31st March is treated asadvance tax paid during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Municipal taxes paid is allowed as deduction from :-Correct Answer Gross annual valueYour Answer Gross annual valueTrue/False

Question Entertainment Allowance received by the employeesfrom the private sector is taxable in the hands of theemployee.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerAny subscription madeto National SavingSchemeBy an individual or aHUF is eligible forrebate u/s 88By an individual or aHUF is eligible forrebate u/s 88Mr. A, a 70 years oldSenior Citizen, has theGross Total Income ofRs. 2,50,000 duringthe Assessment Year2005-2006. Heinvested Rs. 50,000 inthe tax saving bonds ofICICI on 10th June2004. His tax liabilityfor the A Y 2005-2006.RS.12,500 RS.12,500During theAssessment Year2005-2006, Mrs. A,age 58 years, has theGross Total Income ofRs. 1,45,000 includingthe dividend fromIndian companiesamounting to Rs.10,000. She investsRs. 50,000 in PPFduring the saidAssessment Year. hertax liabilit isRs. 1,000 Rs. 1,000Any contribution madeto a Public ProvidentFundIs eligible for rebateu/s 88Is eligible for rebate u/s88Multiple Choice Multiple AnswerQuestion Following incomes of local authorities are exempt :-Correct Answer Capital gains , Other income , House propertyYour Answer Capital gains , Other income , House propertyMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains theassessee 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 longtermcapital assetYour Answer Within six months from the date of transfer of the longtermcapital assetTrue/FalseQuestion Income from partnership firms is exempt from taxationfor the partnersCorrect Answer TrueYour Answer False

True/FalseQuestion Deductions for income tax, payable by the employed person ispermissible.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Proxy form should be deposited with the company :-Correct Answer 48 hours before the meetingYour Answer 48 hours before the meetingMatch The FollowingQuestion Correct Answer Your AnswerDeduction for absence ofdutySection 9 Section 9Deductions for payment toinsurance and post officeSection 7(2) Section 7(2)Amendment to pay bycheques1976 Amendment to pay by cashFine Section 8 Section 8Multiple Choice Single AnswerQuestion To whom does the payment of wages act apply to ?Correct Answer Persons employed in any factoryYour Answer Persons employed in any factorySelect The BlankQuestion A person who stands for directorship other than retiring directorhas to give notice to the company at least ________ before thedate of general meeting.Correct Answer 14 daysYour Answer 7 daysMultiple Choice Single AnswerQuestion Audit committee shall consist of not less than :-Correct Answer Three directorsYour Answer Three directorsTrue/FalseQuestion A temporary workman is not entitled to bonus though he worksfor a few days in the organisation.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Who is entitled to bonus?Correct Answer Temporary workmen , Part time employee , RetrenchedemployeeYour Answer Temporary workmen , Part time employee , Retrenchedemployee

Multiple Choice Single AnswerQuestion A director is deemed to be interested in a contract if he holdspaid up capital of the company exceeding :-Correct Answer 0.02Your Answer 0.02Select The BlankQuestion To avoid conflicts of interest, ________ committee woulddetermine the remuneration packages of the executive directors.Correct Answer RemunerationYour Answer ManagementMultiple Choice Single AnswerQuestion If an auditor after his appointment becomes subject to any of thedisqualifications, it is treated that the office is :-Correct Answer VacatedYour Answer VacatedSelect The BlankQuestion Free selling/drawl of foreign exchange to authorized dealer(AD)for ________.Correct Answer Current accountYour Answer Current accountMultiple Choice Single AnswerQuestion What is the minimum salary under which the persons arecovered in this act?Correct Answer Less than Rs 1600Your Answer Less than Rs 1200/-Multiple Choice Single AnswerQuestion In case a company has an executive director, how muchpercentage of the board of Directors should comprise ofindependent directors?Correct Answer 0.5Your Answer 0.5True/FalseQuestion Acquiring foreign security on gift is allowed.Correct Answer TrueYour Answer FalseTrue/FalseQuestion An employee employed through contractors on buildingoperations is entitled to bonus.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Borrowings for Indian companies are for :-Correct Answer In Rupees , On repatriation , Non-repatriationYour Answer In Rupees , On repatriationTrue/FalseQuestion An apprentice is not entitled to bonus.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion FEMA allows free selling of foreign exchange to/from whom fromcurrent transaction?Correct Answer Authorised DealerYour Answer Authorised DealerMultiple Choice Single AnswerQuestion Define an employed person under section 2 of the act.Correct Answer Includes legal representative of a deceased employed personYour Answer Any establishment

Select The BlankQuestion A member shall have right to apply for operations andmismanagement of the company provided application is madebymembers not less than ________ or by the members holdingnot less than one tenth of total number of shares in the sharecapital of the company.Correct Answer 100Your Answer 100Multiple Choice Multiple AnswerQuestion Who has not prescribed particular set of documentation forcurrent account remittances?Correct Answer RBI , Central Govt.Your Answer RBI , Central Govt.Select The BlankQuestion The uses and applications of the funds raised shall be disclosedto the audit committee on a ________basis.Correct Answer QuarterlyYour Answer YearlySelect The BlankQuestion For Special Resolution, votes cast in favour of the resolutionshould be ________ times more than votes cast against theresolution.Correct Answer 3Your Answer 3Multiple Choice Multiple AnswerQuestion Object Clauses are divided into :-Correct Answer Main Object , Object incidental or ancillary to Main , OtherObjectsYour Answer Main Object , Object incidental or ancillary to Main , OtherObjectsTrue/FalseQuestion Charge includes Mortgage.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion When was the factories act passed?Correct Answer In 1948Your Answer In 1948Multiple Choice Multiple AnswerQuestion Public limited company's directors have following conditions :-Correct Answer Minimum number is three , Should be individuals , Have soundmindYour Answer Minimum number is three , Should be individuals , Have soundmindTrue/FalseQuestion Government can authorise for supply of essential commodities atconcessional rates and pay wages in kind.Correct Answer TrueYour Answer TrueSelect The BlankQuestion A ________ shall not be made for the appointment of two ormore persons as directors of the company by single resolution inany general meeting of public company, unless resolution hasbeen agreed by meeting without any vote being given against it.Correct Answer MotionYour Answer ResolutionSelect The Blank

Question Preference shareholders have ________ to get dividend overequity share holders.Correct Answer Preferential rightYour Answer Preferential rightMultiple Choice Multiple AnswerQuestion What is the manner of fixation of minimum wages?Correct Answer Time work known as minimum time rate , Piece work known asminimum piece rate , Guaranteed time rate for those employedin piece work for the purpose of securing to such employees aminimum rate of wages on time work basisYour Answer Time work known as minimum time rate , Piece work known asminimum piece rate , Guaranteed time rate for those employedin piece work for the purpose of securing to such employees aminimum rate of wages on time work basisMultiple Choice Multiple AnswerQuestion Form No. 1 can be signed by :-Correct Answer Chartered Accountant , Cost & Works Accountant , AdvocateYour Answer Chartered Accountant , Cost & Works Accountant , AdvocateMultiple Choice Single AnswerQuestion When was the minimum wages act passed ?Correct Answer 1948Your Answer 1948Select The BlankQuestion Director has to vacate his office, if he has been ________ by acourt of any offence involving moral turpitude.Correct Answer ConvictedYour Answer ConvictedMatch The FollowingQuestion Correct Answer Your AnswerSection 2(vi) Wages WagesWages act 1936 1936Factories act 1948 1948Section 3 of wages act Every employerresponsible for payment toemployed personsEvery employerresponsible for payment toemployed personsMultiple Choice Single AnswerQuestion The Board of directors of the company has power to appoint anadditional director :-Correct Answer Up to maximum permissible limitYour Answer Up to maximum permissible limitSelect The BlankQuestion The Forms 8 &13 should be filed in ________ to ragistrar ofcompanies.Correct Answer TriplicateYour Answer TriplicateMultiple Choice Multiple AnswerQuestion Retiring director shall be deemed to be reappointed unless :-Correct Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lostYour Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lostMultiple Choice Single Answer

