taxation solved assignment 001

www.oqp.inSCDL- PGDBA- IV Semester (Finance)

TAXATION - Paper Code -133

SCDL SOLVED ASSIGNMENT – TAXATION (133)

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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

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

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

True/False Question Income Tax Act, 1961 recognizes Written Down

Value (WDV) method as well as straight line method for the computation of depreciation u/s 32 this act.

Correct Answer

False

Your Answer False

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

Multiple Choice Single Answer Question Which of the following expenditure is in the nature

of revenue expenditure? Correct Answer

Expenditure incurred as discount on issue of debentures

Your Answer Expenditure incurred as discount on issue of debentures

Select The Blank Question If sum received is net of TDS then it is ________ to

include in income from other sources. Correct Answer

Grossed up

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Your Answer Grossed up

True/False Question Interest paid on the loan for acquiring a capital

asset will be considered to be a part of cost of acquisition.

Correct Answer

True

Your Answer True

Multiple Choice Single Answer Question Mr. A whose Gross Total Income, before allowing

deductions under Chapter VI-A is Rs. 1,45,000, wants to make the investments in the following alternative forms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The amount of rebate available to him u/s 88 is :-

Correct Answer

Rs. 18,000

Your Answer Rs. 18,000

Multiple Choice Single Answer Question Interest on specified securities or premium on

redemption is exempt for :- Correct Answer

Non resident Indian

Your Answer Non resident Indian

True/False Question As per section 2(11) of the Income Tax Act, Block

of Assets includes both tangible as well as intangible assets.

Correct Answer

True

Your Answer True

Multiple Choice Multiple Answer Question Deductions in respect of Certain Incomes received

under Section 80L is available in respect of Correct Answer

Interest on Central or State Government Securities , Interest on National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) , Bank Interest

Your Answer Interest on Central or State Government



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Securities , Interest on National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) , Bank Interest

Multiple Choice Single Answer Question Tax liability of a person is based on :-

Correct Answer

Residential status

Your Answer Residential status

Multiple Choice Multiple Answer Question For the purpose of income tax, the perquisites can

be classified into :- Correct Answer

Perquisites which are taxable in case of all types of employees , Perquisites which are taxable only in the hands of specified employee

Your Answer Perquisites which are taxable in case of all types of employees , Perquisites which are taxable only in the hands of specified employee

Select The Blank Question For an individual as a citizen of India who leaves

India in the relevant previous year for the purpose of employment has to be in India for ________ days or more during previous year.

Correct Answer

182

Your Answer 182

Multiple Choice Single Answer Question Income earned in previous year is subjected to tax

in :- Correct Answer

Assessment year

Your Answer Assessment year

Multiple Choice Multiple Answer Question Following professional institutions have their

incomes exempt from tax :- Correct Answer

Town planning , Company secretary , Accounting

Your Answer Town planning , Company secretary , Accounting

Select The Blank



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Question ________ of the Tax Audit Report refers to the details of various payments which are allowed as deduction only if they are actually paid for.

Correct Answer

Section 43B Clause No-21

Your Answer Section 43B Clause No-21

Multiple Choice Multiple Answer Question Short Term Capital Loss can be adjusted against :-

Correct Answer

Short Term Capital Gains. , Long term Capital Gains

Your Answer Short Term Capital Gains. , Long term Capital Gains

Select The Blank Question To claim sec 10A deduction unit must be

established in ________. Correct Answer

Free Trade Zone

Your Answer Free Trade Zone

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

Multiple Choice Single Answer Question Combined total of five heads of income equals :-

Correct Answer

Gross total income

Your Answer Gross total income

Multiple Choice Single Answer Question If an employee does not avail of this leave travel

concession or assistance during a block of four calendar years :-

Correct Answer

Only one journey can be carried forward to the next block.

Your Answer Only one journey can be carried forward to the next block.



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Select The Blank Question To acquire PAN, a person shall apply in ________

to the assessing officer. Correct Answer

Form No. 49A

Your Answer Form No. 49A

Multiple Choice Single Answer Question Deduction from Capital Gains under Section 54F is

for Capital Gains arising from transfer of :- Correct Answer

Any Long Term Capital Asset

Your Answer House Property

Select The Blank Question Where an assessee files or submits the returns as

per provisions of section 139 or in response to the notice under section 142, the assessment officer undertakes ________ as per section 143(2) and section 143(3).

Correct Answer

Scrutiny Assessment

Your Answer Scrutiny Assessment

Multiple Choice Multiple Answer Question Income of a professional association is exempt if

its objectives are :- Correct Answer

Supervision , Control , Encouragement

Your Answer Supervision , Control , Encouragement

True/False Question While computing the profits from Business and

profession, the business or profession must be carried out during the previous year.

Correct Answer

True

Your Answer True

Multiple Choice Single Answer Question In respect of leave travel concession If Mr. A has

availed the exemption only once or has not availed any exemption at all, in the block of four years i.e. 1998-2001 then :-



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Correct Answer

He can carry over the exemption to the next block of four years i.e. 2002-2005 provided that he avails the exemption of LTC in the first calendar year of the next block i.e. 2002.

Your Answer He can carry over the exemption to the next block of four years i.e. 2002-2005 provided that he avails the exemption of LTC in the first calendar year of the next block i.e. 2002.

Multiple Choice Multiple Answer Question The amount accumulated to the credit of the

employee's provident fund account is paid at the time of :-

Correct Answer

Retirement , Resignation

Your Answer Retirement , Resignation

Multiple Choice Multiple Answer Question From annual value, following deductions are

allowed :- Correct Answer

Standard deduction , Interest on borrowed capital , Municipal taxes

Your Answer Interest on borrowed capital , Municipal taxes

Multiple Choice Single Answer Question As a general principle, the Basic Salary or Wages,

Dearness Allowance and Bonus / Commission is :- Correct Answer

Fully taxable.

Your Answer Fully taxable.

Multiple Choice Multiple Answer Question From GTI of a company following deductions under

chapter VI A are allowed Correct Answer

80 G Donations , 80 HHB profits and gains from projects outside India , 80 IA profits and gains of infrastructure companies

Your Answer 80 G Donations , 80 IA profits and gains of infrastructure companies

Multiple Choice Single Answer Question Annual value of any one palace in possession of a

former ruler is :- Correct Answer

Exempt



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Your Answer Taxable

Select The Blank Question If the Salary is more than Rs. 5,00,000, Standard

Deduction will be Rs.________. Correct Answer

20000

Your Answer 20000

Multiple Choice Single Answer Question The amount of accumulated interest on NSCs

purchased in the earlier years is assumed to be reinvested :-

Correct Answer

And qualifies for tax rebate under section 88.

Your Answer And qualifies for tax rebate under section 88.

Select The Blank Question Deduction u/s ________B is available for 10

consequent assessment years from the year of commencement of production.

Correct Answer

10

Your Answer 10

True/False Question Income from subletting is treated as income from

house property. Correct Answer

False

Your Answer False

Select The Blank Question Section 80U allows the deduction in respect of the

________ . Correct Answer

Permanent physical disability

Your Answer Permanent physical disability

Match The FollowingQuestion Correct Answer Your Answer

Disallowable Litigation Expenses in Litigation Expenses in



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Expenditure connection with recovery of a debt which is not a trading debt

connection with recovery of a debt which is not a trading debt

Business Includes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture

Includes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture

Profession Includes vocation Includes vocation

Capital Expenditure Expenditure incurred by a company with the issue of rights shares

Premium on redemption of Debentures

True/False Question Any recreational facility provided by the employer

to a group of employees (not being restricted to a select few employees) is not exempt from tax.

Correct Answer

False

Your Answer False

True/False Question In case of deductions for medical treatment under

Section 80DDB the amount of deduction will be reduced by the amount received under an insurance policy or the amount reimbursed by the employer.

Correct Answer

True

Your Answer True

True/False Question Any advance tax paid before 31st March is treated

as advance tax paid during the previous year. Correct Answer

True

Your Answer True

Multiple Choice Single Answer Question Municipal taxes paid is allowed as deduction

from :-



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Correct Answer

Gross annual value

Your Answer Gross annual value

True/False Question Entertainment Allowance received by the

employees from the private sector is taxable in the hands of the employee.

Correct Answer

True

Your Answer True


Any subscription made to National Saving Scheme

By an individual or a HUF is eligible for rebate u/s 88

By an individual or a HUF is eligible for rebate u/s 88

Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 during the Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y 2005-2006.

RS.12,500 RS.12,500

During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross Total Income of Rs. 1,45,000 including the dividend from Indian companies amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the said Assessment Year. her tax liabilit is

Rs. 1,000 Rs. 1,000

Any contribution made Is eligible for rebate Is eligible for rebate



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to a Public Provident Fund

u/s 88 u/s 88

Multiple Choice Multiple Answer Question Following incomes of local authorities are exempt :-

Correct Answer

Capital gains , Other income , House property

Your Answer Capital gains , Other income , House property

Multiple Choice Multiple Answer Question For Deduction u/s 54EC from Capital Gains the

assessee should invest the whole or part of the capital gains in the specified assets :-

Correct Answer

Within six months from the date of transfer of the long-term capital asset

Your Answer Within six months from the date of transfer of the long-term capital asset

True/False Question Income from partnership firms is exempt from

taxation for the partners Correct Answer

True

Your Answer False


Multiple Choice Multiple Answer Question A return is considered to be defective returns under section

139(9) unless :- Correct Answer

The return is accompanied by copies of required financial statements of the assessee , The computation of income under each head, Gross Total Income are properly filed in , The return is accompanied by the tax audit report under section 44AB

Your Answer The return is accompanied by copies of required financial statements of the assessee , The return is filed on 31st August of the assessment year , The computation of income under each head, Gross Total Income are properly filed in , The return is accompanied by the tax audit report under section 44AB

Select The Blank Question ________ is the tax payable on the manufacturing of goods.

Correct Excise duty



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Answer Your Answer Excise duty

Multiple Choice Single Answer Question Income earned in previous year is subjected to tax in :-

Correct Answer

Assessment year

Your Answer Assessment year

Select The Blank Question The amount of rebate/s 88C is 100% of the income tax

liability before claiming the rebate under section 88 and relief under section 89( 1) pr Rs.________ whichever is less.

Correct Answer

5000

Your Answer 20000

Multiple Choice Single Answer Question For filing the returns of income, Form No. 2C is to be filled in

by :- Correct Answer

Persons falling under One by Six Scheme

Your Answer Persons falling under One by Six Scheme

Multiple Choice Single Answer Question Mr. A whose Gross Total Income, before allowing deductions

under Chapter VI-A is Rs. 1,45,000, wants to make the investments in the following alternative forms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The amount of rebate available to him u/s 88 is :-

Correct Answer

Rs. 18,000

Your Answer Rs. 18,000

Multiple Choice Single Answer Question In respect of leave travel concession If Mr. A has availed the

exemption only once or has not availed any exemption at all, in the block of four years i.e. 1998-2001 then :-

Correct Answer

He can carry over the exemption to the next block of four years i.e. 2002-2005 provided that he avails the exemption of LTC in the first calendar year of the next block i.e. 2002.

Your Answer He can carry over the exemption to the next block of four years i.e. 2002-2005 provided that he avails the exemption of LTC in the first calendar year of the next block i.e. 2002.

Select The Blank Question If the property becomes the property of the assessee before

________, the Fair Market Value of the property of the



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capital asset on that date will be considered to be the cost of acquisition

Correct Answer

1st April 1981

Your Answer 1st April 1981

Select The Blank Question If assessee owns more than one house properties, he can

get benefit of nil annual value for any one house property ________.

Correct Answer

As per his choice

Your Answer As per his choice

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 For claiming the deduction under section 80IA, the industrial

undertaking should be owned by a company registered in India or a consortium of such companies.

Correct Answer

True

Your Answer True

True/False Question Rebates as per the provisions of Section 88 of the Act are

not available from the tax on longterm capital gains. Correct Answer

True

Your Answer True

True/False Question If the defective return filed under section 139(9) is not

rectified within 15 days, the return filed by the assesee shall be considered invalid and it will be treated as if the return has not filed.

Correct Answer

True

Your Answer True

True/False Question Refund of Income tax is taxable as Income from other

sources.



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Correct Answer

False

Your Answer False

Select The Blank Question Deduction is available for income from foreign sources under

Section 80RR if such remuneration brought into India in convertible foreign exchange within a period of________ months from the end of the previous year.

Correct Answer

6

Your Answer 6

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

True/False Question Amount paid by the employer in respect of any leave

standing to the credit of the employee after the date of furnishing return of income, this sum was payable in the previous year is allowed as deduction.

Correct Answer

False

Your Answer False

Multiple Choice Multiple Answer Question What is the tax treatment of the Lump sum received from

unrecognized provident fund on the retirement or resignation or death of the employee?

Correct Answer

Employee's contribution to PF is exempt from tax , Interest on employee's contribution is taxable as "Income from Other Sources" , Employer's Contribution to PF and interest thereon is taxable as "Income from salaries"

Your Answer Employee's contribution to PF is exempt from tax , Interest on employee's contribution is taxable as "Income from Other Sources" , Employer's Contribution to PF and interest thereon is taxable as "Income from salaries"

Select The Blank



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Question The valuation of perquisites in the case of interest free loans or the loans at the concessional rate of interest will be the sum equal to the interest calculated at the rate charges by State Bank of India, on the first day of the relevant previous year in respect of the loans for the same purpose. Such interest is calculated on the ________ monthly balance.

