This quiz works best with JavaScript enabled. Home > Finance > Tax > Taxes In India – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxes In India Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Body of individual should consist of A) Persons other than individual only. B) Individual only. C) Both of the above. D) None of these. Show Answer Correct Answer: B) Individual only. 2. Deduction u/s 80GGA in respect of certain donation for scientific research or rural development is allowed to A) Any assessee. B) Non corporate business assessee. C) An assessee whose income does not include PGBP income. D) None of these. Show Answer Correct Answer: C) An assessee whose income does not include PGBP income. 3. Securities transaction tax paid by the seller of shares and units shall A) Be allowed as deduction as expenses of transfer. B) Not be allowed as deduction. C) All of these. D) None of these. Show Answer Correct Answer: B) Not be allowed as deduction. 4. The tax levied by the union government on income of individuals is known as A) Corporation tax. B) Interest tax. C) Wealth tax. D) Personal income tax. Show Answer Correct Answer: D) Personal income tax. 5. The term 'assessment year' is defined A) Section 3(9). B) Section 3(8). C) Section 2(9). D) Section 2(8). Show Answer Correct Answer: C) Section 2(9). 6. Service tax was introduced in India on the recommendation of A) Kelkar Committee. B) Dr. Raja J Challiah Committee. C) Dr. Yashwant Sinha Committee. D) Dr. Man Mohan Singh Committee. Show Answer Correct Answer: B) Dr. Raja J Challiah Committee. 7. Expenditure incurred on purchase of animals to be used by the assessee for the purpose of carrying on his business & profession is subject to A) Nil deduction. B) Depreciation. C) Deduction in the previous year in which animal dies or become permanently useless. D) None of these. Show Answer Correct Answer: C) Deduction in the previous year in which animal dies or become permanently useless. 8. The term 'previous year' is defined under A) Section 4. B) Section 2. C) Section 1. D) Section 3. Show Answer Correct Answer: D) Section 3. 9. There will be no partial integration of agricultural income with non agricultural income, if the non agricultural income does not exceed A) Rs. 1,50,000. B) Rs. 1,80,000. C) Rs. 1,00,000. D) Rs. 1,30,000. Show Answer Correct Answer: A) Rs. 1,50,000. 10. The power to levy service tax is now provided by the Constitution vide entry No. A) 54 of the State list. B) 93 of the Union list. C) 97 of the Union list. D) 92C of the Union list. Show Answer Correct Answer: C) 97 of the Union list. 11. The provisions relating to valuation of taxable services are contained in A) Section 65 of the Finance Act, 1994. B) Section 67 of the Finance Act, 1994. C) Section 65A of the Finance Act, 1999. D) None of the above. Show Answer Correct Answer: B) Section 67 of the Finance Act, 1994. 12. Deduction under section 80C is allowed from A) Total income. B) Gross total income. C) Tax on total income. D) None of these. Show Answer Correct Answer: B) Gross total income. 13. Family pension received by a widow of a member of the armed forces where the death of the member has occurred in the course of the operational duties, is A) Totally chargeable to tax. B) Exempt up to Rs.3,00,000. C) Exempt up to Rs. 3,50,000. D) Totally exempt under section 10(19). Show Answer Correct Answer: D) Totally exempt under section 10(19). 14. As per Sec.139(1), a company shall have to file return of income A) When its total income exceedsRs.50,000. B) In all cases irrespective of any income or loss earned by it. C) When its total income exceeds the maximum amount which is not chargeable to income tax. D) None of these. Show Answer Correct Answer: B) In all cases irrespective of any income or loss earned by it. 15. The phenomenon of a continuous decrease in prices of goods and services in the economy is, known as .....? A) Stagflation. B) Inflation. C) Market crash. D) Deflation. Show Answer Correct Answer: D) Deflation. 