Question Payment of wages act came into existence :-Correct Answer To ensure regular and timely payment of wages to employedpersonsYour Answer To ensure regular and timely payment of wages to employedpersonsMultiple Choice Single AnswerQuestion What is computed by the competent authority at concessionalrates?Correct Answer Cost of living allowance and cash valueYour Answer Cost of living allowance and cash valueMultiple Choice Single AnswerQuestion Minimum gap required between date of dispatch of notice anddate of AGM is :-Correct Answer 25 daysYour Answer 21 daysMultiple Choice Single AnswerQuestion In which case did the Bombay high court observe the generalpurpose of the act?Correct Answer Arvind mills ltd caseYour Answer Arvind mills ltd caseMultiple Choice Single AnswerQuestion Settlement of gift or lawful obligation shall be surrendered within:-Correct Answer Seven daysYour Answer Four daysMultiple Choice Multiple AnswerQuestion Board's Report shall include :-Correct Answer Dividend recommended , Financial position of the company ,Amounts transferred to ReservesYour Answer Dividend recommended , Taxes paid , Financial position of thecompanyTrue/FalseQuestion The independent director is a supplier of a service provider ofthe company.Correct Answer FalseYour Answer FalseSelect The BlankQuestion WOS can make payment of royalty by ________ route.Correct Answer Automatic routeYour Answer Automatic routeLIST OF ATTEMPTED QUESTIONS AND ANSWERSTrue/FalseQuestion Deductions for income tax, payable by the employed person ispermissible.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Proxy form should be deposited with the company :-Correct Answer 48 hours before the meetingYour Answer 48 hours before the meetingMatch The FollowingQuestion Correct Answer Your AnswerDeduction for absence ofdutySection 9 Section 9Deductions for payment toinsurance and post office

Section 7(2) Section 7(2)Amendment to pay bycheques1976 Amendment to pay by cashFine Section 8 Section 8Multiple Choice Single AnswerQuestion To whom does the payment of wages act apply to ?Correct Answer Persons employed in any factoryYour Answer Persons employed in any factorySelect The BlankQuestion A person who stands for directorship other than retiring directorhas to give notice to the company at least ________ before thedate of general meeting.Correct Answer 14 daysYour Answer 7 daysMultiple Choice Single AnswerQuestion Audit committee shall consist of not less than :-Correct Answer Three directorsYour Answer Three directorsTrue/FalseQuestion A temporary workman is not entitled to bonus though he worksfor a few days in the organisation.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Who is entitled to bonus?Correct Answer Temporary workmen , Part time employee , RetrenchedemployeeYour Answer Temporary workmen , Part time employee , RetrenchedemployeeMultiple Choice Single AnswerQuestion A director is deemed to be interested in a contract if he holdspaid up capital of the company exceeding :-Correct Answer 0.02Your Answer 0.02Select The BlankQuestion To avoid conflicts of interest, ________ committee woulddetermine the remuneration packages of the executive directors.Correct Answer RemunerationYour Answer ManagementMultiple Choice Single AnswerQuestion If an auditor after his appointment becomes subject to any of thedisqualifications, it is treated that the office is :-Correct Answer VacatedYour Answer VacatedSelect The BlankQuestion Free selling/drawl of foreign exchange to authorized dealer(AD)for ________.Correct Answer Current accountYour Answer Current accountMultiple Choice Single AnswerQuestion What is the minimum salary under which the persons arecovered in this act?Correct Answer Less than Rs 1600Your Answer Less than Rs 1200/-Multiple Choice Single AnswerQuestion In case a company has an executive director, how much

percentage of the board of Directors should comprise ofindependent directors?Correct Answer 0.5Your Answer 0.5True/FalseQuestion Acquiring foreign security on gift is allowed.Correct Answer TrueYour Answer FalseTrue/FalseQuestion An employee employed through contractors on buildingoperations is entitled to bonus.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Borrowings for Indian companies are for :-Correct Answer In Rupees , On repatriation , Non-repatriationYour Answer In Rupees , On repatriationTrue/FalseQuestion An apprentice is not entitled to bonus.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion FEMA allows free selling of foreign exchange to/from whom fromcurrent transaction?Correct Answer Authorised DealerYour Answer Authorised DealerMultiple Choice Single AnswerQuestion Define an employed person under section 2 of the act.Correct Answer Includes legal representative of a deceased employed personYour Answer Any establishmentSelect The BlankQuestion A member shall have right to apply for operations andmismanagement of the company provided application is madebymembers not less than ________ or by the members holdingnot less than one tenth of total number of shares in the sharecapital of the company.Correct Answer 100Your Answer 100Multiple Choice Multiple AnswerQuestion Who has not prescribed particular set of documentation forcurrent account remittances?Correct Answer RBI , Central Govt.Your Answer RBI , Central Govt.Select The BlankQuestion The uses and applications of the funds raised shall be disclosedto the audit committee on a ________basis.Correct Answer QuarterlyYour Answer YearlySelect The BlankQuestion For Special Resolution, votes cast in favour of the resolutionshould be ________ times more than votes cast against theresolution.Correct Answer 3Your Answer 3Multiple Choice Multiple AnswerQuestion Object Clauses are divided into :-Correct Answer Main Object , Object incidental or ancillary to Main , Other

ObjectsYour Answer Main Object , Object incidental or ancillary to Main , OtherObjectsTrue/FalseQuestion Charge includes Mortgage.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion When was the factories act passed?Correct Answer In 1948Your Answer In 1948Multiple Choice Multiple AnswerQuestion Public limited company's directors have following conditions :-Correct Answer Minimum number is three , Should be individuals , Have soundmindYour Answer Minimum number is three , Should be individuals , Have soundmindTrue/FalseQuestion Government can authorise for supply of essential commodities atconcessional rates and pay wages in kind.Correct Answer TrueYour Answer TrueSelect The BlankQuestion A ________ shall not be made for the appointment of two ormore persons as directors of the company by single resolution inany general meeting of public company, unless resolution hasbeen agreed by meeting without any vote being given against it.Correct Answer MotionYour Answer ResolutionSelect The BlankQuestion Preference shareholders have ________ to get dividend overequity share holders.Correct Answer Preferential rightYour Answer Preferential rightMultiple Choice Multiple AnswerQuestion What is the manner of fixation of minimum wages?Correct Answer Time work known as minimum time rate , Piece work known asminimum piece rate , Guaranteed time rate for those employedin piece work for the purpose of securing to such employees aminimum rate of wages on time work basisYour Answer Time work known as minimum time rate , Piece work known asminimum piece rate , Guaranteed time rate for those employedin piece work for the purpose of securing to such employees aminimum rate of wages on time work basisMultiple Choice Multiple AnswerQuestion Form No. 1 can be signed by :-Correct Answer Chartered Accountant , Cost & Works Accountant , AdvocateYour Answer Chartered Accountant , Cost & Works Accountant , AdvocateMultiple Choice Single AnswerQuestion When was the minimum wages act passed ?Correct Answer 1948Your Answer 1948Select The BlankQuestion Director has to vacate his office, if he has been ________ by acourt of any offence involving moral turpitude.Correct Answer ConvictedYour Answer Convicted

Match The FollowingQuestion Correct Answer Your AnswerSection 2(vi) Wages WagesWages act 1936 1936Factories act 1948 1948Section 3 of wages act Every employerresponsible for payment toemployed personsEvery employerresponsible for payment toemployed personsMultiple Choice Single AnswerQuestion The Board of directors of the company has power to appoint anadditional director :-Correct Answer Up to maximum permissible limitYour Answer Up to maximum permissible limitSelect The BlankQuestion The Forms 8 &13 should be filed in ________ to ragistrar ofcompanies.Correct Answer TriplicateYour Answer TriplicateMultiple Choice Multiple AnswerQuestion Retiring director shall be deemed to be reappointed unless :-Correct Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lostYour Answer He has expressed his unwillingness to be re-appointed , He isdisqualified for appointment , Resolution for reappointment hasbeen put to vote & lostMultiple Choice Single AnswerQuestion Payment of wages act came into existence :-Correct Answer To ensure regular and timely payment of wages to employedpersonsYour Answer To ensure regular and timely payment of wages to employedpersonsMultiple Choice Single AnswerQuestion What is computed by the competent authority at concessionalrates?Correct Answer Cost of living allowance and cash valueYour Answer Cost of living allowance and cash valueMultiple Choice Single AnswerQuestion Minimum gap required between date of dispatch of notice anddate of AGM is :-Correct Answer 25 daysYour Answer 21 daysMultiple Choice Single AnswerQuestion In which case did the Bombay high court observe the generalpurpose of the act?Correct Answer Arvind mills ltd caseYour Answer Arvind mills ltd caseMultiple Choice Single AnswerQuestion Settlement of gift or lawful obligation shall be surrendered within:-Correct Answer Seven daysYour Answer Four daysMultiple Choice Multiple AnswerQuestion Board's Report shall include :-

Correct Answer Dividend recommended , Financial position of the company ,Amounts transferred to ReservesYour Answer Dividend recommended , Taxes paid , Financial position of thecompanyTrue/FalseQuestion The independent director is a supplier of a service provider ofthe company.Correct Answer FalseYour Answer FalseSelect The BlankQuestion WOS can make payment of royalty by ________ route.Correct Answer Automatic routeYour Answer Automatic route

