It - Objective

MULTIPLE CHOICE QUESTIONS ON
INCOME TAX FOR RECAPITULATION

1) The Income-tax Act extends to:
(A) whole of India
(B) whole of India except Jammu and Kashmir
(C) whole of India except Sikkim
(D) whole of India except Jammu & Kashmir and Sikkim.
(A)
2) Finance Bill becomes the Finance Act when it is passed by:
(A) the Lok Sabha
(B) both Lok Sabha and Rajya Sabha
(C) both Houses of Parliament and given assent to by the President
(D) both Houses of Parliament and given assent to by the Prime Minister/
Finance Minister
(C)
3) Part-I of Schedule I of the Finance Act, 2006 has given the rates of
Incometax for the assessment year:
(A) 2006-07
(B) 2007-08
(C) 2008-09
(A)
4) Part-II of Schedule I of the Finance Act, 2006 has given the rates of tax
deductible at source for the financial year:
(A) 2005-06
(B) 2006-07
(C) 2007-08
(B)
5) Part-III of Schedule I of the Finance Act, 2006 has given the rates of advance
tax and tax to be deducted in case of salary for the assessment year:
(A) 2006-07
(B) 2007-08
(C) 2008-09
(B)
6) The circulars issued by CBDT are binding on:
(A) Assessee
(B) Income-tax authorities
(C) Both the above
(B)
7) AOP should consist of:
(A) individuals only
(B) persons other than individuals only
(C) both the above
(C)
8) Body of individuals should consist of:
(A) individuals only
(B) persons other than individuals only
(C) both the above
(A)
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9) A new business was set up on 15.10.2006 and it commenced its business from
1.12.2006. The first previous year in this case shall be:
(A) 15.10.2006 to 31.03.2007
(B) 01.12.2006 to 31.03.2007
(C) 2006-07
(A)
10) A person leaves India permanently on 15.11.2006. The assessment year for
income earned till 15.11.2006 in this case shall be:
(A) 2005-06
(B) 2006-07
(C) 2007-08
(B)
11) There is a a surcharge on income-tax if the total income of the assessment year
2007-08 of an individual or HUF exceeds:
(A) Rs.1,00,000
(B) Rs.10,00,000
(C) Rs.8,50,000
(B)
12) Surcharge in case of an individual or HUF for assessment year 2007-08 is
payable at the rate of:
(A) 2.5 % of the income-tax payable provided the total income exceeds
Rs.10,00,000
(B) 10 % of the income-tax payable provided the total income exceeds
Rs.10,00,000
(C) 5 % of the income-tax payable if the total income exceeds
Rs.10,00,000
(B)
13) Surcharge in case of a firm for assessment year 2007-08 is payable at the rate:
(A) 10 % of income-tax payable
(B) 10 % of income-tax payable provided the income exceeds Rs.60,000
(C) 2.5 % of income-tax payable
(A)
14) Surcharge on income-tax is payable by:
(A) All assessees except a foreign company
(B) Individual and HUF only
(C) A Domestic Company
(D) All assessees except local authority or co-operative society
(E) All assessees
(D)
15) The maximum amount on which income-tax is not chargeable in case of HUF
for assessment year 2007-08 is:
(A) Rs.50,000
(B) Rs.1,00,000
(C) Rs.1,35,000
(B)
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16) The maximum amount on which income-tax is not chargeable for the
assessment year 2007-08 of an individual other than a woman or an individual
less than 65 years old is:
(A) Rs.50,000
(B) Rs.1,00,000
(C) Rs.1,35,000
(D) Rs.1,50,000
(B)
assessment year 2007-08 in case of a woman who is less than 65 years old is:
(A) Rs.1,00,000
(B) Rs.1,35,000
(C) Rs.1,85,000
(D) Rs.1,50,000
(B)
assessment year 2007-08 in case of an individual who is resident in India and
65 years old is:
(A) Rs.1,00,000
(B) Rs.1,35,000
(C) Rs.1,85,000
(D) Rs.2,50,000
(C)
19) The maximum amount on which income-tax is not chargeable in case of a firm
is:
(A) Rs.50,000
(B) Rs.30,000
(C) Rs.60,000
(D) NIL
(D)
20) The maximum amount on which income-tax is not chargeable in case of a
co-operative society is:
(A) Rs.50,000
(B) Rs.30,000
(C) Rs.NIL
(C)
21) Education cess is leviable on:
(A) Income-tax
(B) Income-tax + surcharge
(C) Surcharge
(B)
22) Education cess is leviable @:
(A) 2 %
(B) 5 %
(C) 2.5 %
(A)
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-423) Education cess is leviable in case of:

(A) an individual assessee only
(B) an individual and HUF
(C) a company assessee only
(D) all assessees
(E) all assessees except co-operative society or local authority
24)
25)
26)
27)
28)
29)
30)
(D)
In case of an individual and HUF education cess is leviable only when the
total income of such assessee:
(A) Exceeds Rs.10,00.000
(B) Whether it is less than or exceeds Rs.10,00,000
(B)
For the assessment year 2007-08, a firm is subject to income-tax at a flat rate
of:
(A) 35 % + education cess @ 2 %
(B) 35 % + 10 % surcharge + education cess @ 2 %
(C) 30 % + 10 % surcharge + education cess @ 2 %
(D) 30 % + 2.5 % surcharge + education cess @ 2 %
(C)
The total income of the assessee has been computed at Rs.1,53,494.90. For
rounding off, the total income will be taken as:
(A) Rs.1,53,500
(B) Rs.1,53,490
(C) Rs.1,53,495
(B)
The total income of the assessee has been computed as Rs.1,53,499. For
rounding of the total income will be taken as:
(A) Rs.1,53,500
(B) Rs.1,53,490
(C) Rs.1,53,495
(A)
Income-tax is rounded off to:
(A) nearest ten rupees
(B) nearest one rupee
(C) no rounding off of tax is done
(A)
A is 60 years old. His total income for the assessment year 2007-08 is
Rs.1,50,000. His tax liability shall be:
(A) Rs.5,100
(B) Rs.5,000
(C) Rs.5,500
(D) Rs.5,610
(A)
A is 66 years old. His total income for the assessment year 2007-08 is
Rs.2,50,000. His tax liability shall be:
(A) Rs.25,500
(B) Rs.21,930
(C) Rs.13,260
(D) Rs.14,586
(C)
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31) Mrs. A is 60 years old. Her total income for the assessment year 2007-08 is
Rs.2,00,000. Her tax liability shall be:
(A) Rs.15,300
(B) Rs.11,730
(C) Rs.3,060
(D) Rs.13,093
(B)
32) Mrs. A is 65 years old. Her total income for the assessment year 2007-08 is
Rs.3,00,000. Her tax liability shall be:
(A) Rs.40,800
(B) Rs.37,320
(C) Rs.28,560
(C)
33) As total income for the assessment year 2007-08 is Rs.10,30,000. His tax
liability shall be:
(A) Rs.2,84,900
(B) Rs.2,80,000
(C) Rs.2,85,600
(D) Rs.2,90,600
(D)
34) Residential status is to be determined for:
(A) previous year
(B) assessment year
(C) accounting year
(A)
35) Incomes which accrue or arise outside India but are received directly into
India are taxable in case of:
(A) resident only
(B) both ordinarily resident and not ordinarily resident
(C) non-resident
(D) all the assessees
(D)
36) Income deemed to accrue or arise in India is taxable in case of:
(A) resident only
(B) both ordinarily resident and not ordinarily resident
(C) non-resident
(D) all the assessees
(D)
37) Income which accrue or arise outside India from a business controlled from
India is taxable in case of:
(A) resident only
(B) non-resident only
(C) both ordinarily resident and not ordinarily resident
(D) non-resident
(E) all the assessees
(C)
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-638) Income which accrue or arise outside India and also received outside India is
taxable in case of:
(A) resident only
(B) non-resident only
(C) both ordinarily and not ordinarily resident
(D) none of the above
(A)
39) Total income of a person is determined on the basis of his:
(A) residential status in India
(B) citizenship in India
(C) none of the above
(d) both of the above
(A)
th
40) R was born on 5 April, 1995 in India & he later on took the citizenship of
U.S.A. Neither his parents nor his grand parents were born in divided/
undivided India. R in this case shall be:
(A) citizen of India
(B) person of Indian origin
(C) a foreign national
(C)
41) R was born in England. His parents were born in India in 1951. His grand
parents were born in South Africa. R shall be:
(A) a person of Indian origin
(B) a foreign national
(C) none of these
(B)
42) R was born in India in 1995. His father was born in India in 1949 and his
mother was born in England. His grand father was born in England & his
grand mother was born in South Africa. The parents of R along with R
took the citizenship of England. R is:
(A) citizen of India
(C) none of these
(C)
43) R was born in India in 1995. His parents were born in India in 1951. His
grand father was born in Lahore in 1936 but his grand mother was born in
England in 1940. R will be:
(A) a citizen of India
(B) a person of Indian origin
(C) none of these
(A)
44) R was born in India in 1995. His parents were born in India in 1951. The
parents of R along with R have taken the citizenship of England. His grand
father was born in Lahore in 1936 but his grand mother was born in England
in 1940. R will be:
(A) a citizen of Indian
(C) none of these
(B)
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45) R, a person of Indian origin visited India on 2.10.2006 and plans to stay here
for 185 days. During 4 years prior to previous year 2006-07, he was in India
for 750 days. Earlier to that he was never in India. For assessment year
2007-08, R shall be:
(A) resident and ordinarily resident in India
(B) resident but not ordinarily resident in India
(C) non-resident
(C)
46) R, a citizen of India left India for U.S. on 16.08.2006 for booking orders on
behalf of an Indian Company for exporting goods to U.S. He came back to
India on 5.5.2007. He had been resident in India for the past 10 years. For
assessment year 2007-08, R shall be:
(C) non-resident in India
(A)
47) R, a citizen of India is employed on an Indian Ship. During the previous
year 2006-07 he leaves India for Germany on 15.09.2006 for holidays and
returned on 1.4.2007. He had been non-resident for the past 3 years. Earlier
to that he was permanently in India. For assessment year 2007-08, R shall be:
(C) non-resident in India
(A)
48) R Ltd., is an Indian Company the entire control and management of its
affairs is situated outside India. R Ltd., shall be:
(A) resident in India
(B) non-resident in India
(C) not ordinarily resident in India
(A)
49) R Ltd., is registered in U.K. The control and management of its affairs is
wholly situated in India. R Ltd., shall be:
(A)
50) R, a foreign national visited India during the previous year 2006-07 for 180
days. Earlier to this he never visited India. R in this case shall be:
(B)
51) R, a foreign national but a person of Indian origin visited India during the
previous year 2006-0 for 182 days. During 4 preceding previous years he was
in India for 400 days, R shall be:
(B)
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52) Dividend paid by an Indian Company outside India is:
(A) taxable in India in the hands of the recipient
(B) exempt in the hands of the recipient
(C) taxable in the hands of the company and exempt in the hands of the
recipient
(C)
53) Any receipt by a member of HUF from the HUF shall be:
(A) Fully taxable
(B) Fully exempt
(C) Included in the total income of the member for rate purpose
(B)
54) In the case of a partner, the share of the profits from the firm shall be:
(A) fully taxable
(B) fully exempt
(C) included in the total income of the partner and relief of income-tax
u/s 86 shall be allowed
(B)
55) Casual income received by the assessee is:
(A) fully exempt
(B) exempt up to Rs.5,000
(C) fully taxable
(C)
56) A cricket match organised by the Cricket Control Board of India for the
benefit of Sunil Gavaskar where he received Rs.5 lakh is:
(A) Casual income
(B) Exempt income
(C) Fully taxable
(B)
57) R traced a missing person and was awarded a sum of Rs.1,00,000 although
there was no stipulation to that effect. Such receipt shall be:
(A) casual income and fully taxable
(B) casual income and exempt up to Rs.5,000
(C) fully exempt
(A)
58) An award of Rs.1,00,000 was announced for tracing a missing person. R
traced the person and received the award amount. Such receipt shall be:
(A) casual income
(B) fully exempt
(C) fully taxable
(C)
59) Scholarship received by a student to meet the cost of education is:
(A) casual income
(B) fully taxable
(C) fully exempt
(C)
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60) Scholarship received by a student was Rs.1,000 p.m. He spends Rs.8,000 for
meeting the cost of education. The balance Rs.4,000 is:
(A) taxable
(B) a casual income
(C) exempt
(C)
61) An author was awarded by Central Board of Direct Taxes a sum of Rs.50,000
for writing a book in Hindi as first prize. Such award is:
(A) casual income
(B) fully exempt
(C) fully taxable
(B)
62) A local authority has earned income from the supply of water or electricity
outside its own jurisdictional area. Such income is:
(A) exempt
(B) taxable
(C) casual income
(A)
63) A local authority has earned income from the supply of commodities outside
its own jurisdictional area. Such income is:
(A) exempt
(B) taxable
(A)
64) An income under the head capital gain to a local authority is:
(A) exempt
(B) taxable
(A)
65) An income under the head capital gain to a trade union is:
(A) exempt
(B) taxable
(B)
66) A subsidy received from the Tea Board by an assessee carrying on business of
growing and manufacturing tea for re-plantation or replacement of tea bushes
is:
(A) taxable
(B) exempt
(B)
67) The daily allowance received by a Member of Parliament is:
(A) exempt
(B) taxable
(C) included in total income for rate purposes
(A)
68) The daily allowance received by an MLA is:
(A) exempt
(B) taxable
(C) included in total income for rate purposes
(D) Exempt up to Rs.2,000
(A)
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69) The constituency allowance received is:
(A) fully exempt in the hands of MLAs only
(B) fully exempt in the hands of both MLAs and MLCs
(C) exempt up to Rs.2,000 p.m. in the hands of MLAs and MLCs
(B)
70) Dividend received by a company from a domestic company is:
(A) exempt
(B) taxable
(A)
71) Dividend received by a foreign company from a domestic company is:
(A) exempt
(B) taxable
(B)
72) Subsidy received by the assessee from Rubber Board for re-plantation or
replacement of rubber plant is:
(A) exempt
(B) taxable
(A)
73) Income arising from the transfer of units of the Unit Trust of India or of
mutual fund covered under section 10(23D) shall:
(A) be exempt
(B) not be exempt
(B)
74) Any sum received under a Life Insurance Policy including bonus shall be
exempt:
(A) in all kinds of policies
(B) in all kinds of policies except when received under a Keyman
Insurance Policy
(C) in all kinds of policies except when received under Keyman Insurance
Policy or under a policy covered under section 80DDA(3)
(D) in all kinds of policies except when received under Keyman Insurance
Policy or such policy as is covered under section 80DD(3) or policy
issued on or after 1.4.2003, if the premium paid for any year exceeds
20 % of actual sum assured, except on death
(D)
75) Any pension received by an individual or family pension received by an
individual or family pension received by any member of his family where such
individual is in the service of Central or State Government and was awarded
Paramvir Chakra, Mahavir Chakra or Vir Chakra or any other notified
gallantry award shall be:
(A) exempt
(B) taxable
(A)
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76) Venture capital company or venture capital fund are given exemption from
income-tax for:
(A) any income by way of dividend or long-term capital gain from
investments made by way of equity shares in a venture capital
undertaking
(B) any income from investment in a venture capital undertaking
(C) any income wherever invested
(B)
77) Where a venture capital company or venture capital funds makes any
investment in a venture capital undertaking then its:
(A) any income from investment in venture capital undertaking shall be
exempt
(B) dividend income shall be exempt
(C) interest income from such investment shall be exempt
(A)
78) Where the income of an individual includes the income of minor children,
such individual shall be entitled to an exemption of:
(A) Rs.1,500
(B) Rs.1,500 per minor child
(C) Rs.1,500 per minor child to the extent of income of the minor child
included in the total income of the assessee whichever is less
(C)
79) Income of newly Established undertaking in a Free Trade Zone is:
(A) exempt
(B) exempt for 5 years in a block of eight assessment years
(C) exempt for 10 years but not beyond assessment year 2009-10
(C)
