Practice Tax Planning and Management mcq set 3 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 3
81. Company is defined under
A. Section 2 (17)of the Income Tax Act
B. Section 2 (32)of the Income Tax Act
C. Section 2 (14)of the Income Tax Act
D. Section 2 (12)of the Income Tax Act
Answer
A. Section 2 (17)of the Income Tax Act
82. Whichof the following deals with Domestic Company?
A. Sec 2 (234)
B. Sec 2 (224)
C. Sec 2 (22)
D. Sec 2 (26)
Answer
B. Sec 2 (224)
83. Section 2 (234) relates to
A. Indian company
B. Domestic company
C. Foreign company
D. Widely held company
Answer
C. Foreign company
84. A company in which the public is not substantially interested is known as
A. Domestic company
B. Foreign company
C. Widely held company
D. Closely held company
Answer
C. Widely held company
85. Section 80 JJAA deals with
A. Deduction in respect of produced companies
B. Production in respect of certain incomes
C. Deduction in respect of employment of new employee
D. Deduction in respect of profits and gains from undertakings an enterprise in special category states
Answer
C. Deduction in respect of employment of new employee
86. Expenditure incurred by an hotelier on replacement of linen and carpets in his hotel. Suchexpenditure shall be considered as
A. Revenue expenditure
B. Deferred revenue expenditure
C. Capital expenditure
D. Illegal expenditure
Answer
A. Revenue expenditure
87. The maximum deduction available under section 80 C is
A. Rs50000
B. Rs100000
C. Rs150000
D. Rs200000
Answer
C. Rs150000
88. The Presumptive Taxation Scheme of Section 44 AD can be adopted by
A. Resident Individual tax payers
B. Hindu Undivided Families
C. Partnership firms except Limited Liability Partnership Firms
D. All of these
Answer
D. All of these
89. Deemed dividend is defined in
A. Section 2 (22)(a)
B. Section 2 (21)(a)
C. Section 2 (23)(a)
D. Section 2 (22)(c)
Answer
A. Section 2 (22)(a)
90. 80 ID deals with tax holiday for
A. Hospitals
B. Hotels
C. Natural gas
D. Eligible business
Answer
B. Hotels
91. An assessee incurred expense of tax on non monetary perquisites of employees. Such expenditure shall be considered as
A. Revenue expenditure
B. Deferred revenue
C. Capital expenditure
D. Expressly disallowed
Answer
D. Expressly disallowed
92. Flat rate of corporate tax for a domestic company with annual turnover up to Rs250 crore is
A. 15%
B. 25%
C. 30%
D. 35%
Answer
B. 25%
93. Flat rate of corporate tax for a domestic company with annual turnover more than Rs250 crore is
A. 15%
B. 25%
C. 30%
D. 35%
Answer
C. 30%
94. Flat rate of corporate tax for a foreign company is
A. 15%
B. 25%
C. 30%
D. 40%%
Answer
D. 40%%
95. Which of the following shall not be regarded as capital asset?
A. Jewellery
B. Rural Agricultural land
C. Archaeological Collections
D. Paintings
Answer
B. Rural Agricultural land
96. Which of the following is not a capital expense?
A. Installation expenditure of plant of a company.
B. Legal expenses for reduction of capital.
C. Commission to employees to achieve sales Targets.
D. Expenses of promoting a company.
Answer
C. Commission to employees to achieve sales Targets.
97. Which of the following donations is eligible for 100 % deduction?
A. Help to poor
B. National DefenceFund
C. Rajive Gandhi Foundation
D. Any notified temple
Answer
B. National DefenceFund
98. Indexation is applicable to ___
A. Sale of short term capital assets.
B. Sale of long term debentures.
C. Sale of depreciable capital assets.
D. Sale of long term capital assets which are not depreciable assets
Answer
D. Sale of long term capital assets which are not depreciable assets
99. XYZ & Co. incurred a liability by giving discount on issue of debentures. Such expenditureshall be considered as
A. Revenue expenditure
B. Deferred revenue expenditure
C. Capital expenditure
D. Illegal expenditure
Answer
B. Deferred revenue expenditure
100. The objectives of tax planning is to minimise ___. .?
A. tax liability
B. finance liability
C. tax return
D. none of these
Answer
A. tax liability
101. Tax management deals with :
A. filing of return in time
B. getting the accounts audited
C. deducting tax at source
D. all of the above
Answer
D. all of the above
102. income tax act came into force on ___
A. 01.04.1961
B. 01.04.1962
C. 01.04.1956
D. 01.04.1965
Answer
B. 01.04.1962
103. Residential status is determined for ___
A. previous year
B. assessment year
C. accounting year
D. financial year
Answer
A. previous year
104. How many heads of income are there to compute gross total income?
A. six
B. five
C. four
D. three
Answer
B. five
105. Deduction of tax at source made for incomes which can be calculated in advance is called ___ ?
A. TDS
B. PAS
C. FAS
D. MAS
Answer
A. TDS
106. Donation is deductible under section
A. 80C
B. 80D
C. 80E
D. 80G
Answer
D. 80G
107. Education cess on tax payable is at.
A. 2%
B. 1%
C. 3%
D. 5%
Answer
A. 2%
108. The income tax rate on long term capital gains for an individual is ___
A. 10%
B. 15%
C. 20%
D. 25%
Answer
C. 20%
109. When a receipt is determined as capital receipt or revenue receipt.
A. at the time of it is received
B. while preparing final account
C. when the received amount is used
D. none of these
Answer
A. at the time of it is received
110. STT stands for
A. securities transaction tax
B. secure transaction tax
C. securities transmission tax
D. none of these
Answer
A. securities transaction tax
111. Who is tax payer?
A. business man
B. trust
C. assessee
D. govt employee
Answer
C. assessee
112. Reciept of amount on maturity of LIC policy is ___.
A. a revenue receipt
B. capital receipt
C. a casual receipt
D. fixed receipt
Answer
B. capital receipt
113. Income by way of rent of agricultural land is ___.
A. business income
B. income from other sources
C. agricultural income
D. casual income
Answer
C. agricultural income
114. The highest administrative authority for income tax in India ___ ?
A. finance minister
B. president of India
C. CBDT
D. director of IT
Answer
C. CBDT
115. Tonnage tax is based on ___. .
A. net tonnage
B. gross tonnage
C. actual tonnage
D. weighted average
Answer
A. net tonnage