Correct Answer

Maximum outstanding

Your Answer Maximum outstanding

True/False Question Deduction u/s Section 80DD for Medical treatment of

handicapped dependent is not available to HUF Correct Answer

False

Your Answer False

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

True/False Question Any amount borrowed or repaid on Hundi form under section

69D, Clause N0-23 shall be deemed to be the income of the person borrowing or repaying the amount for the previous year in which the amount was borrowed or repaid.

Correct Answer

True

Your Answer True


Employee stock option plan

ESOPS ESOPS

Uncommuted Pension Indicates the periodical payment of pension

Indicates the periodical payment of pension

Commuted Pension Indicates the lump sum received in lieu of the periodical

Indicates the lump sum received in lieu of the periodical

Treatment of Perquisite Taxed in the hands of employee as taxable salary

Taxed in the hands of employee as taxable salary



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Multiple Choice Single Answer Question Rates of income tax are prescribed by :-

Correct Answer

The Finance Act

Your Answer The Finance Act

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 , UNI

Multiple Choice Multiple Answer Question The rebate u/s 88 is available to an :-

Correct Answer

Individual , Hindu Undivided Family.

Your Answer Individual

Multiple Choice Multiple Answer Question The least of the following is the exemption available to an

employee if he is in receipt of house rent allowance :- Correct Answer

50% of the Salary where such accommodation is situated in Mumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation is situated at any other place. , Actual amount of HRA received by the employee. , Excess of rent paid over 10% of the Salary.

Your Answer 50% of the Salary where such accommodation is situated in Mumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation is situated at any other place. , Actual amount of HRA received by the employee. , Excess of rent paid over 10% of the Salary.

Multiple Choice Multiple Answer Question The amount accumulated to the credit of the employee's

provident fund account is paid at the time of :- Correct Answer

Retirement , Resignation

Your Answer Retirement , Resignation , Joining the job , 5 years from joining the job.

Multiple Choice Single Answer Question Capital Gains are chargeable to Income Tax if there is any

profit or gain arising from the transfer of a :- Correct Answer

Capital Asset

Your Answer Capital Asset



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Select The Blank Question The person who does not deduct the tax source as required

by the Act or after deducting fails to pay the tax as required by the Act, shall be liable to pay the simple interest @________ % per month on the amount of such tax from the date on which the tax was deductible till the date on which such tax is actually paid.

Correct Answer

1

Your Answer 1

True/False Question As per the provisions of the Act, any contribution made by an

assessee as an employer, only the amount contributes to a recognized Provident Fund or an approved Superannuation fund are allowed as deduction.

Correct Answer

True

Your Answer True

Multiple Choice Multiple Answer Question For the purpose of calculating the value of perquisite of

residential accommodation the term salary does not include :-

Correct Answer

Dearness Allowance , Employer's contribution to Provident Fund , Allowances which are exempt from tax

Your Answer Dearness Allowance , Employer's contribution to Provident Fund , Allowances which are exempt from tax , Allowances which are partly exempt from tax

Multiple Choice Single Answer Question In order to avoid the cases of tax evasion on the part of the

assessees, the Act has provided for :- Correct Answer

Tax deduction at source

Your Answer Tax deduction at source

Multiple Choice Single Answer Question As a general principle, the Basic Salary or Wages, Dearness

Allowance and Bonus / Commission is :- Correct Answer

Fully taxable.

Your Answer Fully taxable.

Select The Blank Question The rate of TDS is ________ in case of advertising work.

Correct 0.01



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Answer Your Answer 0.01

Select The Blank Question ________ expenditure should not be allowed as expenditure

u/s 37 (1) of the Income Tax Act. Correct Answer

Capital

Your Answer Capital

True/False Question Any expenditure incurred for earning the income which is

included under the head income from other sources will be allowed as deduction from such income provided that certain conditions are satisfied

Correct Answer

True

Your Answer True

Multiple Choice Single Answer Question Any amount received by the assessee under a Keyman

Insurance Policy including the bonus on such policy is :- Correct Answer

Taxable under the head salaries

Your Answer Taxable under the head salaries

Multiple Choice Single Answer Question Deduction from Capital Gains under Section 54EC is for

Capital Gains arising from transfer of :- Correct Answer

Any Long Term Capital Asset

Your Answer Securities


Salary or wages for the purpose of calculating Death-Cum -Retirement Gratuity.

Basic Salary plus Dearness allowance

Basic Salary plus Dearness allowance

Any amount of compensation received or receivable by the employee from the employer at the time of termination of his employment or at the time of modification of terms and conditions in

Terminal Compensation Terminal Compensation



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connection with the employment.Any Death-Cum-Retirement Gratuity received

Treated as income from salary

Treated as income from salary

Retrenchment Compensation

Exemption can be claimed u/s 10(10B) of the Income Tax Act

Exemption can be claimed u/s 10(10B) of the Income Tax Act

Multiple Choice Single Answer Question Tax liability of a person is based on :-

Correct Answer

Residential status

Your Answer Residential status

Multiple Choice Multiple Answer Question If the Salary is less than Rs. 5,00,000, Standard Deduction

will be the least of the following :- Correct Answer

40% of the Salary , Rs. 30,000

Your Answer 40% of the Salary , Rs. 30,000 , Rs. 20,000 , Rs. 25,000

Multiple Choice Single Answer Question Previous year always ends on :-

Correct Answer

31st March

Your Answer 31st March

Multiple Choice Single Answer Question Combined total of five heads of income equals :-

Correct Answer

Gross total income

Your Answer Gross total income

Multiple Choice Multiple Answer Question Rebate is allowed on any subscription made to the notified

deposit scheme, interest on which is not eligible for deduction under Section 80L of the Act :-

Correct Answer

Of a housing finance company , Of any authority satisfying the needs of housing accommodations or planning & development of cities, towns etc.

Your Answer Of a housing finance company , Of any authority satisfying the needs of housing accommodations or planning & development of cities, towns etc.

Multiple Choice Multiple Answer



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Question What are the types of Provident Fund?

Correct Answer

Statutory Provident Fund , Recognized Provident Fund , Unrecognized Provident Fund

Your Answer Statutory Provident Fund , Recognized Provident Fund , Unrecognized Provident Fund

Select The Blank Question The amount paid by the employer to the employee to meet

the expenditure for residential accommodation occupied by the employee is called ________.

Correct Answer

House rent allowance

Your Answer House rent allowance


Select The Blank Question The basic advantage of having an agent in the export market is ________. Correct Answer He is knowledgeable of the marketing condition Your Answer He is knowledgeable of the marketing condition

Multiple Choice Multiple Answer Question How does the customer know about the product & is influenced to buy it? Correct Answer Publicity , Advertising , Sales promotion Your Answer Publicity , Advertising , Sales promotion

Multiple Choice Single Answer Question Which of the following is not included in foreign environment? Correct Answer Local dimension Your Answer Local dimension

Multiple Choice Single Answer Question Why should a market researcher check a country's import tariffs when he is investigating it as an export market? Correct Answer It can affect the competitiveness of product against products made within the market Your Answer It can affect the competitiveness of product against products made within the market

Multiple Choice Multiple Answer Question This question is based on the case study "Oriental Silk Pvt. Ltd.". What are the distribution channels used for imports of silk products into USA market? Correct Answer Merchant intermediaries , Departmental stores Your Answer Merchant intermediaries , Departmental stores

True/False Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental entered the US market in 1970 with a moderate export of Rs.20 million. Correct Answer False Your Answer False



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Match The Following Question Correct Answer Your Answer

Indirect exporting Home-based merchant Copyright

Business dimensions Channel network Channel network

Legal dimensions Copyright Use of patent

Licensing arrangement Use of patent Home-based merchant

Multiple Choice Single Answer Question What is important to take pricing decision? Correct Answer Competition Your Answer Competition

Select The Blank Question In ________, the firm faces only one set of customers. Correct Answer Domestic marketing Your Answer Domestic marketing

Multiple Choice Multiple Answer Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental was an active member of some councils, which are those? Correct Answer Apparel Export Promotion Council , Woolen Export Promotion Council Your Answer Apparel Export Promotion Council , Woolen Export Promotion Council

Multiple Choice Single Answer Question This question is based on the case study 'AB Enterprises'. What is the problem in adapting AB Enterprises product in the market? Correct Answer Novelty is lost due to ethnic character in AB Enterprises Your Answer Novelty is lost due to ethnic character in AB Enterprises

Multiple Choice Multiple Answer Question What are the important infrastructure factors in evaluating production site? Correct Answer Industrial site , Transportation & communication Your Answer Industrial site , Transportation & communication

Multiple Choice Multiple Answer Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Which are the two years the imports of silk fabrics from Japan by USA was almost same? Correct Answer 1982 , 1983 Your Answer 1982 , 1983

Select The Blank Question ________dimensions include customs and practices Correct Answer Business Your Answer Business

Multiple Choice Multiple Answer Question What is the nature of direct export market? Correct Answer Concentrated , Large potential sale Your Answer Concentrated , Large potential sale

Multiple Choice Single Answer Question What does product-mix decision include?



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Correct Answer Packaging Your Answer Packaging

Multiple Choice Multiple Answer Question What are the internal sources of information? Correct Answer Sales record , Correspondence from salesmen Your Answer Sales record , Correspondence from salesmen

True/False Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Mr.Patnaik felt that it was high time that he appraises his agents' performance relating to the vast & expanding US market. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question This question is based on the case study "Oriental Silk Pvt. Ltd.". What were the options Mr.Patnaik had to operate in the US market? Correct Answer Opening a branch office , A subsidiary company Your Answer Opening a branch office , A subsidiary company

Select The Blank Question In indirect export channel, the market is ________. Correct Answer Dispersed Your Answer Dispersed

True/False Question Strategies suggested in the Medium Term Export Plan include product-market penetration strategy for existing products, product-market, diversification for new products & new markets. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Why is packaging so important for product planning? Correct Answer As it enhances protection , As it gives shelf life for a product Your Answer As it enhances protection , As it gives shelf life for a product

True/False Question If foreign retailers are used, the products in question are industrial products rather than consumer products. Correct Answer False Your Answer True

Multiple Choice Multiple Answer Question How is the nature of international strategy? Correct Answer Depends on company's objectives , Varies from country to country Your Answer Depends on company's objectives , Varies from country to country

Select The Blank Question "make site booking" is a point of checklist of ________ Correct Answer Before the fair Your Answer Before the fair

Multiple Choice Single Answer Question What marketing technique is used to know international marketing need? Correct Answer Marketing information & research



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Your Answer Marketing information & research

Multiple Choice Multiple Answer Question What are the benefits of participation in trade fair? Correct Answer To get to know about competition , To know about the extent of product adaption Your Answer To get to know about competition , To know about the extent of product adaption

Select The Blank Question Experience survey, which is also called as ________. Correct Answer Key informant survey Your Answer Key informant survey

Multiple Choice Single Answer Question What is a foreign agent? Correct Answer Independent middleman Your Answer Independent middleman

Multiple Choice Single Answer Question What does political environment include? Correct Answer Legal dimension Your Answer Legal dimension


External factor Competitive profile Competitive profile

Ethnocentric orientation Overseas operation conducted from home country Overseas operation conducted from home country

Polycentric orientation Each market is unique Each market is unique

Target market Marketing strategy Marketing strategy

True/False Question In marginal cost pricing for export, competition in foreign markets requires quotation of a lower price Correct Answer True Your Answer True

True/False Question Policies or regulations regarding quality control & inspection vary considerably between nations. Correct Answer True Your Answer True

Select The Blank Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental Silk Private Limited, is a ________ unit, was one of the leading Indian manufacturers & exporters of silk fabrics & made-ups Correct Answer 100% export oriented Your Answer 100% export oriented

Select The Blank



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Question This question is based on the case study "Oriental Silk Pvt. Ltd.". The bulk of the trade was handled by ________ Correct Answer Central buying organizations Your Answer Foreign agents

True/False Question If business is variable, the company will choose the purchasing or subcontracting alternatives. Correct Answer True Your Answer True

Multiple Choice Single Answer Question What is the meaning of offshore purchasing? Correct Answer Relationship between independent buyer & seller for exchange of good for money Your Answer Relationship between independent buyer & seller for exchange of good for money

Select The Blank Question Many companies modify their products/promotion strategies to suit ________ of the population of the different countries. Correct Answer Tastes & preferences Your Answer Tastes & preferences

True/False Question Companies with smaller needs, an independent supplier will be less active. Correct Answer False Your Answer False

True/False Question Catalogues contain a list of all competitors with product details. Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question What is correct according to geocentric orientation? Correct Answer Companies view the entire world as a single market , Uniform inventory management & training Your Answer Companies view the entire world as a single market , Uniform inventory management & training

True/False Question The area of change relates to product adaption requires upgradation of technology and huge investment in brands. Correct Answer True Your Answer True

Select The Blank Question This question is based on the case study "Chow Flowers Co. Ltd.". ________ was Thailand's second largest export market for artificial flowers, mostly polyester or hand-wrapped. Correct Answer Canada Your Answer Canada

Multiple Choice Single Answer Question What are the similarities between domestic & international marketing? Correct Answer Satisfying consumers need



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Your Answer Satisfying consumers need

Multiple Choice Single Answer Question What is the need of marketing research for export-import trade? Correct Answer To reduce the distance between an exporter & his customers in terms of marketing Your Answer To reduce the distance between an exporter & his customers in terms of marketing

Multiple Choice Single Answer Question What is the avenue of entry into foreign markets? Correct Answer Contract manufacturing Your Answer Contract manufacturing

