MCQOPTIONS
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MCQOPTIONS
This section includes 253 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
As per Income Tax Act, 1961, income tax is charged on the income ofat a rates which are prescribed by the Finance Act of relevant assessmentyear. |
| A. | current year |
| B. | one year before previous year |
| C. | previous year |
| D. | none of the above |
| Answer» D. none of the above | |
| 2. |
The payment is authorized by, and is in accordance with the term of partnership deed according to sec . |
| A. | sec. 40(b)(ii) |
| B. | sec. 40(b)(iii) |
| C. | sec. 50(b)(ii) |
| D. | none of the above |
| Answer» B. sec. 40(b)(iii) | |
| 3. |
In the absence of the individual assesses, return of income can be signed by |
| A. | legal heir |
| B. | spouse. |
| C. | any person. |
| D. | authorized person |
| Answer» E. | |
| 4. |
The trust should be one established in accordance with law and its objects should fall within the definition of the term . |
| A. | charitable purposes |
| B. | work purpose |
| C. | assessment purposes |
| D. | to earn profit purpose |
| Answer» B. work purpose | |
| 5. |
When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by . |
| A. | the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted |
| B. | its present standard value |
| C. | all of the above |
| D. | none of the above |
| Answer» B. its present standard value | |
| 6. |
The net annual value of house let out is ` 1,00,000 and actual amount spentby the assessee on repairs and insurance premium is ` 20,000. The amountof deduction allowed under Section 24(a) shall be . |
| A. | ` 35,000 |
| B. | ` 45,000 |
| C. | ` 30,000 |
| D. | ` 25,000 |
| Answer» D. ` 25,000 | |
| 7. |
Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head . |
| A. | profit and gain from business and profession |
| B. | income from capital gain |
| C. | income from house property |
| D. | all of the above |
| Answer» B. income from capital gain | |
| 8. |
Which of the following is not a requisite for charging income-tax on capital gains |
| A. | the transfer must have been effected in the relevant assessment year |
| B. | there must be a gain arising on transfer of capital asset |
| C. | capital gains should not be exempt u/s 54 |
| D. | capital gains should not be exempt u/s 54ec |
| Answer» B. there must be a gain arising on transfer of capital asset | |
| 9. |
Expenditure on free meals to employee in excess of per meal will be treated as perquisite of employee. |
| A. | ` 25 |
| B. | 50 |
| C. | ` 100 |
| D. | ` 55 |
| Answer» C. ` 100 | |
| 10. |
In terms of section 2(42A), listed securities are treated as long-term capital asset, if they are held for a period of more than |
| A. | 12 months |
| B. | 36 months |
| C. | 24 months |
| D. | 48 months |
| Answer» B. 36 months | |
| 11. |
The interest on loan paid by the Government of India to a non-resident outside India is ..in India. |
| A. | not taxable |
| B. | partially taxable |
| C. | taxable |
| D. | can t say |
| Answer» B. partially taxable | |
| 12. |
Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m.Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rentalincome of Laxman is taxable under the head . |
| A. | income from salary |
| B. | income from other sources |
| C. | income from house property |
| D. | income from business |
| Answer» C. income from house property | |
| 13. |
Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid `8,000 as local taxes during the year. He uses this house for his residentialpurposes but lets out half of the house @ ` 3,000 p.m. The annual value ofthe house is. |
| A. | 15,000 |
| B. | ` 16,000 |
| C. | ` 17,000 |
| D. | ` 18,000 |
| Answer» C. ` 17,000 | |
| 14. |
If the individual using the property for the business or professional purpose the income taxable under the ..head. |
| A. | income from house property |
| B. | income from huf |
| C. | income from other |
| D. | income from business or proprietorship |
| Answer» E. | |
| 15. |
If the assesses let out the building or staff quarters to the employee ofbusiness, the rent collected from such employees is assessable as incomefrom . |
| A. | business |
| B. | house property |
| C. | other sources |
