Practice Tax Planning and Management mcq set 1 for your bba mba courses and you can give online quiz exam of Tax Planning and Management for assess your knowledge.
MCQ of Tax Planning and Management set 1
1. Concealment of income or false claims to reduce tax liability are cases of ___
A. Tax evasion
B. Tax planning
C. Tax avoidance
D. Tax management
Answer
A. Tax evasion
2. Using the loopholes of law to reduce tax is known as
A. Tax evasion
B. Tax planning
C. Tax avoidance
D. Tax management
Answer
C. Tax avoidance
3. ___ is the device which satisfies the requirements of the law but not in accordance with theintentions of the law
A. Tax evasion
B. Tax planning
C. Tax avoidance
D. Tax management
Answer
C. Tax avoidance
4. Reducing tax liability, utilizing the deductions, exemptions or reliefs allowed in the Act andRules is called ___
A. Tax evasion
B. Tax planning
C. Tax avoidance
D. Tax management
Answer
B. Tax planning
5. Compliance of the legal requirements in connection with the tax is the essence of ___
A. Tax evasion
B. Tax planning
C. Tax avoidance
D. Tax management
Answer
D. Tax management
6. Tax avoidance is ___
A. Illegal
B. Immoral
C. Lawful
D. All of these
Answer
B. Immoral
7. Availing tax holiday by a new industrial undertakings in backward areas is a case of
A. Tax evasion
B. Tax planning
C. Tax avoidance
D. Tax management
Answer
B. Tax planning
8. Compliance with legal formalities and availing tax incentives are cases of
A. Tax evasion
B. Tax planning
C. Tax avoidance
D. Tax management
Answer
D. Tax management
9. Return of income must be furnished on or beforethe due date as per a part of ___
A. Tax evasion
B. Tax planning
C. Tax avoidance
D. Tax management
Answer
D. Tax management
10. The total income of a domestic company is taxable at the rate of ___
A. 20%
B. 30%
C. 40%
D. 35%
Answer
B. 30%
11. The total income of a non domestic company is taxable at the rate of ___
A. 20%
B. 30%
C. 40%
D. 35%
Answer
C. 40%
12. Under the Income-tax Act, 1961, which of the following outlays incurred by Sun Ltd. during theprevious year ended 31st March, 2019 will not be admissible as deduction while computing its business income
A. Contribution to a political party in cash
B. Interest on loan taken for payment of income-tax
C. Capital exnditure on advertisement
D. All of the above
Answer
D. All of the above
13. Any corporation by or under any Central, State or Provincial Act or a Government Company asdefined in the Companies Act is called ___
A. Public Sector Company
B. Joint company
C. Private Sector company
D. Provincial Company
Answer
A. Public Sector Company
14. Any company which has made the prescribed arrangements for the declaration and payment of dividends within India is called ___
A. Domestic Company
B. Non domestic company
C. Public sector company
D. Provincial company
Answer
A. Domestic Company
15. A company which is neither an Indian company not has made the prescribed arrangements forthe declaration and payment of dividends within India is called ___
A. Domestic Company
B. Foreign Company
C. Public sector company
D. Provincial company
Answer
B. Foreign Company
16. A company in which the public are not substantially interested is closed ___
A. Open company
B. Closely held company
C. Limited company
D. None of these
Answer
B. Closely held company
17. A person carrying not less than ___ of the voting power in a company is said to have substantialinterest in the company.