Multiple Choice Single Answer Question What is the principal functional division of ministry of commerce & industry? Correct Answer Export Industries Division Your Answer Export Industries Division

----------


Multiple Choice Multiple Answer Question What are the factors to be considered in cluster analysis? Correct Answer Limited number of clusters due to limitation of market potential , Clusters are not water tight compartment , Evaluating the quality of cluster is difficult Your Answer Limited number of clusters due to limitation of market potential , Clusters are not water tight compartment , Evaluating the quality of cluster is difficult

Multiple Choice Single Answer Question Clarity of questions and instructions for filling the form is essential in :- Correct Answer Mail survey Your Answer Data analysis

Multiple Choice Single Answer Question The technique through which objects/ cases are classified into relative homogeneous groups or clusters is known as :- Correct Answer Cluster analysis Your Answer Cluster analysis

Multiple Choice Single Answer Question Mean or average value is used to estimate when data have been collected using :- Correct Answer Interval or ratio scale Your Answer Interval or ratio scale

Select The Blank Question In ________ method the research analyst is not concerned with cause and research relationship. Correct Answer Diagnostic Your Answer Diagnostic

Multiple Choice Multiple Answer Question Which are the New Delhi based Research Institutions? Correct Answer NRDC , CSIR , Cement Research Institute of India Your Answer NRDC , CSIR , Cement Research Institute of India



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Multiple Choice Single Answer Question Market Research is done to Correct Answer Explore the Opportunities Your Answer Explore the Opportunities

True/False Question "Consumer Panel" is a specialized market research technique. Correct Answer False Your Answer False


"What might this be ?" Inkblot test Inkblot test

Aided Recall Depth Research Depth Research

Doesn’t intend to tell Projective techniques Projective techniques

Ease of construction Likert scale Likert scale

True/False Question In regression analysis, dependent variables can be expressed as a linear function of impendent variables. Correct Answer True Your Answer True

True/False Question When company prepares a long range plan it is unpublished internal source of information. Correct Answer True Your Answer True

Select The Blank Question Association technique is a type of ________. Correct Answer Projective technique Your Answer Projective technique

Multiple Choice Single Answer Question The impact of promotional slogans on the consumers can be studied with Correct Answer Association technique Your Answer Association technique

True/False Question Brand image building is not important in case of industrial product for quality. Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question Which publications are used for research on Chemical Industry? Correct Answer Indian Chemical Directory , Chemical Industry News , Chemical & Petro Chemicals Journal Your Answer Indian Chemical Directory , Chemical Industry News , Chemical & Petro Chemicals Journal



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Multiple Choice Single Answer Question Spreading the sample through the entire population following a regular pattern is known as :- Correct Answer Systematic sampling Your Answer Systematic sampling

Select The Blank Question In absence of proper________ the market research becomes a data collection exercise. Correct Answer Problem Definition Your Answer Analysis

Multiple Choice Multiple Answer Question Which institutions should be contacted for research on Paint Chemicals? Correct Answer National Chemical Laboratory, Pune , Industrial Research & Development Center , Building Research Institute Your Answer National Chemical Laboratory, Pune , Industrial Research & Development Center , Building Research Institute

Multiple Choice Multiple Answer Question The objectives of marketing research are Correct Answer To understand the consumer needs and wants , To explore the new markets , To analyze the competitors Your Answer To understand the consumer needs and wants , To explore the new markets , To analyze the competitors

Multiple Choice Single Answer Question Ultra violet ink is used to disguise customer coding. This activity is :- Correct Answer A disapproved method Your Answer A disapproved method

Select The Blank Question Through cluster analysis objects/cases are classified into relatively________ group called cluster. Correct Answer Homogeneous Your Answer Homogeneous


Dangler POP POP

POP Communication medium Communication medium

Opinion Polls Daily basis Daily basis

Corporate Image Study Advertising research Advertising research

Multiple Choice Multiple Answer Question Ethical issues to be observed while writing a report are :- Correct Answer No deliberate misinterpretations , Marketing problems should be designed to suit hidden agenda , Complete confidentiality and secrecy of data Your Answer No deliberate misinterpretations , Marketing problems should be designed to suit hidden agenda , Complete confidentiality and secrecy of data

Select The Blank



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Question Multiple Choice is a ________type of question. Correct Answer Close ended Your Answer Close ended

Multiple Choice Single Answer Question The conjoint analysis helps to enable company's to :- Correct Answer Conduct brand swot analysis Your Answer Conduct brand swot analysis

Multiple Choice Single Answer Question In the Internet era, qualitative research is possible through :- Correct Answer Chat sessions Your Answer Chat sessions

Select The Blank Question ________is an important communication medium that helps recall advertising. Correct Answer Point of Purchase(POP)items Your Answer Point of Purchase(POP)items

True/False Question In the Funnel approach, specific questions come first and general questions later. Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question In resources for marketing research skilled staff plays an important role in :- Correct Answer Maintaining data , Dealing with different situation and problems , Timely completion of research Your Answer Maintaining data , Dealing with different situation and problems , Timely completion of research

Select The Blank Question Convenience Sampling is used for ________. Correct Answer Exploratory research Your Answer Exploratory research

True/False Question The person conducting pharma research should be well qualified so that not to waste Doctors time. Correct Answer True Your Answer True

True/False Question The limitations with regression forecasting is that independent variables must be forecasted before forecasting the dependent variables. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Main features of Technical Report are :- Correct Answer Minute details of planning data collection , Analysis , Interpretation Your Answer Minute details of planning data collection , Analysis , Interpretation

Multiple Choice Single Answer Question How people allocate their time and money to certain products and factors is depicted by Correct Answer Psychographic Variable



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Your Answer Psychographic Variable

True/False Question Question phrasing and structure are eliminated in Semantic differential scale. Correct Answer True Your Answer True

True/False Question The popularity of Likert scale is due to its ease of construction and administration. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Which are the Export Promotion Councils? Correct Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem & Jewellery Export Promotion Council Your Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem & Jewellery Export Promotion Council

True/False Question The written contract of a research should cover the penalty clause covering deficits such as delays, inadequate data. Correct Answer True Your Answer True

Multiple Choice Single Answer Question The producers in the sellers' market are also forced to take decisions based on the market information because Correct Answer The resources are scarce Your Answer The resources are scarce

Multiple Choice Single Answer Question Scale Intervals can be used for Correct Answer Age Your Answer Age

Select The Blank Question Bibliography contains ________. Correct Answer Information of references and secondary data Your Answer Information of references and secondary data

Multiple Choice Multiple Answer Question Online survey methods include :- Correct Answer Email survey , HTML survey , Downloadable interactive surveys Your Answer Email survey , HTML survey , Downloadable interactive surveys

Multiple Choice Single Answer Question Data of market research cannot be maintained :- Correct Answer Without experienced and educated research staff Your Answer Without experienced and educated research staff

Multiple Choice Multiple Answer Question Pretesting of Questionnaire includes testing of :- Correct Answer Question content , Time taken to answer questions , Categorisation Your Answer Question content , Time taken to answer questions , Categorisation




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Question Identification of Target Population is facilitated by :- Correct Answer Well defined research objectives , Alternative, reasonable/target population definitions , Specifications for exclusion in target population Your Answer Well defined research objectives , Alternative, reasonable/target population definitions , Specifications for exclusion in target population

Select The Blank Question ________are used for National Panel Studies. Correct Answer Quota controls Your Answer Quota controls

Select The Blank Question Finding out the number of vehicles at a given junction is a ________ method. Correct Answer Direct Observation Your Answer Direct Observation


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

Government of India


Question For the purpose of section 80IA, the term eligible business means :-

Correct Answer

Developing, maintaining or operating any infrastructure facility where the term infrastructure facility means a road (including a toll road, a bridge or a rail system) or a highway project or a water supply project. , Developing, maintaining or operating an industrial park or special economic zones notified by the Central Government , Generation or distribution of power

Your Answer

Developing, maintaining or operating an industrial park or special economic zones notified by the Central Government , Generation or distribution of power , Developing, maintaining or operating any infrastructure facility where the term infrastructure facility means a road (including a toll road, a bridge or a rail system) or a highway project or a water supply project.



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True/False

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

False

Your Answer

False


Question The due date prescribed for filing the returns of income in Form No. 2C is

Correct Answer

31st October of the respective Assessment year

Your Answer

31st October of the respective Assessment year


Question The amount of accumulated interest on NSCs purchased in the earlier years is assumed to be reinvested :-

Correct Answer


Your Answer


True/False

Question A person who is a Senior Citizen who has attained the age of 65 years is not entitled to the rebate u/s 88 of the Act.

Correct Answer

False

Your Answer

False


Question The total amount of rebates under Section 88, Section 88B, Section 88C and Section 88D of the Act. shall :-

Correct Answer

Not exceed the amount of tax calculated on the total income.

Your Answer

Not exceed the amount of tax calculated on the total income.

True/False

Question A company is resident of India if in any previous year it is an Indian Company even though control & management are situated outside India.



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Correct Answer

False

Your Answer

False


Question From GTI of a company following deductions under chapter VI A are allowed

Correct Answer


Your Answer


True/False

Question Clause N0-30 of the Tax Audit requires that, if the cost Audit of the company carried out, the report of such audit should be enclosed to the Tax Audit Report.

Correct Answer

True

Your Answer

True

Match The Following

Question Correct Answer Your Answer

Deductions of Rent, Rates, Repairs, Taxes and Insurance on Buildings are available

u/s 30

u/s 30

Deduction of Depreciation is available u/s 32 u/s 32

General deductions are allowed as deductions while calculating profits from business and profession

u/s 37

u/s 37

Deductions of Repairs & maintenance of machinery, plant & furniture are available

u/s 31

u/s 31


Question In case of any contribution made by an individual or a HUF to notified units of any approved mutual fund or of Unit Trust of India in accordance with a notified scheme (Equity Linked



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Savings Scheme) :- Correct Answer

The maximum allowable limit is Rs. 10,000

Your Answer

The maximum allowable limit is Rs. 10,000

True/False

Question The value of benefit resulting from the payment made by the employer in a club for any expenditure incurred by the employee shall be taken as perquisites unless the said expenses are incurred wholly and exclusively for official purposes.

Correct Answer

True

Your Answer

True


Question What is the treatment of principal amount of loan borrowed for the purchase or construction of a residential house?

Correct Answer

Rebate u/s 88 for such amount not exceeding Rs. 20,000

Your Answer

Rebate u/s 88 for such amount not exceeding Rs. 20,000

True/False

Question Rebates as per the provisions of Section 88 of the Act are not available from the tax on longterm capital gains.

Correct Answer

True

Your Answer

True


Question Following specific incomes are taxable under the heading income from other sources :-

Correct Answer

Winning from betting , Interest on securities of local authority , Bonus from key man insurance policy

Your Answer

Winning from betting , Interest on securities of local authority

True/False

Question Deductions available as per the provisions of Chapter VI of the



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Act are not available for the long-term capital gains. Correct Answer

True

Your Answer

True

True/False

Question Income earned & received outside India & remitted to India is taxable for resident & ordinary resident

Correct Answer

True

Your Answer

True


Question What is the due date for filing Annual return for TDS from Salaries?

Correct Answer

30th June of Assessment Year

Your Answer

30th June of Assessment Year


Question The least of the following is the exemption available to an employee if he is in receipt of house rent allowance :-

Correct Answer

50% of the Salary where such accommodation is situated in Mumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation is situated at any other place. , Actual amount of HRA received by the employee. , Excess of rent paid over 10% of the Salary.

Your Answer

50% of the Salary where such accommodation is situated in Mumbai, Kolkata, Chennai and Delhi and 40% of the Salary when the accommodation is situated at any other place. , Actual amount of HRA received by the employee.

Select The Blank

Question If the CC of the engine is more than 1..6 liters and the motor car is owned or hired by the employer and is used partly of official and partly for personal purposes and if running and maintenance expenses are borne by the employee then the value of perquisite will be Rs.________ per month plus Rs.600 if car is chauffer driven car.

Correct 600



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Answer Your Answer

600


Question As a general principle, the Basic Salary or Wages, Dearness Allowance and Bonus / Commission is :-

Correct Answer

Fully taxable.

Your Answer

Fully taxable.


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


Question If taxable income is less than 7.5% of book profit, income tax is payable @ of :-

Correct Answer

0.1

Your Answer

0.1

Select The Blank

Question In case of foreign companies rate of tax is ________. Correct Answer

0.35

Your Answer

0.2

True/False

Question Interest is payable by the assessee for not paying the Advance tax or if the Advance tax paid by the assessee is less than 80% of the Assessed tax after adjusting the amount of TDS and Advance tax Paid

Correct Answer

False



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Your Answer

True


Question For the purpose of income tax, the perquisites can be classified into :-

Correct Answer


Your Answer



Question Loss from owning and maintaining race horses can be adjusted against :-

Correct Answer

Only the income arising out of the same activity

Your Answer

Only the income arising out of the same activity


Question Municipal taxes are payable on :- Correct Answer

Municipal valuation

Your Answer

Municipal valuation

True/False

Question Dividend received from domestic company to its shareholders is taxable in the hands of the shareholder.