Question As a general principle, the Basic Salary or Wages, DearnessAllowance and Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Select The BlankQuestion If assessee owns more than one house properties, he can get benefitof nil annual value for any one house property ________.Correct Answer As per his choiceYour Answer As per his choiceTrue/FalseQuestion Any recreational facility provided by the employer to a group ofemployees (not being restricted to a select few employees) is notexempt from tax.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion What are the types of Provident Fund?Correct Answer Statutory Provident Fund , Recognized Provident Fund ,Unrecognized Provident FundYour Answer Statutory Provident Fund , Recognized Provident Fund ,Unrecognized Provident FundMultiple Choice Multiple AnswerQuestion The least of the following is the exemption available to an employee ifhe 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 theaccommodation is situated at any other place. , Actual amount ofHRA received by the employee. , Excess of rent paid over 10% of theSalary.Your Answer 50% of the Salary where such accommodation is situated in Mumbai,Kolkata, Chennai and Delhi and 40% of the Salary when theaccommodation is situated at any other place. , Actual amount ofHRA received by the employee. , Excess of rent paid over 10%of theSalary.Multiple Choice Multiple AnswerQuestion To get deduction of Rs 150000/- as interest on borrowed capitalassessee needs to satisfy conditions i.e. :-Correct Answer Borrowal is after 1st April 1999 , Construction is completed in 3 yearsYour Answer Borrowal is after 1st April 1999 , Construction is completed in 3 yearsMultiple Choice Multiple AnswerQuestion The entertainment allowance received by the Government employeesis included in their salaries and the deduction is allowed to the extentof least of the following amounts :-

Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.Select The BlankQuestion Section 35AC of the Act applies to any sum paid by the assessee toa public sector company or a local authority or an associationapproved by the national committee for ________ for carrying outany project in upliftment of public.Correct Answer Promotion of social and economic welfareYour Answer Promotion of social and economic welfareMultiple Choice Single AnswerQuestion The provisions under section 44AB of the Act, is applicable to theperson carrying on the profession and whose gross receipts inprofession :-Correct Answer Exceeds Rs.10 lakhs in any previous yearYour Answer Exceeds Rs.40 lakhs in any previous yearMultiple Choice Multiple AnswerQuestion As per the provision of section 143(2) and 143(3) scrutinyassessment made by assessing officer in order to ensure that :-Correct Answer Assessee has not understated the income , Assessee has notoverstated the loss , Assessee has under paid the taxesYour Answer Assessee has not understated the income , Assessee has notoverstated the loss , Assessee has under paid the taxes , Assesseehas not been allotted the PANMultiple Choice Single AnswerQuestion Annual value of any one palace in possession of a former ruler is :-Correct Answer ExemptYour Answer ExemptTrue/FalseQuestion Interest paid on the loan for acquiring a capital asset will not beconsidered to be a part of cost of acquisition.Correct Answer FalseYour Answer TrueMultiple Choice Single AnswerQuestion Previous year always ends on :-Correct Answer 31st MarchYour Answer 31st MarchMultiple Choice Multiple AnswerQuestion Perquisites which are taxable only in the hands of specified employeeinclude the following categories of perquisites :-Correct Answer Motor Car , Services of sweeper, gardener, watchman or personalattendant , Gas, electricity and water provided for personalconsumptionYour Answer Motor Car , Services of sweeper, gardener, watchman or personalattendant , Gas, electricity and water provided for personalconsumptionSelect The BlankQuestion Short term Capital Gains is taxed at ________.Correct Answer Normal Tax ratesYour Answer Normal Tax ratesMultiple Choice Single AnswerQuestion Income of notified news agencies is exempt provided :-Correct Answer They apply their income for collection & distribution of newsYour Answer They apply their income for collection & distribution of newsTrue/FalseQuestion 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 tothe Tax Audit Report.Correct Answer TrueYour Answer TrueTrue/FalseQuestion If an assessee gets the salary from more than one employer duringan Assessment Year, Salary received from all the employers will beaggregated and then the Standard Deduction will be allowed.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion The amount accumulated to the credit of the employee's providentfund account is paid at the time of :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assesseesbefore 15th September of Previous year is :-Correct Answer 30% of advance tax payableYour Answer 30% of advance tax payableMultiple Choice Multiple AnswerQuestion Any loans or deposits borrowed or repaid under section 269SS of theAct provides that the said provisions will not apply to the loans ordeposits accepted by :-Correct Answer Government , Government company , Banking company includingcooperative bank and post office savings bankYour Answer Government , Government company , Banking company includingcooperative bank and post office savings bankMultiple Choice Single AnswerQuestion The amount of advance tax payable by corporate assessees before15th March of Previous year is :-Correct Answer 100% of advance tax payableYour Answer 100% of advance tax payableMultiple Choice Single AnswerQuestion The due date prescribed for filing the returns of income in Form No.2C isCorrect Answer 31st October of the respective Assessment yearYour Answer 31st October of the respective Previous yearTrue/FalseQuestion The amount of expenses including membership fees and annual feesincurred by the employee on credit card and which are paid by theemployer shall be added as the perquisites unless the said expensesare incurred wholly and exclusively for official purposes.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion 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 TaxYour Answer Wealth Tax , Revenue expenditure , Personal expenditureMultiple Choice Single AnswerQuestion The provisions regarding set off and carry forward of loses arecontained 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.Multiple Choice Single AnswerQuestion A partnership firm is an agreement between not more than :-

Correct Answer 20 personsYour Answer 20 personsMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54B is for Capital Gainsarising from transfer of :-Correct Answer Agricultural LandYour Answer Long Term Capital Asset other than House PropertySelect The BlankQuestion To acquire PAN, a person shall apply in ________ to the assessingofficer.Correct Answer Form No. 49AYour Answer Form No. 49AMultiple Choice Multiple AnswerQuestion Any amount deposited by an Individual or a HUF in 10 year or 15year 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. , Spouseof individualTrue/FalseQuestion While computing the profits from Business and profession, thebusiness or profession must be carried out during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Following news agencies are specified by the Central Government asspecified news agencies :-Correct Answer UNI , PTIYour Answer PTI , NDTVSelect The BlankQuestion Any expenditure incurred by the assessee for any purpose which is________ or which is prohibited by law shall not be allowed asbusiness expenditureCorrect Answer OffenceYour Answer Anti socialTrue/FalseQuestion If assessee owns more than one house properties, annual value ofany one of the house property can be treated as nil, and such optioncan be changed year on year basis.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerSuperannuation Fund It is an employee welfareschemeIt is an employee welfareschemeStatutory Provident Fund This is set up as per theprovisions of ProvidentFund Act, 1925.This is set up as per theprovisions of Provident FundAct, 1925.Recognized Provident Fund the provisions ofEmployees Provident Fundand MiscellaneousProvisions Act, 1952 apply

to this fund.the provisions of EmployeesProvident Fund andMiscellaneous ProvisionsAct, 1952 apply to this fund.Unrecognized ProvidentFundThe provident fund which isnot recognized by theincome tax authorities .The provident fund which isnot recognized by theincome tax authorities .Select The BlankQuestion If the Salary is more than Rs. 5,00,000, Standard Deduction will beRs.________.Correct Answer 20000Your Answer 20000Select The BlankQuestion Mr. Ram is employed by the Central Government as accountantwhose gross salary income is Rs 6,00,000. He can claim standarddeduction of Rs ________ u/s 16(i) of the IT Act.Correct Answer Rs 20,000Your Answer Rs 20,000Match The FollowingQuestion Correct Answer Your AnswerDeduction in case ofpermanent physicaldisabilitySection 80U Section 80UDeductions for DonationsPaidSection 80G Section 80GDeduction for Rent Paid Section 80GG Section 80GGDeduction in respect ofInterest on Bank DepositsSection 80L Section 80LTrue/FalseQuestion The consideration for transfer of Capital Asset is received by thetransferor is not material while Capital gain chargeable to tax.Correct Answer TrueYour Answer TrueTrue/FalseQuestion The payments for claiming the tax rebate u/s 88 of the IT Act shouldbe made out of the income chargeable to tax.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In case of any contribution made by an individual or a HUF to notifiedunits of any approved mutual fund or of Unit Trust of India inaccordance with a notified scheme (Equity Linked Savings Scheme):-Correct Answer The maximum allowable limit is Rs. 10,000Your Answer Qualifies for tax rebate under section 88D.True/FalseQuestion Dividend received from domestic company to its shareholders istaxable in the hands of the shareholder.

