Which of the following is levied by State Government Only ?
(a) Estate Duty
(b) Entertainment Allowance
(c) Corporate Tax
(d) Wealth Tax
Given below are two statements:
Statement I: Person is always an assessee but an assessee may or may not be a person
Statement II: The term ‘person’ includes an individual, a HUF, a company, a firm, an association of persons, local authority and every artificial juridical person
In light of the above statements, choose the most appropriate answer from the options given below
(a) Both Statement I and Statement II are correct,
(b) Both Statement I and Statement II are incorrect,
(c) Statement I is correct but Statement II is incorrect
(d) Statement I is incorrect but Statement II is correct
Under which of the following categories, a partner of partnership firm will be assessed?
(a) An individual
(b) HUF
(c) Firm
(d) Body of an Individual
Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R:
Assertion A: The Indirect taxes basically imposed by the Government to control the consumption.
Reason R: The Burden of indirect taxes can not be shifted.
In the light of the above statements, choose the most appropriate answer from the options given below:
(a) Both A and R are correct and R is the correct explanation of A
(b) Both A and R are correct but R is NOT the correct explanation of A
(c) A is correct but R is not correct
(d) A is not correct but R is correct
In which of the following cases, Assessing officer has the discretion to assess the income of the previous year in the previous year or in the subsequent assessment year?
(a) Shipping business of non-residents
(b) Association of Persons (AOP) or body of Individuals (BOI) formed for a particular event or purpose
(c) Assessment of persons likely to transfer property to avoid tax
(d) Discontinued business
X was appointed on 1st July 2022 as a lecturer in a University. He was continued on 30th April 2023. What would be the duration of the previous year for the assessment year 2023-24 for computation of income under the head Salary?
(a) 1 July 2022 to 30 April 2023
(b) 1 April 2022 to 31 March 2023
(c) 1 April 2022 to 30 April 2023
(d) 1 July 2022 to 31 March 2023
X sets up a new business on October 1, 1987 and does not close his books on March 31, 1988. What will be the period of previous year for the assessment year 1989-90?
(a) 9 months
(b) 24 months
(c) 18 months
(d) 12 month
Find the ‘False’ statement from the following
(a) Income tax is a direct tax charged annually by the central government
(b) Previous year always starts from 1st April
(c) Capital receipt cannot be treated as income
(d) The income earned from illegal business is also taxable
Rates of income tax under new regime applicable for financial year 2022 – 23 in India are:
(A) 5%
(B) 10%
(C) 12%
(D) 15%
(E) 20%
Choose the correct answer from the option given blow:
(a) (A), (B), (C) Only
(b) (A), (B), (D) Only
(c) (A), (B), (D), (E) Only
(d) (B), (C), (D), (E) Only
The tax Rates in India is fixed by :
(a) Annual Finance Act
(b) Annual Budget of Central Government
(c) The respective Act of Tax Laws
(d) Special Resolution of Legislative Assembly
A new section 115 BAC has been inserted from assessment year 2023-24 through this section a new taxation system has been introduced. This section is applicable on.
(a) Individual and HUF
(b) Firm and AOP
(c) Companies
(d) All of the above
An Individual resident whose total income does not exceed Rs. 5,00,000 then deduction of income tax U/s 87A for A.Y. 2023-24 is
(a) 100% of income tax or Rs. 5,000 whichever is less
(b) 100% of income tax or Rs 3,000 whichever is less
(c) 100% of income tax or Rs 12,500 whichever is less
(d) None of these
Which income is taxable in the hands of HUF from the following incomes?
(a) Income from property transferred to the family after 31st December 1969 by member.
(b) Income from impartible estate.
(c) Income from investments of the family.
(d) Salary income given to a member of family
State which of the following statements is false
(a) Income from impartible estate is not included in the income of family
(b) Income from stridhan’ is not included in the income of family
(c) Income from investment in the name of member by the family is included in the income of family
(d) Incomes of members will be considered while calculating tax liability of Hindu undivided Family
Income Tax Authorities are grouped into two main wings Administrative and_______.
(a) Executive
(b) Managerial
(c) Judicial
(d) Clerical
Consider the following conditions:
(a) An individual is in India for a period of 182 days in the financial year in which he is getting his salary income
(b) An individual is in India for a period of 60 days or more during financial year in which he gets salary and 365 days or more during 4 years immediately preceding to that financial year.
