Taxes In India Quiz 2 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Service tax was introduced first time on

Correct Answer: C) 3 years.

2. Deduction under section 80D in respect of medical insurance premium is allowed to

Correct Answer: C) An individual or HUF.

3. The most important source of revenue to the states is

Correct Answer: A) Sales tax.

4. Tax is levied under VAT at

Correct Answer: C) Multi Stage.

5. Service tax is governed and administered by

Correct Answer: A) CBEC.

6. Banking services offered to units set up in Special Economic Zones (SEZs) have been exempted for paying tax

Correct Answer: C) Capital Gains Tax.

7. In case the assessee follows mercantile system of accounting, bonus or commission to the employee are allowed as deduction on

Correct Answer: A) Due basis but subject to section 43B.

8. Education cess is leviable in case of

Correct Answer: C) All assesses.

9. 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

Correct Answer: A) Non-resident.

10. Deduction u/s 80C in respect of LIP, Contribution to provident fund, etc. is allowed to

Correct Answer: C) An individual of HUF.

11. Body of individual should consist of

Correct Answer: B) Individual only.

12. Deduction u/s 80GGA in respect of certain donation for scientific research or rural development is allowed to

Correct Answer: C) An assessee whose income does not include PGBP income.

13. Securities transaction tax paid by the seller of shares and units shall

Correct Answer: B) Not be allowed as deduction.

14. The tax levied by the union government on income of individuals is known as

Correct Answer: D) Personal income tax.

15. The term 'assessment year' is defined

Correct Answer: B) Section 2(9).

16. Service tax was introduced in India on the recommendation of

Correct Answer: B) Dr. Raja J Challiah Committee.

17. Expenditure incurred on purchase of animals to be used by the assessee for the purpose of carrying on his business & profession is subject to

Correct Answer: C) Deduction in the previous year in which animal dies or become permanently useless.

18. The term 'previous year' is defined under

Correct Answer: C) Section 3.

19. There will be no partial integration of agricultural income with non agricultural income, if the non agricultural income does not exceed

Correct Answer: C) Rs. 1,50,000.

20. The power to levy service tax is now provided by the Constitution vide entry No.

Correct Answer: D) 97 of the Union list.