Correct Answer FalseYour Answer FalseSelect The BlankQuestion Loss from the activity of owning and maintaining the race horses canbe carried forward and set off in the subsequent Assessment Yearssubject to the limit of ________ Assessment years.Correct Answer 4Your Answer 4Select The BlankQuestion If the property becomes the property of the assessee before________, the Fair Market Value of the property of the capital asseton that date will be considered to be the cost of acquisitionCorrect Answer 1st April 1981Your Answer 1st April 1991Select The BlankQuestion For an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for________ days or more during previous year.Correct Answer 182Your Answer 182Select The BlankQuestion After deducting interest on capital & remuneration to partners, firm isrequired to pay tax @ ________Correct Answer Tax 35% + 2% SC +2% ECYour Answer Tax 35% + 2% SC +2% ECMultiple Choice Multiple AnswerQuestion Under the clause No-32 of the Act, in the Tax Audit Report, theAuditor is required to give the accounting calculation in ratios of :-Correct Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnoverYour Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnover

Multiple Choice Multiple AnswerQuestion The entertainment allowance received by the Government employees isincluded in their salaries and the deduction is allowed to the extent of least of thefollowing amounts :-Correct Answer Actual amount of Entertainment Allowance received. , Rs. 5,000 ,1/5th of SalaryYour Answer Actual amount of Entertainment Allowance received. , Rs. 5,000 ,1/5th of SalaryTrue/FalseQuestion Income Tax Act, 1961 recognizes Written Down Value (WDV) method aswell as straight line method for the computation of depreciation u/s 32 this act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Profits earned by an Industrial Undertaking engaged in other thaninfrastructure development is available under Section 80IB for :-Correct Answer Operation of Ship , Hotels situated in hilly area, rural area or placeof pilgrimage , Company engaged in scientific and industrial researchYour Answer Operation of Ship , Hotels situated in hilly area, rural area or placeof pilgrimageMultiple Choice Single AnswerQuestion Which of the following expenditure is in the nature of revenueexpenditure?Correct Answer Expenditure incurred as discount on issue of debenturesYour Answer Expenditure incurred as discount on issue of debenturesSelect The Blank

Question If sum received is net of TDS then it is ________ to include in incomefrom other sources.Correct Answer Grossed upYour Answer Grossed upTrue/FalseQuestion Interest paid on the loan for acquiring a capital asset will be considered tobe a part of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowing deductions underChapter VI-A is Rs. 1,45,000, wants to make the investments in the following alternativeforms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The amount of rebateavailable to him u/s 88 is :-Correct Answer Rs. 18,000Your Answer Rs. 18,000Multiple Choice Single AnswerQuestion Interest on specified securities or premium on redemption is exempt for :-Correct Answer Non resident IndianYour Answer Non resident IndianTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block of Assets includes bothtangible as well as intangible assets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Deductions in respect of Certain Incomes received under Section 80L isavailable in respect ofCorrect Answer Interest on Central or State Government Securities , Interest onNational Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestYour Answer Interest on Central or State Government Securities , Interest onNational Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusMultiple Choice Multiple AnswerQuestion 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 employeeYour Answer Perquisites which are taxable in case of all types of employees ,Perquisites which are taxable only in the hands of specified employeeSelect The BlankQuestion For an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in :-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Multiple AnswerQuestion Following professional institutions have their incomes exempt from tax :-Correct Answer Town planning , Company secretary , Accounting

Your Answer Town planning , Company secretary , AccountingSelect The BlankQuestion ________ of the Tax Audit Report refers to the details of variouspayments which are allowed as deduction only if they are actually paid for.Correct Answer Section 43B Clause No-21Your Answer Section 43B Clause No-21Multiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsSelect The BlankQuestion To claim sec 10A deduction unit must be established in ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneMultiple Choice Single AnswerQuestion Assessment year is the period of 12 months starting from :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion If an employee does not avail of this leave travel concession or assistanceduring 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 BlankQuestion To acquire PAN, a person shall apply in ________ to the assessing officer.Correct Answer Form No. 49AYour Answer Form No. 49AMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54F is for Capital Gainsarising from transfer of :-Correct Answer Any Long Term Capital AssetYour Answer House PropertySelect The BlankQuestion Where an assessee files or submits the returns as per provisions of section139 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 AssessmentYour Answer Scrutiny AssessmentMultiple Choice Multiple AnswerQuestion Income of a professional association is exempt if its objectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementTrue/FalseQuestion While computing the profits from Business and profession, the business orprofession must be carried out during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A has availed the exemptiononly 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 four years i.e.2002-2005 provided that he avails the exemption of LTC in the first calendar year of thenext block i.e. 2002.Multiple Choice Multiple AnswerQuestion The amount accumulated to the credit of the employee's provident fundaccount is paid at the time of :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital , Municipal taxesYour Answer Interest on borrowed capital , Municipal taxesMultiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages, Dearness Allowanceand Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion From GTI of a company following deductions under chapter VI A areallowedCorrect Answer 80 G Donations , 80 HHB profits and gains from projects outsideIndia , 80 IA profits and gains of infrastructure companiesYour Answer 80 G Donations , 80 IA profits and gains of infrastructurecompaniesMultiple Choice Single AnswerQuestion Annual value of any one palace in possession of a former ruler is :-Correct Answer ExemptYour Answer TaxableSelect The BlankQuestion If the Salary is more than Rs. 5,00,000, Standard Deduction will beRs.________.Correct Answer 20000Your Answer 20000Multiple Choice Single AnswerQuestion The amount of accumulated interest on NSCs purchased in the earlieryears 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 BlankQuestion Deduction u/s ________B is available for 10 consequent assessment yearsfrom the year of commencement of production.Correct Answer 10Your Answer 10True/FalseQuestion Income from subletting is treated as income from house property.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Section 80U allows the deduction in respect of the ________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMatch The FollowingQuestion Correct Answer Your AnswerDisallowable Expenditure Litigation Expenses in connection with recovery of a debtwhich is not a trading debt Litigation Expenses in connection with recovery of a debtwhich is not a trading debt

Business Includes trade, commerce, or manufacture or any adventure or concern inthe nature of trade, commerce or manufacture Includes trade, commerce, ormanufacture or any adventure or concern in the nature of trade, commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurred by a company with the issue of rights sharesPremium on redemption of DebenturesTrue/FalseQuestion Any recreational facility provided by the employer to a group ofemployees (not being restricted to a select few employees) is not exempt from tax.Correct Answer FalseYour Answer FalseTrue/FalseQuestion In case of deductions for medical treatment under Section 80DDB theamount of deduction will be reduced by the amount received under an insurance policy orthe amount reimbursed by the employer.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Any advance tax paid before 31st March is treated as advance tax paidduring the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Municipal taxes paid is allowed as deduction from :-Correct Answer Gross annual valueYour Answer Gross annual valueTrue/FalseQuestion Entertainment Allowance received by the employees from the privatesector is taxable in the hands of the employee.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerAny subscription made to National Saving Scheme By an individual or a HUF is eligiblefor rebate u/s 88 By an individual or a HUF is eligible for rebate u/s 88Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 duringthe Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICIon 10th June 2004. His tax liability for the A Y 2005-2006. RS.12,500 RS.12,500During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross TotalIncome 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 isRs. 1,000 Rs. 1,000Any contribution made to a Public Provident Fund Is eligible for rebate u/s 88 Iseligible for rebate u/s 88Multiple Choice Multiple AnswerQuestion Following incomes of local authorities are exempt :-Correct Answer Capital gains , Other income , House propertyYour Answer Capital gains , Other income , House propertyMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains the assessee should invest thewhole or part of the capital gains in the specified assets :-Correct Answer Within six months from the date of transfer of the long-termcapital assetYour Answer Within six months from the date of transfer of the long-termcapital assetTrue/False

Question Income from partnership firms is exempt from taxation for the partnersCorrect Answer TrueYour Answer False

Multiple Choice Single AnswerQuestion Foreign allowance received by an Indian national is exempt if it is paid by:-Correct Answer Government of IndiaYour Answer Government of IndiaMultiple Choice Multiple AnswerQuestion For the purpose of section 80IA, the term eligible business means :-Correct Answer Developing, maintaining or operating any infrastructure facilitywhere the term infrastructure facility means a road (including a toll road, a bridge or arail system) or a highway project or a water supply project. , Developing, maintaining oroperating an industrial park or special economic zones notified by the CentralGovernment , Generation or distribution of powerYour Answer Developing, maintaining or operating an industrial park or specialeconomic zones notified by the Central Government , Generation or distribution of power, Developing, maintaining or operating any infrastructure facility where the terminfrastructure facility means a road (including a toll road, a bridge or a rail system) or ahighway project or a water supply project.True/FalseQuestion For being resident of India, a person must be citizen of India.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion The due date prescribed for filing the returns of income in Form No. 2C isCorrect Answer 31st October of the respective Assessment yearYour Answer 31st October of the respective Assessment yearMultiple Choice Single AnswerQuestion The amount of accumulated interest on NSCs purchased in the earlieryears 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.True/FalseQuestion A person who is a Senior Citizen who has attained the age of 65 years isnot entitled to the rebate u/s 88 of the Act.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion The total amount of rebates under Section 88, Section 88B, Section 88Cand 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.True/FalseQuestion A company is resident of India if in any previous year it is an IndianCompany even though control & management are situated outside India.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion From GTI of a company following deductions under chapter VI A areallowedCorrect Answer 80 G Donations , 80 HHB profits and gains from projects outsideIndia , 80 IA profits and gains of infrastructure companiesYour Answer 80 G Donations , 80 HHB profits and gains from projects outsideIndia , 80 IA profits and gains of infrastructure companiesTrue/False