Correct Answer

False

Your Answer

False

Select The Blank

Question Company means any ________ Company. Correct Answer

Indian

Your Answer

Domestic Company



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Question Section 35D applies to the preliminary expenses incurred by a company, which consists of :-

Correct Answer

Expenditure in connection with the preparation of feasibility/project report, engineering services, or conducting market survey , Legal charges and fees for registering the company as per the provisions of company Act, 1956 , Charges in connection with drafting and printing of memorandum of association and Articles of Association

Your Answer

Expenditure in connection with the preparation of feasibility/project report, engineering services, or conducting market survey , Legal charges and fees for registering the company as per the provisions of company Act, 1956 , Charges in connection with drafting and printing of memorandum of association and Articles of Association


Question Perquisites which are taxable only in the hands of specified employee include the following categories of perquisites :-

Correct Answer

Motor Car , Services of sweeper, gardener, watchman or personal attendant , Gas, electricity and water provided for personal consumption

Your Answer

Motor Car , Gas, electricity and water provided for personal consumption , Amount spent on training of employees or fees paid for refresher management course

Select The Blank

Question Loss under the head Income from Capital Gains, to the extent it is long term capital loss can be carried forward and set off in the subsequent Assessment Years against the ________ subject to the limit of 8 Assessment years.

Correct Answer

Long term Capital Gains

Your Answer

Long term Capital Gains


Question For charging the income in the form of salaries :- Correct Answer

There needs to be an employer-employee relationship between the payer and the payee.

Your Answer

There needs to be an employer-employee relationship between the payer and the payee.



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True/False

Question The amount of telephone bills (including the mobile phone bills) of the employee reimbursed by the employer is exempt from tax.

Correct Answer

True

Your Answer

True

True/False

Question The amount of expenses including membership fees and annual fees incurred by the employee on credit card and which are paid by the employer shall be added as the perquisites unless the said expenses are incurred wholly and exclusively for official purposes.

Correct Answer

True

Your Answer

True


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

Correct Answer

45% of advance tax payable

Your Answer

45% of advance tax payable


Question As per which provision and section, every person, company or any other person shall furnish his returns of income in the prescribed form on or before the specified due date?

Correct Answer

Section 139(1)

Your Answer

Section 139(1)

Select The Blank

Question ________ is the tax payable on the manufacturing of goods. Correct Answer

Excise duty

Your Answer

Sales tax



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Question The return of income is required to be filed by all the companies, except those covered under section 25 of the companies Act,1956 in the :-

Correct Answer

Form No. 1

Your Answer

Form No. 1

Match The Following

Question Correct Answer Your Answer

Disallowable Expenditure

Litigation Expenses in connection with recovery of a debt which is not a trading debt

Litigation Expenses in connection with recovery of a debt which is not a trading debt

Business Includes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture

Includes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture

Profession Includes vocation Includes vocation

Capital Expenditure

Expenditure incurred by a company with the issue of rights shares

Expenditure incurred by a company with the issue of rights shares


Question The sum total of all the heads of income clubbed together gives the amount of :-

Correct Answer

Gross Total Income

Your Answer

Gross Total Income

Select The Blank

Question Short term Capital Gains is taxed at ________. Correct Answer

Normal Tax rates



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Your Answer

Normal Tax rates


Question From annual value, following deductions are allowed :- Correct Answer


Your Answer



Question The rebate u/s 88 is available to an :- Correct Answer


Your Answer


Taxation-Saroj2

Select The Blank Question For an individual as a citizen of India who leaves India in the relevant previous year for the purpose of employment has to be in India for ________ days or more during previous year.

Correct Answer 182 Your Answer 182 Multiple Choice Single Answer Question The due date prescribed for filing the returns of income in Form No. 2C is Correct Answer 31st October of the respective Assessment year Your Answer 31st October of the respective Previous year Multiple Choice Single Answer Question The payments for claiming the rebate u/s 88 should :- Correct Answer Be made out of the income chargeable to tax. Your Answer Be made out of the income chargeable to tax. Multiple Choice Single Answer



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Question As per which provision and section, every person, company or any other person shall furnish his returns of income in the prescribed form on or before the specified due date?

Correct Answer Section 139(1) Your Answer Section 139(1) Select The Blank Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim tax rebate of ________u/s 88C of the IT Act.

Correct Answer Rs. 5,000 Your Answer Nil Multiple Choice Multiple Answer Question Rebate is allowed on any subscription made to National Saving Scheme by :- Correct Answer An individual , A HUF Your Answer An individual , A HUF , Partnership Firms Multiple Choice Multiple Answer Question For the purpose of taxability of perquisite a specified employee means :- Correct Answer The person who is director of a company , The employee who has substantial interest in the company by having 20% or more of the voting power , The employee whose income under the head salaries (including all the taxable monetary payments of salary but excluding the value of any non-monetary benefits or perquisites), after allowing deductions under Section 16, exceeds Rs. 50,000

Your Answer The person who is director of a company , The employee who has substantial interest in the company by having 20% or more of the voting power , The employee whose income under the head salaries (including all the taxable monetary payments of salary but excluding the value of any non-monetary benefits or perquisites), after allowing deductions under Section 16, exceeds Rs. 50,000

Multiple Choice Multiple Answer Question Following professional institutions have their incomes exempt from tax :- Correct Answer Town planning , Company secretary , Accounting



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Your Answer Town planning , Company secretary , Accounting True/False Question Deduction u/s 80E for repayment of loan taken for higher education is available if the loan must have borrowed by the assessee himself or his Father

Correct Answer False Your Answer False True/False Question The consideration for transfer of Capital Asset is received by the transferor is not material while Capital gain chargeable to tax.

Correct Answer True Your Answer True Multiple Choice Multiple Answer Question 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 :-

Correct Answer Banking company including cooperative bank and post office savings bank , Government , Government company

Your Answer Government , Government company , Banking company including cooperative bank and post office savings bank

Match The Following Question Correct Answer Your Answer Employee stock option plan ESOPS ESOPS Uncommuted Pension Indicates the periodical payment of pension Indicates the periodical payment of pension Commuted Pension Indicates the lump sum received in lieu of the periodical Indicates the lump sum received in lieu of the periodical

Treatment of Perquisite Taxed in the hands of employee as taxable salary Taxed in the hands of employee as taxable salary



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True/False Question A person who is a Senior Citizen who has attained the age of 65 years is not entitled to the rebate u/s 88 of the Act.

Correct Answer False Your Answer True Multiple Choice Multiple Answer Question For Deduction u/s 54EC from Capital Gains the assessee should invest the whole or part of the capital gains in the specified assets :-

Correct Answer Within six months from the date of transfer of the long-term capital asset Your Answer Within six months from the date of transfer of the long-term capital asset 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 3 Multiple Choice Single Answer Question Mr. A whose Gross Total Income, before allowing deductions under Chapter VI-A is Rs. 2,40,000 wants to make the investments in the following alternative forms Rs. 50,000 in PPF and Rs. 50,000 in Infrastructure Bonds. The amount of rebate available to him u/s 88 is :-

Correct Answer Rs. 15,000 Your Answer Rs. 15,000 Multiple Choice Single Answer Question Annual value of any one palace in possession of a former ruler is :- Correct Answer Exempt Your Answer Exempt Match The Following



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Question Correct Answer Your Answer Any subscription made to National Saving Scheme By an individual or a HUF is eligible for rebate u/s 88 By an individual or a HUF is eligible for rebate u/s 88 Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 during the Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y 2005-2006.

RS.12,500 RS.12,500 During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross Total Income of Rs. 1,45,000 including the dividend from Indian companies amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the said Assessment Year. her tax liabilit is

Rs. 1,000 Rs. 1,000 Any contribution made to a Public Provident Fund

Is eligible for rebate u/s 88 Is eligible for rebate u/s 88 Select The Blank Question To claim sec 10A deduction unit must be established in ________. Correct Answer Free Trade Zone Your Answer Free Trade Zone Select The Blank Question Non resident individual satisfies ________ of the basic conditions. Correct Answer None Your Answer Any one Multiple Choice Single Answer Question Deduction from Capital Gains under Section 54 is for Capital Gains arising from transfer of :-



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Correct Answer House Property Your Answer House Property 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 Relief under section 89 is available to an employee in respect of the amount of salary received ________. Correct Answer In advance or in arrears Your Answer In the immediately succeeding year. Select The Blank Question AOP id formed when two or more ________ come together to earn income. Correct Answer Persons Your Answer Persons Multiple Choice Multiple Answer Question Capital Gains arise on account of excess of transfer consideration over the following amounts Correct Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and exclusively in connection with the transfer

Your Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and exclusively in connection with the transfer

Multiple Choice Multiple Answer Question Which of the following amounts credited to P & L Account but not taxable from Income tax Purposes as Profits from Business and Profession?

Correct Answer Refund of Income tax , Capital Gains , Dividend Income

Your Answer Refund of Income tax , Capital Gains , Dividend Income True/False



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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 True Select The Blank Question If assessee owns more than one house properties, he can get benefit of nil annual value for any one house property ________.

Correct Answer As per his choice Your Answer As per his choice Multiple Choice Single Answer Question What is the treatment of principal amount of loan borrowed for the purchase or construction of a residential house?

Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000 Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000 Multiple Choice Multiple Answer Question The provisions for payment of gratuity is not allowed under section 40A(7) but, under the head, profits from business and profession, the amount of gratuity will be allowed as deduction only when :-

Correct Answer The amount of gratuity has actually become payable to the employees during the previous year , The provision has been made for the payment of a sum by way of contribution to an approval gratuity , The other than the above two situations, any provision made for the payment of gratuity is not allowed as deduction

Your Answer The amount of gratuity has actually become payable to the employees during the previous year , The provision has been made for the payment of a sum by way of contribution to an approval gratuity

Multiple Choice Multiple Answer Question If the Salary is less than Rs. 5,00,000, Standard Deduction will be the least of the following :- Correct Answer 40% of the Salary , Rs. 30,000 Your Answer 40% of the Salary , Rs. 30,000 Multiple Choice Single Answer



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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 100% of advance tax payable Select The Blank Question It should be noted that the tax liability of an individual having the total income of less than Rs ________ is Nil u/s 88D.

Correct Answer 1,00,000 Your Answer 1,00,000 True/False Question If assessee owns more than one house properties, annual value of any one of the house property can be treated as nil, and such option can be changed year on year basis.

Correct Answer True Your Answer True True/False Question Income from subletting is treated as income from house property. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Following persons are deemed to be an assessee :- Correct Answer Legal heir of deceased person , Parents of minor assessee , Agent of NRI Your Answer Legal heir of deceased person , Parents of minor assessee , Agent of NRI Multiple Choice Single Answer Question Income of notified news agencies is exempt provided :- Correct Answer They apply their income for collection & distribution of news Your Answer They apply their income for collection & distribution of news Select The Blank



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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 Multiple Choice Multiple Answer Question What is the tax treatment of the Lump sum received from unrecognized provident fund on the retirement or resignation or death of the employee?

Correct Answer Employee's contribution to PF is exempt from tax , Interest on employee's contribution is taxable as "Income from Other Sources" , Employer's Contribution to PF and interest thereon is taxable as "Income from salaries"


True/False Question Any advance tax paid before 31st March is treated as advance tax paid during the previous year. Correct Answer True Your Answer True True/False Question A woman assessee below the age of 65 years is also entitled to rebate u/s 88. Correct Answer True Your Answer True Multiple Choice Single Answer Question Rent for other amenities like lift, electricity, telephone etc. is taxed under the heading :- Correct Answer Income from other sources Your Answer Income from salaries Multiple Choice Single Answer Question The amount of advance tax payable by non corporate assessees



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before 15th June of Previous year is :- Correct Answer Nil Your Answer 100% of advance tax payable 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. True/False Question Loss from house property can be adjusted against the income from any other house property. Correct Answer True Your Answer True True/False Question Annual premium paid by the employer for the accident insurance policy taken by the employer in the name of the employee is chargeable to tax.

Correct Answer False Your Answer True Multiple Choice Single Answer Question Annual return for TDS from Salaries is to be filed in :- Correct Answer Form No. 24 Your Answer Form No. 24

Taxation-Saroj2

Select The Blank Question For an individual as a citizen of India who leaves India in the relevant previous year for the purpose of employment has to be in India for ________ days or more during previous year.



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Correct Answer 182 Your Answer 182 Multiple Choice Single Answer Question The due date prescribed for filing the returns of income in Form No. 2C is Correct Answer 31st October of the respective Assessment year Your Answer 31st October of the respective Previous year Multiple Choice Single Answer Question The payments for claiming the rebate u/s 88 should :- Correct Answer Be made out of the income chargeable to tax. Your Answer Be made out of the income chargeable to tax. Multiple Choice Single Answer Question As per which provision and section, every person, company or any other person shall furnish his returns of income in the prescribed form on or before the specified due date?

Correct Answer Section 139(1) Your Answer Section 139(1) Select The Blank Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can claim tax rebate of ________u/s 88C of the IT Act.

Correct Answer Rs. 5,000 Your Answer Nil Multiple Choice Multiple Answer Question Rebate is allowed on any subscription made to National Saving Scheme by :- Correct Answer An individual , A HUF Your Answer An individual , A HUF , Partnership Firms Multiple Choice Multiple Answer Question For the purpose of taxability of perquisite a specified employee means :- Correct Answer The person who is director of a company , The employee who has substantial interest in the company by having 20% or more of the voting power , The employee whose income under the head salaries (including all the taxable monetary payments of salary but excluding the



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value of any non-monetary benefits or perquisites), after allowing deductions under Section 16, exceeds Rs. 50,000

Your Answer The person who is director of a company , The employee who has substantial interest in the company by having 20% or more of the voting power , The employee whose income under the head salaries (including all the taxable monetary payments of salary but excluding the value of any non-monetary benefits or perquisites), after allowing deductions under Section 16, exceeds Rs. 50,000

Multiple Choice Multiple Answer Question Following professional institutions have their incomes exempt from tax :- Correct Answer Town planning , Company secretary , Accounting Your Answer Town planning , Company secretary , Accounting True/False Question Deduction u/s 80E for repayment of loan taken for higher education is available if the loan must have borrowed by the assessee himself or his Father

Correct Answer False Your Answer False True/False Question The consideration for transfer of Capital Asset is received by the transferor is not material while Capital gain chargeable to tax.