80) Income from units of UTI or Mutual Fund covered under section 10(23D)
shall be:
(A) exempt
(B) taxable
(A)
81) Family pension received by the legal heir of army personnel who died
during operational duties shall be:
(A) fully exempt
(B) taxable
(A)
82) Capital gain arising from compulsory acquisition of urban agricultural land
shall be:
(A) taxable
(B) exempt
(C) exempt if certain conditions are satisfied
(C)
83) Any capital gain whether short-term or long-term shall be exempt if:
(A) it is from the transfer of urban agricultural land
(B) it is from the compulsory acquisition by law or urban agricultural land
(B)
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84)
85)
86)
87)
88)
89)
90)
- 12 Income from long-term capital gain from transfer of equity shares shall be
exempt if:
(A) such shares are sold through National Stock Exchange
(B) such shares are sold through any Recognised Stock Exchange in India
(C) such shares are sold through any Recognised Stock Exchange in India
and such transaction is subject to Securities Transactions Tax
(C)
In case of an individual, any income by way of interest on any money standing
to his credit in a Non-Resident (External) Account in any bank in India shall
be
(A) exempt
(B) fully taxable
(C) exempt up to Rs.13,000
(A)
R, a chartered accountant is employed with R Ltd., as an internal auditor and
requests the employer to call the remuneration as internal audit fee. R shall
be chargeable to tax for such fee under the head:
(A) Income from salaries
(B) Profits and gains from Business or Profession
(C) Income from other sources
(A)
R Ltd., pays a salary of Rs.1,50,000 to his employee G and undertakes to pay
the Income Tax amounting to Rs.5,100 during the previous year 2006-07 on
behalf of G. The gross salary of G shall be:
(A) Rs.1,50,000
(B) Rs.1,55,100
(C) Rs.1,55,600
(B)
R was employed on 1.4.2000 in the grade of Rs.15,000-400-17,000500-22,000. His gross salary for the assessment year 2007-08 shall be:
(A) Rs.1,99,200
(B) Rs.2,04,000
(C) Rs.2,10,000
(D) Rs.2,16,000
(C)
R was employed from 1.8.2004 in the grade of Rs.15,000-400-17,000500-22,000 and his salary was fixed at Rs.16,600 from the date of joining. His
gross salary for the assessment year 2007-08 shall be:
(A) Rs.1,99,200
(B) Rs.2,04,000
(C) Rs.2,08,000
(D) Rs.2,10,000
(C)
R, who is entitled to a Salary of Rs.10,000 p.m., took an advance of
Rs.20,000 against the salary in the month of March 2007. The gross salary of
R for the assessment year 2007-08 shall be:
(A) Rs.1,40,000
(B) Rs.1,20,000
(C) None of these two
(B)
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91)
92)
93)
94)
95)
96)
97)
- 13 R, who is entitled to Salary of Rs.10,000 p.m., took advance salary from his
employer for the months of April and May 2007 along with salary for March
2007 on 31.03.2007. The gross salary of R for assessment year 2007-08
shall be:
(A) Rs.1,20,000
(B) Rs.1,40,000
(B)
R is employed with G Ltd., at a salary of Rs.10,000 p.m. As G Ltd., was in
financial crisis, it paid the salary of January 2007 to March 2007 to R only in
July 2007. The gross salary of R for the assessment year 2007-08 shall be:
(A) Rs.1,20,000
(B) Rs.90,000
(A)
Salary of R is Rs.10,000 p.m. R had taken Salary in advance for the
months of April 2006 to June 2006 in March 2006 itself. The gross salary of
R for the assessment year 2007-08 shall be:
(A) Rs.1,20,000
(B) Rs.90,000
(B)
st
th
Salary of R becomes due on 1 of next month and it is paid on 7 of that
month. For assessment year 2007-08, the salary of R shall be taken from:
(A) April 2006 to March 2007
(B) March 2006 to February 2007
(C) None of these
(B)
R who was working with another company joined the present employer
w.e.f. 1.5.2006 at a Salary of Rs.10,000 p.m. His salary becomes due on first
of next month. He was also entitled to a pension of Rs.4,000 p.m. from his
former employer. His gross salary for the assessment year 2007-08 shall be:
(A) Rs.1,10,000
(B) Rs.1,58,000
(C) Rs.1,48,000
(C)
The Government of India announced increase in the D.A. on 15.03.2006 with
retrospective effect from 1.5.2002 and the same were paid on6.4.2006. The
arrears of D.A. shall be taxable in the previous year:
(A) 2005-06
(B) 2006-07
(C) in respective previous years to which these relate
(B)
Gratuity shall be fully exempt in the case of:
(A) Central and State Government employee
(B) Central and State Government employees and employees of local
authorities
(C) Central and State Government employees and employees of local
authorities and employees of statutory corporation
(B)
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- 14 98) An employee is covered under Payment of Gratuity Act, 1972

(i) Salary for the purpose of calculating 15 days salary for each completed
year of service shall be:
(A) last drawn Salary
(B) average Salary of last 10 months
(C) average Salary of last 3 completed years
(A)
(ii) Salary for the above purpose shall:
(A) include dearness allowance
(B) not include dearness allowance
(C) include dearness allowance to the extent the terms of employment
provide
(A)
(iii) If the employee has completed service of 16 years 6 months and 5 days,
the number of completed years shall be taken as:
(A) 16 years
(B) 17 years
(C) 16 years 6 months and 5 days
(B)
(iv) If he has completed exactly 16 years and 6 months, the completed year
shall be:
(A) 16 years
(B) 17 years
(C) 16 years and 6 months
(A)
(v) For the purpose of computing 15 days salary, the number of days in a
month shall be taken as:
(A) 30 days
(B) 26 days
(C) 31 days
(B)
(vi) The maximum exemption of gratuity shall be:
(A) Rs.2,40,000
(B) Rs.2,50,000
(C) Rs.3,50,000
(D) Twenty months Salary
(C)
99) An employee is neither a Government employee nor covered under Payment
of Gratuity Act, 1972.
(i) Salary for the purpose of calculating half month shall be taken as:
(A) last drawn salary
(B) average salary of 10 months preceding the month of retirement
(C) average salary of each completed year
(B)
(ii) Salary for the above purpose shall:
(A) include dearness allowance
(B) not include dearness allowance
(C) include dearness allowance to the extent the terms of employment so
provide
(C)
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- 15 (iii) If the employee has completed 16 years and 8 months of service, the
number of completed years shall be taken as:
(A) 17 years
(B) 16 years
(C) 16 years and 8 months
(B)
(iv) The maximum exemption of gratuity shall be:
(A) Rs.2,40,000
(B) Rs.2,50,000
(C) Rs.3,50,000
(D) 20 months salary
(C)
100) R who claimed the exemption of gratuity in the post to the extent of
Rs.2,50,000, was entitled to the gratuity from the present/second employer
amounting to Rs.2,00,000 in the previous year 2006-07. R shall be entitled
to exemption to the maximum extent of:
(A) Rs.2,00,000
(B) NIL
(C) Rs.1,00,000
(C)
101) R worked with a previous employer for 3 years but was not entitled to any
gratuity. He worked with the present employer for 8 years and 7 months.
The completed years of service for calculating exemption of gratuity shall be
taken as:
(A) 11 years
(B) 8 years
(C) 9 years
(D) 12 years
(A)
102) For the purpose of calculating exemption of gratuity, salary shall include:
(A) fixed commission
(B) commission if it is a fixed percentage on turnover
(C) none of these two
(B)
103) Pension received by a Government employee is:
(A) exempt
(B) taxable
(C) partially taxable
(B)
104) Commuted pension received shall be fully exempt in case of:
(A) Government employee
(B) Government employee or an employee of local authority
(C) Government employee or an employee of local authority or an
employee of statutory corporation
(C)
265386912.doc
- 16 105) (i) An employee was also entitled to gratuity. He got 60 % of his pension
commuted and received a sum of Rs.1,20,000 as commuted pension. The
exemption in his case shall be:
(A) Rs.1,20,000
(B) Rs.40,000
(C) Rs.66,667
(D) 80,000
(C)
(ii) What shall be the exemption if he was not entitled to gratuity in the above
case?
(A) Rs.1,20,000
(B) Rs.40,000
(C) Rs.66,667
(D) Rs.1,00,000
(D)
106) An employee who was not entitled to gratuity, got 30 % of his total pension
commuted in the past. He wishes to commute another 25 % of his total
pension in the previous year. He shall be allowed exemption to the extent of:
(A) NIL
(B) 20 %
(C) 25 %
(B)
107) Encashment of leave salary at the time of retirement is fully exempt in the
case of:
(A) Central Government Employee
(B) State Government Employee
(C) Both Central and State Government Employees
(D) Government employee and employees of local authority
(C)
108) Salary for exemption of leave encashment shall be taken as:
(A) last drawn salary
(B) average salary of 10 months immediately preceding the month of
retirement
(C) average salary of 10 months immediately preceding the date of
retirement
(C)
109) The maximum exemption in case of leave encashment shall be:
(A) Rs.2,40,000
(B) Rs.3,50,000
(C) Rs.3,00,000
(C)
110) An employee availed the exemption of leave encashment of Rs.1,00,000 in the
past. He received from the second employer a sum of Rs.2,50,000 as
encashment of leave. He will be entitled to exemption to the extent of:
(A) NIL
(B) Rs.2,50,000
(C) Rs.2,00,000
(D) Rs.1,40,000
(C)
265386912.doc
- 17 111) Compensation received on voluntary retirement is exempt under section

10(10C) to the maximum extent of:
(A) Rs.2,40,000
(B) Rs.3,50,000
(C) Rs.5,00,000
(C)
112) (i) If rent is paid for a house situated in Delhi, the house rent allowance shall
be exempt to the maximum extent of:
(A) 40 % of salary
(B) 50 % of salary
(C) 60 % of salary
(B)
(ii) What shall be the exemption if the rent is paid for a house in Ghaziabad.
(A) 40 % of salary
(B) 50 % of salary
(C) 60 % of salary
(A)
113) A is entitled to children education allowance @ Rs.80 p.m. per child for 3
children amounting to Rs.240 p.m. It will be exempt to the extent of:
(A) Rs.200 p.m.
(B) Rs.160 p.m.
(C) Rs.240 p.m.
(B)
114) R is entitled to Hostel expenditure allowance of Rs.600 p.m. for his 3
children @ Rs.200 per child. The exemption in this case shall be:
(A) Rs.600 p.m.
(B) Rs.400 p.m.
(C) Rs.300 p.m.
(B)
115) R is entitled to a transport allowance of Rs.1,000 p.m. for commuting from
his residence to office and back. He spends Rs.600 p.m. The exemption shall
be:
(A) Rs.1,000 p.m.
(B) Rs.800 p.m.
(C) Rs.600 p.m.
(B)
116) R is entitled to Rs.6,000 as medical allowance. He spends Rs.4,000 on his
medical treatment and Rs.1,000 on the medical treatment of his major son not
dependent on him. The exemption in this case shall be:
(A) Rs.4,000
(B) Rs.5,000
(C) Rs.NIL
(C)
117) R is an employee of a Transport Company. He is entitled to transport
allowance of Rs.6,000 p.m. He spends Rs.4,000 every month. The
exemption shall be:
(A) Rs.6,000 p.m.
(B) Rs.4,000 p.m.
(C) Rs.4,200
(C)
265386912.doc
- 18 118) Entertainment allowance in case of Government employee is:

(A) fully exempt
(B) fully taxable
(C) exempt up to certain limits mentioned in section 16(ii)
(D) first included in full gross salary and thereafter deduction allowed from
gross salary under section 16(ii)
(D)
119) For claiming deduction of entertainment allowance Government employee
includes:
(A) Central and State Government employee
(B) State Government employee
(C) Central and State Government employees and employees of local
authority
(D) Central and State Government employees, employees of local authority
and employees of statutory corporation
(A)
120) During the previous year, the employee was reimbursed Rs.24,000 as medical
expenses incurred by him which includes Rs.7,000 spent in Government
hospital. The taxable perquisite in this case shall be:
(A) Rs.9,000
(B) Rs.NIL
(C) Rs.2,000
(D) Rs.24,000
(C)
121) Mrs. R, wife of R who is employed in G Ltd. went for bypass surgery in
England along with her husband. Expenses on medical treatment of wife and
stay outside India of wife and R amounted to Rs.7,00,000 as against
Rs.6,50,000 permitted by RBI. The travel expenses amounted to Rs.1,50,000.
All expenses were reimbursed by the employer. Assume the gross salary and
income from other sources of the employee are Rs.1,40,000 and Rs.40,000
respectively. The taxable perquisite in this case shall be:
(A) Rs.NIL
(B) Rs.50,000
(C) Rs.2,00,000
(D) Rs.1,50,000
(C)
122) Leave travel concession is a tax free perquisite:
(A) for one journey in a block of 4 years
(B) one journey per year
(C) two journeys in a block of 4 years
(C)
123) Salary of employee is Rs.2,00,000. Fair rent of the unfurnished house given
to employee is Rs.1,30,000. The valuation of the perquisite of the house
(i) In case of Government Employee shall be:
(A) Rs.20,000
(B) License fee determined by the Government
(C) Rs.50,000
(D) Rs.1,30,000
(B)
265386912.doc
- 19 (ii) In case of any other employee:

(A) Rs.40,000
(B) Rs.20,000
(C) Rs.1,30,000
(A)
124) The employee is provided with furniture costing Rs.1,50,000 along with house
w.e.f. 1.4.2006. The value of the furniture to be included in the valuation of
unfurnished house shall be:
(A) Rs.15,000
(B) Rs.12,500
(C) Rs.18,750
(D) Rs.22,500
(A)
125) Salary of an employee is Rs.2,00,000. Rent paid by the employer for the
unfurnished house provided to employee at Moradabad is Rs.3,000 p.m. The
employer charges Rs.2,000 p.m. as rent from the employee. The valuation of
this perquisite shall be:
(A) Rs.16,000
(B) Rs.12,000
(C) Rs.NIL
(B)
126) A car of 1500 CC is provided by the employer to the employee whose salary
is Rs.20,000 p.m. The car is used by him partly for official and partly for his
personal purposes. The expenses of running and maintenance for official
purpose are met by the employer and the expenses of running and maintenance
for private use is met by employee himself. The valuation of this perquisite
shall be:
(A) Rs.NIL
(B) Rs.1,200 p.m.
(C) Rs.400 p.m.
(A)
127) An employer has provided a motor car of 1.5 litre capacity to his employee
which the employee is allowed to use for official purpose and for travelling
from office to residence and back. The expenses of running and maintenance
of Motor Car are met by the employer. The value of this perquisite shall be:
(A) Rs.1,200 p.m.
(B) Rs.400 p.m.
(C) Rs.NIL
(D) Rs.1,600 p.m.
(C)
128) R is provided with a car of 1.6 litre capacity by the employer along with
driver. The expenses of running and maintenance of car are met by R
himself. Besides using the car for official purposes, R uses the car for his
personal purposes also. The valuation of the perquisite of car shall be:
(A) NIL
(B) Rs.12,000
(C) Rs.8,000
(D) Rs.10,400
(A)
265386912.doc
- 20
129) R an employee owns a car which he uses for his private as well as official
purposes. The expense of running and maintenance of the car is met by the
employer. The perquisite shall:
(A) be taxable in case of specified employee only
(B) be taxable in case of an employee other than specified employees
(C) be taxable in case of specified and non-specified employee
(D) not be taxable
(D)
130) R is an employee of Indian Oil Corporation Ltd. He is provided with free gas
for his personal purposes by the employer. The value of this perquisite shall
be:
(A) NIL
(B) 6 1/4 % of the salary
(C) Manufacturing cost per unit
(D) Market rate of gas
(C)
131) R owns a house in which he lives. His employer reimburses to him the
electricity bill amounting to Rs.5,000. It shall be a perquisite for:
(A) specified employees only
(B) employee other than specified employees
(C) both specified and other employees
(C)
132) An employer provides free facility of gas, electricity to his employee which he
uses partly for Official and partly for his personal purposes. The actual
amount spent by the employee is Rs.10,000 and the salary of the employer is
Rs.2,00,000. The valuation of this perquisite shall be:
(A) Rs.10,000
(B) Rs.6,250
(C) Proportionate amount for personal use
(C)
133) The employer provides free facility of watchman, Sweeper and Gardener to
his employees. It will be a perquisite for:
(A) specified employee only
(B) employees other than specified employees
(C) specified as well as other employees
(A)
134) The valuation of the perquisite in the above case shall be:
(A) actual wages paid to each servant
(B) Rs.120 p.m. per servant
(C) Rs.60 p.m.