Question Clause N0-30 of the Tax Audit requires that, if the cost Audit of thecompany carried out, the report of such audit should be enclosed to the Tax Audit Report.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerDeductions of Rent, Rates, Repairs, Taxes and Insurance on Buildings are availableu/s 30 u/s 30Deduction of Depreciation is available u/s 32 u/s 32General deductions are allowed as deductions while calculating profits from business andprofession u/s 37 u/s 37Deductions of Repairs & maintenance of machinery, plant & furniture are availableu/s 31 u/s 31Multiple Choice Single AnswerQuestion In case of any contribution made by an individual or a HUF to notifiedunits of any approved mutual fund or of Unit Trust of India in accordance with a notifiedscheme (Equity Linked Savings Scheme) :-Correct Answer The maximum allowable limit is Rs. 10,000Your Answer The maximum allowable limit is Rs. 10,000True/FalseQuestion The value of benefit resulting from the payment made by the employer ina club for any expenditure incurred by the employee shall be taken as perquisites unlessthe said expenses are incurred wholly and exclusively for official purposes.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion What is the treatment of principal amount of loan borrowed for thepurchase or construction of a residential house?Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000True/FalseQuestion Rebates as per the provisions of Section 88 of the Act are not availablefrom the tax on longterm capital gains.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Following specific incomes are taxable under the heading income fromother sources :-Correct Answer Winning from betting , Interest on securities of local authority ,Bonus from key man insurance policyYour Answer Winning from betting , Interest on securities of local authorityTrue/FalseQuestion Deductions available as per the provisions of Chapter VI of the Act are notavailable for the long-term capital gains.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Income earned & received outside India & remitted to India is taxable forresident & ordinary residentCorrect Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion What is the due date for filing Annual return for TDS from Salaries?Correct Answer 30th June of Assessment YearYour Answer 30th June of Assessment YearMultiple Choice Multiple AnswerQuestion 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 inMumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation issituated at any other place. , Actual amount of HRA received by the employee. , Excessof rent paid over 10% of the Salary.Your Answer 50% of the Salary where such accommodation is situated inMumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation issituated at any other place. , Actual amount of HRA received by the employee.Select The BlankQuestion If the CC of the engine is more than 1..6 liters and the motor car is ownedor hired by the employer and is used partly of official and partly for personal purposesand if running and maintenance expenses are borne by the employee then the value ofperquisite will be Rs.________ per month plus Rs.600 if car is chauffer driven car.Correct Answer 600Your Answer 600Multiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages, Dearness Allowanceand Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion Under the clause No-32 of the Act, in the Tax Audit Report, the Auditor isrequired to give the accounting calculation in ratios of :-Correct Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnoverYour Answer Gross profit/turnover , Net profit/turnover , Stock in trade/turnoverMultiple Choice Single AnswerQuestion If taxable income is less than 7.5% of book profit, income tax is payable@ of :-Correct Answer 0.1Your Answer 0.1Select The BlankQuestion In case of foreign companies rate of tax is ________.Correct Answer 0.35Your Answer 0.2True/FalseQuestion Interest is payable by the assessee for not paying the Advance tax or if theAdvance tax paid by the assessee is less than 80% of the Assessed tax after adjusting theamount of TDS and Advance tax PaidCorrect Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion 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 employeeYour Answer Perquisites which are taxable in case of all types of employees ,Perquisites which are taxable only in the hands of specified employeeMultiple Choice Single AnswerQuestion Loss from owning and maintaining race horses can be adjusted against :-Correct Answer Only the income arising out of the same activityYour Answer Only the income arising out of the same activityMultiple Choice Single AnswerQuestion Municipal taxes are payable on :-Correct Answer Municipal valuationYour Answer Municipal valuationTrue/FalseQuestion Dividend received from domestic company to its shareholders is taxable inthe hands of the shareholder.

Correct Answer FalseYour Answer FalseSelect The BlankQuestion Company means any ________ Company.Correct Answer IndianYour Answer Domestic CompanyMultiple Choice Multiple AnswerQuestion Section 35D applies to the preliminary expenses incurred by a company,which consists of :-Correct Answer Expenditure in connection with the preparation offeasibility/project report, engineering services, or conducting market survey , Legalcharges and fees for registering the company as per the provisions of company Act, 1956, Charges in connection with drafting and printing of memorandum of association andArticles of AssociationYour Answer Expenditure in connection with the preparation offeasibility/project report, engineering services, or conducting market survey , Legalcharges and fees for registering the company as per the provisions of company Act, 1956, Charges in connection with drafting and printing of memorandum of association andArticles of AssociationMultiple Choice Multiple AnswerQuestion Perquisites which are taxable only in the hands of specified employeeinclude the following categories of perquisites :-Correct Answer Motor Car , Services of sweeper, gardener, watchman or personalattendant , Gas, electricity and water provided for personal consumptionYour Answer Motor Car , Gas, electricity and water provided for personalconsumption , Amount spent on training of employees or fees paid for refreshermanagement courseSelect The BlankQuestion Loss under the head Income from Capital Gains, to the extent it is longterm capital loss can be carried forward and set off in the subsequent Assessment Yearsagainst the ________ subject to the limit of 8 Assessment years.Correct Answer Long term Capital GainsYour Answer Long term Capital GainsMultiple Choice Single AnswerQuestion For charging the income in the form of salaries :-Correct Answer There needs to be an employer-employee relationship between thepayer and the payee.Your Answer There needs to be an employer-employee relationship between thepayer and the payee.True/FalseQuestion The amount of telephone bills (including the mobile phone bills) of theemployee reimbursed by the employer is exempt from tax.Correct Answer TrueYour Answer TrueTrue/FalseQuestion The amount of expenses including membership fees and annual feesincurred by the employee on credit card and which are paid by the employer shall beadded as the perquisites unless the said expenses are incurred wholly and exclusively forofficial purposes.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion The amount of advance tax payable by corporate assessees before 15thSeptember of Previous year is :-Correct Answer 45% of advance tax payableYour Answer 45% of advance tax payableMultiple Choice Single Answer

Question As per which provision and section, every person, company or any otherperson shall furnish his returns of income in the prescribed form on or before thespecified due date?Correct Answer Section 139(1)Your Answer Section 139(1)Select The BlankQuestion ________ is the tax payable on the manufacturing of goods.Correct Answer Excise dutyYour Answer Sales taxMultiple Choice Single AnswerQuestion The return of income is required to be filed by all the companies, exceptthose covered under section 25 of the companies Act,1956 in the :-Correct Answer Form No. 1Your Answer Form No. 1Match The FollowingQuestion Correct Answer Your AnswerDisallowable Expenditure Litigation Expenses in connection with recovery of a debtwhich is not a trading debt Litigation Expenses in connection with recovery of a debtwhich is not a trading debtBusiness Includes trade, commerce, or manufacture or any adventure or concern inthe nature of trade, commerce or manufacture Includes trade, commerce, ormanufacture or any adventure or concern in the nature of trade, commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurred by a company with the issue of rights sharesExpenditure incurred by a company with the issue of rights sharesMultiple Choice Single AnswerQuestion The sum total of all the heads of income clubbed together gives theamount of :-Correct Answer Gross Total IncomeYour Answer Gross Total IncomeSelect The BlankQuestion Short term Capital Gains is taxed at ________.Correct Answer Normal Tax ratesYour Answer Normal Tax ratesMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital , Municipal taxesYour Answer Standard deduction , Interest on borrowed capital , Municipal taxesMultiple Choice Multiple AnswerQuestion The rebate u/s 88 is available to an :-Correct Answer Individual , Hindu Undivided Family.Your Answer Individual , Hindu Undivided Family.Taxation-Saroj2Select The BlankQuestion For an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion The due date prescribed for filing the returns of income in Form No. 2C isCorrect Answer 31st October of the respective Assessment yearYour Answer 31st October of the respective Previous yearMultiple Choice Single AnswerQuestion 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.Multiple Choice Single AnswerQuestion As per which provision and section, every person, company or any otherperson shall furnish his returns of income in the prescribed form on or before thespecified due date?Correct Answer Section 139(1)Your Answer Section 139(1)Select The BlankQuestion Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim taxrebate of ________u/s 88C of the IT Act.Correct Answer Rs. 5,000Your Answer NilMultiple Choice Multiple AnswerQuestion Rebate is allowed on any subscription made to National Saving Scheme by :-Correct Answer An individual , A HUFYour Answer An individual , A HUF , Partnership FirmsMultiple Choice Multiple AnswerQuestion For the purpose of taxability of perquisite a specified employee means :-Correct Answer The person who is director of a company , The employee who hassubstantial interest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxable monetarypayments of salary but excluding the value of any non-monetary benefits or perquisites),after allowing deductions under Section 16, exceeds Rs. 50,000Your Answer The person who is director of a company , The employee who hassubstantial interest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxable monetarypayments of salary but excluding the value of any non-monetary benefits or perquisites),after allowing deductions under Section 16, exceeds Rs. 50,000Multiple Choice Multiple AnswerQuestion Following professional institutions have their incomes exempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingTrue/FalseQuestion Deduction u/s 80E for repayment of loan taken for higher education isavailable if the loan must have borrowed by the assessee himself or his FatherCorrect Answer FalseYour Answer FalseTrue/FalseQuestion The consideration for transfer of Capital Asset is received by the transferor isnot material while Capital gain chargeable to tax.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Any loans or deposits borrowed or repaid under section 269SS of the Actprovides that the said provisions will not apply to the loans or deposits accepted by :-Correct Answer Banking company including cooperative bank and post office savingsbank , Government , Government companyYour Answer Government , Government company , Banking company includingcooperative bank and post office savings bankMatch The FollowingQuestion Correct Answer Your AnswerEmployee stock option plan ESOPS ESOPSUncommuted Pension Indicates the periodical payment of pension Indicates theperiodical payment of pensionCommuted Pension Indicates the lump sum received in lieu of the periodicalIndicates the lump sum received in lieu of the periodicalTreatment of Perquisite Taxed in the hands of employee as taxable salary Taxed in