Correct Answer True Your Answer True Multiple Choice Multiple Answer Question 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 :-

Correct Answer Banking company including cooperative bank and post office savings bank , Government , Government company

Your Answer Government , Government company , Banking company including cooperative bank and post office savings bank



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Match The Following Question Correct Answer Your Answer Employee stock option plan ESOPS ESOPS Uncommuted Pension Indicates the periodical payment of pension Indicates the periodical payment of pension Commuted Pension Indicates the lump sum received in lieu of the periodical Indicates the lump sum received in lieu of the periodical

Treatment of Perquisite Taxed in the hands of employee as taxable salary Taxed in the hands of employee as taxable salary

True/False Question A person who is a Senior Citizen who has attained the age of 65 years is not entitled to the rebate u/s 88 of the Act.

Correct Answer False Your Answer True Multiple Choice Multiple Answer Question For Deduction u/s 54EC from Capital Gains the assessee should invest the whole or part of the capital gains in the specified assets :-

Correct Answer Within six months from the date of transfer of the long-term capital asset Your Answer Within six months from the date of transfer of the long-term capital asset 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 3 Multiple Choice Single Answer



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Question Mr. A whose Gross Total Income, before allowing deductions under Chapter VI-A is Rs. 2,40,000 wants to make the investments in the following alternative forms Rs. 50,000 in PPF and Rs. 50,000 in Infrastructure Bonds. The amount of rebate available to him u/s 88 is :-

Correct Answer Rs. 15,000 Your Answer Rs. 15,000 Multiple Choice Single Answer Question Annual value of any one palace in possession of a former ruler is :- Correct Answer Exempt Your Answer Exempt Match The Following Question Correct Answer Your Answer Any subscription made to National Saving Scheme By an individual or a HUF is eligible for rebate u/s 88 By an individual or a HUF is eligible for rebate u/s 88 Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 during the Assessment Year 2005-2006. He invested Rs. 50,000 in the tax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y 2005-2006.

RS.12,500 RS.12,500 During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross Total Income of Rs. 1,45,000 including the dividend from Indian companies amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the said Assessment Year. her tax liabilit is

Rs. 1,000 Rs. 1,000 Any contribution made to a Public Provident Fund

Is eligible for rebate u/s 88 Is eligible for rebate u/s 88



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Select The Blank Question To claim sec 10A deduction unit must be established in ________. Correct Answer Free Trade Zone Your Answer Free Trade Zone Select The Blank Question Non resident individual satisfies ________ of the basic conditions. Correct Answer None Your Answer Any one Multiple Choice Single Answer Question Deduction from Capital Gains under Section 54 is for Capital Gains arising from transfer of :- Correct Answer House Property Your Answer House Property 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 Relief under section 89 is available to an employee in respect of the amount of salary received ________. Correct Answer In advance or in arrears Your Answer In the immediately succeeding year. Select The Blank Question AOP id formed when two or more ________ come together to earn income. Correct Answer Persons Your Answer Persons Multiple Choice Multiple Answer Question Capital Gains arise on account of excess of transfer consideration over the following amounts



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Correct Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and exclusively in connection with the transfer

Your Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly and exclusively in connection with the transfer

Multiple Choice Multiple Answer Question Which of the following amounts credited to P & L Account but not taxable from Income tax Purposes as Profits from Business and Profession?

Correct Answer Refund of Income tax , Capital Gains , Dividend Income

Your Answer Refund of Income tax , Capital Gains , Dividend Income 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 True Select The Blank Question If assessee owns more than one house properties, he can get benefit of nil annual value for any one house property ________.

Correct Answer As per his choice Your Answer As per his choice Multiple Choice Single Answer Question What is the treatment of principal amount of loan borrowed for the purchase or construction of a residential house?

Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000 Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000 Multiple Choice Multiple Answer Question The provisions for payment of gratuity is not allowed under section 40A(7) but, under the head, profits from business and profession, the amount of gratuity will be allowed as deduction only when :-



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Correct Answer The amount of gratuity has actually become payable to the employees during the previous year , The provision has been made for the payment of a sum by way of contribution to an approval gratuity , The other than the above two situations, any provision made for the payment of gratuity is not allowed as deduction

Your Answer The amount of gratuity has actually become payable to the employees during the previous year , The provision has been made for the payment of a sum by way of contribution to an approval gratuity

Multiple Choice Multiple Answer Question If the Salary is less than Rs. 5,00,000, Standard Deduction will be the least of the following :- Correct Answer 40% of the Salary , Rs. 30,000 Your Answer 40% of the Salary , Rs. 30,000 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 100% of advance tax payable Select The Blank Question It should be noted that the tax liability of an individual having the total income of less than Rs ________ is Nil u/s 88D.

Correct Answer 1,00,000 Your Answer 1,00,000 True/False Question If assessee owns more than one house properties, annual value of any one of the house property can be treated as nil, and such option can be changed year on year basis.

Correct Answer True Your Answer True True/False Question Income from subletting is treated as income from house property. Correct Answer False



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Your Answer False Multiple Choice Multiple Answer Question Following persons are deemed to be an assessee :- Correct Answer Legal heir of deceased person , Parents of minor assessee , Agent of NRI Your Answer Legal heir of deceased person , Parents of minor assessee , Agent of NRI Multiple Choice Single Answer Question Income of notified news agencies is exempt provided :- Correct Answer They apply their income for collection & distribution of news Your Answer They apply their income for collection & distribution of news 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 Multiple Choice Multiple Answer Question What is the tax treatment of the Lump sum received from unrecognized provident fund on the retirement or resignation or death of the employee?

Correct Answer Employee's contribution to PF is exempt from tax , Interest on employee's contribution is taxable as "Income from Other Sources" , Employer's Contribution to PF and interest thereon is taxable as "Income from salaries"


True/False Question Any advance tax paid before 31st March is treated as advance tax paid during the previous year.



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Correct Answer True Your Answer True True/False Question A woman assessee below the age of 65 years is also entitled to rebate u/s 88. Correct Answer True Your Answer True Multiple Choice Single Answer Question Rent for other amenities like lift, electricity, telephone etc. is taxed under the heading :- Correct Answer Income from other sources Your Answer Income from salaries Multiple Choice Single Answer Question The amount of advance tax payable by non corporate assessees before 15th June of Previous year is :- Correct Answer Nil Your Answer 100% of advance tax payable 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. True/False Question Loss from house property can be adjusted against the income from any other house property. Correct Answer True Your Answer True True/False Question Annual premium paid by the employer for the accident insurance policy taken by the employer in the name of the employee is chargeable to tax.



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Correct Answer False Your Answer True Multiple Choice Single Answer Question Annual return for TDS from Salaries is to be filed in :- Correct Answer Form No. 24 Your Answer Form No. 24

) Match The Following Question Correct Answer Your Answer Intangible Capital Asset Tenancy Rights Equity Shares held for a period of Less than 36 months Excluded from ambit of term Capital Asset Stock in Trade Land Short Term Capital Asset Equity Shares held for a period of Less than 36 months Stock in Trade Long Term Capital Asset Land held for a period of 36 months or more Land held for a period of 36 months or more Select The Blank Question Long term Capital Gains is taxed at ________. Correct Answer 0.1 Your Answer 0.1 Select The Blank Question Free meals provided by the employer during the office hours provided that the value per meal does not exceed Rs. ________. Correct Answer 50 Your Answer 25 True/False Question Professional Tax paid by a person carrying on the business is allowed as business expenditure. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer



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Retrenchment Compensation Exemption can be claimed u/s 10(10B) of the Income Tax Act Terminal Compensation Salary or wages for the purpose of calculating Death-Cum -Retirement Gratuity. Basic Salary plus Dearness allowance Basic Salary plus Dearness allowance Any amount of compensation received or receivable by the employee from the employer at the time of termination of his employment or at the time of modification of terms and conditions in connection with the employment. Terminal Compensation Treated as income from other sources. Any Death-Cum-Retirement Gratuity received Treated as income from salary Treated as income from salary True/False Question Dividend received by the shareholder is treated as income chargeable to tax u/s 10(34) of the IT Act. Correct Answer False Your Answer False Select The Blank Question The valuation of perquisites in the case of interest free loans or the loans at the concessional rate of interest will be the sum equal to the interest calculated at the rate charges by State Bank of India, on the first day of the relevant previous year in respect of the loans for the same purpose. Such interest is calculated on the ________ monthly balance. Correct Answer Maximum outstanding Your Answer Minimum outstanding Multiple Choice Multiple Answer Question For the purpose of calculating the value of perquisite of residential accommodation the term salary does not include :- Correct Answer Dearness Allowance , Employer's contribution to Provident Fund , Allowances which are exempt from tax Your Answer Dearness Allowance , Employer's contribution to Provident Fund Multiple Choice Multiple Answer Question Following incomes are deemed to have accrued or arisen in India :- Correct Answer Salary earned in India even if paid outside India , Salary paid by Government to Indian national for services rendered outside India , Tax deducted in India Your Answer Salary earned in India even if paid outside India , Salary paid by Government to Indian national for services rendered outside India , Income from any capital asset situated outside India True/False Question Any sum payable by the assessee as interest on any loan borrowed by him from any state financial corporation as per the terms on the agreement is not allowed as deduction from profit as per P & L account, if they are actually paid before the due date of furnishing return of income. Correct Answer False



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Your Answer True Multiple Choice Multiple Answer Question What is the treatment of the perquisite in the form of Gas, electricity and water supplied to the employee? Correct Answer If the facility of gas, electricity and water is supplied by the employer to the employee purchasing the same from an outside agency, the valuation of perquisite will be the charges paid by the employer to the outside agency supplying gas, electricity and water. , If the facility in the form of gas, electricity and water is supplied by the employer out of his own resources, the valuation of perquisite will be the manufacturing cost per unit incurred by the employer. Select The Blank Question Dividends from the ________ is an exempt income and hence will not be included in the Taxable income. Correct Answer Indian Companies Your Answer Indian Companies Multiple Choice Multiple Answer Question The various payments which are referred as deductions under section 43B, Clause No-21 are :- Correct Answer Any employees contribution payable by the assessee towards any Provident Fund or Superannuation Fund or Gratuity Fund for the welfare of the employees , Any sum payable by the assessee by way of tax duty, cess or fee , Any sum payable by the assessee as interest on any loan or borrowing made by him from any public financial institution or state financial corporation as per the terms of the agreement Multiple Choice Single Answer Question If the capital gains arise on account of compulsory acquisition of the capital asset under any law and any compensation is paid for such acquisition :- Correct Answer The capital gains liability will be computed in the previous year in which the compensation or the part thereof is first received Multiple Choice Multiple Answer Question What is the tax treatment of the Lump sum received from unrecognized provident fund on the retirement or resignation or death of the employee? Correct Answer Employee's contribution to PF is exempt from tax , Interest on employee's contribution is taxable as "Income from Other Sources" , Employer's Contribution to PF and interest thereon is taxable as "Income from salaries" Multiple Choice Single Answer Question The head of income in the form of Income from Salaries is applicable in respect of the :- Correct Answer Remuneration received by an employee from the employer Your Answer Remuneration received by an employee from the employer 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



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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 Income Tax Act, 1961 Multiple Choice Multiple Answer Question A domestic company has following features :- Correct Answer It is an Indian Co. , It can be any other Co. , Has made prescribed arrangements for declaration and payment of dividend Multiple Choice Single Answer Question For filing the returns of income, Form No. 2C is to be filled in by :- Correct Answer Persons falling under One by Six Scheme Multiple Choice Multiple Answer Question For the purpose of Section 40 A (2) of the IT Act, if assessee is a firm, the term "Specified Persons" may include :- Correct Answer Any partner of the firm or his relative , Any person having the substantial interest in the business or profession of the firm or any director or partner of such company or firm or any relative of such person. , Any person who carries on business or profession and in his business or profession the assessee or any partner of such firm or relative of such partner has substantial interest. True/False Question Refund of Income tax is taxable as Income from other sources. Correct Answer False Select The Blank Question Prior period interest is calculated from the date of ________ to the date of completion. Correct Answer Borrowing Your Answer Borrowing Question Capital Gains are chargeable to Income Tax if there is any profit or gain arising from the transfer of a :- Correct Answer Capital Asset

Taxation-------------LIST OF ATTEMPTED QUESTIONS AND ANSWERSSelect The BlankQuestion The basic advantage of having an agent in the export market is ________.Correct Answer He is knowledgeable of the marketing conditionYour Answer He is knowledgeable of the marketing conditionMultiple Choice Multiple AnswerQuestion How does the customer know about the product & is influenced to buy it?