(A)
135) R Ltd., provides the facility of cook to its employee for which it paid Rs.1,000
p.m. as salary to the cook. The valuation of this perquisite shall be:
(A) Rs.120 p.m.
(B) Rs.1,000 p.m.
(C) Rs.60 p.m.
(B)
265386912.doc
- 21 136) The Gardener, Sweeper and the Watchman are employed by the employee but
their salary of Rs.500 p.m. per person is paid by the employer. The valuation
of their perquisite shall be:
(A) Rs.4,320
(B) Rs.18,000
(C) Rs.1,960
(B)
137) R Ltd., own a house which has been provided to its employee along with the
Gardener. The Gardeners salary paid shall be:
(A) tax free perquisite
(B) taxable to the extent of Rs.120 p.m.
(C) fully taxable
(D) tax-free perquisite but will be added to the fair rental value
(C)
138) Employers contribution to statutory fund shall be:
(A) fully exempt
(B) exempt up to 12 % of salary
(C) exempt up to 10 % of salary
(A)
139) Interest credited to statutory provident fund shall be:
(A) fully exempt
(B) exempt up to 12 % p.a.
(C) fully taxable
(D) exempt up to 9.5 % p.a.
(A)
140) Employers contribution to recognized provident fund shall be:
(A) fully exempt
(B) fully taxable
(C)
141) Interest credited to recognized provident fund shall be:
(A) fully exempt
(B) fully taxable
(C) exempt up to 9.5 %
(D) exempt up to 12 %
(C)
142) Employers contribution to unrecognized provident fund shall be:
(A) fully taxable
(B) fully exempt
(D) neither exempt nor taxable in the year of contribution
(D)
143) Interest credited to unrecognized provident fund shall be:
(A) fully taxable
(B) fully exempt
(C) exempt up to 9.5 % of salary
(D) neither exempt nor taxable in the year of accrual
(D)
265386912.doc
- 22 144) Employees/assessees own contribution to statutory provident fund or

recognized provident fund or public provident fund shall be subject to:
(A) deduction under section 80C
(B) deduction under section 80CCC
(C) deduction under section 16 from gross salary
(D) rebate under section 88
(A)
145) Employees contribution to unrecognized fund shall be subject to:
(A) deduction u/s 80C
(B) deduction u/s 80CCC
(C) NIL deduction
(C)
146) Payment from statutory fund and public provident fund shall be:
(A) taxable
(B) fully exempt
(C) taxable to the extent of employers contribution and interest thereon
(B)
147) Payment from recognized provident fund after 5 years of service shall be:
(A) taxable
(B) fully exempt
(B)
148) Payment from recognized provident fund before 5 years shall be:
(A) fully taxable
(B) fully exempt
(C) shall be treated as if the fund was unrecognized right from the
beginning
(C)
149) Payment from unrecognized provident fund shall be:
(A) fully taxable
(B) fully exempt
(D) same as (C) and the interest on employers contribution shall be
taxable under the head income from other sources
(D)
150) The year in which unrecognized provident fund is recognized:
(A) the employers contribution till date and interest thereon shall be
taxable
(B) the employers contribution till date shall be taxable
(C) it will be assumed as if the provident fund was recognized right from
the beginning and excess amount of employers contribution and
interest thereon shall be chargeable to tax
(C)
151) R is entitled to a watchman allowance of Rs.600 p.m. for the security of his
residence. He pays Rs.500 p.m. to the watchman employed by him. The
taxable allowance shall be:
(A) Rs.120 p.m.
(B) Rs.100 p.m.
(C) Rs.600 p.m.
(B)
265386912.doc
- 23
152)(i) R is provided with a rent free accommodation owned by his employer in
Delhi. The value of this perquisite shall be:
(A) 20 % of salary
(B) 15 % of salary
(C) 20 % of salary plus excess of FRV over 50 % of salary
(D) 20 % of salary plus excess of FRV over 60 % of salary
(E) 10 % of salary
(A)
(ii) What will be your answer if the accommodation is provided in a city
having a population of 3,00,000 as per 1991 census?
(B)
153)(i) R is provided with a rent free accommodation in Delhi which has been
taken on rent by the employer. The value of this perquisite shall be:
(A) 20 % of salary
(B) 20 % of salary or rent paid or payable whichever is less
(C) 15 % of salary
(D) 15 % of salary or rent paid or payable whichever is less
(B)
(ii) What shall be your answer if the accommodation is provided in a city having
population of 3,00,000 as per 1991 census?
(A) 20 % of salary
(B) 20 % of salary or rent paid or payable whichever is lower
(C) 15 % of salary
(D) 15 % of salary or rent paid or payable whichever is less
(B)
154)(i) R is provided with interest free loan by the employer for purchase of a
house. The value of this perquisite shall be determined as the sum equal to:
(A) simple interest computed @ 10 % p.a.
(B) simple interest computed @ 13 % p.a.
(C) simple interest computed at the rate charged by SBI on the 1 st of the
relevant previous year on the maximum outstanding monthly balance
(D) simple interest computed at the rate charged by SBI on the last day of
the relevant previous year on the maximum outstanding monthly
balance
(E) NIL
(C)
(ii) What shall be your answer if the loan is given for purchase of a car?
(C)
(iii) What shall be your answer if the loan is given for marriage of Rs Son?
(C)
(iv) What shall be your answer if the loan is given for medical treatment of
disease specified in rule 3A?
(E)
(v) What shall be your answer if the amount of loan does not exceed
Rs.20,000 in aggregate?
(E)
265386912.doc
- 24 155)(i) Tea and snacks are provided to employees in the office during office hours.
The value of the perquisite shall be:
(A) NIL
(B) NIL, if it up to Rs.50 per meal
(C) Actual amount spent by the employer
(A)
(ii) What will be your answer if tea and snacks are provided in the office after
office hours?
(A)
(iii) What will be your answer if instead of tea and snacks, meal is provided in
the office or factory?
(A)
156)(i) The employer gives a gift (in kind) on the marriage of the Son of the
employee. Gift so made shall not be perquisite if the value of the gift is:
(A) Rs.6,000 or less
(B) Below Rs.5,000
(C) Rs.10,000 or less
(D) Below Rs.10,000
(E) Any amount
(E)
(ii) What will be your answer if the gift is made to the employee on the silver
jubilee of the company?
(E)
157)(i) The employer has a given a lap top computer for the personal use of the
employee. The value of the perquisite shall be:
(A) NIL
(B) 10 % p.a. of the cost of the asset
(C) 10 % p.a. of the W.D.V. of the asset
(A)
(ii) What will be your answer if this lap top is given for the personal use of the
son of the employee?
(A)
(iii) What will be your answer if instead of a computer a video camera is given
for the personal use of employer or any member of his house?
(C)
158)(i) The employer has purchased a car for Rs.3,00,000 which was being used for
official purposes. After 2 years and 6 months of its use, the car is sold to R,
the employee, for Rs.1,20,000. The value of this perquisite shall be:
(A) Rs.72,000
(B) Rs.60,000
(C) NIL
(D) Rs.1,23,000
(E) Rs.1,20,000
(A)
(ii) What will be your answer if instead of a car, the asset purchased is a
computer?
(C)
(iii) What will be your answer if the asset is neither a car nor any computer?
(E)
265386912.doc
- 25
159) R gifted his house property to his wife in 2001. Mrs. R has let out the house
property @ Rs.5,000 p.m. The income from such house property will be
taxable in the hands of:
(A) Mrs. R
(B) R. However, income will be computed first as Mrs. Rs income and
thereafter clubbed in the income of R.
(C) R, as he will be treated as deemed owner and liable to tax
(C)
160) R gifted the house property to his minor son which was let out @ Rs.5,000
p.m. Income from such house property shall be taxable in the hands of:
(A) Minor son
(B) R. However, it will be first computed as minors income and thereafter
clubbed in the income of R
(C) R, as he will be the deemed owner of such house property and liable to
tax
(C)
161) R transferred his house property to his wife under an agreement to live apart.
Income from such house property shall be taxable in the hands of:
(A) R as deemed owner
(B) R. However, it will be computed first as Mrs. Rs income and
thereafter clubbed in the hands of R
(C) Mrs. R
(C)
162)(i) R has taken a house property on lease for 15 years from G and let out the
same to S. Income from such house to R shall be taxable as:
(A) income under the head other sources
(B) income from house property as R is deemed owner
(B)
(ii) What shall be the answer if R had taken it on lease for 10 years.
(A)
163) R gifted his house property to his married minor daughter. The income from
such house property shall be taxable in the hands of:
(A) R as deemed owner
(B) R. However, it will be first computed as minor daughters income and
clubbed in the income of R
(C) income of married minor daughter
(B)
164) R is a member of house building Co-operative Society who is the owner of
flats constructed by it. One of the flats is allotted to R. The income from such
house property shall be taxable in the hands of:
(A) Co-operative Society
(B) R as deemed owner
(B)
165) R is owner of superstructure although the land was taken by him on lease.
The income from such house property shall be taxable under the head:
(A) income from other sources
(B) income from house property
(B)
265386912.doc
- 26 166) R has taken a house on rent and sublets the same to G. Income from such
house property shall be taxable under the head:
(A) income from house property
(B) income from other sources
(B)
167) Municipal valuation of the house is Rs.1,00,000; whereas the fair rent of
house property Rs.1,20,000 and standard rent is Rs.1,10,000; actual rent
received or receivable is Rs.1,40,000; municipal taxes paid 10 %. The annual
value in this case shall be:
(A) Rs.90,000
(B) Rs.1,00,000
(C) Rs.1,30,000
(C)
168) Municipal valuation of the house is Rs.1,20,000, fair rent is Rs.1,40,000;
standard rent is Rs.1,30,000; whereas actual rent received or receivable is
Rs.1,25,000; municipal taxes paid are Rs.40,000. The annual value in this
case shall be:
(A) Rs.1,00,000
(B) Rs.85,000
(C) Rs.90,000
(C)
169) Fair rental value of a house is Rs.1,50,000; standard rent Rs.1,20,000; actual
rent Rs.1,30,000. Municipal taxes paid during the previous year for the past 7
years is Rs.1,40,000. The annual value shall be:
(A) Rs.20,000
(B) Rs.NIL
(C) (-) Rs.10,000
(C)
170) A has two house properties. Both are self-occupied. The annual value:
(A) of both the houses shall be nil
(B) of one house shall be nil
(C) of no house shall be nil
(B)
171) If the annual value of the let house property is negative then tick the deduction
which shall be allowed u/s 24.
(A) All deductions
(B) No deduction
(C) Deduction on account of interest of money borrowed
(C)
172) Municipal tax is a deduction from:
(A) Gross annual value
(B) Net annual value
(A)
173) In case the property is owned by co-owners and it is let, income from such
property shall be computed:
(A) separately for each co-owner
(B) it will be first computed ignoring the co-ownership and then distributed
amongst co-owners
(B)
265386912.doc
- 27
174) In case the property is owned by co-owners and it is self-occupied by all
the co-owners, the annual value of:
(A) such house property
(B) for each co-owner shall be nil
(B)
175) In the above case, interest on money borrowed shall be allowed:
(A) to the extent of Rs.30,000/Rs.1,50,000 as the case may be
(B) to each owner to the extent of Rs.30,000/Rs.1,50,000 as the case may
be
(B)
176)(i) A borrowed Rs.5,00,000 @ 12 % p.a. pm 1.4.2002 for construction of
house property which was completed on 15.03.2006. The amount is still
unpaid. The deduction of interest for previous year 2006-07 shall be:
(A) Rs.60,000
(B) Rs.96,000
(C) Rs.1,80,000
(D) Rs.2,40,000
(B)
(ii) What shall be the amount of deduction if the house is completed on
2.4.2007.
(A) Rs.60,000
(B) Rs.96,000
(C) Rs.2,40,000
(D) Rs.1,08,000
(D)
177)(i) A borrowed a sum of Rs.5,00,000 @ 12 % p.a. on 1.4.1997 for
construction of a house which was completed on 15.3.2002. What shall be
the amount of deduction allowed on account of interest for the assessment
year 2007-08:
(A) Rs.96,000
(B) Rs.60,000
(C) Rs.1,08,000
(B)
(ii) What shall be the deduction if the loan is repaid on 31.08.2006?
(A) Rs.60,000
(B) Rs.25,000
(C) Rs.1,08,000
(B)
178) A house property whose fair rent is Rs.1,20,000 is neither let out nor
self-occupied throughout the previous year. Its annual value shall be:
(A) Rs.1,20,000
(B) Rs.NIL
(A)
179) Unrealized rent is a deduction from:
(A) Gross annual value
(B) Net annual value
(C) Income from the head house property
(A)
265386912.doc
- 28
180) An assessee was allowed deduction of unrealized rent to the extent of
Rs.40,000 in the past although the total unrealized rent was Rs.60,000. He is
able to recover from the tenant Rs.45,000 during the previous year on account
of such unrealized rent. He shall be liable to tax to the extent of:
(A) Rs.45,000
(B) Rs.NIL
(C) Rs.25,000
(C)
181) An assessee has borrowed money for purchase of a house and interest is
payable outside India. Such interest shall:
(A) be allowed as deduction
(B) not be allowed as deduction
(C) be allowed as deduction if the tax is deducted at source
(C)
182) Salary, bonus, commission or remuneration due to or received by a working
partner from the firm is taxable under the head:
(A) Income from salaries
(B) Income from other sources
(C) Income from business or profession
(C)
183) Perquisite received by the assessee during the course of carrying on his
business or profession is taxable under the head.
(A) Salary
(B) Other sources
(C) Business or Profession
(C)
184) Export incentives received by an assessee are:
(A) exempt
(B) taxable under section 28
(C) exempt up to certain limits
(B)
185) Income of a trade or professional association, from specific services
performed for its members shall be:
(A) exempt
(B) taxable u/H business and profession
(C) taxable u/H income from other sources
(B)
186) Interest on capital or loan received by a partner from a firm is:
(A) exempt u/s 10(2A)
(B) taxable u/H business and profession
(C) taxable u/H income from other sources
(D) taxable u/H business and profession on account of interest on capital
and income from other sources on account of loan to the firm
(B)
265386912.doc
- 29
187) Under the head Business & Profession, the method of accounting which an
assessee can follow shall be:
(A) Merchantile system only
(B) Cash system only
(C) Merchantile or Cash system only
(D) Hybrid system
(E) any of these systems
(C)
188) For computation of business income, the assessee has to follow:
(A) Auditing standards prescribed by I.C.A.I.
(B) Accounting standards notified by the Central Government
(C) No accounting standards
(B)
189) Any sum received by an employer from Keyman insurance policy taken on
the life of the employee shall be:
(A) exempt
(B) taxable under the head business and profession
(C) taxable under the head other sources
(D) taxable in the hands of employee
(B)
190) R, who was carrying on agency business received a sum of Rs.5,00,000 from
his principal for termination of agency. Compensation amount so received
shall be:
(A) exempt as it is a capital receipt
(B) fully taxable under the head business and profession
(C) taxable under the head other sources
(B)
191) Where the machinery, plant and furniture is used by the assessee for the
purpose of carrying on business and profession, he shall be entitled to
deduction under section 31 on account of:
(A) current repairs other than expenditure in the nature of capital
expenditure
(B) revenue and capital expenditure on repairs
(C) any repairs
(A)
192) Depreciation is allowed in case of:
(A) tangible assets only
(B) intangible assets only
(C) tangible and intangible assets
(C)
193) The depreciation is allowed to:
(A) the owner of asset
(B) owner including fractional owner of the asset
(C) lessee
(B)
265386912.doc
- 30 194) Electricity companies are allowed depreciation on the basis of:

(A) block of asset
(B) each asset separately
(C) each asset separately unless the assessee opts for block of asset system
in the first previous year of its commencement
(D) either on block of asset or each asset separately provided the option is
exercised in the first previous year.