| D. | none of the above |
| Answer» D. none of the above | |
| 16. |
Calculate the Gross Annual Value from the following details: MunicipalValue ` 45,000Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000 |
| A. | ` 50,000 |
| B. | 48,000 |
| C. | ` 45,000 |
| D. | 42,000 |
| Answer» C. ` 45,000 | |
| 17. |
Arrear rent is taxable after deducting ..as per Section 25B of the Income Tax Act, 1961. |
| A. | 30% |
| B. | 35% |
| C. | 10% |
| D. | 20% |
| Answer» B. 35% | |
| 18. |
Mr. Shushant is the owner of a house, the details of which are given belowthe gross annual value would be Municipal value ` 36,000 Actual rent `32,000 Fair Rent ` 36,000 Standard Rent ` 40,000 |
| A. | ` 36,000 |
| B. | 35,000 |
| C. | ` 30,000 |
| D. | ` 40,000 |
| Answer» B. 35,000 | |
| 19. |
The children education allowance, the amount exempted from taxable income is limited to |
| A. | 100 per month per child upto 3 children |
| B. | 1,000 per year per child upto 2 children |
| C. | 100 per month per child upto 2 children |
| D. | none of the above |
| Answer» D. none of the above | |
| 20. |
Total income is to be rounded off to nearest multiple of .and tax is to be rounded off to nearest multiple of . |
| A. | ten rupee |
| B. | hundred, ten |
| C. | ten, ten |
| D. | rupee, rupee |
| Answer» D. rupee, rupee | |
| 21. |
Surcharge is levied at the rate .if the income exceeds ` 1 crore of the financial year 2016-17. |
| A. | 10% |
| B. | 12% |
| C. | 15% |
| D. | 20% |
| Answer» D. 20% | |
| 22. |
Tax Liability for the individual for 2016-17 who is not the resident of the India whose income ` 2,50,000 to ` 5,00,000 is . |
| A. | 10% of total income minus ` 2,00,000 |
| B. | 10% of total income minus ` 1,00,000 |
| C. | 15% of total income minus ` 1,00,000 |
| D. | none of the above |
| Answer» B. 10% of total income minus ` 1,00,000 | |
| 23. |
If loan granted by employer to employee does not exceed ., it is not treated as perquisite to employee for purpose of income tax. |
| A. | ` 20,000 |
| B. | 40,000 |
| C. | ` 30,000 |
| D. | ` 25,000 |
| Answer» C. ` 30,000 | |
| 24. |
The income is chargeable under the head of salary under of Income Tax Act, 1961. |
| A. | section 15 |
| B. | section 20 |
| C. | section 14 |
| D. | section 16 |
| Answer» B. section 20 | |
| 25. |
If the agricultural income is .. then the agricultural income is considered for calculating tax. |
| A. | more than ` 5,000 and total income is exceeding exemption limit |
| B. | more than ` 5,000 |
| C. | more than ` 10,000 |
| D. | any amount |
| Answer» B. more than ` 5,000 | |
| 26. |
As per Section 2(e a), which of the following is an asset in case of anindividual: |
| A. | cash in hand up to rs. 50,000 |
| B. | shares |
| C. | debentures or bonds |
| D. | motor car used for official purposes |
| Answer» B. shares | |
| 27. |
Rental income from the business of leasing out properties would be taxableunder the head_______ |
| A. | income from house property |
| B. | income from other sources |
| C. | income from pgbp |
| D. | income from capital gain |
| Answer» D. income from capital gain | |
| 28. |
Payment of Rs. ` 45,000 made in cash towards purchases of medicines. Theamount of disallowance under section 40A(3) is - |
| A. | rs 45,000 |
| B. | rs 30,000 |
| C. | nil |
| D. | rs 20,000 |
| Answer» B. rs 30,000 | |
| 29. |
Amount of deduction in case of a person with severe disability undersection 80U will be: |
| A. | rs. 50,000 |
| B. | rs. 75,000 |
| C. | rs. 1,00,000 |
| D. | rs. 1,50,000 |
| Answer» D. rs. 1,50,000 | |
| 30. |
The trust should be one established in accordance with law and its objectsshould fall within the definition of the term …………. |
| A. | charitable purposes |
| B. | work purpose |
| C. | assessment purposes |
| D. | to earn profit purpose |
| Answer» B. work purpose | |
| 31. |
Joint Commissioners are appointed by………… |
| A. | central government |
| B. | state government |
| C. | district government |
| D. | gram panchayat |
| Answer» B. state government | |
| 32. |
The subject matter of the trust is called ……………. |
| A. | trust property |
| B. | own property |
| C. | own furniture |
| D. | none of the above |
| Answer» B. own property | |
| 33. |
The person who accepts the confidence is called …………. |