the hands of employee as taxable salaryTrue/FalseQuestion A person who is a Senior Citizen who has attained the age of 65 years is notentitled to the rebate u/s 88 of the Act.Correct Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains the assessee should invest thewhole or part of the capital gains in the specified assets :-Correct Answer Within six months from the date of transfer of the long-term capitalassetYour Answer Within six months from the date of transfer of the long-term capital assetSelect The BlankQuestion Unabsorbed business loss can carried forward and set off in the subsequentAssessment Years subject to the time limit of ________ Assessment years.Correct Answer 8Your Answer 3Multiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowing deductions under ChapterVI-A is Rs. 2,40,000 wants to make the investments in the following alternative formsRs. 50,000 in PPF and Rs. 50,000 in Infrastructure Bonds. The amount of rebate availableto him u/s 88 is :-Correct Answer Rs. 15,000Your Answer Rs. 15,000Multiple Choice Single AnswerQuestion Annual value of any one palace in possession of a former ruler is :-Correct Answer ExemptYour Answer ExemptMatch The FollowingQuestion Correct Answer Your AnswerAny subscription made to National Saving SchemeBy an individual or a HUF is eligible for rebate u/s 88 By an individual or a HUF iseligible for rebate u/s 88Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 duringthe Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICIon 10th June 2004. His tax liability for the A Y 2005-2006.RS.12,500 RS.12,500During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross TotalIncome 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 isRs. 1,000 Rs. 1,000Any contribution made to a Public Provident FundIs eligible for rebate u/s 88 Is eligible for rebate u/s 88Select The BlankQuestion To claim sec 10A deduction unit must be established in ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneSelect The BlankQuestion Non resident individual satisfies ________ of the basic conditions.Correct Answer NoneYour Answer Any oneMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54 is for Capital Gains arisingfrom transfer of :-Correct Answer House PropertyYour Answer House PropertySelect The Blank

Question Deduction for remuneration from foreign sources for professors, teachers etcunder Section 80R is limited to ________% of such remuneration brought in India.Correct Answer 15Your Answer 15Select The BlankQuestion Relief under section 89 is available to an employee in respect of the amountof salary received ________.Correct Answer In advance or in arrearsYour Answer In the immediately succeeding year.Select The BlankQuestion AOP id formed when two or more ________ come together to earn income.Correct Answer PersonsYour Answer PersonsMultiple Choice Multiple AnswerQuestion Capital Gains arise on account of excess of transfer consideration over thefollowing amountsCorrect Answer Cost of acquisition , Cost of improvement , Expenditure incurredwholly and exclusively in connection with the transferYour Answer Cost of acquisition , Cost of improvement , Expenditure incurred whollyand exclusively in connection with the transferMultiple Choice Multiple AnswerQuestion Which of the following amounts credited to P & L Account but not taxablefrom Income tax Purposes as Profits from Business and Profession?Correct Answer Refund of Income tax , Capital Gains , Dividend IncomeYour Answer Refund of Income tax , Capital Gains , Dividend IncomeTrue/FalseQuestion Rebates as per the provisions of Section 88 of the Act are not available fromthe tax on long-term capital gains.Correct Answer TrueYour Answer TrueSelect The BlankQuestion If assessee owns more than one house properties, he can get benefit of nilannual value for any one house property ________.Correct Answer As per his choiceYour Answer As per his choiceMultiple Choice Single AnswerQuestion What is the treatment of principal amount of loan borrowed for the purchaseor construction of a residential house?Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Multiple Choice Multiple AnswerQuestion 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 beallowed as deduction only when :-Correct Answer The amount of gratuity has actually become payable to the employeesduring the previous year , The provision has been made for the payment of a sum by wayof contribution to an approval gratuity , The other than the above two situations, anyprovision made for the payment of gratuity is not allowed as deductionYour Answer The amount of gratuity has actually become payable to the employeesduring the previous year , The provision has been made for the payment of a sum by wayof contribution to an approval gratuityMultiple Choice Multiple AnswerQuestion If the Salary is less than Rs. 5,00,000, Standard Deduction will be the least ofthe following :-Correct Answer 40% of the Salary , Rs. 30,000Your Answer 40% of the Salary , Rs. 30,000Multiple Choice Single Answer

Question The amount of advance tax payable by non corporate assessees before 15thDecember of Previous year is :-Correct Answer 60% of advance tax payableYour Answer 100% of advance tax payableSelect The BlankQuestion It should be noted that the tax liability of an individual having the totalincome of less than Rs ________ is Nil u/s 88D.Correct Answer 1,00,000Your Answer 1,00,000True/FalseQuestion If assessee owns more than one house properties, annual value of any one ofthe house property can be treated as nil, and such option can be changed year on yearbasis.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Income from subletting is treated as income from house property.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Following persons are deemed to be an assessee :-Correct Answer Legal heir of deceased person , Parents of minor assessee , Agent ofNRIYour Answer Legal heir of deceased person , Parents of minor assessee , Agent of NRIMultiple Choice Single AnswerQuestion Income of notified news agencies is exempt provided :-Correct Answer They apply their income for collection & distribution of newsYour Answer They apply their income for collection & distribution of newsSelect The BlankQuestion 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 65Your Answer 65Multiple Choice Multiple AnswerQuestion What is the tax treatment of the Lump sum received from unrecognizedprovident fund on the retirement or resignation or death of the employee?Correct Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources" , Employer'sContribution to PF and interest thereon is taxable as "Income from salaries"Your Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources" , Employer'sContribution to PF and interest thereon is taxable as "Income from salaries"True/FalseQuestion Any advance tax paid before 31st March is treated as advance tax paid duringthe previous year.Correct Answer TrueYour Answer TrueTrue/FalseQuestion A woman assessee below the age of 65 years is also entitled to rebate u/s 88.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Rent for other amenities like lift, electricity, telephone etc. is taxed under theheading :-Correct Answer Income from other sourcesYour Answer Income from salariesMultiple Choice Single Answer

Question The amount of advance tax payable by non corporate assessees before 15thJune of Previous year is :-Correct Answer NilYour Answer 100% of advance tax payableMultiple Choice Multiple AnswerQuestion The entertainment allowance received by the Government employees isincluded in their salaries and the deduction is allowed to the extent of least of thefollowing amounts :-Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowancereceived.True/FalseQuestion Loss from house property can be adjusted against the income from any otherhouse property.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Annual premium paid by the employer for the accident insurance policytaken by the employer in the name of the employee is chargeable to tax.Correct Answer FalseYour Answer TrueMultiple Choice Single AnswerQuestion Annual return for TDS from Salaries is to be filed in :-Correct Answer Form No. 24Your Answer Form No. 24