(C)
195)(i) If the asset of a particular block is acquired and put to use during the
previous year for less than 180 days, the assessee shall be entitled to
depreciation:
(A) at normal rate
(B) at 50 % of normal rate
(C) proportionate period for which it is first put to use.
(B)
(ii) What will be your answer in the above case if the asset is acquired by the
electricity company which is claiming depreciation on straight line method:
(A) at normal rate
(B) at 50 % of normal rate
(C) proportionate period for which it is put to use
(B)
196)(i) W.D.V. of block of 15 % as on 1.4.2006 is Rs.5,00,000. An asset
amounting to Rs.1,00,000 was acquired on 1.11.2006 and put to use on
1.12.2006. During the previous year 2006-07 a part of the block (other
than the new asset) is sold for Rs.5,40,000. The depreciation to be allowed
for this block is:
(A) Rs.9,000
(B) Rs.4,500
(C) Rs.5,000
(B)
(ii) In the above case, this part of the block is sold for Rs.4,80,000 instead of
Rs.5,40,000, the depreciation allowed shall be:
(A) Rs.10,500
(B) Rs.18,000
(C) Rs.9,000
(A)
(iii) What will be your answer in case of (i) above if the part of the block sold
includes the new asset acquired during the year:
(A) Rs.9,000
(B) Rs.4,500
(C) Rs.5,000
(A)
197) Where a part of block of assets is sold for a price more than the opening
W.D.V. plus cost of asset acquired during the year, if any, the assessee shall
be subject to:
(A) balancing charge
(B) short-term capital gain
(C) short-term or long-term capital gain depending upon the period after
which the block is transferred
(B)
265386912.doc
- 31 198) Where a part of a block of asset is sold for a price less than the opening
W.D.V. plus cost of assets, if any, acquired during the year, the balance
amount shall be treated as:
(A) Short-term capital loss
(B) terminal/balancing depreciation
(C) written down value for purpose of charging current year depreciation
(C)
199) Where the entire block of the asset is sold for a price more than the opening
W.D.V. and asset, if any, acquired during the year, the excess amount shall be
subject to:
(A) balancing charge
(C) long-term or short-term capital gain depending upon the period for
which block is held
(B)
200) Where an electricity company claiming depreciation on straight line method
on each asset separately sells such asset for a price more than its W.D.V. then
the excess amount shall be taxable:
(A) as short-term capital gain
(B) balancing charge under business head
(C) balancing charge to the extent of depreciation allowed in the past and
the balance, if any, short-term capital gain
(D) balancing charge to the extent of depreciation allowed in the past and
the balance, if any, long-term or short-term capital gain depending
upon the period for which such asset was held
(D)
201) Where the entire block is sold for a price less than the opening W.D.V. and
the cost of asset, if any, acquired during the previous year, the balance
amount shall be treated as:
(A) terminal/balancing depreciation
(B) short-term capital loss
(C) written down value
(D) short-term or long-term capital loss depending on the period for which
the block was held
(B)
202) Where the electricity company charging depreciation on straight line method
on each asset separately, sells any asset for a price less than the opening
W.D.V. the balance amount shall be treated as:
(A) short-term capital loss
(B) terminal depreciation
(C) written down value
(B)
203) R acquired an asset for Rs.5,22,000 which includes Rs.72,000 as excise duty
for which the assessee has claimed CENVAT Credit. The actual cost of
acquisition to be included in the block of asset shall be:
(A) Rs.5,22,000
(B) Rs.4,50,000
(B)
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204) An asset which was acquired for Rs.5,00,000 was earlier used for scientific
research. After the research was completed the machinery was brought into
the business of the assessee. The actual cost of the asset for the purpose of
inclusion in the block of asset shall be:
(A) Rs.5,00,000
(B) Rs.NIL
(C) market value of the asset on the date it was brought into business
(B)
205) R had been using an asset for his business and its W.D.V. as on 1.4.2006 was
Rs.3,50,000. He sold this asset to G for Rs.5,00,000 and G leased back this
asset to R. The market value of this asset on the date of sale was Rs.4,00,000;
in this case, the actual cost of this asset to G for charging depreciation shall be:
(A) Rs.5,00,000
(B) Rs.3,50,000
(C) Rs.4,00,000
(B)
206) A car is imported after 1.4.2006 by R Ltd., from London to be used by its
employee. R Ltd. shall be allowed depreciation on such car at:
(A) 15 %
(B) 20 %
(C) 40 %
(A)
207) Unabsorbed depreciation which could not be set off in the same assessment
year can be carried forward for:
(A) 8 years
(B) indefinitely
(C) 4 years
(B)
208) Unabsorbed depreciation brought forward from an earlier year of a particular
business can be set off from:
(A) the same business
(B) any head of income
(C) any business income
(D) any head of income but first from business income
(D)
209) For claiming deduction for Tea Development, Coffee development or Rubber
development u/s 33AB the assessee should deposit the money with NABARD
or in the Deposit Account:
(A) before the expiry of the previous year
(B) within six months from the end of the relevant previous year
(C) within six months from the end of the relevant previous year or before
the due date of furnishing the return of income which ever is earlier
(D) before the due date of furnishing the return of income
(C)
265386912.doc
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210) Deduction of Tea/Coffee/Rubber Development Account shall be allowed to:
(A) any assessee
(B) a company assessee only who is engaged in the business of growing
and manufacturing tea/coffee/rubber in India
(C) any assessee who is engaged in the business of growing and
manufacturing tea/coffee/rubber in India
(D) any assessee who is engaged in the business of manufacturing
tea/coffee/rubber in India
(C)
211) The maximum deduction to be allowed under Tea Development Account,
Coffee Development Account or Rubber Development Account shall be:
(A) actual amount deposited in the scheme
(B) 20 % of the profits of such business
(C) 20 % of the amount deposited in the scheme
(D) 40 % of the profits of such business
(D)
212) For claiming deduction for Site Restoration Fund u/s 33ABA, the assessee
should deposit the money with State Bank of India or Site Restoration
Account:
(A) before the end of the previous year
(B) before the expiry of six months from the end of the previous year
(C) before the expiry of six months from the end of the relevant previous
year or before the due date of return whichever is earlier
(A)
213) Deduction on account of Site Restoration Fund shall be allowed to:
(A) any assessee
(B) company assessee engaged in the business of prospecting for or
extraction or production of petroleum or natural gas or both
(C) any assessee engaged in the business mentioned in clause (b) above
(C)
214) The maximum deduction for Site Restoration Fund under section 33ABA
shall be:
(A) the amount deposited in the scheme
(B) 20 % of the profits from such business
(C) 20 % of the amount deposited in the scheme
(B)
215) Tick the case where the amount withdrawn from Site Restoration Account
shall not be taxable:
(A) amount withdrawn for the purpose specified in the scheme
(B) closure of business
(C) death of an assessee
(D) partition of HUF
(E) dissolution of a firm
(F) liquidation of a company
(A)
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216) Expenditure on scientific research incurred by the assessee shall be allowed if
such research:
(A) is related to the business of the assessee
(B) may or may not relate to the business of the assessee
(C) is related to the research specified by the Government
(A)
217) If an assessee carries on any scientific research related to his business, he shall
be allowed deduction u/s 35 on account of:
(A) revenue expenditure
(B) capital expenditure
(C) both revenue and capital expenditure
(D) both revenue and capital expenditure excepting expenditure incurred
on acquisition of land
(D)
218) Certain revenue and capital expenditure on scientific research are allowed as
deduction in the previous year of commencement of business even if these are
incurred:
(A) 5 years immediately before the commencement of the business
(B) 3 years immediately before the commencement of the business
(C) any time prior to the commencement of the business
(B)
219) Where a scientific research asset is sold without having been used for other
purpose then the sale price to the extent of the cost of the asset already
allowed as deduction in the past shall be treated as:
(A) business income
(C) long-term capital gain
(D) long-term or short-term capital gain depending upon the period for
which such asset was held
(A)
220) Where the sale price in the above exceeds the cost of acquisition of such asset,
such excess shall be treated as:
(A) business income
(D) long-term or short-term capital gain depending upon the period for
which such asset was held
(D)
221) If the income of a business before claiming revenue expenditure on scientific
research is Rs.50,000 and the revenue expenditure incurred on scientific
research related to the business of the assessee is Rs.80,000, then Rs.30,000
shall be:
(A) business loss
(B) unabsorbed capital expenditure on scientific research
(A)
265386912.doc
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222) If the income of a business before claiming capital expenditure on scientific
research is Rs.50,000 and the capital expenditure incurred on scientific
research related to the business of the assessee is Rs.80,000, then Rs.30,000
shall be:
(A) business loss
(B) unabsorbed capital expenditure on scientific research
(B)
223) Brought forward unabsorbed capital expenditure on scientific research can be
carried forward:
(A) for any number of years
(B) for 8 years
(C) for 10 years
(A)
324) If any amount is donated for research, such research should be in the nature
of:
(A) scientific research only
(B) social or statistical research only
(C) scientific or social or statistical research
(C)
325) If donation is made for scientific or social or statistical research, such
research:
(A) must relate to the business of the assessee
(B) may or may not relate to the business of the assessee
(C) none of these
(B)
326) Donation for scientific or social or statistical research shall be allowed as
deduction to the extent of:
(A) 50 % of the donation so made
(B) 100 % of the donation so made
(C) 125 % of the donation so made
(D) 150 % of the donation so made
(C)
327) If donation is made to a National Laboratory or a University or IIT with the
specific direction that scientific research should be for an approved
programme, the amount of deduction shall be:
(A) 50 % of the donation so made
(B) 100 % of the donation so made
(C) 125 % of the donation so made
(D) 150 % of the donation so made
(C)
328)(i) Weighted deduction of 150 % for in-house research in some cases is
allowed to:
(A) any assessee
(B) company assessee
(C) a scientific research association
(B)
265386912.doc
- 36 (ii) Weighted deduction of 150 % for in-house research in some cases shall be
allowed for the purchase of:
(A) any assets
(B) any assets other than land
(C) any assets other than land and buildings
(C)
329) Expenditure incurred on acquisition of patents and copyrights after 31.03.1998
are subject to:
(A) deduction in 14 equal instalments
(B) deduction in 10 equal instalments
(C) depreciation u/s 32
(C)
330) Lumpsum payment for acquisition of technical know-how after 31.03.1998
shall be subject to:
(A) deduction in 6 equal instalments
(B) deduction in 3 equal instalments
(C) depreciation u/s 32
(C)
331) Expenditure incurred for obtaining licence to operate telecommunication
services shall be allowed in:
(A) 10 equal instalments
(B) 14 equal instalments
(C) in equal instalments over the period for which the licence remains in
force
(C)
332) R Ltd., paid Rs.1,10,00,000 during the previous year 2005-06 for acquiring
the telecommunication rights which were effective for 11 years. It
commenced the business of operating the telecommunication service with
effect from previous year 2006-07. R Ltd., shall be entitled to a deduction of:
(A) Rs.10 lakhs w.e.f. previous year 2005-06
(B) Rs.11 lakhs w.e.f. previous year 2006-07
(B)
333) R had acquired a licence to operate telecommunication service in the
previous year 2004-05 for Rs.2 crores and its life was 10 years. During the
previous year 2006-07 it had sold the licence for Rs.1,50,00,000. It shall be
allowed a deduction under section 35ABB during the previous year 2006-07
to the extent of:
(A) Rs.20 lakh
(B) Rs.10 lakh
(C) None of the above two
(B)
334) For claiming deduction under section 35AC, the payment for eligible project
and scheme should be made to:
(A) a public sector company
(B) a local authority
(C) to an institution or an association approved by the National Committee
(D) to any of the three mentioned in (A), (B) and (C)
(D)
265386912.doc
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335) A company assessee shall be allowed deduction under section 35AC on
account of eligible project and scheme if:
(A) the payment is made to the specified institution
(B) if it incurs expenditure itself
(C) both for payment made to specified institution and for direct
expenditure incurred by itself
(C)
336) Preliminary expenses incurred are allowed deduction in:
(C) full
(B)
337) In the case of non-company assessee, the total preliminary expenses incurred
are allowed deduction to the extent of:
(A) 2 % of the cost of the project
(B) 5 % of the cost of the project
(C) 10 % of the cost of the project
(B)
338) In case of company assessee, the total preliminary expenses incurred are
allowed as deduction to extent of 5 % of:
(A) the cost of the project
(B) the aggregate capital employed
(C) the cost of project or capital employed
(C)
339) Expenditure incurred on prospecting, etc., of minerals shall be allowed as
deduction in:
(C) full
(B)
340) In case the assessee follows merchantile system of accounting, bonus or
commission to the employee are allowed as deduction on:
(A) due basis
(B) payment basis
(C) due basis but subject to section 43B
(C)
341) Interest accrued before the commencement of the production is to be:
(A) capitalised
(B) treated as revenue expenditure
(C) either capitalized or treated as revenue expenditure
(A)
342) Interest on money borrowed for acquiring an asset by an existing concern for
expansion of the existing business, pertaining to a period prior to the date on
which the asset is put to use is to be:
(A) capitalised
(C) either capitalised or treated as revenue expenditure at the option of the
assessee till the asset is put to use
(A)
265386912.doc
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343) Interest on money borrowed for the purpose of acquiring a capital asset
pertaining to the period after the asset is put to use is to be:
((A)capitalised
(C) either capitalized or treated as revenue expenditure
(B)
344) Expenditure incurred on purchase of animals to be used by the assessee for the
purpose of carrying on his business and profession is subject to:
(A) depreciation
(B) deduction in the previous year in which animal dies or becomes
permanently useless
(C) nil deduction
(B)
345) Expenditure incurred on family planning amongst the employees is allowed
to:
(A) any assessee
(B) a company assessee
(C) an assessee which is a company or co-operative society
(B)
346) Capital expenditure incurred on family planning amongst employees of the
company assessee is allowed as deduction:
(A) in full
(B) in 5 equal instalments
(C) in 10 equal instalments
(B)
347)(i) The business income of a company assessee before claiming Rs.60,000
being 1/5 th of capital expenditure on family planning is Rs.40,000. The
balance Rs.20,000 shall be treated as:
(A) business loss
(B) unabsorbed expenditure on family planning
(B)
(ii) The business income of a company before claiming Rs.60,000 being
revenue expenditure on family planning is Rs.40,000. The balance of
Rs.20,000 shall be treated as:
(A) business loss
(B) unabsorbed expenditure on family planning
(B)
(iii) The business income of a company assessee before claiming deduction of
revenue and capital expenditure is Rs.6,00,000. The revenue and capital
expenditure incurred during the year are Rs.7,00,000 and Rs.10,00,000
respectively. The unabsorbed expenditure on family planning in this case
shall be:
(A) Rs.3,00,000
(B) Rs.11,00,000
(C) Rs.2,00,000 and Rs.1,00,000 shall be business loss
(A)
265386912.doc
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348) Deduction u/s 37(1) shall be allowed of those expenditure which are of:
(A) revenue nature
(B) capital nature
(C) both revenue and capital nature
(A)
349) Interest on capital of or loan from partner of a firm is allowed as deduction to
the firm to the extent of:
(A) 18 % p.a.