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Correct Answer Publicity , Advertising , Sales promotionYour Answer Publicity , Advertising , Sales promotionMultiple Choice Single AnswerQuestion Which of the following is not included in foreign environment?Correct Answer Local dimensionYour Answer Local dimensionMultiple Choice Single AnswerQuestion Why should a market researcher check a country's import tariffs when he isinvestigating it as an export market?Correct Answer It can affect the competitiveness of product against products made within themarketYour Answer It can affect the competitiveness of product against products made within themarketMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". What are thedistribution channels used for imports of silk products into USA market?Correct Answer Merchant intermediaries , Departmental storesYour Answer Merchant intermediaries , Departmental storesTrue/FalseQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental entered theUS market in 1970 with a moderate export of Rs.20 million.Correct Answer FalseYour Answer FalseMatch The FollowingQuestion Correct Answer Your AnswerIndirect exporting Home-based merchant CopyrightBusiness dimensions Channel network Channel networkLegal dimensions Copyright Use of patentLicensing arrangement Use of patent Home-based merchantMultiple Choice Single AnswerQuestion What is important to take pricing decision?Correct Answer CompetitionYour Answer CompetitionSelect The BlankQuestion In ________, the firm faces only one set of customers.Correct Answer Domestic marketingYour Answer Domestic marketingMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental was an active



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member of some councils, which are those?Correct Answer Apparel Export Promotion Council , Woolen Export Promotion CouncilYour Answer Apparel Export Promotion Council , Woolen Export Promotion CouncilMultiple Choice Single AnswerQuestion This question is based on the case study 'AB Enterprises'. What is the problem inadapting AB Enterprises product in the market?Correct Answer Novelty is lost due to ethnic character in AB EnterprisesYour Answer Novelty is lost due to ethnic character in AB EnterprisesMultiple Choice Multiple AnswerQuestion What are the important infrastructure factors in evaluating production site?Correct Answer Industrial site , Transportation & communicationYour Answer Industrial site , Transportation & communicationMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Which are the twoyears the imports of silk fabrics from Japan by USA was almost same?Correct Answer 1982 , 1983Your Answer 1982 , 1983Select The BlankQuestion ________dimensions include customs and practicesCorrect Answer BusinessYour Answer BusinessMultiple Choice Multiple AnswerQuestion What is the nature of direct export market?Correct Answer Concentrated , Large potential saleYour Answer Concentrated , Large potential saleMultiple Choice Single AnswerQuestion What does product-mix decision include?Correct Answer PackagingYour Answer PackagingMultiple Choice Multiple AnswerQuestion What are the internal sources of information?Correct Answer Sales record , Correspondence from salesmenYour Answer Sales record , Correspondence from salesmenTrue/FalseQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Mr.Patnaik felt that itwas high time that he appraises his agents' performance relating to the vast & expanding USmarket.Correct Answer True



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Your Answer TrueMultiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". What were the optionsMr.Patnaik had to operate in the US market?Correct Answer Opening a branch office , A subsidiary companyYour Answer Opening a branch office , A subsidiary companySelect The BlankQuestion In indirect export channel, the market is ________.Correct Answer DispersedYour Answer DispersedTrue/FalseQuestion Strategies suggested in the Medium Term Export Plan include product-marketpenetration strategy for existing products, product-market, diversification for new products & newmarkets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Why is packaging so important for product planning?Correct Answer As it enhances protection , As it gives shelf life for a productYour Answer As it enhances protection , As it gives shelf life for a productTrue/FalseQuestion If foreign retailers are used, the products in question are industrial products rather thanconsumer products.Correct Answer FalseYour Answer TrueMultiple Choice Multiple AnswerQuestion How is the nature of international strategy?Correct Answer Depends on company's objectives , Varies from country to countryYour Answer Depends on company's objectives , Varies from country to countrySelect The BlankQuestion "make site booking" is a point of checklist of ________Correct Answer Before the fairYour Answer Before the fairMultiple Choice Single AnswerQuestion What marketing technique is used to know international marketing need?Correct Answer Marketing information & researchYour Answer Marketing information & researchMultiple Choice Multiple Answer



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Question What are the benefits of participation in trade fair?Correct Answer To get to know about competition , To know about the extent of product adaptionYour Answer To get to know about competition , To know about the extent of product adaptionSelect The BlankQuestion Experience survey, which is also called as ________.Correct Answer Key informant surveyYour Answer Key informant surveyMultiple Choice Single AnswerQuestion What is a foreign agent?Correct Answer Independent middlemanYour Answer Independent middlemanMultiple Choice Single AnswerQuestion What does political environment include?Correct Answer Legal dimensionYour Answer Legal dimensionMatch The FollowingQuestion Correct Answer Your AnswerExternal factor Competitive profile Competitive profileEthnocentric orientation Overseas operation conducted from home country Overseas operationconducted from home countryPolycentric orientation Each market is unique Each market is uniqueTarget market Marketing strategy Marketing strategyTrue/FalseQuestion In marginal cost pricing for export, competition in foreign markets requires quotation of alower priceCorrect Answer TrueYour Answer TrueTrue/FalseQuestion Policies or regulations regarding quality control & inspection vary considerably betweennations.Correct Answer TrueYour Answer TrueSelect The BlankQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental Silk PrivateLimited, is a ________ unit, was one of the leading Indian manufacturers & exporters of silkfabrics & made-upsCorrect Answer 100% export orientedYour Answer 100% export orientedSelect The BlankQuestion This question is based on the case study "Oriental Silk Pvt.



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Ltd.". The bulk of the tradewas handled by ________Correct Answer Central buying organizationsYour Answer Foreign agentsTrue/FalseQuestion If business is variable, the company will choose the purchasing or subcontractingalternatives.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion What is the meaning of offshore purchasing?Correct Answer Relationship between independent buyer & seller for exchange of good formoneyYour Answer Relationship between independent buyer & seller for exchange of good for moneySelect The BlankQuestion Many companies modify their products/promotion strategies to suit ________ of thepopulation of the different countries.Correct Answer Tastes & preferencesYour Answer Tastes & preferencesTrue/FalseQuestion Companies with smaller needs, an independent supplier will be less active.Correct Answer FalseYour Answer FalseTrue/FalseQuestion Catalogues contain a list of all competitors with product details.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion What is correct according to geocentric orientation?Correct Answer Companies view the entire world as a single market , Uniform inventorymanagement & trainingYour Answer Companies view the entire world as a single market , Uniform inventorymanagement & trainingTrue/FalseQuestion The area of change relates to product adaption requires upgradation of technology andhuge investment in brands.Correct Answer TrueYour Answer True



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Select The BlankQuestion This question is based on the case study "Chow Flowers Co. Ltd.". ________ wasThailand's second largest export market for artificial flowers, mostly polyester or hand-wrapped.Correct Answer CanadaYour Answer CanadaMultiple Choice Single AnswerQuestion What are the similarities between domestic & international marketing?Correct Answer Satisfying consumers needYour Answer Satisfying consumers needMultiple Choice Single AnswerQuestion What is the need of marketing research for export-import trade?Correct Answer To reduce the distance between an exporter & his customers in terms ofmarketingYour Answer To reduce the distance between an exporter & his customers in terms of marketingMultiple Choice Single AnswerQuestion What is the avenue of entry into foreign markets?Correct Answer Contract manufacturingYour Answer Contract manufacturingMultiple Choice Single AnswerQuestion What is the principal functional division of ministry of commerce & industry?Correct Answer Export Industries DivisionYour Answer Export Industries Division

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Labels: Taxation

Wednesday, March 26, 2008

Taxation - 3

LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Multiple AnswerQuestion The entertainment allowance received by theGovernment employees is included in their salariesand the deduction is allowed to the extent of least ofthe following amounts :-Correct Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of Salary



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Your Answer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of SalaryTrue/FalseQuestion Income Tax Act, 1961 recognizes Written Down Value(WDV) method as well as straight line method for thecomputation of depreciation u/s 32 this act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion Profits earned by an Industrial Undertaking engagedin other than infrastructure development is availableunder Section 80IB for :-Correct Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimage , Company engaged inscientific and industrial researchYour Answer Operation of Ship , Hotels situated in hilly area, ruralarea or place of pilgrimageMultiple Choice Single AnswerQuestion Which of the following expenditure is in the nature ofrevenue expenditure?Correct Answer Expenditure incurred as discount on issue ofdebenturesYour Answer Expenditure incurred as discount on issue ofdebenturesSelect The BlankQuestion If sum received is net of TDS then it is ________ toinclude in income from other sources.Correct Answer Grossed upYour Answer Grossed upTrue/FalseQuestion Interest paid on the loan for acquiring a capital assetwill be considered to be a part of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowingdeductions under Chapter VI-A is Rs. 1,45,000, wantsto make the investments in the following alternativeforms Rs. 80,000 in PPF and Rs. 20,000 inInfrastructure Bonds. The amount of rebate availableto him u/s 88 is :-Correct Answer Rs. 18,000Your Answer Rs. 18,000Multiple Choice Single AnswerQuestion Interest on specified securities or premium onredemption is exempt for :-Correct Answer Non resident Indian



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Your Answer Non resident IndianTrue/FalseQuestion As per section 2(11) of the Income Tax Act, Block ofAssets includes both tangible as well as intangibleassets.Correct Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion Deductions in respect of Certain Incomes receivedunder Section 80L is available in respect ofCorrect Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestYour Answer Interest on Central or State Government Securities ,Interest on National Saving Certificates (NSCs)Interest on National Saving Scheme, 1992 (NSS) ,Bank InterestMultiple Choice Single AnswerQuestion Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusMultiple Choice Multiple AnswerQuestion For the purpose of income tax, the perquisites can beclassified into :-Correct Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeYour Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in thehands of specified employeeSelect The BlankQuestion For an individual as a citizen of India who leaves Indiain the relevant previous year for the purpose ofemployment has to be in India for ________ days ormore during previous year.Correct Answer 182Your Answer 182Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in:-Correct Answer Assessment yearYour Answer Assessment yearMultiple Choice Multiple AnswerQuestion Following professional institutions have their incomesexempt from tax :-Correct Answer Town planning , Company secretary , Accounting



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Your Answer Town planning , Company secretary , AccountingSelect The BlankQuestion ________ of the Tax Audit Report refers to the detailsof various payments which are allowed as deductiononly if they are actually paid for.Correct Answer Section 43B Clause No-21Your Answer Section 43B Clause No-21Multiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsSelect The BlankQuestion To claim sec 10A deduction unit must be establishedin ________.Correct Answer Free Trade ZoneYour Answer Free Trade ZoneMultiple Choice Single AnswerQuestion Assessment year is the period of 12 months startingfrom :-Correct Answer 1st April to 31st MarchYour Answer 1st April to 31st MarchMultiple Choice Single AnswerQuestion Combined total of five heads of income equals :-Correct Answer Gross total incomeYour Answer Gross total incomeMultiple Choice Single AnswerQuestion If an employee does not avail of this leave travelconcession or assistance during a block of fourcalendar years :-Correct Answer Only one journey can be carried forward to the nextblock.Your Answer Only one journey can be carried forward to the nextblock.Select The BlankQuestion To acquire PAN, a person shall apply in ________ tothe assessing officer.Correct Answer Form No. 49AYour Answer Form No. 49AMultiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54F is forCapital Gains arising from transfer of :-Correct Answer Any Long Term Capital AssetYour Answer House PropertySelect The BlankQuestion Where an assessee files or submits the returns as perprovisions of section 139 or in response to the noticeunder section 142, the assessment officer undertakes



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________ as per section 143(2) and section 143(3).Correct Answer Scrutiny AssessmentYour Answer Scrutiny AssessmentMultiple Choice Multiple AnswerQuestion Income of a professional association is exempt if itsobjectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementTrue/FalseQuestion While computing the profits from Business andprofession, the business or profession must be carriedout during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A hasavailed the exemption only once or has not availedany exemption at all, in the block of four years i.e.1998-2001 then :-Correct Answer He can carry over the exemption to the next block offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Your Answer He can carry over the exemption to the next block offour years i.e. 2002-2005 provided that he avails theexemption of LTC in the first calendar year of the nextblock i.e. 2002.Multiple Choice Multiple AnswerQuestion The amount accumulated to the credit of theemployee's provident fund account is paid at the timeof :-Correct Answer Retirement , ResignationYour Answer Retirement , ResignationMultiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-Correct Answer Standard deduction , Interest on borrowed capital ,Municipal taxesYour Answer Interest on borrowed capital , Municipal taxesMultiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages,Dearness Allowance and Bonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.Multiple Choice Multiple AnswerQuestion From GTI of a company following deductions underchapter VI A are allowed



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Correct Answer 80 G Donations , 80 HHB profits and gains fromprojects outside India , 80 IA profits and gains ofinfrastructure companiesYour Answer 80 G Donations , 80 IA profits and gains ofinfrastructure companiesMultiple Choice Single AnswerQuestion Annual value of any one palace in possession of aformer ruler is :-Correct Answer ExemptYour Answer TaxableSelect The BlankQuestion If the Salary is more than Rs. 5,00,000, StandardDeduction will be Rs.________.Correct Answer 20000Your Answer 20000Multiple Choice Single AnswerQuestion The amount of accumulated interest on NSCspurchased in the earlier years is assumed to bereinvested :-Correct Answer And qualifies for tax rebate under section 88.Your Answer And qualifies for tax rebate under section 88.Select The BlankQuestion Deduction u/s ________B is available for 10consequent assessment years from the year ofcommencement of production.Correct Answer 10Your Answer 10True/FalseQuestion Income from subletting is treated as income fromhouse property.Correct Answer FalseYour Answer FalseSelect The BlankQuestion Section 80U allows the deduction in respect of the________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMatch The FollowingQuestion Correct Answer Your AnswerDisallowableExpenditureLitigation Expenses inconnection withrecovery of a debtwhich is not a tradingdebtLitigation Expenses in