If one of the above conditions is satisfied, as per the provisions of Income tax Act. 1961, he is:
(a) Resident but not ordinarily resident of India
(b) Non-resident citizen of India
(c) Resident and categorized citizen of India U/S 29
(d) Ordinary resident of India
Mr. Pawan was born on April 18, 1986 in India and later on he took the citizenship of USA. Neither his parents nor his grand -parents were born in undivided India. In this case Mr. Pawan shall be–
(a) Person of Indian origin
(b) Citizen of India
(c) A foreign national
(d) None of the above
Which among the following is correct statement about residential status of a company?
(a) A company can be classified as “not ordinarily resident”
(b) A company can never be classified as “not ordinarily resident”
(c) A company can be classified as “not ordinarily resident” with the permission from the Ministry of Finance
(d) A company can be classified as “not ordinarily resident” with the permission from Ministry of Commerce
State which of the following statements is true
(a) Surcharge is levied when the total income of an Individual exceeds Rupees 2,50,000
(b) A partner is liable to pay tax on his share of income received from the firm
(c) An individual resident in India and non-resident in India pay tax at the same rate.
(d) Education cess is imposed at total 3% on Income
Which of the following are correct for Agricultural Income?
A. Income from self-grown grass, trees, bamboo
B. Rent and Rates derived from land
C. Income from making the produce fit for marketing
D. Income from land used for storing agriculture produce
E. Income from farmhouse
Choose the correct answer from the options given below:
(a) B, C and E only
(b) B, D and E only
(c) A, C and D only
(d) C, D and E only
Mr. M derived income from sale of tea manufactured and grown in Coorg, Karnataka. His income from the said activity is Rs.25 lakhs. The amount exempt from tax by way of agricultural income is
(a) Rs.10 lakh
(b) Rs.6•25 lakh
(c) Rs.15 lakh
(d) Rs.8•75 lakh
The total income and agricultural income of Shri Ram are Rs 8,85,000 and Rs 5,000 respectively the income tax is
(a) Rs.89,250
(b) Rs.89,500
(c) Rs.92,820
(d) Nil
Which income from the following is partially exempted?
(a) Interest on certain government securities
(b) Agricultural income
(c) Shares from unregistered firm
(d) Payment of lease rent
Given below are two statements :
Statement I: Agricultural income is totally exempted, provided it falls within the definition of agricultural income given under section 2 (1A).
Statement II: Any sum received by an individual as a member of a Hindu Undivided Family, shall be taxable in the hands of the member.
In the light of the above statements, choose the correct answer from the options given below:
(a) Both Statement I and Statement II are true
(b) Both Statement I and Statement II are false
(c) Statement I is true but Statement II is false
(d) Statement I is false but Statement II is true
The partial integration of agricultural with non-agricultural income is done in case of:
(a) AOP/BOI,
(b) Company,
(c) Co-operative society,
(d) Firm,
Sequence the following steps to compute tax where there is agricultural income also.
(A) Add agriculture income and non-agriculture income and calculate tax on aggregate as if such aggregate income is the total income.
(B) Add agricultural income to the maximum exemption limit available in the case of assessee and compute tax on such amount as if it is total income.
(C) Deduct the amount of Income tax as computed (B) from the tax computed from (A)
(D) Claim rebate u/s 87(A) if applicable
(E) Add surcharge if applicable along with the Health and Education cess@4%
Choose the correct answer from the options given below:
(a) B, A, C, D, E
(b) B, A, D, C, E
(c) A, B, D, C, E
(d) A, B, C, D, E
Income from Farmhouse is :
(a) Agricultural income
(b) Income from house property
(c) Exempted capital gain
(d) Income from other sources
Income which accrues in Singapore from business not controlled from India is ………………
(a) Taxable only for a non-resident
(b) Not taxable for non-resident
(c) Taxable only for resident but not ordinarily resident
(d) Not taxable in case of all types of assessees
The employer has provided the facility of a 1.8 litre (c.c.) car. The car is used for private purposes also and all the expenses including the driver salary are borne by the employer. The expenses of employer during the previous year amounted to Rs.60,000 and the employer has recovered Rs.1000 per month from the employee for this facility. What amount per year shall be reduced by the employer from actual amount of expenditure?