(B) 12 % p.a. even if it is not mentioned in partnership deed
(C) 12 % p.a. or at the rate mentioned in partnership deed whichever is less
(C)
350) Deduction u/s 40(b) shall be allowed on account of salary/remuneration paid
to:
(A) any partner
(B) major partner only
(C) working partner only
(C)
351) Remuneration paid to working partner shall be allowed as deduction to a firm:
(A) in full
(B) subject to limits specified in section 40(b)
(B)
352) A firms business income is nil/negative. It shall still be allowed as deduction
on account of remuneration to working partner to the maximum extent of:
(A) actual remuneration paid as specified in partnership deed
(B) Rs.50,000
(C) NIL
(B)
353)(i) A person carrying on specified profession is:
(A) required to maintain books of account
(B) required to maintain prescribed books of account
(C) not required to maintain books of account
(B)
(ii) A person carrying on specified profession is required to maintain the
prescribed books of account of the current previous year if the gross
receipts of such profession in all the three preceding previous years
exceed:
(A) Rs.40,00,000
(B) Rs.10,00,000
(C) Rs.1,50,000
(D) Rs.60,000
(C)
265386912.doc
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(A) prescribed books of account in all cases
(B) prescribed books of account if the gross receipts of all the three
preceding previous years exceeds Rs.1,50,000 otherwise no books of
account are to be maintained
(C) prescribed books of account if the gross receipts of all the preceding
previous years exceeds Rs.1,50,000 otherwise such books of account
as will enable the Assessing Officer to compute his business income
(C)
354) If a person sets up a specified profession during the current previous year, he
is:
(A) required to maintain prescribed books of account
(B) not required to maintain prescribed books of account
(C) required to maintain prescribed books of account if the gross receipts
of such profession is likely to exceed Rs.1,50,000 otherwise such
books of account which will enable the Assessing Officer to compute
his total income
(C)
355) A person who has been carrying on non-specified profession is:
(A) not required to maintain any books of account
(B) required to maintain books of account of the current previous year if
the gross receipts of such profession exceeds Rs.1,50,000
(C) required to maintain books of account of the current previous year if
the gross receipts of such profession of any of the preceding previous
year exceeded Rs.10 lakh
(D) required to maintain books of account of the current previous year if in
any of the preceding 3 previous years his total income exceeded
Rs.1,20,000 or gross receipts exceeded Rs.10 lakh
(D)
356)(i) A person, who has been carrying on business is required to maintain books
of account of the current previous year if:
(A) his total income of any 3 preceding previous years exceeded
Rs.1,20,000
(B) his gross turnover or sales of any of 3 preceding previous year
exceeded Rs.10 lakh
(C) if condition mentioned either in (a) or (b) is satisfied
(C)
(ii) A person who sets up a non-specified profession or commences a business
during the current previous year is required to maintain books of account if
his:
(A) total income of the current year exceeds or is likely to exceed
Rs.1,20,000
(B) his gross turnover or sales of any of 3 preceding previous year
exceeded Rs.10 lakh
(C) if condition mentioned either in (a) or (b) is satisfied
(C)
265386912.doc
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357) For persons carrying on business or non-specified profession, the books of
account to be maintained have been:
(A) prescribed
(B) not prescribed
(C) none of these
(B)
358) For persons carrying on profession, tax audit is compulsory, if the gross
receipts of the previous year exceeds:
(A) Rs.50 lakh
(B) Rs.40 lakh
(C) Rs.10 lakh
(C)
359) Tax audit is compulsory in a case a person is carrying on business whose
gross turnover/sales/receipts, as the case may be exceeds:
(A) Rs.10 lakh
(B) Rs.40 lakh
(C) Rs.1 crore
(B)
360) In case an assessee is engaged in the business of civil construction,
presumptive income scheme is applicable if the gross receipts paid or
payable to him in the previous year does not exceed:
(A) Rs.10 lakh
(B) Rs.40 lakh
(C) Rs.50 lakh
(B)
361) In the aforesaid case, the income shall be presumed to be:
(A) 5 % of gross receipts
(B) 8 % of gross receipts
(C) 10 % of gross receipts
(B)
362) If an assessee is engaged in the business of civil construction and he had opted
for presumptive income scheme under section 44AD, the assessee shall:
(A) be entitled to deduction u/s 30 to 37
(B) not be entitled to any deduction u/s 30 to 37
(C) not be entitled to deduction u/s 30 to 37 except on account of interest
on capital and loan from a partner and remuneration to working partner
as per section 40(b)
(C)
363) In case an assessee is engaged in the business of plying hiring or lease goods
carriage, presumptive income scheme under section 44 AE is applicable if the
assessee is the owner of maximum of:
(A) 8 goods carriages
(B) 10 goods carriages
(C) 12 goods carriages
(B)
265386912.doc
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364) As per presumptive income scheme under section 44AE, the presumed
income shall be:
(A) Rs.3,000 p.m. per goods carriage
(B) Rs.3,500 p.m. per heavy goods vehicle and Rs.3,150 p.m. per vehicle
other than heavy goods vehicle
(C) Rs.3,500 p.m. per heavy goods vehicle; Rs.3,150 p.m. for medium
goods vehicle and Rs.2,000 p.m. per light commercial vehicle
(B)
365) In case an assessee is engaged in the business of retail trade, presumptive
income scheme is applicable if the total turnover of such retail trade of goods
does not exceed:
(A) Rs.10 lakh
(B) Rs.30 lakh
(C) Rs.40 lakh
(D) Rs.50 lakh
(C)
366) In the above case, the income to be presumed under section 44AF shall be:
(A) 8 % of total turnover
(B) 5 % of total turnover
(C) 10 % of total turnover
(B)
367) If the assessee opts for presumptive income scheme under section 44AD or
44AF or 44AE, then the assessee shall:
(A) not be entitled to any deduction u/ss 30 to 37
(B) be entitled to deduction under sections 30 to 37
(C) not be entitled to deduction u/ss 30 to 37 except for interest or capital
or loan from partner and remuneration to a working partner subject to
conditions laid down under section 40(b)
(C)
368) In case of non-resident, who is carrying on shipping business, his Indian
income shall be presumed to be:
(A) 5 % of certain amount received
(B) 7 % of certain amount received
(C) 10 % of certain amount received
(B)
369) The income of a non-resident from shipping business under section 44B shall
be presumed to be 7 % of:
(A) the amount paid or payable whether in India or out of India to the
assessee on account of carriage of passengers, livestock, mail or goods
shipped at any port in India
(B) the amount received or deemed to be received in India on account of
carriage of passengers, livestock, mail or goods shipped at any port
outside India
(C) both the amount mentioned in (A) & (B) above
(C)
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- 43 370) In case of non-resident, who is engaged in the business of operation of

aircraft, his income shall be presumed to be:
(A) 7 % of certain amount
(B) 5 % of certain amount
(C) 10 % of certain amount
(B)
371) The expenditure incurred on payment under voluntary retirement scheme shall
be allowed as deduction in:
(A) the previous year it is paid
(B) equal instalments in 5 assessment years starting from the assessment
year in which it is paid
(C) Not allowed at all
(B)
372) Capital gain arises from the transfer of:
(A) any asset
(B) any capital asset
(C) land and buildings and shares only
(B)
373) Short-term capital gain is a gain arising from the transfer of an asset which is
held by the assessee for not more than:
(A) 36 months from the date of its acquisition
(B) 12 months from the date of its acquisition
(C) 12 months from the date of its acquisition in case of shares, units and
any other listed securities and for not more than 36 months in the case
of other assets
(C)
374) Period of holding bonus shares or any other financial asset allotted without
any payment shall be reckoned from:
(A) the date of holding of original shares/financial asset
(B) the date of offer of bonus shares/financial asset
(C) the date of allotment of such bonus shares/financial assets
(C)
375) Period of holding of right shares or any other security shall be reckoned from:
(A) the date of the right share/any other securities are offered
(B) the date of right shares/such securities are applied by the assessee
(C) the date of allotment of right shares/such securities
(C)
376) If physical shares are sold through brokers, the date of transfer shall be:
(A) the date on which shares are transferred by the company
(B) the date of brokers note book
(C) the date of brokers note book provided such transaction is followed by
delivery of shares
377) Distribution of assets by a company at the time of liquidation shall be
regarded as a transfer and subject to capital gain:
(A) in the hands of the company
(B) in the hands of the shareholders
(C) in the hands of both company as well as shareholders
(D) neither in the hands of a company nor in the hands of shareholders
(B)
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378) Distribution of assets at the time of partial or complete partition of HUF shall:
(A) be regarded as a transfer in the hands of HUF for capital gain purposes
(B) be regarded as a transfer in the hands of coparceners
(C) not be regarded as transfer in the hands of HUF
(D) neither be regarded as transfer in the hands of HUF nor in the hands of
coparceners
(D)
379) Transfer of capital asset under a gift or will or to an irrevocable trust shall:
(A) be regarded as transfer in the hands of donor
(B) not be regarded as transfer in the hands of donor
(C) none of the above two
(B)
380) Transfer by holding company to its subsidiary company or by a subsidiary
company to its holding company shall not be regarded as transfer if the
holding company owns:
(A) 90 % shares of the subsidiary company
(B) 100 % shares of the subsidiary company
(C) 51 % shares of the subsidiary company
(B)
381) Amalgamation of company as per the scheme of amalgamation shall not be
regarded as transfer provided the amalgamated company is:
(A) a Domestic company
(B) a Public Ltd., company
(C) an Indian company
(C)
382) Transfer of capital asset in the scheme of demerger shall not be regarded as
transfer for the purpose of capital gain if:
(A) the demerged company is an Indian company
(B) the resulting company is an Indian company
(C) both demerged and resulting company should be an Indian company
(B)
383) The period of holding of shares acquired in exchange of convertible
debentures shall be reckoned from:
(A) the date of holding of debentures
(B) the date when the debentures were converted into shares
(B)
384) Securities transaction tax paid by the seller of shares and units shall:
(A) be allowed as deduction as expenses of transfer
(B) not be allowed as deduction
(B)
385) Securities transaction tax paid by the purchaser of shares/units shall:
(A) form part of the cost of such shares and units
(B) not form part of the cost of such shares and units
(B)
265386912.doc
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386) The assessee is allowed to opt for market value as on 1.4.1981 in case of:
(A) all capital assets
(B) all capital assets other than depreciable assets
(C) all capital assets other than depreciable asses, goodwill of a business,
right to manufacture, tenancy rights, loom hours and route permits
(C)
387) Where the capital asset became the property of the assessee I any mode given
under section 49(1), the cost of acquisition of such assets shall be:
(A) the market value of the asset as on the date of acquisition by the
assessee
(B) cost for which the previous owner of the property acquired it
(C) nil
(B)
388) Where a shareholder of an amalgamating company gets the shares of the
amalgamated company in lieu of the shares held by him in an amalgamating
company, the cost of acquisition of such shares shall be:
(A) market value of the shares of an amalgamated company as on the date
of amalgamation
(B) cost of the shares held in amalgamating company
(C) market value of the share of the amalgamated company as on the date
of amalgamation
(B)
389) If the shares are acquired on conversion of debentures, the cost of acquisition
of such share shall be:
(A) market value of the shares on the date of conversion
(B) market value of the debentures on the date of conversion
(C) cost of acquisition of the debentures
(C)
390) The cost of acquisition of the employees stock option shall be:
(A) market value of shares on the date of offer
(B) market value of the shares on the date of exercise of option
(C) nil or price at which it was offered to employee
(C)
391) If the goodwill of a business, right to manufacture or produce, tenancy rights,
route permit or loom hours is acquired before 1.4.1981, the cost of acquisition
of such asset shall be:
(A) cost for which it was acquired by the assessee
(B) market value as on 1.4.1981
(C) nil
(A)
392)(i) If the bonus shares are acquired before 1.4.1981, the cost of acquisition of
such bonus shares shall be:
(A) nil
(B) market value of such bonus share on the date of allotment
(C) market value as on 1.4.1981
(C)
265386912.doc
- 46 (ii) If the bonus shares are acquired on or after 1.4.1981, the cost of acquisition
of such shares shall be:
(A) market value of such shares on the date of allotment
(B) nil
(C) none of these
(B)
393) The cost of acquisition of the right shares to a person who purchased the right
to acquire the share from the existing shareholder shall be:
(A) market value of right share on date of allotment
(B) price at which these shares are offered
(C) price at which these shares are offered plus the amount paid to the
person renouncing the right
(C)
394)(i) If any advance money received by the assessee in any earlier occasion of
transfer, which could not materialize, is forfeited, such money shall:
(A) be taxable in the year it is forfeited
(B) be deducted from the cost of acquisition of such asset
(C) not be taxable
(B)
(ii) If advance money forfeited is more than the cost of acquisition of the assets,
the excess amount shall:
(A) be taxable as capital gain in the year of forfeiture of money
(B) be taxable as capital gain in the previous year in which the assessee
against which advance money was received is transferred
(C) be treated as capital receipt and hence not taxable
(C)
395) Cost of improvement of goodwill of a business or right to manufacture or
produce any article or thing shall be:
(A) nil
(B) the capital expenditure incurred
(C) the capital expenditure incurred on or after 1.4.1981
(A)
396) Cost of improvement of tenancy rights, route permits or loom hours shall be:
(A) nil
(B) any capital expenditure incurred on the improvement of such asset
(C) any capital expenditure incurred on the improvement of such asset on
or after 1.4.1981
(C)
397) In case of long-term capital gain, the amount to be deducted from
consideration price shall be:
(A) cost of acquisition
(B) indexed cost of acquisition
(C) market value as on 1.4.1981
(B)
265386912.doc
- 47 398) No indexation of cost of acquisition is done even though there is long-term

capital gain in case of:
(A) bonds or debentures
(B) certain assets held by non-residents
(C) certain assets held by non-residents and any bonds or debentures other
than capital indexed bonds issued by Government
(C)
399) The cost inflation index number of the previous year 2006-07 is:
(A) 519
(B) 447
(C) 480
(D) 497
(A)
400) Conversion of capital asset into stock-in-trade will result into capital gain of
the previous year:
(A) in which such conversion took place
(B) in which such converted asset is sole or otherwise transferred
(B)
401) Conversion of personal effect into stock in trade shall:
(A) be subject to capital gain
(B) not be subject to capital gain
(C) shall be subject to tax under business head
(B)
402) Where capital asset is converted into stock-in-trade then for the purpose of
computation of capital gain, the full value of consideration shall be:
(A) the market value of the asset on the date of sale of such asset
(B) the market value of the asset on the date of conversion of such asset
(C) the price for which it is sold
(B)
403) Where the capital asset is converted into stock-in-trade, the indexation of cost
of acquisition and cost of improvement shall be done:
(A) till the previous year of conversion of such capital asset
(B) till the previous year in which such asset is sold
(A)
404) Where a partner transfers any capital asset into the business of firm, the sale
consideration of such asset to the partner shall be:
(A) market value of such asset on the date of such transfer
(B) price at which it was recorded in the books of the firm
(C) cost of such asset to the partners
(B)
405) Where any capital asset is transferred by a firm to its partner by way of
distribution on the dissolution of firm, the full value of consideration in this
case shall be:
(A) the price at which such asset was given to partners
(B) cost or W.D.V. of such asset on the date of distribution
(C) fair market value of the asset on the date of such transfer
(C)
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406) Where the entire block of the depreciable asset is transferred after 36 months,
there will be:
(A) short-term capital gain
(B) long-term capital gain
(C) short-term capital gain or loss
(D) long-term capital gain or loss
(C)
407) Where a capital asset, other than certain urban agricultural land, is
compulsorily acquired, then the capital gain shall arise in the previous year:
(A) of compulsory acquisition
(B) in which full consideration is received
(C) in which part or full consideration is received
(C)
408) In the case of compulsory acquisition, the indexation of cost of acquisition or
improvement shall be done till the:
(A) previous year of compulsory acquisition
(B) in which the full compensation is received
(C) in which part or full compensation is received
(A)
409) In case of compulsory acquisition, if an assessee receives enhanced
compensation then the enhanced compensation is taxable as:
(C) short-term or long-term capital gain depending upon the original
capital gain of compulsory acquisition
(C)
410) In case of compulsory acquisition, if enhanced compensation is received, then
for purpose of computation of capital gain the cost of acquisition and cost of
improvement in that case shall be taken as:
(A) nil
(B) cost of acquisition or cost of improvement which was in excess of
initial compensation earlier received
(C) none of these
(A)
411) In case of compulsory acquisition if initial compensation or enhanced
compensation is received by legal heir due to death of assessee, then capital
gain shall:
(A) not be taxable in the hands of legal heir
(B) be taxable in the hands of legal heir
(C) for initial compensation the legal heir will be taxable as representative
assessee and for enhanced compensation he shall be himself taxable
(C)
412) Conversion of debentures into shares shall:
(A) be regarded as transfer for capital gain purpose
(B) not be regarded as transfer for capital gain purpose
(C) none of these
(B)
265386912.doc
