This quiz works best with JavaScript enabled. Home > Finance > Tax > Taxes In India – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxes In India Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a union tax? A) Land revenues. B) Corporation tax. C) Capitation taxes. D) Taxes on agricultural income. Show Answer Correct Answer: B) Corporation tax. 2. What is the name of the project that is an ambitious project of the Union Finance Ministry to bring into net black money hoarders and tax evaders by using optimum technology? A) Project Money Laundering. B) Project Insight. C) Project Monitoring. D) Project Black Money. Show Answer Correct Answer: B) Project Insight. 3. If good will of a profession which is self generated is transferred, there will A) Be a short-term capital gain. B) Be capital gain. C) Not be any capital gain. D) None of these. Show Answer Correct Answer: C) Not be any capital gain. 4. New assets acquired for claiming exemption u/s 54, 54B or 54D,if transferred within 3 years, will result in A) Short-term capital gain. B) Long-term capital gain. C) Short-term capital gain orlong-term capital gaindepending upon original transfer. D) None of these. Show Answer Correct Answer: A) Short-term capital gain. 5. Service tax is not payable on any service provided to A) A developer or unit in a special economic zone. B) An undertaking in a special economic zone. C) An undertaking in a free trade zone. D) An undertaking in a software technological park. Show Answer Correct Answer: A) A developer or unit in a special economic zone. 6. The payment for Insurance premium under section 80D should be paid A) In cash. B) Cash/by cheque. C) By any mode other than cash. D) None of these. Show Answer Correct Answer: C) By any mode other than cash. 7. Dividend paid by an Indian company is A) Taxable in the hands of the company and exempt in the hands of the recipient. B) Taxable in India in the hands of the recipient. C) Exempt in the hands of recipient. D) None of these. Show Answer Correct Answer: A) Taxable in the hands of the company and exempt in the hands of the recipient. 8. The maximum deduction u/s 80GG shall be limited to A) Rs. 3,000 p.m. B) Rs. 4,000 p.m. C) Rs. 2,000 p.m. D) Rs. 1,000 p.m. Show Answer Correct Answer: C) Rs. 2,000 p.m. 9. Service tax is a charge on A) Any service provided or to be provided. B) Taxable service provided. C) Taxable service provided or to be provided. D) Taxable service to be provided. Show Answer Correct Answer: C) Taxable service provided or to be provided. 10. Where the entire block of the depreciable asset is transferred after 36 months, there will be A) Long-term capital gain or loss. B) Short-term capital gain or loss. C) Short-term capital gain. D) Long-term capital gain. Show Answer Correct Answer: B) Short-term capital gain or loss. 11. Income which accrue outside India from a business controlled from India is taxable in case of A) Not ordinarily resident only. B) Resident only. C) Both ordinarily resident and NOR. D) None of the above. Show Answer Correct Answer: C) Both ordinarily resident and NOR. 12. Service tax was introduced in India in the year A) 1998. B) 1992. C) 1996. D) 1994. Show Answer Correct Answer: D) 1994. 13. Exemption under section 54 is available to A) HUF only. B) Individuals only. C) BothIndividual and HUF. D) All assesses. Show Answer Correct Answer: C) BothIndividual and HUF. 14. In case an assessee is engaged in the business of plying hiring or leasing goods carriage, presumption income scheme under section 44AE is applicable if the assessee is the owner of maximum of A) 8 goods carriages. B) 10 goods carriages. C) 12 goods carriages. D) 4 goods carriages. Show Answer Correct Answer: B) 10 goods carriages. 15. Service tax is payable on the gross amount A) May be. B) Not sure. C) True. D) False. Show Answer Correct Answer: C) True. 16. The quantum of deduction allowed under section 80D shall be limited to A) Rs. 35,000. B) Rs. 15,000. C) Rs. 5,000. D) Rs. 25,000. Show Answer Correct Answer: B) Rs. 15,000. 17. Under the head Business or Profession, the method of accounting which an assessee can follow shall be A) Hybrid system. B) Mercantile or cash system only. C) Cash system only. D) Mercantile system only. Show Answer Correct Answer: B) Mercantile or cash system only. 18. In the aforesaid case,the income shall be presumed to be A) 5 % of gross receipts. B) 1 % of gross receipts. C) 10 % of gross receipts. D) 8 % of gross receipts. Show Answer Correct Answer: D) 8 % of gross receipts. 19. Residential status to be determined for A) Previous year. B) Accounting year. C) Assessment yea. D) None of these. Show Answer Correct Answer: A) Previous year. 20. Secondary and Higher Education Cess was levied by A) The Finance Act, 2005. B) The Finance Act, 2007. C) The Finance Act, 2006. D) The Finance (2) Act, 2004. Show Answer Correct Answer: B) The Finance Act, 2007. 21. Service tax was introduced first time on A) 2 years. B) 3 years. C) 1 year. D) 4 years. Show Answer Correct Answer: B) 3 years. 22. Deduction under section 80D in respect of medical insurance premium is allowed to A) Individual or HUF who is resident in India. B) Individual only. C) Any assessee. D) An individual or HUF. Show Answer Correct Answer: D) An individual or HUF. 23. The most important source of revenue to the states is A) Sales tax. B) Service tax. C) Excise duty. D) None of the above. Show Answer Correct Answer: A) Sales tax. 24. Tax is levied under VAT at A) First stage of sale. B) Last stage of sale. C) Multi Stage. D) First and last stage of sale. Show Answer Correct Answer: C) Multi Stage. 25. Service tax is governed and administered by A) CBEC. B) CBDT. C) Both of these. D) None of these. Show Answer Correct Answer: A) CBEC. 26. Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted for paying tax A) Income Tax. B) Service Tax. C) Capital Gains Tax. D) None of these. Show Answer Correct Answer: C) Capital Gains Tax. 27. In case the assessee follows mercantile system of accounting, bonus or commission to the employee are allowed as deduction on A) Due basis but subject to section 43B. B) Payment basis. C) Due basis. D) None of these. Show Answer Correct Answer: A) Due basis but subject to section 43B. 28. Education cess is leviable in case of A) An individual and HUF. B) A company assessee only. C) All assesses. D) None of these. Show Answer Correct Answer: C) All assesses. 29. R, a foreign national visited India during previous year 2008-09 for 180 days. Earlier to this he never visited India. R in this case shall be A) Non-resident. B) Resident in India. C) Not ordinarily resident in India. D) None of these. Show Answer Correct Answer: A) Non-resident. 30. Deduction u/s 80C in respect of LIP, Contribution to provident fund, etc. is allowed to A) Any assessee. B) An individual or HUF who is resident in India. C) An individual. D) An individual of HUF. Show Answer Correct Answer: D) An individual of HUF. Next →Related QuizzesFinance QuizzesTaxes In India Quiz 2Taxes In India Quiz 3Taxes In India Quiz 4Taxes In India Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books