Gate/Direct Tax MCQ Set 2 Sample Test,Sample questions

Question:
 Additional depreciation is allowed at half the rate if the asset is used in the initial year for.

1.195 days.

2. 199 days

3.360 days.

4. less than 180 days.


Question:
 Amount of contribution made to PM national relief fund is exempted upto _________.

1. 100%

2.75%

3. 50%

4. 25%


Question:
 Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profit
in any accounting year can be carried forward for.

1. 16 years.

2. 8 succeeding previous years.

3.Indefinite period.

4.12 years.


Question:
 Deduction in respect of expenditure on advertisements through articles intended for presentation will be
allowed on the value of each article up to a limit of.

1. fully allowed.

2.Rs. 1,000 per item

3.Rs. 800 per item

4. Rs. 1,800 per item.


Question:
 Due date of filing of return by company assessee is____.

1.30th June.

2.31st August

3.31st July.

4.30th Sep.


Question:
 Embezzlement of cash in a money lending business shall be treated as.

1.. Business expenditure.

2.Revenue loss incidental to business.

3.Capital expenditure

4.Capital loss.


Question:
 Exempted incomes do not form part of total income of

1.Individual assessees only

2.HUF only

3.Firm and company assessees only

4.all assessee


Question:
 Exemption for house rent allowance is determined by.

1.Rule 24C.

2.Sec. 80C

3.Rule 2A.

4.Sec. 91.


Question:
 Furniture held for more than 36 months, on which depreciation is allowed is

1.Long term capital asset.

2.Short term capital asset.

3. Exempted capital asset

4. not a capital asset.


Question:
 In case of Tax free salary.

1. Tax is to be paid by employer

2.No tax is payable on such salary

3.Tax is to be paid by the employee.

4.Govt, itself pays the tax at a future date.


Question:
 In case the dependent is suffering from a notified disease the rate of deduction u/s 80DDB is

1.. Rs. 15,000 p.a

2.Rs. 40,0000 p.a

3. Rs. 50,000 p.a

4.Rs. 1,00,000


Question:
 Income of Non profit seeking educational institutions, financed by government, is exempt from Income tax if its annual receipts do not exceed.

1.Rs. 50 lakhs .

2.Rs. 1 crore.

3.Rs. 5 crores.

4.Rs. 50 crores.


Question:
 Income received by charted account by way of fees from his client is

1. salary income

2.business income

3. professional income

4. income from other sources


Question:
 Incomes absolutely exempt from Tax are listed under

1.Sec 2.

2.Sec 10

3.Sec 38.

4.Sec. 80c.


Question:
 Professional tax paid by salaried assessees is allowed as a deduction

1.u/s 16 ia

2. u/s 16ii

3.u/s 16 iii

4.u/s 17 b


Question:
 Rebate u/s 87A is allowed to individuals upto _________.

1. Rs. 2,500

2. Rs. 3,500

3. Rs. 4,000

4. Rs. 5,000


Question:
 Receipt of amount on maturity of LIC Policy is.

1.A revenue receipt.

2.A capital receipt.

3.A casual receipt

4.None of the these


Question:
 Salary received by a member of parliament is.

1.Taxable as salary income

2.Exempt from tax sources

3.Taxable as income from other sources

4.capital gain


Question:
 The rent fixed under the rent control act is ________

1.MRV

2.FRV

3.standard rent

4.RRV


Question:
 Unabsorbed depreciation can be carried forward for set off.

1.for a period of four years only.

2.for a period of eight years only

3.for an unlimited number of years.

4.for a period of eighteen years only.


Question:
Advance tax should be paid during a financial year if such advance tax payable by the assessee exceeds.

1.Rs.50,000.

2.Rs. 1,000.

3.Rs.20,000.

4.Rs. 1,00,000.


Question:
An employee is deemed as a specified employee if he is a director in the company or has substantial in the company or his chargeable salary per annum exceeds.

1.Rs. 5,00,000.