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connection withrecovery of a debtwhich is not a tradingdebtBusiness Includes trade,commerce, orIncludes trade,commerce, ormanufacture or anyadventure or concernin the nature of trade,commerce ormanufacturemanufacture or anyadventure or concern inthe nature of trade,commerce ormanufactureProfession Includes vocation Includes vocationCapital Expenditure Expenditure incurredby a company with theissue of rights sharesPremium onredemption ofDebenturesTrue/FalseQuestion Any recreational facility provided by the employer to agroup of employees (not being restricted to a selectfew employees) is not exempt from tax.Correct Answer FalseYour Answer FalseTrue/FalseQuestion In case of deductions for medical treatment underSection 80DDB the amount of deduction will bereduced by the amount received under an insurancepolicy or the amount reimbursed by the employer.Correct Answer TrueYour Answer TrueTrue/FalseQuestion Any advance tax paid before 31st March is treated asadvance tax paid during the previous year.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion Municipal taxes paid is allowed as deduction from :-Correct Answer Gross annual valueYour Answer Gross annual value



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True/FalseQuestion Entertainment Allowance received by the employeesfrom the private sector is taxable in the hands of theemployee.Correct Answer TrueYour Answer TrueMatch The FollowingQuestion Correct Answer Your AnswerAny subscription madeto National SavingSchemeBy an individual or aHUF is eligible forrebate u/s 88By an individual or aHUF is eligible forrebate u/s 88Mr. A, a 70 years oldSenior Citizen, has theGross Total Income ofRs. 2,50,000 duringthe Assessment Year2005-2006. Heinvested Rs. 50,000 inthe tax saving bonds ofICICI on 10th June2004. His tax liabilityfor the A Y 2005-2006.RS.12,500 RS.12,500During theAssessment Year2005-2006, Mrs. A,age 58 years, has the Gross Total Income of Rs. 1,45,000 includingthe dividend fromIndian companiesamounting to Rs.10,000. She investsRs. 50,000 in PPFduring the saidAssessment Year. hertax liabilit isRs. 1,000 Rs. 1,000Any contribution madeto a Public ProvidentFundIs eligible for rebateu/s 88Is eligible for rebate u/s



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88Multiple Choice Multiple AnswerQuestion Following incomes of local authorities are exempt :-Correct Answer Capital gains , Other income , House propertyYour Answer Capital gains , Other income , House propertyMultiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains theassessee should invest the whole or part of the capitalgains in the specified assets :-Correct Answer Within six months from the date of transfer of the longtermcapital assetYour Answer Within six months from the date of transfer of the longtermcapital assetTrue/FalseQuestion Income from partnership firms is exempt from taxationfor the partnersCorrect Answer TrueYour Answer False


Labels: Taxation

Taxation - 2

LIST OF ATTEMPTED QUESTIONS AND ANSWERSMultiple Choice Single AnswerQuestion 48 Deduction in respect of Contribution to certain pension funds is related to :-Correct Answer Section 80CCCYour Answer Section 80CCCTrue/FalseQuestion 49 The rebate u/s 88B is allowed before the rebate u/s 88 is allowed.Correct Answer TrueTAXATION9Your Answer FalseSelect The BlankQuestion 50 Expenditure incurred in connection with the local festivals like Diwali etc. are________ as business expenditure.Correct Answer AllowedYour Answer AllowedSelect The Blank



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Question 51 Deduction is available for income from foreign sources under Section 80RR ifsuch remuneration brought into India in convertible foreign exchange within aperiod of________ months from the end of the previous year.Correct Answer 6Your Answer 6Multiple Choice Multiple AnswerQuestion 52 Short Term Capital Loss can be adjusted against :-Correct Answer Short Term Capital Gains. , Long term Capital GainsYour Answer Short Term Capital Gains. , Long term Capital GainsMultiple Choice Single AnswerQuestion 53 Income from winning from lotteries / crossword puzzles/ horse races is taxed atflat rate of :-Correct Answer 0.3Your Answer 0.35Select The BlankQuestion 54 Section 35D of the Act provides that the preliminary expenses can be ________over a period of 5 years commencing from the year of commencement ofbusiness.Correct Answer Amortized and written off to profit and loss accountYour Answer Amortized and written off to profit and loss accountSelect The BlankQuestion 55 Section 43B of the IT Act provides that the certain payments are allowed asdeduction only if they are ________.Correct Answer Actually paidYour Answer ReasonableMultiple Choice Multiple AnswerQuestion 56 The rebate u/s 88 is available to an :-TAXATION10Correct Answer Individual , Hindu Undivided Family.Your Answer Individual , Hindu Undivided Family.Multiple Choice Single AnswerQuestion 57 Income from other sources covers agricultural income from land situated :-Correct Answer Outside IndiaYour Answer Outside IndiaMultiple Choice Multiple AnswerQuestion 58 A return is considered to be defective returns under section 139(9) unless :-Correct Answer The computation of income under each head, Gross Total Income are properly



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filed in , The return is accompanied by the tax audit report under section 44AB ,The return is accompanied by copies of required financial statements of theassesseeYour Answer The computation of income under each head, Gross Total Income are properlyfiled in , The return is accompanied by the tax audit report under section 44AB ,The return is accompanied by copies of required financial statements of theassesseeMultiple Choice Single AnswerQuestion 59 If an employee does not avail of this leave travel concession or assistanceduring a block of four calendar years :-Correct Answer Only one journey can be carried forward to the next block.Your Answer Only one journey can be carried forward to the next block.Select The BlankQuestion 60 The person who does not deduct the tax source as required by the Act or afterdeducting fails to pay the tax as required by the Act, shall be liable to pay thesimple interest @________ % per month on the amount of such tax from thedate on which the tax was deductible till the date on which such tax is actuallypaid.Correct Answer 1Your Answer 1.25Multiple Choice Multiple AnswerQuestion 61 The assessing officer may allot the Permanent Account Number(PAN) to :-Correct Answer Person whose Total Income during previous year exceeds the maximumamount, chargeable to tax , Person carrying on the business or professionwhose turnover exceeds Rs.5 lakhs in any previous year , Any other person bywhom tax is payableYour Answer Person carrying on the business or profession whose turnover exceeds Rs.5lakhs in any previous year , Any other person by whom tax is payable , Anyperson not applying for permanent account number but, tax is



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payable by himTAXATION11Multiple Choice Multiple AnswerQuestion 62 The provisions for payment of gratuity is not allowed under section 40A(7) but,under the head, profits from business and profession, the amount of gratuity willbe allowed as deduction only when :-Correct Answer The amount of gratuity has actually become payable to the employees duringthe previous year , The provision has been made for the payment of a sum byway of contribution to an approval gratuity , The other than the above twosituations, any provision made for the payment of gratuity is not allowed asdeductionYour Answer The amount of gratuity has actually become payable to the employees duringthe previous year , The provision has been made for the payment of a sum byway of contribution to an approval gratuity , The other than the above twosituations, any provision made for the payment of gratuity is not allowed asdeductionMultiple Choice Multiple AnswerQuestion 63 For the purpose of taxability of perquisite a specified employee means :-Correct Answer The person who is director of a company , The employee who has substantialinterest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxablemonetary payments of salary but excluding the value of any non-monetarybenefits or perquisites), after allowing deductions under Section 16, exceedsRs. 50,000Your Answer The person who is director of a company , The employee who has substantialinterest in the company by having 20% or more of the voting power , Theemployee whose income under the head salaries (including all the taxable



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monetary payments of salary but excluding the value of any non-monetarybenefits or perquisites), after allowing deductions under Section 16, exceedsRs. 50,000True/FalseQuestion 64 Sum received under a will / inheritance is not exempt.Correct Answer TrueYour Answer FalseSelect The BlankQuestion 65 It should be noted that the tax liability of an individual having the total income ofless than Rs ________ is Nil u/s 88D.Correct Answer 1,00,000Your Answer 1,00,000Match The FollowingQuestion 66 Correct Answer Your AnswerAll intangible assets likePatents, Trademarks, CopyRights, Licenses etc.Rate of depreciation is 25% Rate of depreciation is 25%Temporary Structures Rate of depreciation is 100% Rate of depreciation is 10%TAXATION12Computers Rate of depreciation is 60% Rate of depreciation is 40%Containers made of glass orplastic used as refillsRate of depreciation is 40% Rate of depreciation is 60%Select The BlankQuestion 67 In case of foreign companies rate of tax is ________.Correct Answer 0.35Your Answer 0.35Multiple Choice Single AnswerQuestion 68 Which of the following expenditure is in the nature of revenue expenditure?Correct Answer Expenditure incurred as discount on issue of debenturesYour Answer Expenditure incurred as discount on issue of debenturesMultiple Choice Multiple AnswerQuestion 69 For the purpose of Section 40 A (2) of the IT Act, if assessee is a firm, the term"Specified Persons" may include :-Correct Answer Any partner of the firm or his relative , Any person having the substantial interestin the business or profession of the firm or any director or partner of



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suchcompany or firm or any relative of such person. , Any person who carries onbusiness or profession and in his business or profession the assessee or anypartner of such firm or relative of such partner has substantial interest.Your Answer Any partner of the firm or his relative , Any person having the substantial interestin the business or profession of the firm or any director or partner of suchcompany or firm or any relative of such person. , Any person who carries onbusiness or profession and in his business or profession the assessee or anypartner of such firm or relative of such partner has substantial interest.Multiple Choice Single AnswerQuestion 70 For charging the income in the form of salaries :-Correct Answer There needs to be an employer-employee relationship between the payer andthe payee.Your Answer There needs to be an employer-employee relationship between the payer andthe payee.True/FalseQuestion 71 For claiming the deduction under section 80IA, the industrial undertaking shouldbe owned by a company registered in India or a consortium of such companies.Correct Answer TrueYour Answer TrueSelect The BlankQuestion 72 Any expenditure incurred by the assessee for any purpose which is ________or which is prohibited by law shall not be allowed as business expenditureTAXATION13Correct Answer OffenceYour Answer OffenceMultiple Choice Single AnswerQuestion 73 As a general principle, the Basic Salary or Wages, Dearness Allowance andBonus / Commission is :-Correct Answer Fully taxable.Your Answer Fully taxable.



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True/FalseQuestion 74 Rebates as per the provisions of Section 88 of the Act are not available from thetax on long-term capital gains.Correct Answer TrueYour Answer TrueTrue/FalseQuestion 75 MAT is applicable if there is a difference of 7.5% between net profit & bookprofit.Correct Answer TrueYour Answer FalseMultiple Choice Multiple AnswerQuestion 76 For the purpose of Section 40 A (2) of the IT Act, if assessee is an individual,the term "Specified Persons" may include :-Correct Answer Any relative of such individual , Any person (individual, company, firm etc.)having a substantial interest in the business or profession of the individual orany director or partner of such company or firm or any relative of such person. ,Any person who carries on a business or profession and in his business orprofession, the assessee himself or his relative has a substantial interest.Your Answer Any relative of such individual , Any person (individual, company, firm etc.)having a substantial interest in the business or profession of the individual orany director or partner of such company or firm or any relative of such person. ,Any person who carries on a business or profession and in his business orprofession, the assessee himself or his relative has a substantial interest.Select The BlankQuestion 77 Deduction for remuneration from foreign sources for professors, teachers etcunder Section 80R is limited to ________% of such remuneration brought inIndia.Correct Answer 15Your Answer 10True/FalseQuestion 78 Any expenditure incurred for earning the income which is included under the



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head income from other sources will be allowed as deduction from such incomeTAXATION14provided that certain conditions are satisfiedCorrect Answer TrueYour Answer TrueMultiple Choice Multiple AnswerQuestion 79 Deduction from Capital Gains from the transfer of residential house propertyunder Section 54 is available to :-Correct Answer Individual , HUFYour Answer Individual , HUF , CompanyTrue/FalseQuestion 80 Income earned & received outside India & remitted to India is taxable forresident & ordinary residentCorrect Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 81 Mr X has received Rs 200000 as income from salary, Rs 50000 income fromhouse property and he also received Rs 100000 income from specified units ofthe mutual fund. What will be his total incomeCorrect Answer Rs 250000Your Answer Rs 250000Multiple Choice Multiple AnswerQuestion 82 Standard deduction takes care of :-Correct Answer Repairs & maintenance , Insurance premium , Ground rentYour Answer Insurance premiumMatch The FollowingQuestion 83 Correct Answer Your AnswerIndividual partners & firms Are separate taxable entities Losses are shared equallyPartnership firm Companies can be partners Are separate taxable entitiesCompany partners Can not get salaries Companies can be partnersIndividual partners Can be partners in any numberof firmsCan be partners in any numberof firmsMultiple Choice Multiple AnswerTAXATION15Question 84 Capital Gains arise on account of excess of transfer



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consideration over thefollowing amountsCorrect Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly andexclusively in connection with the transferYour Answer Cost of acquisition , Cost of improvement , Expenditure incurred wholly andexclusively in connection with the transferTrue/FalseQuestion 85 Income of a mutual fund is taxable even if it is authorized by RBI.Correct Answer FalseYour Answer FalseSelect The BlankQuestion 86 If sum received is net of TDS then it is ________ to include in income from othersources.Correct Answer Grossed upYour Answer Grossed upMultiple Choice Multiple AnswerQuestion 87 What is the tax treatment of Statutory Provident Fund?Correct Answer Employer's Contribution to PF is not liable for any tax payment , Interestcredited to the employee's account is not liable for any tax payment. , The lumpsum received at the time of retirement or resignation or death is also exemptunder section 10(11) and 10(12).Your Answer Employer's Contribution to PF is not liable for any tax payment , Interestcredited to the employee's account is not liable for any tax payment. , The lumpsum received at the time of retirement or resignation or death is also exemptunder section 10(11) and 10(12).True/FalseQuestion 88 Interest paid on the loan for acquiring a capital asset will be considered to be apart of cost of acquisition.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 89 What is the manner in which Income from Salaries is taxable?Correct Answer Due basis or 'receipt' basis whichever is earlier.Your Answer Due basis or 'receipt' basis whichever is earlier.Multiple Choice Single Answer



