a)

b)

c)

d)

Government

Government company

Banking company including cooperative bank and post office savings bank

Insurance company

45.	Any loans or deposits borrowed or repaid under section 269SS of the Act provides that the said provisions will not apply to the loans or deposits accepted by :-

 

Marks : 2 

a)

b)

c)

d)

Rs. 12,000 per child per annum

Subject to the maximum of two children.

Rs.10,000 per child per annum

Subject to the maximum of three children.

49.	Any amount paid by an individual as tuition fees to any educational institution in India for the purpose of full time education of the individual's children. The maximum allowable limit is :-

 

Marks : 2 

a)

b)

c)

d)

Gross total income

Gross taxable income

Net income

Tax amount

50.	Combined total of five heads of income equals :-

 

Top of Form

 

 Multiple Choice Single Answer

  Question  

The amount of advance tax payable by non corporate assessees before 15th December of Previous year is :-

  Correct Answer  

60% of advance tax payable

  Your Answer  

60% of advance tax payable

 

 Select The Blank

  Question  

The aggregate amount of all the expenditure falling under the head preliminary expenses incurred under section 3________, for an Indian company the aggregate of all the expenditure can be 5% of the cost of project or 5% of capital employed whichever is higher.

  Correct Answer  

5% of the cost of project or 5% of capital employed

  Your Answer  

5% of the cost of project or 5% of capital employed

 

 Multiple Choice Multiple Answer

  Question  

Condition for deduction from Capital Gains arising from transfer of House property under Section 54 is :-

  Correct Answer  

Assessee must have purchased another residential property one year before or within two years after the date on which transfer took place , Assessee must have constructed another residential property within, three years after the date on which the transfer took place.

  Your Answer  

Assessee must have purchased another residential property one year before or within two years after the date on which transfer took place , Assessee must have constructed another residential property within, three years after the date on which the transfer took place.

 

 True/False

  Question  

Rebates as per the provisions of Section 88B of the Act are not available from the tax on long-term capital gains.

  Correct Answer  

False

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

Profits earned by an Industrial Undertaking engaged in other than infrastructure development is available under Section 80IB for :-

  Correct Answer  

Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage , Company engaged in scientific and industrial research

  Your Answer  

Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage , Company engaged in scientific and industrial research

 

 Select The Blank

  Question  

If a person, other than an individual or a HUF, is responsible to pay the rent to any person in excess of ________ during the financial year.

  Correct Answer  

Rs. 1,20,000

  Your Answer  

Rs. 1,00,000

 

 Multiple Choice Multiple Answer

  Question  

The entertainment allowance received by the Government employees is included in their salaries and the deduction is allowed to the extent of least of the following amounts :-

  Correct Answer  

Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowance received.

  Your Answer  

Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowance received.

 

 Select The Blank

  Question  

As per the Clause N0-30 of the Act ________ requires company engaged in production, mining, and manufacturing activities should maintain proper books of accounts showing the particulars of utilization of material, labour or any other item.

  Correct Answer  

Section 209 of the Companies Act,1956

  Your Answer  

Section 209 of the Companies Act,1956

 

 Multiple Choice Multiple Answer

  Question  

Under the clause No-32 of the Act, in the Tax Audit Report, the Auditor is required to give the accounting calculation in ratios of :-

  Correct Answer  

Gross profit/turnover , Net profit/turnover , Stock in trade/turnover

  Your Answer  

Gross profit/turnover , Net profit/turnover , Stock in trade/turnover

 

 Multiple Choice Single Answer

  Question  

The losses incurred in the current Assessment Year :-

  Correct Answer  

Can be carried forward to the subsequent Assessment Years

  Your Answer  

Can be carried forward to the subsequent Assessment Years

 

 Multiple Choice Multiple Answer

  Question  

Standard deduction takes care of :-

  Correct Answer  

Ground rent , Repairs & maintenance , Insurance premium

  Your Answer  

Repairs & maintenance , Insurance premium , Ground rent

 

 True/False

  Question  

Loss under the head Profits from Business or Profession can be adjusted against the Income from Salaries.