(a) 32,400
(b) 16,800
(c) 39,600
(d) 21,600
Exemption in respect of value of leave travel concession is available in respect of
(a) One journey performed in a block of 4 calendar years
(b) Two journeys performed in a block of 4 calendar years
(c) Three journeys performed in a block of 4 calendar years
(d) Actual journeys performed in a block of 4 calendar years
Which one of the following provident funds is set up under Provident Fund Act, 1952?
(a) Statutory Provident Fund
(b) Recognised Provident Fund
(c) Public Provident Fund
(d) Unrecognized Provident Fund
X an employee of the private company. Gets Rs. 30,000 p.m. basis and entitled to Rs, 1,500 p.m. as entertainment allowance. What are the deductions u/s 16 (ii) from gross salary in respect of entertainment allowance?
(a) Rs. 5,000
(b) Rs. 18,000
(c) Rs. 1,500
(d) Nil.
Match List I with List II
List I
A. The value as determined by the municipal authorities for levying municipal taxes on house property
B. The rent which a similar property can fetch in the same or similar locality if it is let for a year
C. The rent which is fixed under the Rent Control Act
D. Higher of Municipal value or fair rent but limited to standard rent
List II
I. Expected Rent
II. Fair Rent
III. Standard Rent
IV. Municipal value
Choose the correct answer from the options given below :
(a) A-I, B-III, C-II, D-IV
(b) A-II, B-III, C-I, D-IV
(c) A-IV, B-I, C-II, D-III
(d) A-IV, B-II, C-III, D-I
Computation of income from house property for let-out house, the following items are deducted. Arrange them in a proper sequence:
(A) Local taxes/Municipal Taxes
(B) Standard deductions
(C) Unrealized Rent
(D) Interest on loan for the period the prior to previous year in which the house in completed (in five equal annual installment)
(E) Interest on loan taken for purchases, construction of repair of the house, relating to the previous year
Choose the correct answer form the options given below:
(a) A, B, E, D, C
(b) C, A, B, E, D
(c) A, C, B, E, D
(d) D, A, B, E, C
Mr. Samanta joined ITC Ltd. as Finance Manager on 01.04.2018. During the year he purchased two residential flats in the same building taking loan from SBI. His annual interest accrued for each flat is Rs. 2,50,000. One of the flats is used for self-occupation and the other one has been let out to a tenant who uses the flat for residential purpose. Mr. Samanta’s total deduction for interest on housing loan is
(a) Rs. 2,00,000
(b) Rs.5,00,000
(c) Rs.2,80,000
(d) Rs.4,50,000
Which of the following income is not chargeable under the head income from business and profession?
(a) Profit and Gains carried on by assessees during the previous year.
(b) Income derived by a trade professional or similar association from specific services performed for its members.
(c) Income from the activity of owning or owning and maintaining race horses
(d) Salary received by a partner of a firm from the same firm.
Which of the following losses are not deductible from business income?
(A) Loss sustained before the business is commenced.
(B) Losses incurred in the closing down of the business.
(C) Loss incurred due to damage destruction, etc. of capital assets.
(D) Loss of raw material and finished goods in transit.
(E) Loss of stock in trade due to enemy action.
Choose the correct answer form the options given below:
(a) (A), (B), (C) only
(b) (B), (C), (D) only
(c) (A), (D), (E) only
(d) (A), (B), (D) only
Steps involved in computation of Book Profit under MAT regime are as follow:
(A) Arrive NP as per statement of P/L A/C of the company.
(B) Specific adjustments in case of merger.
(C) Make adjustments pertaining to OCI items.
(D) Adjust the book profit with stipulated exclusion and inclusion.
(E) Net amount of book profit for application of MAT rate.
(a) (A), (D), (B), (C), (E)
(b) (A), (B), (D), (C), (E)
(c) (A), (C), (B), (D), (E)
(d) (A), (B), (C), (D), (E)
Match List I with List II
List I (Assets transferred)
A. Agricultural Land
B. Residential House
C. Land or Building or both
D. Land and Building forming part of an industrial undertaking
List II (Exemptions of capital gains Sections 54-54EC Income Tax Act
I. Section 54 B
II. Section 54 EC
III. Section 54 D
IV. Section 54
Choose the correct answer from the options given below:
(a) A-III, B-II, C-I, D-IV
(b) A-I, B-IV, C-II, D-III
(c) A-IV, B-III, C-I, D-II
(d) A-III, B-I, C-IV, D-II
Balram acquired a residential house in January 2006 for Rs. 30,00,000 and made some improvements by way of additional construction to the house, incurring expenditure of Rs. 6,00,000 in October 2010 He sold the house property in October 2022 for Rs. 2,40,00,000. He acquired a residential house in January 2023 for Rs. 75,00,000. Compute the capital gain chargeable to tax for the Assessment year 2023-24.