16. The last date of filing the return of income u/s 139(1) for A. Yr. 2009-10 in case of a company assessee is A) 31st July of the assessment year. B) 31st October of the assessment year. C) 30th November of the assessment year. D) 30th September of the assessment year. Show Answer Correct Answer: D) 30th September of the assessment year. 17. The power to make rules for service tax is given to Central Government by A) Section 94 of the Finance Act, 1994. B) Sections 66 and 67 of the Finance Act, 1994. C) Sections 93 and 94 of the Finance Act, 1994. D) Sections 94 and 961 of the Finance Act, 1994. Show Answer Correct Answer: D) Sections 94 and 961 of the Finance Act, 1994. 18. In the above case the income to be presumed under section 44AF shall be A) 12 % of total turnover. B) 10 % of total turnover. C) 8 % of total turnover. D) 5 % of total turnover. Show Answer Correct Answer: D) 5 % of total turnover. 19. For claiming Deduction u/s 80C, the payment or deposit should be made A) Out of any income. B) Out of any income chargeable to income tax. C) During the current year out of any source. D) None of these. Show Answer Correct Answer: C) During the current year out of any source. 20. R Ltd., is an Indian company whose entire control and management of its affairs is situated outside India. R Ltd., shall be A) Resident in India. B) Not ordinarily resident in India. C) Non-resident in India. D) None of these. Show Answer Correct Answer: A) Resident in India. 21. Income tax is rounded off to A) Nearest ten rupees. B) Nearest one rupee. C) No rounding off of tax is done. D) All of the above. Show Answer Correct Answer: A) Nearest ten rupees. 22. Salary, bonus, commission or remuneration due to or received by a working partner from the firm is taxable under the head. A) PGBP. B) Income from salaries. C) Other sources. D) None of these. Show Answer Correct Answer: A) PGBP. 23. Deduction under section 40(b) shall be allowed on account of salary /remuneration paid to A) Major partner only. B) Working partner only. C) Any partner. D) None of these. Show Answer Correct Answer: B) Working partner only. 24. The period of holding of shares acquired in exchange of convertible debentures shall be reckoned from A) The date of when the debentures were converted into shares. B) The date of holding of debentures. C) All of the above. D) None of these. Show Answer Correct Answer: A) The date of when the debentures were converted into shares. 25. Interest on money borrowed for the purpose of acquiring a capital asset pertaining to the period after the asset is put to use is to be A) Treated as revenue expenditure. B) Capitalized. C) All of the above. D) None of these. Show Answer Correct Answer: A) Treated as revenue expenditure. 26. Name the committee to recommend that granting relief to FIIs on Minimum Alternate Tax (MAT) will be a positive thing for the market? A) Bimal Jalan Committee. B) AP Shah Committee. C) C Rangarjan Committee. D) K N Desai Committee. Show Answer Correct Answer: B) AP Shah Committee. 27. A local authority has earned income from the supply of commodities outside its own jurisdictional area. It is A) Taxable. B) Exempt. C) Partially Exempted. D) None of these. Show Answer Correct Answer: A) Taxable. 28. The provisions relating to service tax are given in A) The Service tax Act, 1994. B) Chapter V of the Finance Act, 1994. C) Chapter V and VA of the Finance Act, 1994. D) Chapter VII and VIII of the Finance Act, 2004. Show Answer Correct Answer: C) Chapter V and VA of the Finance Act, 1994. 29. Definition of 'person' under Income Tax Act, 1961 is A) Inclusive. B) Exhaustive. C) Both of these. D) None of these. Show Answer Correct Answer: A) Inclusive. 30. Tax audit is compulsory in case a person is carrying on business whose gross turnover/sales/receipts, as the case may be, exceeds A) Rs. 30 lakhs. B) Rs. 10 lakhs. C) Rs. 20 lakhs. D) Rs. 40 lakhs. Show Answer Correct Answer: D) Rs. 40 lakhs. ← PreviousNext →Related QuizzesFinance QuizzesTaxes In India Quiz 1Taxes In India Quiz 3Taxes In India Quiz 4Taxes In India Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books