| A. | trustee |
| B. | karta |
| C. | firm |
| D. | aop |
| Answer» B. karta | |
| 34. |
…………..is an obligation annexed to the ownership of property. |
| A. | trust |
| B. | firm |
| C. | company |
| D. | karta |
| Answer» B. firm | |
| 35. |
The payment is authorized by, and is in accordance with the term ofpartnership deed according to sec…………. |
| A. | sec. 40(b)(ii) |
| B. | sec. 40(b)(iii) |
| C. | sec. 50(b)(ii) |
| D. | none of the above |
| Answer» B. sec. 40(b)(iii) | |
| 36. |
…………..cannot become a partner. |
| A. | minor |
| B. | partner |
| C. | firm |
| D. | society |
| Answer» B. partner | |
| 37. |
Collective group of persons is known as…….. |
| A. | firm |
| B. | society |
| C. | person’ |
| D. | none of the above |
| Answer» B. society | |
| 38. |
. A person entered into partnership is known as ………… |
| A. | partner |
| B. | people |
| C. | karta |
| D. | none of the above |
| Answer» B. people | |
| 39. |
A Long term capital asset means a capital asset held by the assessee formore than: |
| A. | 12 months immediately preceding the month of its transfer. |
| B. | 24 months immediately preceding the date of its transfer. |
| C. | 36 months immediately preceding the date of its transfer. |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 40. |
In terms of section 2(42A), listed securities are treated as long-term capitalasset, if they are held for a period of more than – |
| A. | 12 months |
| B. | 36 months |
| C. | 24 months |
| D. | 48 months |
| Answer» B. 36 months | |
| 41. |
A short term capital asset means a capital asset held by the assessee for notmore than: |
| A. | 12 months immediately preceding the month of its transfer |
| B. | 24 months immediately preceding the date of its transfer. |
| C. | 36 months immediately preceding the date of its transfer. |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 42. |
Which of the following is not a requisite for charging income-tax on capitalgains – |
| A. | the transfer must have been effected in the relevant assessment year |
| B. | there must be a gain arising on transfer of capital asset |
| C. | capital gains should not be exempt u/s 54 |
| D. | capital gains should not be exempt u/s 54ec |
| Answer» B. there must be a gain arising on transfer of capital asset | |
| 43. |
For computation of Gross Annual Value, if actual rent is more thanexpected rent, then we select the . |
| A. | actual rent |
| B. | expected rent |
| C. | any of the above |
| D. | none of the above |
| Answer» B. expected rent | |
| 44. |
Income from property held under trust for charitable or religious purposesis . |
| A. | exempted from tax |
| B. | taxable @ 10% |
| C. | taxable @ 20% |
| D. | none of the above |
| Answer» B. taxable @ 10% | |
| 45. |
When annual value of one-self occupied house is nil, the assesses will beentitled to the standard deduction of . |
| A. | 10% |
| B. | 20% |
| C. | nil |
| D. | none of the above |
| Answer» D. none of the above | |
| 46. |
Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head . |
| A. | profit and gain from business and profession |
| B. | income from capital gain |
| C. | income from house property |
| D. | all of the above |
| Answer» B. income from capital gain | |
| 47. |
The net annual value of house let out is ` 1,00,000 and actual amount spentby the assessee on repairs and insurance premium is ` 20,000. The amountof deduction allowed under Section 24(a) shall be . |
| A. | ` 35,000 |
| B. | ` 45,000 |
| C. | ` 30,000 |
| D. | ` 25,000 |
| Answer» D. ` 25,000 | |
| 48. |
If fair rent is not gives, then assume………….as fair rent. |
| A. | actual rent |
| B. | standard rent |
| C. | average rent |
| D. | none of the above |
| Answer» B. standard rent | |
| 49. |
When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by . |
| A. | the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted |
| B. | its present standard value |
| C. | all of the above |
| D. | none of the above |
| Answer» B. its present standard value | |
| 50. |
An individual assesses can show maximum loss of …………….from a selfoccupied residential house property. |
| A. | 1,50,000 |
| B. | ` 30,000 |
| C. | 20,000 |
| D. | ` 5,00,000 |
| Answer» B. ` 30,000 | |