This quiz works best with JavaScript enabled. Home > Finance > Tax > Taxes In India – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxes In India Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Where service is received from outside India, such service shall be A) Exempt from service tax. B) Taxable in the hands of service provider. C) Taxable in the hands of Service recipient. D) None of these. Show Answer Correct Answer: C) Taxable in the hands of Service recipient. 2. Income deemed to accrue or arise in India is taxable in case of A) Resident only. B) Non-resident. C) Both ordinarily resident and NOR. D) All the assesses. Show Answer Correct Answer: D) All the assesses. 3. Government imposes taxes to? A) Check the accumulation of wealth among the rich. B) Run the machinery of state. C) Uplift weaker sections. D) None of these. Show Answer Correct Answer: B) Run the machinery of state. 4. An assessee has borrowed money for purchase of a house & Interest is payable outside India. Such interest shall A) Not to be allowed on deduction. B) Be allowed as deduction. C) Be allowed as deduction if the tax is deducted at source. D) None of these. Show Answer Correct Answer: C) Be allowed as deduction if the tax is deducted at source. 5. Agricultural income is exempt provided the A) Land is situated in India. B) Land is situated in any rural area India. C) Land is situated whether in India or outside India. D) None of these. Show Answer Correct Answer: A) Land is situated in India. 6. The income tax in India is A) Direct and proportional. B) Direct and progressive. C) Indirect and proportional. D) Indirect and progressive. Show Answer Correct Answer: B) Direct and progressive. 7. The term assessee is defined under Section A) Section 2(10) of Income Tax Act, 1961. B) Section 2(35) of Income Tax Act, 1961. C) Section 2(24) of Income Tax Act, 1961. D) Section 2(7) of Income Tax Act, 1961. Show Answer Correct Answer: D) Section 2(7) of Income Tax Act, 1961. 8. Income which accrue or arise outside India and also received outside India taxable in case of A) Resident only. B) Not ordinarily resident. C) Both ordinarily resident and NOR. D) None of the above. Show Answer Correct Answer: A) Resident only. 9. The term principal officer is defined under Section A) Section 2(10) of Income Tax Act, 1961. B) Section 2(7) of Income Tax Act, 1961. C) Section 2(24) of Income Tax Act, 1961. D) Section 2(35) of Income Tax Act, 1961. Show Answer Correct Answer: D) Section 2(35) of Income Tax Act, 1961. 10. The cost inflation index number of the P.Yr.2008-09 is A) 582. B) 580. C) 586. D) 577. Show Answer Correct Answer: A) 582. 11. The loss is allowed to be carried forward only when as assessee has furnished A) Return of loss before the due date mentioned u/s 139(1). B) Return of loss. C) Or not furnished the return of loss. D) None of these. Show Answer Correct Answer: A) Return of loss before the due date mentioned u/s 139(1). 12. The exemption u/s 54B, is allowed to A) HUF only. B) Individual only. C) Any assessee. D) All of the above. Show Answer Correct Answer: B) Individual only. 13. Service tax is payable on the value of taxable service @ A) 12.24 %. B) 12.36 %. C) 12 %. D) 10.3 %. Show Answer Correct Answer: B) 12.36 %. 14. Service tax is not payable if the aggregate value of taxable service does not exceed A) Rs.8,00,000. B) Rs. 4,00,000. C) Rs.10,00,000. D) Rs. 6,00,000. Show Answer Correct Answer: C) Rs.10,00,000. 15. The term person is defined under A) Section 2(41). B) Section 2(11). C) Section 2(31). D) Section 2(21). Show Answer Correct Answer: C) Section 2(31). 16. Conversion of capital asset into stock in trade will result into capital gain of the previous year A) In which such conversion took place. B) In which such converted asset is sold or otherwise transferred. C) All of these. D) None of these. Show Answer Correct Answer: B) In which such converted asset is sold or otherwise transferred. 17. Education cess was levied by A) The Finance No. (2) Act, 2002. B) The Finance No. (2) Act, 2004. C) The Finance Act, 2006. D) The Finance Act, 1994. Show Answer Correct Answer: B) The Finance No. (2) Act, 2004. 18. Interest on capital or loan received by a partner from a firm is A) Taxable U/H business and profession. B) Taxable U/H income from other sources. C) Exempt U/S 10(2A). D) None of these. Show Answer Correct Answer: A) Taxable U/H business and profession. 19. The exemption under section 54,shall be available A) Proportionate to the net consideration price invested. B) To the extent of amount actually invested. C) To the extent of capital gain invested in the HP. D) None of these. Show Answer Correct Answer: C) To the extent of capital gain invested in the HP. 20. Service tax is levied in India by following the A) Selective approach. B) Comprehensive approach. C) All of the above. D) None of these. Show Answer Correct Answer: A) Selective approach. 21. Loss under the head income from house property can be carried forward A) Even if the return is furnished after the due date. B) Even if the return is not furnished. C) Only if the return is furnished before the due date mentioned u/s 139(1). D) None of these. Show Answer Correct Answer: A) Even if the return is furnished after the due date. 22. For person carrying on profession, tax audit is compulsory, if the gross receipts of the previous year exceeds A) Rs. 10lakhs. B) Rs. 30lakhs. C) Rs. 20lakhs. D) Rs. 40lakhs. Show Answer Correct Answer: A) Rs. 10lakhs. 23. R Ltd., is registered in U.K. The control and management of its affairs is situated in India .R Ltd shall be A) Resident in India. B) Not ordinarily resident in India. C) Non-resident. D) None of these. Show Answer Correct Answer: C) Non-resident. 24. Service tax is applicable to A) Whole of India. B) Whole of India except Jammu and Kashmir. C) Whole of India, except Jammu and Kashmir and Union Territories of Dadra, Nagar Haveli, Daman & Diu. D) None of these. Show Answer Correct Answer: B) Whole of India except Jammu and Kashmir. 25. Ambitious anti-offshore tax evasion and black money detection agreement between USA and India is known as A) KYC. B) FATCA. C) AML. D) SLBC. Show Answer Correct Answer: B) FATCA. 26. Incomes which accrue or arise outside India but are received directly into India are taxable in case of A) Resident only. B) Non-resident. C) Both ordinarily resident and NOR. D) All the assesses. Show Answer Correct Answer: D) All the assesses. 27. Loss under the head capital gain in a particular assessment year can A) Be carried forward. B) Be set off from other head of income in the same assessment year. C) Neither be set off nor carried forward. D) None of these. Show Answer Correct Answer: A) Be carried forward. 28. Interest on capital of or loan from partner of a firm is allowed as deduction to the firm to the extent of A) 12 % p.a. even if it is not mentioned in partnership deed. B) 18 % p.a. C) 12 % p.a. or at the rate mentioned in partnership deed whichever is less. D) None of these. Show Answer Correct Answer: C) 12 % p.a. or at the rate mentioned in partnership deed whichever is less. 29. The partial integration of agricultural income, is done to compute tax on A) Non agricultural income. B) Agricultural income. C) Both agricultural and non agricultural income. D) None of these. Show Answer Correct Answer: A) Non agricultural income. 30. Which of the following is not a union tax? A) Stamp duties on financial documents. B) Taxes on railway freights and fares. C) Both (a) and (b). D) Tolls. Show Answer Correct Answer: C) Both (a) and (b). ← PreviousNext →Related QuizzesFinance QuizzesTaxes In India Quiz 1Taxes In India Quiz 2Taxes In India Quiz 3Taxes In India Quiz 5 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books