2. Rs. 2,00,000

3. Rs. 1,00,000.

4.Rs. 50,000.


Question:
Annual value is dealt in section ______.

1.23

2.25

3.24

4.26


Question:
Contribution of provident fund by employer is exempted upto ____ of Salary.

1.. 9.5%

2.10%

3.12%

4. 50%


Question:
Contribution of provident fund by employer is exempted upto ____ of Salary.

1.. 9.5%

2.10%

3.12%

4. 50%


Question:
Dearness allowance is taxable in the hands of.

1. Govt employees

2.Non-Govt employees

3.All employees.

4.None of the these


Question:
Dearness allowance is taxable in the hands of.

1. Govt employees

2.Non-Govt employees

3.All employees.

4.None of the these


Question:
Deduction under 80G is allowed to _______.

1.Individuals only

2.HUF only

3.Company only

4.All assessee


Question:
Deductions out of gross salary under section 16 is/are _______.

1.Standard deduction

2.professional tax

3.both of the above

4.None of the above


Question:
Dividends from co-operative society are.

1. Exempted.

2. Taxable

3.Partially Exempted.

4.Partially Taxable.


Question:
Employers contribution to RPF is exempted upto.

1.10% of salary.

2.13% of salary

3.12% of salary

4. 11% of salary.


Question:
Entertainment allowance is fully taxable allowance to _________.

1. private employees

2.Govt. employees

3. foreign employee

4.None of the above.


Question:
Exempted incomes are defined under section

1.15 of income tax Act.

2.18 of income tax Act

3.10 of income tax Act

4.20 of income tax Act.


Question:
Exempted limit of HRA in non-metropolitan cities is.

1. A. 40% of salary.

2.50% of salary

3.10% of salary.

4.7.5% of salary.


Question:
Expansion of PAN

1.Permanent Account Number

2. Person Account Number

3.Permanent Audit number

4. Permanent Assessee Number


Question:
For all non-corporate assessees whose accounts are subject to audit and working partners of a firm whose
accounts are subject to audit must file the return by

1.30th Sep. of AY

2.30th July of AY

3. 31st Oct. of AY

4. 30th Nov. of AY


Question:
For tax deducted at source, employer issues to employee.

1. Form 20.

2.Saral

3.Form 16

4.Form 31A.


Question:
HRA paid to an employee who is residing in his own house is

1. Fully exempted.

2.Partly taxable.

3.Fully taxable.

4.None of the above


Question:
Integration of agricultural income with non agricultural income is not done for

1. Individuals

2.HUF

3.AOP

4.firm


Question:
Interest accumulated to PF a/c is exempted upto _________.

1.9.5%

2.10%

3. 12%

4.15%


Question:
Leave encashment received during service by a govt or non-govt employee is.

1. Fully exempted.

2.Partially exempted

3.Fully taxable

4.employer has to pay tax on it.


Question:
Long term capital gain on sale of listed shares are.

1.Exempted.

2.Taxable

3.Partially Exempted.

4.Partially Taxable.


Question:
Lump-sum gratuity received by govt. employee is

1.fully exempted

2. fully taxable

3.partially taxable

4.none


Question:
Maximum limit of amount which can be claimed as deductions under section 80C is ______.

1. Rs. 50,000

2.Rs.1,00,000

3.Rs. 2,00,000

4.. Rs. 1,50,000


Question:
Medical allowance received by an employee is

1.Fully taxable.

2.Partially taxable

3.Fully exempted

4.exempted upto the actual amount of expenditure


Question:
Monthly pension received by govt. employee is

1.fully taxable

2.fully exempted

3.partially taxable

4.None


Question:
Perquisites to employees are covered in the I.T. Act 1961 under.

1. Sec 2a.

2.Sec. 17b

3. Sec 28a.

4. Sec. 36 c.


Question:
Rate of depreciation on furniture is.

1.. 5%.

2.15%.

3.10%

4. 20%.