Select The BlankQuestion Monetory Limit for deduction for royalty income of authors under Section80QQB is Rs.________.Correct Answer 300000Your Answer 300000Multiple Choice Single AnswerQuestion Income from winning from lotteries / crossword puzzles/ horse races istaxed at flat rate of :-Correct Answer 0.3Your Answer 0.3Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in :-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Single AnswerQuestion Mediclaim premium u/s Section 80D should be paid byCorrect Answer ChequeYour Answer Cheque or CashTrue/FalseQuestion Any sum payable by the assessee by way of tax, duty, cess or fee isallowed as deduction even though they are not actually paid.Correct Answer FalseYour Answer TrueTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block of Assets includes bothtangible as well as intangible assets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion 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 lumpsum received at the time of retirement or resignation or death is also exempt undersection 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 lumpsum received at the time of retirement or resignation or death is also exempt undersection 10(11) and 10(12).Select The BlankQuestion The aggregate amount of all the expenditure falling under the headpreliminary expenses incurred under section 3________, for an Indian company theaggregate of all the expenditure can be 5% of the cost of project or 5% of capitalemployed whichever is higher.Correct Answer 5% of the cost of project or 5% of capital employedYour Answer 5% of the cost of project or 7% of capital employedMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion Previous year always ends on :-Correct Answer 31st MarchYour Answer 31st MarchMultiple Choice Single AnswerQuestion Rates of income tax are prescribed by :-Correct Answer The Finance ActYour Answer OrdinanceSelect The BlankQuestion If assessee owns more than one house properties, he can get benefit of nilannual value for any one house property ________.Correct Answer As per his choiceYour Answer House which is first purchasedMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Gross total incomeMultiple Choice Multiple AnswerQuestion Choose capital expenditure from the following list :-Correct Answer Purchase of Building , Purchase of machineryYour Answer Purchase of Building , Construction of temporary structures ,Purchase of machineryMultiple Choice Multiple AnswerQuestion Rebate is allowed on any subscription made to National Saving Schemeby :-Correct Answer An individual , A HUFYour Answer An individual , A HUFMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A has availed the exemptiononly 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 thenext block i.e. 2002.Your 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 thenext block i.e. 2002.True/False

Question Loss under the head Profits from Business or Profession can be adjustedagainst the Income from Salaries.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion The amount paid by the employer to the employee on his retirement istaxed as :-Correct Answer Income from SalariesYour Answer Income from SalariesSelect The BlankQuestion For an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182True/FalseQuestion Bad Debts recovered not allowed as deduction in earlier years is nottaxable in any year.Correct Answer TrueYour Answer FalseMultiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Long term Capital Gains , Short Term Capital Gains.Multiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assessees before15th March of Previous year is :-Correct Answer 100% of advance tax payableYour Answer 100% of advance tax payableMultiple Choice Multiple AnswerQuestion An assessee can claim deduction under section 35 in relation to theexpenditure incurred on scientific research in the field of natural gas or applied sciencesif :-Correct Answer Any revenue expenses incurred by the assessee for carrying out thescientific research provided that such research is related to his business , Any capitalexpenses incurred by the assesse himself for carrying out the scientific research providedthat such research is related to his business , The assesse is a company engaged in thebusiness of bio-technology or any other notified product a weighted deduction of 150% isallowed in respect of in-house research and development expensed, till 31st March, 2005Your Answer Any revenue expenses incurred by the assessee for carrying out thescientific research provided that such research is related to his business , The assesse is acompany engaged in the business of bio-technology or any other notified product aweighted deduction of 150% is allowed in respect of in-house research and developmentexpensed, till 31st March, 2005Select The BlankQuestion Registration charges in connection with the increasing of ________ sharecapital of the company is not allowed as revenue expenditure.Correct Answer AuthorizedYour Answer IssuedTrue/FalseQuestion If a person is required to quote the PAN and he quotes or intimates a falsenumber then he may be liable to pay a penalty of Rs. 25000.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion What is the tax treatment of the Lump sum received from unrecognizedprovident fund on the retirement or resignation or death of the employee?

Correct Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources" , Employer'sContribution to PF and interest thereon is taxable as "Income from salaries"Your Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources"Select The BlankQuestion If the person responsible for deducting the tax at source and paying thesame to the credit of Central Government has not been allotted the Tax DeductionAccount Number (TAN), he shall within ________ from the end of the month in whichthe tax was deducted, apply for the allotment of TAN Number.Correct Answer One monthYour Answer Fifteen daysMatch The FollowingQuestion Correct Answer Your AnswerDeduction in case of permanent physical disability Section 80U Section 80UDeductions for Donations Paid Section 80G Section 80GDeduction for Rent Paid Section 80GG Section 80GGDeduction in respect of Interest on Bank Deposits Section 80L Section 80LTrue/FalseQuestion If the capital asset becomes the property of the assessee by virtue of gift orwill, the period for which the capital asset is held by the previous owner should beexcluded while deciding the holding period.Correct Answer FalseYour Answer TrueTrue/FalseQuestion Amount paid by the employer in respect of any leave standing to the creditof the employee after the date of furnishing return of income, this sum was payable in theprevious year is allowed as deduction.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Under section 43B, Clause N0-21 provides that the details of variouspayments are allowed as deductions only if they are actually paid but, where if theassessee follows the ________, the payments can be claimed on due basis.Correct Answer Mercantile system of accountingYour Answer Cash system of accountingTrue/FalseQuestion A woman assessee below the age of 65 years is also entitled to rebate u/s88.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Income received by following assesses is taxable in India :-Correct Answer Resident , Non resident , Resident but not ordinary residentYour Answer Resident , Resident but not ordinary residentMultiple Choice Single AnswerQuestion Any premium paid by the assessee by Cheque as an employer to effect orkeep in force an insurance on the health of his employees is :-Correct Answer Allowed as expenses while calculating profits from business andprofessionYour Answer Is allowed as a deduction under Section 80GSelect The BlankQuestion Where an assessee files or submits the returns as per provisions of section139 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 AssessmentYour Answer Scrutiny Assessment

Multiple Choice Multiple AnswerQuestion Assessee gets deduction of interest paid on borrowed capital even if he :-Correct Answer Takes possession later on , Acquires later onYour Answer Takes possession later on , Acquires later onMatch The FollowingQuestion Correct Answer Your AnswerPerquisites 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 bythe employer to the employee, either free of cost or at the concessional rateHouse Rent Allowance This indicates the amount paid by the employer to theemployee to meet the expenditure for residential accommodation occupied by theemployee This indicates the amount paid by the employer to the employee to meetthe expenditure for residential accommodation occupied by the employeeRetrenchment Compensation Compensation received by a worker at the time ofretrenchment Compensation received by a worker at the time of retrenchmentTraveling Allowance Any allowance granted to meet the cost of travel on tour or ontransfer of duty. Any allowance granted to meet the cost of travel on tour or ontransfer of duty.Select The BlankQuestion Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim taxrebate of ________u/s 88C of the IT Act.Correct Answer Rs. 5,000Your Answer Rs. 20,000Multiple Choice Single AnswerQuestion Assessment year is the period of 12 months starting from :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion If notified news agency distributes its income amongst its members then :-Correct Answer Whole of its income will be taxableYour Answer It will have to pay tax on distributed profitsMultiple Choice Single AnswerQuestion Deduction in respect of Contribution to certain pension funds u/s 80CCCis available to :-Correct Answer IndividualsYour Answer IndividualsTrue/FalseQuestion Income from subletting is treated as income from house property.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion In case of Payment of Interest on Securities no tax is required to bededucted under the following circumstances :-Correct Answer If the debentures are issued by a widely held company and thedebentures are listed on a stock exchange and if the amount of interest does not exceedRs. 2,500 during the financial year. , If the interest paid is on State or CentralGovernment Securities, If the debentures are issued by an institution, authority, PublicSector Company or cooperative society as the Central Government may notify.Your Answer If the interest paid is on State or Central Government Securities , Ifthe debentures are issued by a widely held company and the debentures are listed on astock exchange and if the amount of interest does not exceed Rs.5,000 during thefinancial year.Select The BlankQuestion Expenditure incurred by an assessee on advertisement in any brochure,tract, pamphlet or like published by a ________shall not be allowed as businessexpenditure.