A. 10%
B. 20%
C. 30%
D. 40%
Answer
B. 20%
18. Section 115JB relates to ___
A. Securities Transaction Tax
B. Maximum Alternative Tax
C. Minimum Alternative Tax
D. Surcharge
Answer
C. Minimum Alternative Tax
19. Under the Income Tax Act, 1961, depreciation on machinery is charged on ___
A. Purchase price of the machinery
B. Written down value of the machinery
C. Market price of the machinery
D. All of the above
Answer
B. Written down value of the machinery
20. If the tax liability of a company is less than 18.5% of its book profits, the company is liable topay MAT at the rate of ___
A. 15% of books profits plus Surcharge) if any) plus 4% HEC
B. 16% of books profits plus Surcharge)if any) plus 4% HEC
C. 16.5% of books profits plus Surcharge)if any) plus 4% HEC
D. 18.5% of books profits plus Surcharge(if any) plus 4% HEC
Answer
D. 18.5% of books profits plus Surcharge(if any) plus 4% HEC
21. A company carry forward the eligible tax credit under MAT for a maximum of ___
A. Five assessment years
B. Eight assessment years
C. Ten assessment years
D. Twelve assessment years
Answer
C. Ten assessment years
22. The rate of corporate dividend tax during the year 2018-19 is ___
A. 17.674% + 12% surcharge + 4% HEC
B. 18. % + 12% surcharge + 4% HEC
C. 19.67% + 12% surcharge + 4% HEC
D. 20% + 12% surcharge + 4% HEC
Answer
A. 17.674% + 12% surcharge + 4% HEC
23. Income distributed by a money market mutual fund or liquid fund is taxable @ ___
A. 15% + Surcharge 10% + 4%HEC
B. 20% + Surcharge 10% + 4%HEC
C. 25% + Surcharge 10% + 4%HEC
D. 30% + Surcharge 10% + 4%HEC
Answer
C. 25% + Surcharge 10% + 4%HEC
24. Income distributed by a fund other than a money market mutual fund or a liquid fund to anindividual or HUF is subject to CDT at the rate of
A. 12.5% + Surcharge 10% + 4 % HEC
B. 15% + Surcharge 10% + 4 % HEC
C. 20% + Surcharge 10% + 4 % HEC
D. 25% + Surcharge 10% + 4 % HEC
Answer
A. 12.5% + Surcharge 10% + 4 % HEC
25. Under the head Income from House Property the basis of charge is ___
A. Rent Received
B. Gross Annual Value
C. Annual Value
D. Municipal Value
Answer
C. Annual Value
26. Tonnage tax system is exclusively intended to ___
A. Joint stock Companies
B. partnership firms
C. Sipping companies
D. IT Companies
Answer
C. Sipping companies
27. Which among the following is not available to companies?
A. 80 IB
B. 80 C
C. 80 G
D. None of these
Answer
B. 80 C
28. MAT Provisions are applicable to ___
A. Non domestic companies
B. Indian companies
C. Private companies
D. Every Company
Answer
D. Every Company
29. Which among the following is not a widely held company
A. Mutual Benefit Finance Company
B. Private Limited Company
C. Limited Company
D. None of these
Answer
B. Private Limited Company
30. Substantial interest in the company means not less than ___ of voting power
A. 50%
B. 20%
C. 30%
D. 40%
Answer
B. 20%
31. Section 115JB relates to
A. Tonnage Tax
B. Corporate Dividend Tax
C. MAT
D. GST
Answer
C. MAT
32. The Income Tax Act came into force from ___
A. 1st March 1971
B. 1st April 1971
C. 1st March 1961
D. 1st April 1962
Answer
D. 1st April 1962
33. An assessee paid insurance premium against risk of damage or destruction of stocks or stores used for the purposes of his business or profession. Such expenditure shall be considered as
A. Revenue expenditure
B. Capital expenditure
C. Deferred revenue expenditure
D. Illegal expenditure
Answer
A. Revenue expenditure
34. ___ is the casual income.
A. Interest received
B. Dividend income
C. Pension received
D. Winning from lotteries
Answer
D. Winning from lotteries
35. Pension is ___ under the salary head.
A. Fully taxable
B. Partially taxable
C. Not taxable
D. None of the above
Answer
A. Fully taxable
36. salary of Member of Parliament is taxable under the head ___
A. Salary
B. Income from Other Sources
C. Income from Business
D. All of the above
Answer
B. Income from Other Sources
37. The salary, remuneration or compensation received by the partners is taxable under the head ___
A. Income from Other Sources
B. Income from Business
C. Salary
D. None of the above
Answer
B. Income from Business
38. In accordance with the provisions of Section 17(1) of Income Tax Act, 1961, the term salaryincludes ___
A. Any annuity or pension
B. Any gratuity
C. Any fees, commission, perquisite or profits in lieu of or in addition to any salary orwages
D. All of the above
Answer
D. All of the above
39. Under the Income-tax Act, 1961, ‘notional profit’ from speculative business is –
A. Taxable under the head ‘income from profits and gains of business and profession
B. Taxable under the head ‘income from other ‘ sources’
C. Taxable either as income from other sources or as income from profits and gains of business and profession
D. Not taxable.
Answer
B. Taxable under the head ‘income from other ‘ sources’
40. The books of accounts are to be kept and maintained for a period of how many years from theend of the relevant assessment year.
A. 6 years
B. 5 years
C. 8 years
D. Unlimited period
Answer
A. 6 years