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Question 90 Deduction from Capital Gains under Section 54F is for Capital Gains arisingfrom transfer of :-Correct Answer Any Long Term Capital AssetTAXATION16Your Answer Any Long Term Capital AssetMultiple Choice Single AnswerQuestion 91 In case the assessee is not a company, a person(other than a company) who isfalling under One by Six economic criteria, the last date for filing the return isprescribed as :-Correct Answer 31st July of the Assessment yearYour Answer 31st July of the Assessment yearSelect The BlankQuestion 92 Registration charges in connection with the increasing of ________ sharecapital of the company is not allowed as revenue expenditure.Correct Answer AuthorizedYour Answer AuthorizedTrue/FalseQuestion 93 The amount of telephone bills (including the mobile phone bills) of the employeereimbursed by the employer is taxable in the hands of the employee.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion 94 As per which provision and section, every person, company or any other personshall furnish his returns of income in the prescribed form on or before thespecified due date?Correct Answer Section 139(1)Your Answer Section 139(2)


Labels: Taxation

Taxation - 1

TAXATION1LIST OF ATTEMPTED QUESTIONS AND ANSWERSSelect The Blank



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Question 1 Mr X a salaried employee has received total educational allowance of Rs 8,000for his four children, the maximum allowance exempt is ________ u/s 10(14) ofthe IT Act.Correct Answer Rs 2,400Your Answer Rs 2,400Multiple Choice Multiple AnswerQuestion2 What is the tax treatment of the Lump sum received from unrecognizedprovident fund on the retirement or resignation or death of the employee?Correct Answer Employee's contribution to PF is exempt from tax , Interest on employee'scontribution is taxable as "Income from Other Sources" , Employer'sContribution to PF and interest thereon is taxable as "Income from salaries"Your Answer Interest on employee's contribution is taxable as "Income from Other Sources" ,Employer's Contribution to PF and interest thereon is taxable as "Income fromsalaries" , Employee's contribution to PF is exempt from taxTrue/FalseQuestion 3 Software technology park means set up according to Software Technology ParkScheme framed by Ministry of Commerce & Industries.Correct Answer TrueYour Answer TrueSelect The BlankQuestion 4 It is mandatory for ________ to file a return even if there is loss or the income isnil.Correct Answer A companyYour Answer Persons under "One by Six" schemeMultiple Choice Multiple AnswerQuestion 5 Following professional institutions have their incomes exempt from tax :-Correct Answer Town planning , Company secretary , AccountingYour Answer Town planning , Company secretary , AccountingMultiple Choice Multiple AnswerQuestion 6 Which of the following amounts credited to P & L Account but not taxable fromIncome tax Purposes as Profits from Business and Profession?Correct Answer Refund of Income tax , Capital Gains , Dividend IncomeYour Answer Refund of Income tax , Capital Gains , Dividend IncomeSelect The Blank



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Question 7 ________ is the tax payable on the manufacturing of goods.Correct Answer Excise dutyYour Answer Excise dutySelect The BlankQuestion 8 The amount paid by the employer to the employee to meet the expenditure forresidential accommodation occupied by the employee is called ________.Correct Answer House rent allowanceYour Answer House rent allowanceMultiple Choice Multiple AnswerQuestion 9 Any amount deposited by an Individual or a HUF in 10 year or 15 year accountunder the Post Office Saving Bank (CTD) Rules, 1959. The account can be inthe name of :-Correct Answer The individual himself , A minor of whom he is the guardian.Your Answer The individual himself , A minor of whom he is the guardian.Select The BlankQuestion 10 Section 80U allows the deduction in respect of the ________ .Correct Answer Permanent physical disabilityYour Answer Permanent physical disabilityMultiple Choice Single AnswerQuestion 11 Income of notified news agencies is exempt provided :-Correct Answer They apply their income for collection & distribution of newsYour Answer They apply their income for collection & distribution of newsMultiple Choice Single AnswerQuestion 12 The total amount of rebates under Section 88, Section 88B, Section 88C andSection 88D of the Act. shall :-Correct Answer Not exceed the amount of tax calculated on the total income.Your Answer Not exceed the amount of tax calculated on the total income.Multiple Choice Single AnswerQuestion 13 What is the treatment of Uncommuted Pension?Correct Answer It is taxable as Income from Salaries.Your Answer It is taxable as Income from Salaries.




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Question 14 Perquisites which are taxable only in the hands of specified employee includethe following categories of perquisites :-Correct Answer Motor Car , Services of sweeper, gardener, watchman or personal attendant ,Gas, electricity and water provided for personal consumptionYour Answer Motor Car , Services of sweeper, gardener, watchman or personal attendant ,Gas, electricity and water provided for personal consumptionMultiple Choice Single AnswerQuestion 15 The Central Government has introduced a new pension scheme for theemployees employed on or after 15th January, 2004. These employees arerequired to contribute 10% of their salaries to this pension scheme. How muchwill the Central Government contribute to the Fund?Correct Answer Equal amountYour Answer Equal amountTrue/FalseQuestion 16 In case of deductions for medical treatment under Section 80DDB the amount ofdeduction will be reduced by the amount received under an insurance policy orthe amount reimbursed by the employer.Correct Answer TrueYour Answer TrueMultiple Choice Single AnswerQuestion 17 If any person fails to get the accounts audited by a Chartered Accountant andfails to submit the copy of such report under section 44AB, he will be liable topay the penalty equal to :-Correct Answer 0.5% of sales turnover/gross receipts or Rs.1lakh whichever is lessYour Answer 0.5% of sales turnover/gross receipts or Rs.1lakh whichever is lessSelect The BlankQuestion 18 Section 35E of the Act applies to all the ________ engaged in the business ofprospecting for or extraction or production of certain specified minerals.Correct Answer Resident assesseesYour Answer Non-ordinary resident assesseesMultiple Choice Multiple AnswerQuestion 19 Profits earned by an Industrial Undertaking engaged in other than infrastructure



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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 researchYour Answer Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage, Company engaged in scientific and industrial researchTrue/FalseQuestion 20 Jewellery held by the assessee is not a Capital Asset.

Correct Answer FalseYour Answer FalseSelect The BlankQuestion 21 House rent allowance is exempt from the heading ________.Correct Answer Income from salariesYour Answer Income from salariesMultiple Choice Multiple AnswerQuestion 22 The various payments which are referred as deductions under section 43B,Clause No-21 are :-Correct Answer Any employees contribution payable by the assessee towards any ProvidentFund or Superannuation Fund or Gratuity Fund for the welfare of the employees, Any sum payable by the assessee by way of tax duty, cess or fee , Any sumpayable by the assessee as interest on any loan or borrowing made by him fromany public financial institution or state financial corporation as per the terms ofthe agreementYour Answer Any employees contribution payable by the assessee towards any ProvidentFund or Superannuation Fund or Gratuity Fund for the welfare of the employees, Any sum payable by the assessee by way of tax duty, cess or fee , Any sumpayable by the assessee as interest on any loan or borrowing made by him fromany public financial institution or state financial corporation as per the terms ofthe agreementSelect The BlankQuestion 23 The rebate u/s ________ is available to a woman assessee below the age of 65



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years at any time during the previous years.Correct Answer 88CYour Answer 88BTrue/FalseQuestion 24 An deduction is allowed to an assesse as an employer in respect of contributionmade to any non-statutory fund under the section 40A(9).Correct Answer FalseYour Answer TrueTrue/FalseQuestion 25 Dividend received by the shareholder is treated as income chargeable to tax u/s10(34) of the IT Act.Correct Answer FalseYour Answer FalseMultiple Choice Multiple AnswerQuestion 26 The assessee is required to quote PAN in :-

Correct Answer All returns to or correspondence with the Income Tax Authorities , All thechallans for the payment of any amount under the Act , All the documentspertaining to purchase, sale and bank transactionsYour Answer All returns to or correspondence with the Income Tax Authorities , All thechallans for the payment of any amount under the Act , All the documentspertaining to purchase, sale and bank transactionsMultiple Choice Single AnswerQuestion 27 Any person carrying on business or profession has to submit the Audit Report inprescribed form, signed by Chartered Accountant before 31st October of theassessment year, whether the return of income is filed or not. This is incompliance with :-Correct Answer Section 44AB of the ActYour Answer Section 44AB of the ActMultiple Choice Single AnswerQuestion 28 In case of the individual or HUF whose Gross Total Income, before deductionsunder Chapter VI-A, is more than Rs. 5,00,000, then :-Correct Answer No rebate will be available u/s 88.Your Answer Rebate will be available u/s 88Multiple Choice Single AnswerQuestion 29 If firm fails to submit copy of deed along with return of



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income :-Correct Answer It will not constitute a separate taxable entityYour Answer It will not constitute a separate taxable entityMultiple Choice Single AnswerQuestion 30 In order to avoid the cases of tax evasion on the part of the assessees, the Acthas provided for :-Correct Answer Tax deduction at sourceYour Answer Tax deduction at sourceMultiple Choice Multiple AnswerQuestion 31 Which of the following expenditures are expressly disallowed to be deductedwhile computing the profits from business and professionCorrect Answer Income Tax , Wealth TaxYour Answer Income Tax , Wealth TaxTrue/FalseQuestion 32 Section 80QQB is applicable to the individual resident who is an author of textbooks.Correct Answer FalseYour Answer False

Select The BlankQuestion 33 Section 35AC of the Act applies to any sum paid by the assessee to a publicsector company or a local authority or an association approved by the nationalcommittee for ________ for carrying out any project in upliftment of public.Correct Answer Promotion of social and economic welfareYour Answer Promotion of social and economic welfareMultiple Choice Single AnswerQuestion 34 Income from sub-letting of a house property is income from :-Correct Answer Other sourcesYour Answer SublettingMultiple Choice Multiple AnswerQuestion 35 Income of a professional association is exempt if its objectives are :-Correct Answer Supervision , Control , EncouragementYour Answer Supervision , Control , EncouragementMultiple Choice Multiple AnswerQuestion 36 Choose capital expenditure from the following list :-Correct Answer Purchase of Building , Purchase of machineryYour Answer Purchase of Building , Construction of temporary structures , Purchase ofmachinery



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True/FalseQuestion 37 Loss under the head Profits from Business or Profession can be adjustedagainst the Income from Salaries.Correct Answer FalseYour Answer FalseSelect The BlankQuestion 38 Deduction u/s 10A is ________ of export proportion of profits.Correct Answer 0.9Your Answer 0.9True/FalseQuestion 39 Rebates as per the provisions of Section 88C of the Act are not available fromthe tax on long-term capital gains.Correct Answer False

Your Answer FalseTrue/FalseQuestion 40 Dividend received from domestic company to its shareholders is taxable in thehands of the shareholder.Correct Answer FalseYour Answer TrueMatch The FollowingQuestion 41 Correct Answer Your AnswerSuper Annuation Fund This is an employee welfarescheme which is usuallyapplicable in case of verysenior employeesThis is an employee welfarescheme which is usuallyapplicable in case of very senioremployeesStatutory Provident Fund This is set up as per theprovisions of Provident FundAct, 1925. This is maintainedby Government organizations,local authorities, universitiesand educational institutions.This is set up as per theprovisions of Provident FundAct, 1925. This is maintained byGovernment organizations, localauthorities, universities andeducational institutions.Recognised Provident Fund This is the provident fund to



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which the provisions ofEmployees Provident Fund andMiscellaneous Provisions Act,1952 apply.This is the provident fund towhich the provisions ofEmployees Provident Fund andMiscellaneous Provisions Act,1952 apply.Unrecognised Provident Fund The provident fund which is notrecognized by the income taxauthorities is called asunrecognized provident fund.The provident fund which is notrecognized by the income taxauthorities is called asunrecognized provident fund.Multiple Choice Single AnswerQuestion 42 Tax liability of a person is based on :-Correct Answer Residential statusYour Answer Residential statusSelect The BlankQuestion 43 The amount of compensation received or receivable by the employee from theemployer at the time of termination of his employment or at the time ofmodification of terms and conditions in connection with the employment is calledas ________.Correct Answer Terminal compensation.Your Answer Terminal compensation.Match The Following

Question 44 Correct Answer Your AnswerIntangible Capital Asset Tenancy Rights Tenancy RightsExcluded from ambit of termCapital AssetStock in Trade Land held for a period of 36months or moreShort Term Capital Asset Equity Shares held for a periodof Less than 36 monthsStock in TradeLong Term Capital Asset Land held for a period of 36months or moreBuildingMultiple Choice Multiple AnswerQuestion 45 The entertainment allowance received by the



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Government employees isincluded in their salaries and the deduction is allowed to the extent of least ofthe following amounts :-Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowancereceived.Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of Entertainment Allowancereceived.True/FalseQuestion 46 Annual premium paid by the employer for the accident insurance policy taken bythe employer in the name of the employee is chargeable to tax.Correct Answer FalseYour Answer FalseMultiple Choice Single AnswerQuestion 47 Following condition needs to be satisfied for claiming the exemption underSection 54F :-Correct Answer The assessee is an individual or a HUFYour Answer The assesse is Firm



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taxation solved assignment 001

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