Question:
Rate of tax for long term capital gain

1.10%

2.20%

3. 30%

4.35%


Question:
Remuneration received by embassy or high commission employees of a foreign state is fully exempt from tax under.

1.Section 9a.

2.Sec 14(e)

3.Sec 10 b. (ii) to (vi)

4.Sec 20 (s).


Question:
Rent from a building let out for business purpose is __________ income

1. house property

2. business

3.capital gain

4.other source


Question:
Scholarship granted is.

1. Fully exempted.

2.Fully taxable

3.Partly exempted.

4. None of these.


Question:
Scholarship granted is.

1. Fully exempted.

2.Fully taxable

3.Partly exempted.

4. None of these.


Question:
Scholarship granted is.

1. Fully exempted.

2.Fully taxable

3.Partly exempted.

4. None of these.


Question:
Share of income from firm is.

1. Taxable in the hands of partner

2.Exempted in the hands of partner.

3.Exempted in the hands of firm.

4.None of the these


Question:
Tax benefit for senior citizen is available to an assess who has attained the age of

1.. 65 yrs

2.60 yrs

3.80 yrs

4.75 yrs


Question:
Tax Holiday is.

1. Income tax on holiday income.

2.Tax exemption for a specified period

3.Cancellation of tax for the entire country.

4.None of the above


Question:
Taxable as income from other sources

1. Payment by the employer in kind.

2.Salary from the former employer.

3.Salary received by UNO employees

4.Leave salary.


Question:
Taxable as income from other sources

1. Payment by the employer in kind.

2.Salary from the former employer.

3.Salary received by UNO employees

4.Leave salary.


Question:
The statutory limit of exemption of leave encashment is.

1.Rs. 3,50.000.

2. Rs. 3,00,000

3. Rs. 5,00,000

4.2,50,000.


Question:
The value of Interest-free concessional loans to employees is determined on the basis of lending rates for the same purpose

1.S.B.I.

2. R.B.I.

3.Central govt.

4.State govt.


Question:
Under the income- tax act, the incidence of taxation depends on

1.The citizenship of the tax-payer.

2.The age of the taxpayer

3.The residential status of the tax-payer.

4.The gender of the taxpayer


Question:
University teacher is

1. Govt. employee

2.Semi Govt. employee

3.Private employee

4.undecided employee


Question:
Value of the car, when car is provided to an employee for official purpose and expenditure is incurred by
employer is

1.. Nil

2.Rs 1,800 p.m

3.Rs. 1,200 p.m

4. Rs. 2,000 p.m


Question:
Water bill issued in the name of employee but paid by employer is

1.taxable for all employees

2.exempted for all employees

3.partially taxable for all employees

4. taxable for specified employees only


Question:
What is the exempted limit while calculating salary under section 16 ia?

1. Rs. 40,000

2.Rs. 25,000

3. Rs. 30,000

4. Rs. 1,00,000


Question:
What is the maximum rate of tax for an individual assessee?

1.. 5%

2.10%

3. 20%

4.. 30%


Question:
What is the notified limit for calculation of exemption of gratuity?

1.. Rs. 20,00,000

2.Rs. 10,00,000

3.Rs. 5,00,000

4.Rs. 30,00,000


Question:
When parents income is clubbed with minor childs income parent is eligible for exemption of the.

1.Actual income of minor or Rs. 20,000 which ever is less

2.Actual income of minor or Rs. 10,000 whichever is less.

3.Actual income of minor or Rs. 5,000 which ever is less

4.Actual income of minor or Rs. 1,500 whichever is less.


Question:
Which of the following gifts are taxable?

1.Gift in kind from relatives.

2.Gift from wife

3.Gift from son

4.Gift from employer


Question:
Which of the following is taxable in the hands of specified employee only?

1. Rent free house

2.club facility

3.credit card facility

4.car or other conveyance facility


Question:
Which one of the following is not eligible for deduction u/s 80C?

1.Employee contributions to SPF

2. Employee contributions to URPF

3.Employee contributions to PPF

4.Employee contributions to RPF


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