- 49 413) If goodwill of a profession which is self-generated is transferred, there will:

(A) be capital gain
(B) not be any capital gain
(C) be a short-term capital gain
(B)
414) Where a company purchases its own shares there will be capital gain to the:
(A) company
(B) shareholder
(C) neither to the company nor to the shareholder
(D) both to the company and to the shareholder
(B)
415) For claiming exemption under section 54, the assessee should transfer:
(A) any house property
(B) a residential house property
(C) a residential house property, the income of which is taxable under the
head income from house property
(C)
416) In the above case, the residential house property should be transferred:
(A) before 36 months
(B) after 36 months
(C) after 12 months
(B)
417) Exemption under section 54 is available to:
(A) all assessees
(B) individuals only
(C) individuals as well as HUF
(C)
418) For claiming exemption u/s 54, the assessee should purchase residential
property:
(A) 2 years after the date of transfer
(B) 3 years after the date of transfer
(C) one year before or two years after the date of transfer
(D) one year before or three years after the date of transfer
(C)
419) For claiming exemption under section 54, the assessee should construct the
residential property within:
(A) one year before or two years after the date of transfer
(B) one year before or three years after the date of transfer
(C) within three years after the date of transfer
(D) within two years after the date of transfer
(C)
420) The exemption under section 54 shall be available:
(A) to the extent of capital gain invested in the house property
(B) proportionate to the net consideration price invested
(C) to the extent of amount actually invested
(A)
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421) If the assessee wishes to deposit money under capital gain scheme for
claiming exemption under section 54, it should be deposited within:
(A) six months from the date of transfer
(B) within six months from the end of the relevant previous year
(C) due date of furnishing the return of income u/s 139(1)
(D) six months or within due date of furnishing the return of income
whichever is earlier
(C)
422) Amount utilised in the capital gain scheme for which exemption was claimed
u/s 54 shall be treated as long term capital gain of previous year:
(A) in which period of 2 years has expired from the date of deposit
(B) in which period of 2 years has expired from the date of transfer
(C) in which period of 3 years has expired from the date of deposit
(D) in which period of 3 years has expired from the date of transfer
(D)
423) The new house purchased or constructed for which exemption was claimed
under section 54, should not be transferred within 3 years:
(A) from the date of transfer of original house
(B) from the date of its purchase/construction
(C) from the end of the previous year
(B)
424) Where a new house property for which exemption was claimed u/s 54 is
transferred within 3 years from the date of its acquisition then:
(A) capital gain exempt under section 54 earlier shall be taxable
(B) the entire capital gain on new transfer shall be taxable
(C) for purpose of computation of capital gain, the cost of acquisition of
the said house shall be reduced by the amount of capital gain exempt
u/s 54 earlier
(C)
425) For claiming exemption u/s 54B, the asset transferred should be:
(A) urban agricultural land
(B) any agricultural land
(C) rural agricultural land
(A)
426) The exemption u/s 54B is allowed to:
(A) any assessee
(B) individual only
(C) individual or HUF
(B)
427) For claiming exemption u/s 54B, the agricultural land must have been used for
agricultural purpose by the individual or his parents for at least:
(A) any period of 2 years prior to the date of transfer
(B) a period of 2 years immediately preceding the date of transfer
(C) a period of 3 years immediately preceding the date of transfer
(B)
265386912.doc
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428) For claiming exemption under section 54B the assessee should acquire:
(A) urban agricultural land
(B) rural agricultural land
(C) any agricultural land
(C)
429) For claiming exemption u/s 54B, the new agricultural land should be
purchased:
(A) within 3 years from the date of transfer
(B) within 2 years from the date of transfer
(C) within 2 years from the end of the relevant previous year
(B)
430) Amount utilised in the capital gain scheme for which exemption u/s 54B was
claimed shall be treated as:
(A) long-term capital gain
transfer
(C)
431) If the new agricultural land purchased (for which exemption was claimed
under section 54(B) is transferred within 3 years, then:
(A) capital gain exempt u/s 54B earlier shall be taxable
(B) the entire capital gain or new transfer shall be taxable
(C) for the purpose of computation of capital gain, the cost of acquisition
shall be reduced by the amount of capital gain exempt u/s 54B earlier
(C)
432) Exemption u/s 54D is available to:
(A) any assessee
(B) any assessee owning an industrial undertaking
(C) an individual or HUF owning and industrial undertaking
(B)
433) Exemption u/s 54D is available if there is:
(A) a transfer
(B) compulsory acquisition by law
(C) sale
(B)
434) Exemption u/s 54D is available if there is a compulsory acquisition of:
(A) any land and building used by an industrial undertaking
(B) land and building which has been used by the industrial undertaking
for at least 2 years for its activities, immediately preceding the date of
compulsory acquisition
(C) land and building used for at least 3 years immediately preceding the
date of compulsory acquisition
(B)
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435) For claiming exemption u/s 54D, the assessee should purchase and/or
construct another land and building within:
(A) 2 years from the date of compulsory acquisition
(B) 3 years from the date of compulsory acquisition
(C) within 3 years from the end of the previous year of compulsory
acquisition
(B)
436) If the new land and building acquired for claiming exemption u/s 54D, is
transferred within 3 years, then there will be:
(A) short-term capital game
(B) exemption claimed u/s 54D earlier shall be withdrawn
(C) the cost of acquisition of the said asset shall be reduced by the capital
gain exempt u/s 54D earlier
(C)
437) New assets acquired for claiming exemption u/s 54, 54B or 54D, if transferred
within 3 years, will result in:
(C) short-term or long-term capital gain depending upon original transfer
(A)
438) Unutilised amount deposited under capital gain scheme for claiming
exemption u/s 54D shall be treated as:
transfer
(C)
439) Exemption under section 54EC shall be available to:
(A) any assessee
(B) individual only
(D) company assessee only
(A)
440) Exemption u/s 54EC shall be available for transfer of:
(A) any long-term capital asset
(B) residential house property
(C) any long-term capital asset other than residential house property
(A)
441) Under section 54 EC, the assessee shall be allowed exemption:
(A) to the extent of capital gain invested
(B) proportionate to the net consideration price so invested
(C) to the extent of amount invested
(A)
265386912.doc
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442) For claiming exemption u/s 54EC, amount to the extent of the capital gain
should be invested:
(A) within 2 years from the date of transfer
(B) within 3 years from the date of transfer
(C) within 6 months from the date of transfer
(D) within 6 months of transfer or before the due date of furnishing the
return of income, whichever is earlier
(C)
443) For claiming exemption u/s 54EC, the amount to the extent of capital gain
should be invested within six months from the date of transfer in:
(A) State Bank of India
(B) Notified securities
(C) State Bank of India or Notified securities
(D) Bonds of the NHAI or RECL
(D)
444) For claiming exemption u/s 54EC, the amount shall be invested in notified
securities for:
(A) a period of 3 years from the date of transfer
(B) a period of 3 years from the date of acquisition of such securities
(C) a period of 7 years from the date of transfer
(D) a period of 7 years from the date of its acquisition
(B)
445) If notified securities for which exemption has been claimed u/s 54EC are
transferred or converted into money or any loan is taken against the same
within 3 years then the:
(A) exemption allowed under section 54EC shall be withdrawn by opening
the old assessment
(B) amount exempt under section 54EC earlier shall be long-term capital
gain of the previous year in which such transaction takes place
(C) the cost of acquisition of such securities shall be reduced by the
amount of capital gain exempt u/s 54EC earlier
(B)
446) Capital gain scheme is:
(A) applicable for section 54EC
(B) not applicable for section 54EC
(B)
447) Exemption u/s 54F is available to:
(A) any assessee
(B) an individual
(C) an individual or HUF
(C)
448) Exemption u/s 54F is available in respect of transfer of:
(A) any capital asset
(B) residential house property
(C) any capital asset other than residential house property
(C)
265386912.doc
- 54 449) Exemption u/s 54 F is available if the asset transferred is:

(A) long-term capital asset other than residential house property
(B) short-term capital asset other than residential house property
(C) short-term/long-term capital asset other than residential house property
(A)
450) Exemption u/s 54F is available:
(A) to the extent of amount invested
(B) proportionate to the net consideration price so invested
(C) to the extent of amount actually invested
(B)
451) Exemption u/s 54F is available if the new asset acquired is:
(A) any residential house property
(B) any house property
(C) residential house property for self-occupation
(A)
452) For claiming exemption u/s 54F, the amount to the extent of net
consideration price is to be invested in the purchase of residential house
property within:
(A) 2 years from the date of transfer
(B) 3 years from the date of transfer
(C) one year or two years after the date of transfer
(D) one year before or 3 years after the date of transfer
(C)
453) For claiming exemption u/s 54F, the amount to the extent of consideration
price is to be invested in the construction of the residential house property
within:
(A) 3 years after the date of transfer
(B) 2 years after the date of transfer
(C) one year before or 2 years after the date of transfer
(A)
454) Exemption u/s 54F shall not be allowed if the assessee, on the date of transfer
owns:
(A) any residential house
(B) a residential house which is let out
(C) a house which is self-occupied
(D) more than one residential house
(B)
455) Exemption u/s 54G is available on account of transfer:
(A) for any reason
(B) in pursuance of shifting from urban area to any other area
(C) in pursuance of shifting from urban area to rural area
(B)
456) Exemption u/s 54G is available to:
(A) any assessee
(B) any assessee who owns an industrial undertaking
(C) individual or HUF who owns an industrial undertaking
(B)
265386912.doc
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457) For claiming exemption u/s 54G, such land, building or Plant and Machinery
must have been used by the industrial undertaking:
(A) for at least 2 years immediately preceding the date of transfer
(B) any period of 2 years
(C)
458) For claiming exemption u/s 54G, the assessee shall acquire the new asset
within:
(A) 2 years from the date of transfer
(B) 3 years from the date of transfer
(C) one year before or 2 years after the date of transfer
(D) one year before or 3 years from the date of transfer
(D)
459) Where after depositing the amount under capital gain scheme, the individual
assessee has died, the amount lying in the capital gain scheme:
(A) shall be taxable in the hands of legal heir
(B) should be utilised by the legal heir for the specified purpose
(C) shall be exempt in the hands of legal heir
(C)
460) Total income for assessment year 2007-08 of an individual including
longterm capital gain of Rs.60,000 is Rs.1,40,000. The tax on total income
shall
be:
(A) Rs.8,800
(B) Rs.8,160
(C) Rs.7,000
(B)
461) Total income of an individual including long-term capital gain of Rs.50,000 is
Rs.1,10,000, the tax on total income shall be:
(A) Rs.1,020
(B) Rs.2,040
(C) Rs.2,244
(B)
462) Long-term capital gain on sale of equity shares and units of an equity oriented
fund shall be:
(A) taxable @ 10 % without indexation
(B) exempt
(C) exempt if sold on or after 1.10.2004
(D) exempt if sold on or after 1.10.2004 through a recognised stock
exchange in India and such transaction is chargeable to securities
transaction tax
(D)
463) Long-term capital gain from the sale of units of equity oriented fund shall be:
(A) exempt if sold through a recognised stock exchange and securities
transaction tax is paid
(B) exempt if sold through a recognised stock exchange or to mutual fund
and securities transaction tax is paid
(B)
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464) Short-term capital gain arising for the transfer of equity shares and units of
equity oriented fund shall be taxable:
(A) at the normal rate
(B) at the rate of 20 %
(C) at the rate of 10 % if transferred on or after 1.10.2004
(D) at the rate of 10 % if transferred on or after 1.10.2004 through a
recognised stock exchange and such transaction is chargeable to
securities transaction tax
(D)
465) Deduction u/s 80C shall be allowed:
(A) from the gross total income of the individual or HUF
(B) from the income from long-term capital gain
(C) from the gross total income other than long-term capital gain from any
asset and short-term capital gain on shares sold through recognised
stock exchange
(D) from the gross total income other than long-term capital gain
(D)
466) Deduction u/s 80C to 80U is allowed from:
(A) income from long-term capital gain as well as short-term capital gain
(B) short-term capital gain other than short-term capital gain from shares
transferred through a recognized stock exchange
(D) neither from income from long-term or short-term capital gain
(E) short-term capital gain
(B)
467) In case of compulsory acquisition, the period for investment specified assets
under section 54, 54B, 54D and 54F shall be reckoned from:
(A) the date of transfer
(B) the date when the part of full compensation is received
(C) the date as and when any compensation is received
(C)
468) Deduction u/s 80C to 80U is allowed from:
(A) gross total income
(B) gross total income exclusive of long-term capital gain
(C) gross total income exclusive of long-term capital gain as well as
shortterm capital gain
(D) gross total income exclusive of long-term capital gain from any asset
and short-term capital gain from the transfer of shares and units
through a recognised stock exchange
(D)
469) Income under the head income from other source is taxable on:
(A) due basis
(B) receipt basis
(C) on the basis of method of accounting regularly employed by the
assessee
(C)
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470) Dividend declared by a domestic company:
(A) is fully exempt
(B) fully taxable
(C) taxable but deduction is allowed u/s 80L on account of such dividend
(A)
471) Dividends declared by Unit Trust of India is:
(A) fully exempt in the hands of Unit holders
(B) fully taxable
(C) taxable but deduction is allowed u/s 80L
(A)
472) Deemed dividend is:
(A) taxable in all cases
(B) exempt in all cases except where a loan/advance is given to a
shareholder/concern by an Indian Company
(C) exempt in all cases except where a loan/advance is given by a closely
held domestic company to a shareholder who has 10 % voting power in
the domestic company or to a concern in which such shareholder has
twenty per cent voting power or share as the case may be
(C)
473) Where a closely held company gives a loan/advance to a shareholder who has
10 % voting power in the company or to concern in which such shareholder
has 20 % share in case such concern is a non-company assessee or has
substantial interest (20 % voting power) in case it is a company then
loan/advance so paid shall be deemed dividend to the extent of:
(A) accumulated profits whether capitalized or not
(B) accumulated profits excluding capitalized profits
(C) the loan or advance so paid
(B)
474) Loan & advance paid by the closely held company to its shareholder having
10 % voting power is the ordinary cause of money lending business shall:
(A) be treated as deemed dividend
(B) not be treated as deemed dividend
(B)
475) Winning from lotteries, crossword puzzles, horse races & other races, card
game, etc., are casual income & hence:
(A) fully exempt
(B) exempt up to Rs.5,000
(C) fully taxable
(C)
476) For computing lottery, crossword puzzles, races, card games income, etc., the
assessee shall:
(A) be entitled to deduction for purchase/any expenditure incurred for
earning such income
(B) not be entitled to any deduction for purchase/any expenditure
(C) be entitled to deduction up to certain limits
(B)
265386912.doc
- 58 477) The lottery, crossword puzzle, races, card games incomes, etc., are taxable at:
(A) normal slab rate of income-tax like any other income
(B) flat rate of 20 % + surcharge + education cess @ 2 %
(C) flat rate of 30 % + surcharge + education cess @ 2 %
(D) flat rate of 30 % + surcharge of 2.5 % + education cess @ 2 %
(C)
478) If no system of accounting is followed, interest on securities is taxable on:
(A) due basis
(B) receipt basis
(C) due or receipt basis at the option of the assessee
(A)
479) The legal heir of the deceased who receives family pension is allowed a
standard deduction from such family pension received to the extent of:
(A) 1/3rd of such pension subject to maximum of Rs.20,000
(B) 1/3rd of such pension or Rs.15,000 whichever is less
(C) 1/3rd of such pension or Rs.12,000 whichever is less
(B)
480) If there is a transfer of income by a person to another person without the
transfer of the asset from which the income arises, such income shall be
included in the income of:
(A) transferor
(B) transferee
(C) transferor if transfer is revocable
(D) transferee if transfer is irrevocable
(A)
481) If there is a revocable transfer of an asset by any person to another person, any
income arising from such asset shall be included in the income of:
(A) transferor
(B) transferee
(C) both transferor & transferee
(A)
482) If there is a transfer of asset which is not revocable during the life time of the
transferee, income arising from such asset shall be included in the income of:
(A) transferor
(B) transferee
(C) transferee till his death and thereafter in the hands of the transferor
(C)
483) Where an individual has substantial interest in a concern, there shall be
included in his total income any remuneration paid by such concern to:
(A) the wife of such individual
(B) the husband of such individual
(C) the spouse of such individual
(C)
484) Substantial interest for the purpose of clubbing provisions u/s 64(i) & (ii) shall
be of:
(A) the individual only
(B) the individual & his spouse taken together
(C) the individual along with his relatives
(C)
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485) As per section 64(i) & (iv), there shall be included in the income of an
individual, any income arising from the gift of the spouse of:
(A) any capital asset
(B) any asset
(C) any asset other than house property
(C)
486) R has sold 2000 14 % debentures of Rs.100 each to his wife for Rs.90,000.