  Correct Answer  

False

  Your Answer  

False

 

 Multiple Choice Single Answer

  Question  

Assessment year is the period of 12 months starting from :-

  Correct Answer  

1st April to 31st March

  Your Answer  

1st April to 31st March

 

 True/False

  Question  

If assessee owns more than one house properties, for his self occupation, annual value of any one of the house property of his own choice is treated as nil & another house as rented out.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

The specified assets for the purpose of claiming exemption from Capital Gains u/s 54EC mean the bonds redeemable after 3 years issued by the following institutions ­

  Correct Answer  

National Bank for Agriculture and Rural Development (NABARD) , Rural Electrification Corporation Limited , Small Industries Development Bank of India

  Your Answer  

National Bank for Agriculture and Rural Development (NABARD) , Rural Electrification Corporation Limited , Small Industries Development Bank of India

 

 Select The Blank

  Question  

In case of foreign companies rate of tax is ________.

  Correct Answer  

0.35

  Your Answer  

0.3

 

 Multiple Choice Multiple Answer

  Question  

Which of the following expenses should be debited to P & L Account, but disallowed for Income tax purpose?

  Correct Answer  

Wealth Tax , Personal expenditure , Income Tax

  Your Answer  

Wealth Tax , Revenue expenditure , Personal expenditure

 

 True/False

  Question  

Any Employer's Contribution payable by the assessee towards any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of the employees, if they are actually paid, allowed as deduction.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

Maximum Deduction u/s 80D in respect of medical insurance premium for a person who is a Senior Citizen is Rupees :-

  Correct Answer  

15000

  Your Answer  

15000

 

 Select The Blank

  Question  

The rate of TDS is ________ in case of advertising work.

  Correct Answer  

0.01

  Your Answer  

0.01

 

 Multiple Choice Single Answer

  Question  

Income earned in previous year is subjected to tax in :-

  Correct Answer  

Assessment year

  Your Answer  

Accounting year

 

 Select The Blank

  Question  

The rebate u/s 88B is available to an individual who has attained the age of ________ or more at any time during the previous year.

  Correct Answer  

65

  Your Answer  

65

 

 Select The Blank

  Question  

Unabsorbed business loss can carried forward and set off in the subsequent Assessment Years subject to the time limit of ________ Assessment years.

  Correct Answer  

8

  Your Answer  

8

 

 Multiple Choice Single Answer

  Question  

Previous year always ends on :-

  Correct Answer  

31st March

  Your Answer  

31st March

 

 Multiple Choice Single Answer

  Question  

Gross Annual Value can not exceed :-

  Correct Answer  

Standard rent

  Your Answer  

Standard rent

 

 True/False

  Question  

For being resident of India, a person must be citizen of India.

  Correct Answer  

False

  Your Answer  

True

 

 True/False

  Question  

Sales tax and expenses in connection with the proceedings for the assessment of sales tax are allowed as business expenditure.

  Correct Answer  

True

  Your Answer  

True

 

 Match The Following

Question

Correct Answer

Your Answer

Perquisites

Indicate benefits or amenities provided by the employer to the employee, either free of cost or at the concessional rate

Indicate benefits or amenities provided by the employer to the employee, either free of cost or at the concessional rate

House Rent Allowance

This indicates the amount paid by the employer to the employee to meet the expenditure for residential accommodation occupied by the employee

This indicates the amount paid by the employer to the employee to meet the expenditure for residential accommodation occupied by the employee

Retrenchment Compensation

Compensation received by a worker at the time of retrenchment

Compensation received by a worker at the time of retrenchment

Traveling Allowance

Any allowance granted to meet the cost of travel on tour or on transfer of duty.

assistance received or due to an assessee from his employer, for himself and his family for proceeding on leave to any place in India or to any place in India after the retirement or termination of his service

 

 Multiple Choice Single Answer

  Question  

Foreign allowance received by an Indian national is exempt if it is paid by :-

  Correct Answer  

Government of India

  Your Answer  

Foreign government

 

 Multiple Choice Multiple Answer

  Question  

Following news agencies are specified by the Central Government as specified news agencies :-

  Correct Answer  

PTI , UNI

  Your Answer  

PTI , P TV , NDTV

 

 Multiple Choice Single Answer

  Question  

Annual value of any one palace in possession of a former ruler is :-

  Correct Answer  

Exempt

  Your Answer  

Reduced from income from house property

 

 True/False

  Question  

Income tax paid is allowed as deduction while calculating profit from business or profession.

