This quiz works best with JavaScript enabled. Home > Finance > Tax > Taxes In India – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxes In India Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Deduction U/s 80G on account of donation is allowed to A) Any assessee. B) A business assessee only. C) Individual or HUF only. D) None of these. Show Answer Correct Answer: A) Any assessee. 2. In the case of compulsory acquisition, the indexation of cost of acquisition or improvement shall be done till the A) In which the full compensation received. B) In which part or full consideration is received. C) Previous year of compulsory acquisition. D) None of these. Show Answer Correct Answer: C) Previous year of compulsory acquisition. 3. Remuneration paid to working partner shall be allowed as deduction to a firm A) Subject to limits specified in section 40(b). B) In full. C) All of these. D) None of these. Show Answer Correct Answer: A) Subject to limits specified in section 40(b). 4. In case an assessee is engaged in the business of retail trade, presumptive income scheme is applicable if the total turnover of such retail trade of goods does not exceed A) Rs. 30lakhs. B) Rs. 10lakhs. C) Rs. 40lakhs. D) Rs. 20lakhs. Show Answer Correct Answer: C) Rs. 40lakhs. 5. The quantum of deduction allowed u/s 80U is A) Rs. 40,000. B) Rs. 70,000. C) Rs. 50,000. D) Rs. 20,000. Show Answer Correct Answer: C) Rs. 50,000. 6. The maximum amount of the total Revenue earned by the government of India comes from A) Excise Duty. B) Income Tax. C) Customs Duty. D) Value Added Tax. Show Answer Correct Answer: A) Excise Duty. 7. Expenditure incurred on family planning amongst the employees is allowed to A) An assessee which is a company or cooperative society. B) Any assessee. C) A company assessee. D) None of these. Show Answer Correct Answer: C) A company assessee. 8. The tax levied on the interstate trade of goods is A) Sales tax. B) Central sales tax. C) Service tax. D) Excise tax. Show Answer Correct Answer: B) Central sales tax. 9. Additional surcharge (education cess) of 3 % per cent is payable on A) Income tax. B) Income tax plus surcharge. C) Surcharge. D) None of these. Show Answer Correct Answer: B) Income tax plus surcharge. 10. Due date of payment of service tax for the month/quarter ending 31st March is A) 1 st March. B) 31 st March. C) 5th day of the month immediately following March. D) None of the above. Show Answer Correct Answer: B) 31 st March. 11. For a person suffering from severe physical disability, deduction available under section 80U is Rs..... A) Rs. 25,000. B) Rs.75,000. C) Rs.50,000. D) Rs.1,00,000. Show Answer Correct Answer: B) Rs.75,000. 12. Indirect taxes includes A) Sales Tax. B) VAT. C) GST. D) All of these. Show Answer Correct Answer: D) All of these. 13. Service tax was initially levied in India by the Constitution vide entry No. A) 97 of the Union list. B) 54 of the State list. C) 92C of the concurrent list. D) 92C of the Union list. Show Answer Correct Answer: D) 92C of the Union list. 14. Assessment year means A) Period of 12 months commencing on the 1st day of April every year. B) Year in which income is earned. C) Period of 12 months commencing on the 1st day of January every year. D) Year in which tax is paid by assessee. Show Answer Correct Answer: A) Period of 12 months commencing on the 1st day of April every year. 15. Of the gross tax revenue of the Union Government the indirect taxes account for nearly A) 85 percent. B) 65 percent. C) 55 percent. D) 75 percent. Show Answer Correct Answer: B) 65 percent. 16. Any person who has made default in complying with the provisions of Income Tax Act, 1961 is known as A) Custom Assessee. B) Assessee in default. C) Deemed Assessee. D) None of the above. Show Answer Correct Answer: B) Assessee in default. 17. Taxes in India are including A) Direct taxes. B) Indirect taxes. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 18. By special order, CBDT declared a foreign association to be a company for the purpose of income tax. Under Income Tax Act, 1961, such association shall be considered as A) Indian Company. B) Foreign Company. C) All of these. D) None of these. Show Answer Correct Answer: A) Indian Company. 19. Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head. A) PGBP. B) Salary. C) Other source. D) None of these. Show Answer Correct Answer: A) PGBP. 20. Direct taxes includes A) Income Tax. B) Property Tax. C) Gift Tax. D) All of these. Show Answer Correct Answer: D) All of these. 21. Preliminary expenses incurred are allowed deduction in A) Full. B) 5 equal annual installments. C) 10 equal annual installments. D) None of these. Show Answer Correct Answer: B) 5 equal annual installments. 22. The deduction u/s 80E is allowed for repayment of interest to the extent of A) Rs. 15,000. B) Any amount repaid. C) Rs.35,000. D) Rs.55,000. Show Answer Correct Answer: B) Any amount repaid. 23. The tax on net income of companies is A) Interest tax. B) Wealth tax. C) Corporation tax. D) Personal income tax. Show Answer Correct Answer: C) Corporation tax. 24. Which of the following taxes is/are withdrawn or abolished? A) Gift tax. B) Interest tax. C) Estate duty. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. If any amount is donate for research, such research should be in nature of A) Scientific research only. B) Social or statistical research only. C) Scientific or social or statistical research. D) None of these. Show Answer Correct Answer: C) Scientific or social or statistical research. 26. A firm business income is nil /negative. It shall still be allowed as deduction on account of remuneration to working partner to the maximum extent of A) Nil. B) Rs.50,000. C) Actual remuneration paid as specified in partnership deed. D) None of these. Show Answer Correct Answer: B) Rs.50,000. 27. Deduction u/s 80D is allowed if the premium is paid to A) Life insurance Corporation. B) Life insurance or General insurance corporation. C) General insurance Corporation or any other insurer approved by IRDA. D) None of these. Show Answer Correct Answer: C) General insurance Corporation or any other insurer approved by IRDA. 28. In case an assessee is engaged in the business of civil construction, presumptive income scheme is applicable if the gross receipts paid or payable to him in the previous year does not exceed A) Rs. 10lakhs. B) 1 crore. C) Rs. 40lakhs. D) Rs. 70lakhs. Show Answer Correct Answer: C) Rs. 40lakhs. 29. Charge of service tax is in relation to service provided or to be provided A) True. B) May be. C) False. D) Not sured. Show Answer Correct Answer: A) True. 30. Loss from a speculation business of a particular A. Yr. can be set off in the same A. Yr. from A) Profit and gains from any business. B) Income of speculation business. C) Profit and gains from any business other than speculation business. D) None of these. Show Answer Correct Answer: B) Income of speculation business. ← PreviousNext →Related QuizzesFinance QuizzesTaxes In India Quiz 1Taxes In India Quiz 2Taxes In India Quiz 4Taxes In India Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books