The market value of debentures on the date of transfer was Rs.1,80,000. In
this case, interest income to be included in the total income of R shall be:
(A) Rs.28,000
(B) Rs.14,000
(C) Rs.25,200
(D) Rs.12,600
(B)
487) Where an individual transfers the house property to his wife without adequate
consideration, then income from such house property shall be subject to the
provisions of:
(A) section 64(1)(iv)
(B) section 27
(C) none of these
(B)
488) Clubbing provisions under section 64(1)(vi) are applicable where the asset is
transferred by an individual without an adequate consideration to:
(A) daughters husband
(B) sons wife
(C) major son
(D) major daughter
(B)
489) R gifts Rs.5,00,000 to his wife who invested the same in the partnership
business. Mrs. R receives Rs.1,45,000 as her share of profits from such firm.
In this case amount to be clubbed in the income of R shall be:
(A) Rs.1,45,000
(B) Rs.10,000 after giving maximum exemption of Rs.1,35,000 to Mrs. R
(C) Rs.NIL
(C)
490) R gifted Rs.10,00,000 to his wife on 1.4.2003. The wife invested the above
sum as capital contribution to the firm where she is a partner and earned
interest every year. The total capital of Mrs. R as on 1.4.2006 including 3
years interest was Rs.15,00,000. During the year she earned Rs.2,70,000 as
interest on such capital balance. The income to be clubbed in the hands of R
shall be:
(A) Rs.2,70,000
(B) Rs.1,80,000
(C) Rs.NIL
(B)
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income of:
(A) father
(B) mother
(C) father or mother at his option
(D) a parent whose income before their clubbing is greater
(D)
492) If the marriage of the parent does not subsist, the income of the minor child
shall be clubbed in the income of:
(A) father
(B) parent who maintains the child
(C) father or mother whose income is higher
(B)
493) When income of a minor child is clubbed in the income of the parent
concerned, such parent will be allowed exemption of:
(A) Rs.1,500
(B) Rs.1,500 per minor child
(C) to the extent of actual income clubbed or Rs.1,500 per minor child
whichever is less
(C)
494) If any income has to be clubbed under section 64, it will be clubbed under the:
(A) head, income from other sources
(B) relevant head to which it belongs
(B)
495) Loss from a speculation business of particular assessment year can be set off
in the same assessment year from:
(A) profits and gains from any business
(B) profits and gains from any business other than speculation business
(C) income of speculation business
(C)
496) Loss on account of owning & maintaining race horses of particular assessment
year can be set off in the same assessment year from:
(A) any business income
(B) any income under the head other sources
(C) income from race horses
(C)
497) Short-term capital loss of particular assessment year can be set off in the same
assessment year from:
(A) short-term or long-term capital gain
(B) long-term capital gain only
(C) long-term or short-term capital gain
(C)
498) Long-term capital loss of a particular assessment year can be set off in the
same assessment year from:
(A) short-term or long-term capital gain
(B) long-term capital gain only
(C) short-term capital gain only
(B)
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499) Loss under the head capital gain in a particular assessment year can:
(A) be set off from any other head of income in the same assessment year
(B) be carried forward
(C) neither be set off nor carried forward
(B)
500) During the previous year an assessee has incurred loss from his business
amounting to Rs.1,10,000 whereas his income from house property is
Rs.1,00,000. The assessee in this case can carry forward:
(A) business loss of Rs.10,000 only
(B) business loss of Rs.1,10,000 and claim full exemption
(C) at his option do any; of these
(A)
501) Loss under the head business and profession can be set off in the same
assessment year from:
(A) income under any other head
(B) income under any other head except salary income
(C) income under any other head except house property
(B)
502) The loss is allowed to be carried forward only when an assessee has furnished:
(A) return of loss
(B) return of loss before the due date mentioned u/s 139(1)
(C) or not furnished the return of loss
(B)
503) Loss under the head income from house property can be carried forward:
(A) only if the return is furnished before the due date mentioned u/s 139(1)
(B) even if the return is not furnished
(C) even if the return is furnished after the due date
(C)
504) A business loss can be carried forward and set off in the subsequent
assessment year when the business on account of which this loss has arisen:
(A) is continued in the assessment year in which such loss is set off
(B) is continued or not
(C) is continued for any part of the previous year
(B)
505) Loss on account of owning and maintaining the race horse can be carried
forward:
(A) for 8 years
(B) for 4 years
(C) indefinitely
(B)
506) Loss from derivate trading in shares carried on in a recognised stock exchange
is:
(A) a loss from speculative business
(B) a loss from non-speculative business
(B)
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507) Loss from derivate trading in shares carried on in a recognized stock exchange
can be set off:
(A) from the income from speculative business only
(B) from the income from non-speculative business only
(C) from the income of both speculative and non-speculative business
(C)
508) Loss from derivate trading in shares can be carried forward for:
(A) 8 years
(B) 10 years
(C) 4 years
(A)
509) Loss from derivate trading in commodity exchange is a:
(A) loss from speculative business
(B) loss from non-speculative business
(A)
510) Loss under the head house property:
(A) can be carried forward for 8 years
(B) cannot be carried forward
(C) can be carried forward for only 4 years
(A)
511) Brought forward loss:
(A) can be set off in any of the eight succeeding years
(B) must be set off in the immediate succeeding year and balance in the
immediately next succeeding year and so on
(C) as per (B) above but within the time allowed
(C)
512) In the case of amalgamation, carry forward of business loss and unabsorbed
depreciation in the hands of amalgamated company shall be allowed:
(A) of any amalgamating company
(B) of an amalgamating company which is owning an industrial
undertaking or a ship
(C) of an amalgamating company which is owning an industrial
undertaking or a ship or a hotel or a bank with a specified bank
(D) of an amalgamating company which is an Indian company and is
owning industrial undertaking or ship
(C)
513) In case of amalgamation if the conditions mentioned u/s 72A are satisfied, the
amalgamated company shall be allowed to carried forward the loss and
unabsorbed depreciation of amalgamated company for:
(A) fresh eight years
(B) eight years minus the assessment years already expired in the hands of
amalgamating company
(C) indefinitely
(A)
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514) Loss of a closely held company cannot be carried forward and set off unless
on the last day of the previous year in which such loss is set off, at least:
(A) 51 % of the shares are beneficially held by the same persons
(B) 50 % of the shares are beneficially held by the same persons
(C) 40 % of the shares are beneficially held by the same persons
(A)
515) Speculation loss can be carried forward for the maximum of:
(A) 8 years
(B) 10 years
(C) 4 years
(C)
516) Deduction u/s 80C in respect of LIP, contribution to PF, etc., is allowed to:
(A) any assessee
(B) individual assessee only
(C) individual or HUF who is resident in India
(C)
517) Deduction u/s 80C is allowed to a maximum of:
(A) Rs.70,000
(B) Rs.1,00,000
(C) Rs.1,40,000
(B)
518) Deduction u/s 80C is allowed from:
(A) gross total income
(B) gross total income exclusive of long-term capital gain
(C) gross total income exclusive of short-term capital gain from transfer of
listed securities through stock exchange and long-term capital gain on
any asset
(C)
519) For claiming deduction u/s 80C in respect of LIP., premium can be paid by
assessee for:
(A) himself only
(B) himself or the spouse
(C) himself, spouse and minor children
(D) himself, spouse and dependant children
(E) himself, spouse and any child
(E)
520) For claiming deduction u/s 80C, for life insurance premium if the payment is
made by the assessee for his child, then the child:
(A) should be dependant on assessee
(B) may or may not be dependant
(C) may be married or unmarried and dependant or not dependant
(C)
521) In case of HUF, deduction u/s 80C in respect of LIP shall be allowed for:
(A) any coparcener of the HUF
(B) Karta of HUF
(C) any member of HUF
(C)
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522) An assessee has paid life insurance premium of Rs.25,000 during the
previous year for a policy of Rs.1,00,000. He shall:
(A) not be allowed any deduction u/s 80C
(B) be allowed deduction u/s 80C to the extent of 20 % of the capital sum
assured i.e., Rs.20,000
(C) be allowed deduction for the entire premium as per the provisions of
section 80C
(B)
523) For claiming deduction u/s 80C in respect of PPF, the contribution must be
paid by the individual in the PPF account of:
(A) himself only
(B) himself and spouse
(C) himself, spouse or any child
(C)
524) For claiming deduction u/s 80C by an individual in respect of PPF
contribution for any child, the child should be:
(A) minor child
(B) any child dependant on such individual
(C) any child dependant or not dependant or not dependant on such
individual
(C)
525) For claiming deduction u/s 80C in respect of ULIP by an individual, the
contribution can be paid by the individual for:
(A) himself only
(B) himself and spouse
(C) himself, spouse or any child
(C)
526) For claiming deduction u/s 80C in respect of National Savings Certificates of
VIII issue, the NSC should be acquired by the individual in:
(A) his name only
(B) his name of any spouse name
(C) in his name or spouse name or the name of any child
(D) in his name or spouse or in the name of minor child
(A)
527) For amount subscribed to National Saving Scheme 1992, the individual shall
be allowed deduction u/s 80C for amount deposited:
(A) in his name only
(B) in his name or in the name of the spouse
(C) in his name, in the name of spouse or in the name of any child
(A)
528) For claiming deduction u/s 80C, the individual shall make the payment for
Jeevan Dhara or Jeevan Akshay Scheme in:
(A) his own name
(B) his own name or in the name of his spouse
(C) in his own name, in the name of spouse or in the name of any child
(A)
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529) If an assessee discontinues the life policy before the premium of 2 years have
been paid then:
(A) no deduction shall be allowed in respect of the payment made in the
year of termination
(B) besides what is mentioned in (A) above the aggregate amount of the
deduction from income so allowed in respect of the previous year or
years preceding such previous year, shall be deemed to be the income
of the assessee of such previous year and shall be liable to tax in the
assessment year relevant to such previous year
(B)
530) If a member, participating in the ULIP Plan, terminates his participation or
ceases to participate by reason non-payment of his contribution, before
making deduction for 5 years, then:
(A) no deduction shall be allowed in respect of the amount paid in the
previous year of termination
(B) besides what is mentioned in (A) the aggregate deduction allowed in
the past years shall be deemed to be the income in the previous year in
which membership is terminated
(C) besides what is mentioned in (A), the cases of the past years in which
deduction was allowed shall be re-opened and tax shall be recomputed
and the balance tax payable shall be so payable for these relevant years
(B)
531) The annual interest accrued on NSCs VIII issue shall be:
(A) exempt
(B) taxable
(C) besides what is mentioned in (B), the interest so accrued shall also be
eligible for deduction u/s 80C
(C)
532) For claiming deduction u/s 80C, the payment or deposit should be made:
(A) out of any income
(B) out of any income chargeable to income tax
(C) during the current year out of any source
(C)
533) Deduction u/s 80C shall be allowed for:
(A) any education fee
(B) tuition fee exclusive of any payment towards any development fee or
donation or payment of similar nature
(C) tuition fee and annual charges
(B)
534) Deduction u/s 80C for tuition fee shall be allowed if such fee is paid to:
(A) any university, college, school or other educational institution situated
within India or outside
(B) any university, college, school or other educational institution situated
within India
(B)
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535) Deduction u/s 80C for tuition fee shall be allowed for the purpose of:
(A) any full time education
(B) any full or part time education
(C) full time education in a college
(D) full time education in a school
(A)
536) Deduction u/s 80C in respect of tuition fee is allowed to:
(A) an individual only
(B) an individual or HUF
(C) any assessee
(A)
537) Deduction u/s 80C in respect of term deposit shall be allowed if the term
deposit is for a period:
(A) not less than 3 years
(B) not less than 5 years
(C) not less than 7 years
(B)
538) Deduction u/s 80C in respect of tuition fee is allowed to an individual for:
(A) any of his children
(B) any two children of such individual
(C) any two minor children of such individual
(D) any two dependent children of such individual
(B)
539) Deduction u/s 80C in respect of tuition fee is allowed to the maximum extent
of:
(A) Rs.12,000 per child for maximum of 2 children
(B) Rs.12,000 p.m. per child for maximum of 2 children
(C) Rs.1,00,000 per child
(D) Rs.1,00,000 for two children
(D)
540) Deduction in respect of contribution for annuity plan to certain pension fund
under section 80CCC is allowed to:
(A) any assessee
(B) individual assessee only
(D) individual who is resident in India
(B)
541) Deduction u/s 80CCC is allowed to the extent of:
(A) Rs.20,000
(B) Rs.1,00,000
(C) Rs.10,000
(B)
542) Amount received from the surrender of annuity plan or amount received as
pension from the annuity plan by the assessee or his nominee shall be:
(A) exempt
(B) taxable
(C) exempt up to certain limit, balance taxable
(B)
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543) Deduction u/s 80CCD in respect of contribution to pension scheme of Central
Government is allowed to:
(A) Central Government employees only
(B) Central and State Government employees
(C) any employee
(A)
544) Deduction u/s 80CCD is allowed to the extent of:
(A) employees contribution up to 10 % of salary
(B) employees contribution up to 15 % of salary
(C) employees and Central Government contribution each up to 10 %
salary
(D) employees and Central Government contribution each up to 15 % of
salary
(C)
545) Deduction u/s 80C, 80CCC and 80CCD cannot exceed:
(A) Rs.1,00,000
(B) Rs.1,10,000
(C) Rs.1,50,000
(A)
546) Deduction u/s 80D in respect of medical insurance premia is allowed to:
(A) any assessee
(D) individual only
(B)
547) Deduction u/s 80D is allowed if the premium is paid to:
(A) Life Insurance Corporation
(B) General Insurance Corporation or any other insurer
(C) Life Insurance or General Insurance Corporation
(B)
548) The payment for insurance premium under section 80D should be paid:
(A) in cash
(B) by cheque
(C) in cash or by cheque at the option of the assessee
(B)
549) The quantum of deduction allowed under section 80D shall be limited to:
(A) Rs.6,000
(B) Rs.10,000
(C) Rs.40,000
(B)
550) Where the assessee or his wife or her husband or dependant parents or any
member of the family of HUF is a senior citizen and the medical insurance
premium is paid to effect or keep in force an insurance in relation to him or
her the deduction allowed shall be:
(A) Rs.10,000
(B) Rs.15,000
(C) Rs.20,000
(B)
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551) Deduction u/s 80DD in respect of maintenance including medical treatment of
dependant being a person with disability shall be allowed to:
(A) any assessee
(C) an individual or HUF who is resident in India
(C)
552)(i) Deduction u/s 80DD shall be allowed:
(A) to the extent of actual expenditure/deposit or Rs.40,000 whichever is
less
(B) for a sum of Rs.50,000 irrespective of actual expenditure or deposit
(C) for a sum of Rs.40,000 irrespective of any expenditure incurred or
actual amount deposited
(B)
(ii) Deduction u/s 80DD in case of dependant with severe disability shall be
allowed:
(A) to the extent of actual expenditure/deposit or Rs.50,000 whichever is
less
(B) for a sum of Rs.75,000 irrespective of actual expenditure or deposit
(C) for a sum of Rs.50,000 irrespective of any expenditure incurred or
actual amount deposited
(B)
553) Deduction u/s 80DDB in respect of medical treatment for specified ailment or
disease is allowed to:
(A) any assessee
(B) individual or HUF
(C)
554) Deduction u/s 80DDB shall be allowed for medical treatment of specified
ailment or disease of:
(A) any dependant relative
(B) any dependant handicapped relative
(C) the assessee himself or any dependant relative
(C)
555) Deduction u/s 80DDB shall be allowed for a sum of:
(A) Rs.40,000 irrespective of any expenditure
(B) Rs.40,000 or actual expenditure whichever is less
(C) Rs.50,000
(B)
556) In case the assessee or dependant relative is a senior citizen then the deduction
u/s 80DDB shall be allowed for a sum of:
(A) Rs.40,000 or actual expenditure whichever is less
(B) Rs.60,000 or actual expenditure whichever is less
(C) Rs.60,000 irrespective or actual expenditure
(B)
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557) Deduction u/s 80E is allowed on account of:
(A) repayment of loan taken from certain specified institutions
(B) repayment of loan and interest on loan taken from certain specified
institutions
(C) interest on loan taken from certain specified institutions
(C)
558) Deduction u/s 80E in respect of interest on loan taken for higher education
shall be allowed to:
(A) an individual assessee only
(B) an individual who is resident in India
(C) an individual or HUF
(D) an individual or HUF who is resident in India
(A)
559) Deduction u/s 80E shall be allowed in respect of amount paid by way of
interest on loan taken from:
(A) any person
(B) financial institutions
(C) financial institutions or approved charitable institutions
(C)
560) For claiming deduction of interest u/s 80E loan should be taken for doing:
(A) any post graduate course
(B) any graduate or post graduate course in engineering, medicine,
management
(C) for course mentioned in (B) and post graduate course in applied
science or pure sciences including mathematics and pure sciences
(C)
561) The deduction u/s 80E is allowed for payment by way of interest on loan to
the extent of:
(A) Rs.25,000
(B) Rs.40,000
(C) any amount
(C)
562) Deduction u/s 80E for payment by way of interest on loan is allowed for:
(A) 5 years
(B) 8 years or till the interest is paid whichever is earlier
(C) 10 years
(D) 8 years
(B)
563) Deduction u/s 80G on account of donation is allowed to:
(A) a business assessee only
(B) any assessee
(C) individual or HUF only
(B)
564) Deduction in respect of rent paid u/s 80GG shall be allowed to:
(A) an individual
(B) any individual or HUF
(C) any assessee
(A)
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565) Deduction in respect of rent paid u/s 80GG is allowed to:
(A) any individual
(B) any individual who is self-employed
(C) any individual who is self-employed or who is an employee but not
entitled to HRA or rent free accommodation
(D) same as (C) above and who pays rent for his residential
accommodation
(D)
566) The maximum deduction u/s 80GG shall be limited to:
(A) Rs.1,000 p.m.