  Correct Answer  

False

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

Section 35CCA of the Act applies to any expenditure incurred by the assessee by way of payment of any sum to :-

  Correct Answer  

The National Fund for rural development set up by the central government , Any association or institution used for carrying out any programs of rural development , The National Urban Poverty eradication fund set up by the central government

  Your Answer  

The National Fund for rural development set up by the central government , Any association or institution used for carrying out any programs of rural development , The National Urban Poverty eradication fund set up by the central government

 

 Select The Blank

  Question  

No tax is required to be deducted if the amount paid or credited in pursuance of any contract does not exceed a certain amount. However, if the aggregate of such amounts paid or credited to a payee exceeds ________ the tax is required to be deducted under this Section.

  Correct Answer  

Rs. 50000

  Your Answer  

Rs.100000

 

 Multiple Choice Single Answer

  Question  

Income from winning from lotteries / crossword puzzles/ horse races is taxed at flat rate of :-

  Correct Answer  

0.3

  Your Answer  

0.3

 

 Multiple Choice Single Answer

  Question  

The provisions regarding set off and carry forward of loses are contained in :-

  Correct Answer  

Sections 70 to 80 of the Income Tax Act, 1961.

  Your Answer  

Sections 70 to 80 of the Income Tax Act, 1961.

 

 Select The Blank

  Question  

Section 80U allows the deduction in respect of the ________ .

  Correct Answer  

Permanent physical disability

  Your Answer  

Permanent physical disability

 

 Multiple Choice Single Answer

  Question  

Any premium paid by the assessee by Cheque as an employer to effect or keep in force an insurance on the health of his employees is :-

  Correct Answer  

Allowed as expenses while calculating profits from business and profession

  Your Answer  

Allowed as expenses while calculating profits from business and profession

 

 True/False

  Question  

Rebates as per the provisions of Section 88 of the Act are not available from the tax on long-term capital gains.

  Correct Answer  

True

  Your Answer  

False

 

 True/False

  Question  

Jewellery held by the assessee is not a Capital Asset.

  Correct Answer  

False

  Your Answer  

False

 

 Multiple Choice Multiple Answer

  Question  

To get deduction of Rs 150000/- as interest on borrowed capital assessee needs to satisfy conditions i.e. :-

  Correct Answer  

Borrowal is after 1st April 1999 , Construction is completed in 3 years

  Your Answer  

Deduction can be for principal portion also , Borrowal is after 1st April 1999 , Construction is completed in 3 years

 

 Multiple Choice Single Answer

  Question  

The return of income required to be filed in the form by the Non-Corporate Assessee not claiming the exemption under the provisions of section 11 of the Act and not having income from business and profession is :-

  Correct Answer  

Form No. 3 or 2D(saral)

  Your Answer  

Form No. 2 or 2D(saral)

 

 Multiple Choice Single Answer

  Question  

Salary paid by any partnership firm to its working partners is taxable as :-

  Correct Answer  

Income from Business and Profession

  Your Answer  

Income from Business and Profession

 

 True/False

  Question  

The payments made u/s 43B of the Income Tax Act are allowed as deductions only if they are actually paid.

  Correct Answer  

True

  Your Answer  

True

 

 Match The Following

Question

Correct Answer

Your Answer

Containers made of glass or plastic used as refills

Rate of depreciation is 40%

Rate of depreciation is 40%

All intangible assets like Patents, Trademarks, Copy Rights, Licenses etc.

Rate of depreciation is 25%

Rate of depreciation is 25%

Temporary Structures

Rate of depreciation is 100%

Rate of depreciation is 100%

Computers

Rate of depreciation is 60%

Rate of depreciation is 60%

 

 Select The Blank

  Question  

Deduction for remuneration from foreign sources for professors, teachers etc under Section 80R is limited to ________% of such remuneration brought in India.

  Correct Answer  

15

  Your Answer  

15

 

 Select The Blank

  Question  

If the asset sold or transferred by the employer to employee is in the form of computers an electronic items, the wear and tear will be calculated @ ________ %.

  Correct Answer  

50

  Your Answer  

20

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Bottom of Form

 

 

	Score Card

	Registration Number:	200404214
	Name:	Manpreet Malhotra
	Subject:	Taxation
	Assignment Status As On:	19/03/2006

 Result for this Assignment

 Assignment Date

 18/03/2006

 Number of Correct Questions

 31

 Number of Skipped Questions

 4

 Number of Wrong Questions

 16

 Total Questions attempted

 51

 Total Marks obtained

 69 Out of 100.

 Result

 Pass

Click here to view the list of attempted question and answers.

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