Correct Answer Political partyYour Answer Company

Question For an individual as a citizen of India who leaves India in therelevant previous year for the purpose of employment has to be in India for________ days or more during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion The due date prescribed for filing the returns of income in FormNo. 2C isCorrect Answer 31st October of the respective Assessment yearYour Answer 31st October of the respective Previous yearMultiple Choice Single AnswerQuestion 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.Multiple Choice Single AnswerQuestion As per which provision and section, every person, company or anyother person shall furnish his returns of income in the prescribed form on orbefore the specified due date?Correct Answer Section 139(1)Your Answer Section 139(1)Select The BlankQuestion Mrs. X of 45 years has received salary of Rs 5,50,000 she canclaim tax rebate of ________u/s 88C of the IT Act.Correct Answer Rs. 5,000Your Answer NilMultiple Choice Multiple AnswerQuestion Rebate is allowed on any subscription made to National SavingScheme by :-Correct Answer An individual , A HUFYour Answer An individual , A HUF , Partnership FirmsMultiple Choice Multiple AnswerQuestion For the purpose of taxability of perquisite a specified employeemeans :-Correct Answer The person who is director of a company , The employeewho has substantial interest in the company by having 20% or more of thevoting power , The employee whose income under the head salaries (includingall the taxable monetary payments of salary but excluding the value of any nonmonetarybenefits or perquisites), after allowing deductions under Section 16,exceeds Rs. 50,000Your Answer The person who is director of a company , The employee whohas substantial interest in the company by having 20% or more of the votingpower , The employee whose income under the head salaries (including all thetaxable monetary payments of salary but excluding the value of any nonmonetarybenefits or perquisites), after allowing deductions under Section 16,exceeds Rs. 50,000Multiple Choice Multiple AnswerQuestion Following professional institutions have their incomes exempt fromtax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingTrue/FalseQuestion Deduction u/s 80E for repayment of loan taken for highereducation is available if the loan must have borrowed by the assessee himselfor his Father

Correct Answer FalseYour Answer FalseTrue/FalseQuestion The consideration for transfer of Capital Asset is received by thetransferor is not material while Capital gain chargeable to tax.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Any loans or deposits borrowed or repaid under section 269SS ofthe Act provides that the said provisions will not apply to the loans or depositsaccepted by :-Correct Answer Banking company including cooperative bank and postoffice savings bank , Government , Government companyYour Answer Government , Government company , Banking companyincluding cooperative bank and post office savings bankMatch The FollowingQuestion Correct Answer Your AnswerEmployee stock option plan ESOPS ESOPSUncommuted Pension Indicates the periodical payment of pensionIndicates the periodical payment of pensionCommuted Pension Indicates the lump sum received in lieu of theperiodical Indicates the lump sum received in lieu of the periodicalTreatment of Perquisite Taxed in the hands of employee as taxable salaryTaxed in the hands of employee as taxable salaryTrue/FalseQuestion A person who is a Senior Citizen who has attained the age of 65years is not entitled to the rebate u/s 88 of the Act.Correct Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains the assessee shouldinvest the whole or part of the capital gains in the specified assets :-Correct Answer Within six months from the date of transfer of the long-termcapital assetYour Answer Within six months from the date of transfer of the long-termcapital assetSelect The BlankQuestion Unabsorbed business loss can carried forward and set off in thesubsequent Assessment Years subject to the time limit of ________Assessment years.Correct Answer 8Your Answer 3Multiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowing deductionsunder Chapter VI-A is Rs. 2,40,000 wants to make the investments in thefollowing alternative forms Rs. 50,000 in PPF and Rs. 50,000 in InfrastructureBonds. The amount of rebate available to him u/s 88 is :-Correct Answer Rs. 15,000Your Answer Rs. 15,000Multiple Choice Single AnswerQuestion Annual value of any one palace in possession of a former ruler is :-Correct Answer ExemptYour Answer ExemptMatch The FollowingQuestion Correct Answer Your AnswerAny subscription made to National Saving SchemeBy an individual or a HUF is eligible for rebate u/s 88 By an individual or a

HUF is eligible for rebate u/s 88Mr. 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 thetax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y2005-2006.RS.12,500 RS.12,500During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the GrossTotal Income of Rs. 1,45,000 including the dividend from Indian companiesamounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the saidAssessment Year. her tax liabilit isRs. 1,000 Rs. 1,000Any contribution made to a Public Provident FundIs eligible for rebate u/s 88 Is eligible for rebate u/s 88Select The BlankQuestion To claim sec 10A deduction unit must be established in ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneSelect The BlankQuestion Non resident individual satisfies ________ of the basic conditions.Correct Answer NoneYour Answer Any oneMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54 is for CapitalGains arising from transfer of :-Correct Answer House PropertyYour Answer House PropertySelect The BlankQuestion Deduction for remuneration from foreign sources for professors,teachers etc under Section 80R is limited to ________% of such remunerationbrought in India.Correct Answer 15Your Answer 15Select The BlankQuestion Relief under section 89 is available to an employee in respect of theamount of salary received ________.Correct Answer In advance or in arrearsYour Answer In the immediately succeeding year.Select The BlankQuestion AOP id formed when two or more ________ come together to earnincome.Correct Answer PersonsYour Answer PersonsMultiple Choice Multiple AnswerQuestion Capital Gains arise on account of excess of transfer considerationover the following amountsCorrect Answer Cost of acquisition , Cost of improvement , Expenditureincurred wholly and exclusively in connection with the transferYour Answer Cost of acquisition , Cost of improvement , Expenditureincurred wholly and exclusively in connection with the transferMultiple Choice Multiple AnswerQuestion Which of the following amounts credited to P & L Account but nottaxable from Income tax Purposes as Profits from Business and Profession?Correct Answer Refund of Income tax , Capital Gains , Dividend IncomeYour Answer Refund of Income tax , Capital Gains , Dividend IncomeTrue/FalseQuestion Rebates as per the provisions of Section 88 of the Act are notavailable from the tax on long-term capital gains.

Correct Answer TrueYour Answer TrueSelect The BlankQuestion If assessee owns more than one house properties, he can get benefitof nil annual value for any one house property ________.Correct Answer As per his choiceYour Answer As per his choiceMultiple Choice Single AnswerQuestion What is the treatment of principal amount of loan borrowed for thepurchase or construction of a residential house?Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000Multiple Choice Multiple AnswerQuestion The provisions for payment of gratuity is not allowed under section40A(7) but, under the head, profits from business and profession, the amount ofgratuity will be allowed as deduction only when :-Correct Answer The amount of gratuity has actually become payable to theemployees during the previous year , The provision has been made for thepayment of a sum by way of contribution to an approval gratuity , The otherthan the above two situations, any provision made for the payment of gratuity isnot allowed as deductionYour Answer The amount of gratuity has actually become payable to theemployees during the previous year , The provision has been made for thepayment of a sum by way of contribution to an approval gratuityMultiple Choice Multiple AnswerQuestion If the Salary is less than Rs. 5,00,000, Standard Deduction will bethe least of the following :-Correct Answer 40% of the Salary , Rs. 30,000Your Answer 40% of the Salary , Rs. 30,000Multiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assesseesbefore 15th December of Previous year is :-Correct Answer 60% of advance tax payableYour Answer 100% of advance tax payableSelect The BlankQuestion It should be noted that the tax liability of an individual having thetotal income of less than Rs ________ is Nil u/s 88D.Correct Answer 1,00,000Your Answer 1,00,000True/FalseQuestion If assessee owns more than one house properties, annual value ofany one of the house property can be treated as nil, and such option can bechanged year on year basis.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Income from subletting is treated as income from house property.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Following persons are deemed to be an assessee :-Correct Answer Legal heir of deceased person , Parents of minor assessee ,Agent of NRIYour Answer Legal heir of deceased person , Parents of minor assessee ,Agent of NRIMultiple Choice Single AnswerQuestion Income of notified news agencies is exempt provided :-

Correct Answer They apply their income for collection & distribution ofnewsYour Answer They apply their income for collection & distribution of newsSelect The BlankQuestion The rebate u/s 88B is available to an individual who has attainedthe age of ________ or more at any time during the previous year.Correct Answer 65Your Answer 65Multiple Choice Multiple AnswerQuestion What is the tax treatment of the Lump sum received fromunrecognized provident fund on the retirement or resignation or death of theemployee?Correct Answer Employee's contribution to PF is exempt from tax , Intereston employee's contribution is taxable as "Income from Other Sources" ,Employer's Contribution to PF and interest thereon is taxable as "Income fromsalaries"Your Answer Employee's contribution to PF is exempt from tax , Interest onemployee's contribution is taxable as "Income from Other Sources" ,Employer's Contribution to PF and interest thereon is taxable as "Income fromsalaries"True/FalseQuestion Any advance tax paid before 31st March is treated as advance taxpaid during the previous year.Correct Answer TrueYour Answer TrueTrue/FalseQuestion A woman assessee below the age of 65 years is also entitled torebate u/s 88.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Rent for other amenities like lift, electricity, telephone etc. is taxedunder the heading :-Correct Answer Income from other sourcesYour Answer Income from salariesMultiple Choice Single AnswerQuestion The amount of advance tax payable by non corporate assesseesbefore 15th June of Previous year is :-Correct Answer NilYour Answer 100% of advance tax payableMultiple Choice Multiple AnswerQuestion The entertainment allowance received by the Governmentemployees is included in their salaries and the deduction is allowed to theextent of least of the following amounts :-Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of EntertainmentAllowance received.True/FalseQuestion Loss from house property can be adjusted against the income fromany other house property.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Annual premium paid by the employer for the accident insurancepolicy taken by the employer in the name of the employee is chargeable to tax.Correct Answer False

Your Answer TrueMultiple Choice Single AnswerQuestion Annual return for TDS from Salaries is to be filed in :-Correct Answer Form No. 24Your Answer Form No. 24