Cost inflation Index: F.Y. 2005-06 = 117, F.Y. 2010-11 = 167, F.Y 2022-23 = 331
(a) Rs. 67,45,468
(b) Rs. 65,89,381
(c) Rs. 62,53,561
(d) Rs. 68,23,600
Amount unutilized in the capital gain scheme for which exemption was claimed under section 54 shall be treated as long-term capital in the previous year?
(a) In which period of 2 years has expired from the date of deposit
(b) In which period of 2 years has expired from the date of transfer
(c) In which period of 3 years has expired from the date of deposit
(d) In which period of 3 years has expired from the date of transfer
Which of the following are deemed to be dividend for the purpose of computing income chargeable under the head ‘income from other sources’ as per the Income Tax Act, 1961?
A. Payment on buy-back of shares
B. Payment to shareholders on reduction of capital
C. Distribution of debentures to shareholders
D. Loan granted to shareholders in ordinary course of business
E. Loan granted to shareholders by a closely held company
Choose the correct answer from the options given below:
(a) B and C only
(b) B, C and E only
(c) A, B and C only
(d) A and C only
Expenses that are not deductible under Section 58 of the Indian Income Tax for computing the income chargeable under the head “Income From Other Sources”.
(A) Personal expenses
(B) Interest payable outside India on which tax has not been paid or deducted at source
(C) Wealth tax
(D) Commission for realizing dividend income or interest on securities
(E) Expenses which are not of capital nature like repairs, depreciation on plant and insurance premium
Choose the correct answer from the options given blow:
(a) A, B and D only
(b) A, B and C only
(c) A, B, D and E only
(d) A, B, C, D and E only
Dividend income received during the Previous Year 2022-23 by Mrs. M. Chatterjee is Rs.12,00,000. Tax liability on dividend is
(a) Nil
(b) Rs. 1,00,000
(c) Rs. 20,000
(d) Rs.1,20,000
Shantharan received Rs. 75,000 from his elder brother as gift on the occasion of his birthday. What is the taxable amount?
(a) The entire amount of Rs. 75,000 is taxable.
(b) The entire amount of Rs. 75,000 is exempt.
(c) Rs. 25,000 is taxable.
(d) Rs. 50,000 is taxable
In which of the following long term assets, cost indexation benefit is allowed?
(a) Debentures issued by a company
(b) Self-generated goodwill of a business
(c) Bonus shares allotted on 1-4-2000
(d) Jewellery
Asset treated as “Capital asset” the Section 2(14) of the Income Tax Act, 1961:
(a) Any stock-in-trade held for the purposes of business or profession
(b) Gold and silver coins used for Puja of deities as a matter of pride or ornamentation and normally not intended for personal or household use
(c) 7 percent Gold Bonds issued by the Central Government
(d) Gold Deposit Bonds issued under Gold Deposit Scheme, 1999
Presumptive taxation involves which one of the following?
(a) The use of indirect methods to calculate tax liability, which differ from the usual sales based on the tax payer’s account.
(b) Transfer of tax liability from state to the centre.
(c) Calculation of the short term capital gain
(d) Calculation of rebate U/S 89.
Sequence the steps for computing depreciation in income from Business and Profession:
(a) The written down value of each block as on the last day of previous year
(b) Find the value of each block at the beginning of each year
(c) The money received along with scrap, if any respect of the same blocks, which are sold/discarded during the year
(d) Assets required during the year in the respective blocks to which the new assets belongs
Choose the most appropriate answer from the options given below:
(a) (A), (B), (C), (D) only
(b) (B), (D), (C), (A) only
(c) (A), (B), (D), (C) only
(d) (D), (B), (C), (A)) only
Which one of the following is the Net Annual Value (NAV) of house for the given details?
Municipal value = Rs. 3,60,000
Fair Rental Value = Rs. 4,00,000
Standard rent = Rs. 5,00,000
Actual Rent (Annual Rent) = Rs. 4,80,000
Municipal Tax = Rs. 12,000 (due but not paid)
(a) Rs. 4,00,000
(b) Rs. 4,80,000
(c) Rs. 4,68,000
(d) Rs. 5,00,000