(B) Rs.2,000 p.m.
(C) Rs.3,000p.m.
(B)
567) Deduction u/s 80GGA in respect of certain donations for scientific research or
rural development is allowed to:
(A) any assessee
(B) non-corporate business assessee
(C) an assessee whose gross total income does not include income
chargeable under the head business and profession
(C)
568) Deduction u/s 80GGA shall be allowed to the extent of:
(A) 100 % of the donations so made
(B) 1 times of the donation so made
(C) 1 times of the donation so made
(A)
569) Deduction u/s 80-IA in respect of profits and gains from infrastructure facility
is allowed to an enterprises which is owned by:
(A) an Indian Company
(B) an Indian Company or other person who is resident in India
(C) an Indian Company or a consortium of such companies
(D) an Indian Company or a consortium of such companies or by an
authority or a board or a corporation or any other body established or
constituted under any Central or State Act
(D)
570) Deduction u/s 80-IA in respect of an undertaking which is engaged in
providing telecommunication services, etc., is allowed if it is owned by:
(B) any assessee
(C) an Indian company or consortium of such companies
(B)
571) Deduction to telecommunication industrial undertaking is allowed if it starts
providing telecommunication services between:
(A) 1.4.1995 & 31.3.2005
(B) 1.4.1995 & 31.3.2004
(C) 1.4.1997 & 31.3.2004
(A)
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572) Deduction to undertaking which develops, maintains, etc., any industrial part
allowed if such undertaking is owned by:
(B) an Indian Company or a Consortium of such companies
(C) any assessee
(C)
573) Deduction for operating an Industrial Park will be allowed only if such park
begins to operate any time between:
(A) 1.4.1995 & 31.3.2003
(B) 1.4.1997 & 31.3.2006
(C) 1.4.1997 & 31.3.2009
(C)
574) Deduction u/s 80-IA for any undertaking or enterprises engaged in
development of infrastructure facility shall be allowed to the extent of:
(A) 100 % of the profits for first 5 years and 30 % for subsequent 5 years
(B) 50 % of the profits for 10 years
(C) 100 % of the profits of such industrial undertaking or enterprises for
10 years
(C)
575) Deduction u/s 80-IA for any undertaking or enterprises engaged in
development of infrastructure facility shall be allowed @ 100 % for
consecutive assessment years out of:
(A) 15 years beginning with the year in which undertaking or the enterprise
develops or begins to operate any infrastructure facility
(B) 20 years beginning with the year in which undertaking or the enterprise
develops or begins to operate any infrastructure facility
(C) 20 years beginning with the year in which undertaking or the enterprise
develops or begins to operate any infrastructure facility other than port,
airport, inland port or inland waterways and out of 15 years for such
port, airport, inland port or inland waterways
(C)
576) Deduction u/s 80-IA for enterprise engaged in the business of providing
telecommunication, etc., shall be allowed for:
(A) 10 years @ 100 %
(B) first 5 assessment years @ 100 % and 30 % for the subsequent 5
assessment years
(C) first 5 assessment years @ 100 % and 30 % in case of a company and
25 % in case of non-company assessee for the subsequent 5 assessment
years
(B)
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telecommunication shall be allowed for:
(A) first 5 assessment years @ 100 % and for the next 5 assessment years
@ 30 % starting from the assessment year in which it starts providing
telecommunication services
(B) first 5 consecutive assessment years @ 100 % and subsequent 5
assessment years @ 30 % out of 15 years being with the year in which
enterprises starts providing telecommunication services
(C) first 5 consecutive assessment years @ 100 % and subsequent 5
assessment years @ 30 % out of 20 years being with the year in which
enterprises starts providing telecommunication services
(B)
578) Deduction u/s 80-IB in respect of an industrial undertaking established in a
backward state or district of category-A shall be allowed for:
(A) 100 % of profits from such industrial undertaking for 10 years
(B) 150 % of profit for 10 years
(C) 100 % of profits for 5 years, 30 % or 25 % of profits in case of
company and non-company assessee other than co-operative society
for subsequent 5 years (25 % of the profits in case of co-operative
society for subsequent 7 years
(C)
579) Deduction u/s 80-IB in respect of an industrial undertaking established in a
district of category-B shall be allowed:
(A) 100 % of the profits from such industries for 10 years
(B) 100 % of the profits for the first 3 years and 30 % (in case of company)
or 25 % (in case of non-company assessee) of the profit, as the case
may be for the next five years
(C) 100 % of the profits for the first 5 years and 30 % (in case of company)
or 25 % (in case of non-company assessees) for next 5 years but 25 %
of the profits in case of a co-operative society for next 9 years
(C)
580) Deduction u/s 80-IB in respect of a hotel located in a hilly area or rural area or
a place of pilgrimage shall be allowed to the extent of:
(A) 30 % of the profits for 10 years
(C) 100 % of profits for first 5 years and 30 % of profits for next
subsequent 5 years
(B)
581) Deduction u/s 80-IB in respect of specified hotel or other hotel shall be
allowed if the commencement of business taken place any time between:
(A) 1.4.1995 & 31.3.1999
(B) 1.4.1997 & 31.3.2001
(C) 1.4.1997 & 31.3.2002
(B)
582) Deduction of any hotel other than specified hotel established in any area other
than Delhi, Mumbai, Chennai and Calcutta shall be allowed to the extent of:
(A) 50 % of the profits for 10 years
(C) 30 % of the profits for 12 years
(B)
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583) Deduction u/s 80-IB in respect of specified or other hotel shall be allowed to:
(B) any assessee
(C) an Indian Company or a person other than a company who is resident
in India
(D) an Indian Company with a paid up capital of at least Rs.5,00,000
(D)
584) Deduction u/s 80-IB for enterprises carrying on scientific and industrial
research and development is allowed in case of:
(A) any assessee
(B) an Indian Company
(C) an Indian Company or a person other than company resident in India
(B)
585) The quantum of deduction in case of an enterprises on scientific and industrial
research and development shall be allowed to the extent of:
(A) 100 % for a period of 7 assessment years
(B) 100 % for a period of 5 assessment years
(C) 100 % for a period of 10 assessment years
(C)
586) Deduction u/s 80-IB in case of an undertaking engaged in commercial
production or refining of mineral oil in any part of India is allowed to the
extent of:
(A) 100 % of profits for 5 assessment years
(B) 100 % of profits for 7 assessment years
(C) 100 % of profits for 10 assessment years
(B)
587) Deduction u/s 80-IB in case of an undertaking engaged in developing and
building housing project shall be allowed to:
(A) any assessee
(C) any assessee other than an Indian Company
(A)
building housing project shall be allowed provided the project is on the size of
plot of:
(A) at least 1 acre except when allowed by notification by the Centre or
State Government
(B) at least 1 hectate
(C) at least 1 acre
(A)
building housing project shall be allowed provided the resident unit has a
built area of:
(A) 1500 Sq. feet in Delhi, Mumbai, Chennai and Calcutta and 1000 Sq.
feet in any other place
(B) 1000 Sq. feet in Delhi, Mumbai, Chennai and Calcutta and 1500 Sq.
feet in any other place
(C) 1500 Sq. feet at any place in India
(B)
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590) Deduction u/s 80-IB in case of an undertaking engaged in the housing project
shall be allowed only if plan lay-out are approved by the local authority
before:
(A) 31.3.2005
(B) 31.3.2006
(C) 31.3.2007
(C)
591) Deduction u/s 80-IB in case of an undertaking engaged in the business of
housing project shall be allowed only if the housing project is:
(A) completed within 4 years from the end of the financial year in which
plan lay-out is approved by the local authority
(B) completed before 1.4.2008 if the plan lay-out is approved before
1.4.2004 and within 4 years from the end of the financial year in which
plan lay-out is approved by the local authority
(C) completed before 1.4.2008
(B)
592) Deduction u/s 80JJA in respect of profits and gains from business of
collecting and processing of bio-degradable waste is allowed to the extent of:
(A) 100 % of the profits derived from such business or Rs.5,00,000
whichever is less
(B) 100 % of the profits for a period of 10 years
(C) 100 % of the profits for a period of 5 consecutive assessment years
(C)
593) Deduction u/s 80JJA in respect of employment of new worker shall be
allowed to:
(A) any assessee
(C) an Indian Company or a person other than company resident in India
(B)
594) Deduction u/s 80JJA shall be allowed to a new industrial undertaking owned
by a company assessee in respect of employment of regular workmen
exceeding:
(A) 80 workmen
(B) 100 workmen
(C) 150 workmen
(B)
595) Deduction u/s 80JJAA to existing Industrial undertaking shall be allowed if
there is:
(A) any increase in regular workmen
(B) at least 10 % increase in the number of workmen employed
(C) there is 10 % increase as well as the total workmen including the new
workmen exceeds 100 workmen
(C)
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596) Deduction u/s 80JJAA to existing industrial undertaking shall be allowed for
the:
(A) additional wages paid to new workmen employed during the year
(B) additional wages paid to new workmen which are in excess of 100
workmen (inclusive of existing workmen)
(C) additional wages paid to new workmen employed during the year in
excess of 100 workmen
(B)
597) Deduction u/s 80JJAA shall be allowed to the extent of:
(A) 100 % of the additional wages paid to the new regular workmen
(B) 50 % of the additional wages paid to the new regular workmen
(C) 30 % of the additional wages paid to the new regular workmen
(C)
598) Deduction u/s 80L is allowed to the extent of:
(A) Rs.12,000
(B) Rs.15,000
(C) NIL
(C)
599) Deduction u/s 80-IC is allowed if the business of the assessee is situated:
(A) in any State
(B) in any Backward State
(C) in the States of Sikkim, Himachal Pradesh and Uttaranchal
(C) in the States of Sikkim, Himachal Pradesh, Uttaranchal or the North
Eastern States
(D)
600) Where the business of manufacturing or producing is done or inany notified
specified areas in the State of Sikkim, Himachal Pradesh, Uttaranchal or the
North Eastern States then for claiming deduction u/s 80-IC, such business of
manufacturing or producing should be:
(A) of any article or thing
(B) of any article or thing not being an article or thing mentioned in
Schedule XIII of the Income-tax Act
(C) of any article or thing mentioned in Schedule XIV of the Income-tax
Act
(B)
601) In the above case, if manufacturing or producing, etc., is done in any area
other than a notified area in the aforesaid States, such business of
manufacturing or producing an article or thing or for an operation should be
for:
(A) any article or thing
(B) any article or thing other than mentioned in Schedule XIII
(C) any article or thing or an operation mentioned in Schedule XIV of the
Income-tax Act
(C)
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- 76 602) Deduction u/s 80-IC is allowed to the extent of:

(A) 100 % of profits and gains for ten assessment years
(B) 100 % of profits and gains for ten assessment years in case of any
undertaking or enterprise in the States of Sikkim or NorthEastern
Region and 50 % in case of undertaking in Uttaranchal and Himachal
Pradesh
(C) 100 % of profits and gains for ten assessment years in case of an
undertaking or enterprise in the States of Sikkim or North Eastern
States and 100 % of profits and gains for the first 5 assessment years
and 25 % (30 % in the case of companies) for the next 5 assessment
years
(C)
603) Deduction u/s 80QQB is allowed in respect of royalty income to:
(A) an individual who is an author of a book
(B) an individual who is a resident in India and who is an author of a book
(C) an individual who is a resident in India and who is either an author of a
book or a joint author of the book
(C)
604) Deduction u/s 80QQB is allowed to an author of a book provided such book is
of:
(A) literary nature
(B) scientific nature
(C) artistic nature
(D) literary or scientific nature
(E) scientific or artistic nature
(F) literary, artistic or scientific nature
(F)
605) Deduction u/s 80QQB is allowed to an author of a book of literary or artistic
or scientific nature who is resident in India to the extent of:
(A) 100 % of royalty income or Rs.5,00,000 whichever is less
(B) 100 % of royalty income or Rs.3,00,000 whichever is less
(C) 100 % of royalty income or Rs.2,00,000 whichever is less
(C)
606) Deduction u/s 80U in case of permanent physical disability (including
blindness) is allowed to:
(A) an individual who is a citizen of India
(B) an individual who is a resident in India
(C) any individual assessee
(B)
607) Deduction u/s 80RRB in respect of royalty on patents shall be allowed to:
(A) an individual
(B) an individual who is resident in India
(C) an individual who is resident in India and is a patentee or co-patentee
(C)
608) The quantum of deduction allowed u/s 80U is:
(A) Rs.40,000
(B) Rs.50,000
(C) Rs.60,000
(B)
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609) Deduction u/s 80U shall be allowed only when the assessee is suffering from a
permanent disability:
(A) at the beginning of the previous year
(B) at any time during the previous year
(C) at the end of the previous year
(B)
610) Where the return of income is filed after the due date specified u/s 139(1):
(A) all deductions under Chapter VIA, i.e., 80C to 80U will be allowable
(B) all deductions under Chapter VIA, i.e., 80C to 80U will not be
allowable
(C) all deductions under Chapter VIA, i.e., 80C to 80U excepting 80-IA,
80-IAB, 80-IB and 80-IC will be allowable
(D) all deductions under Chapter VIA, i.e., 80C to 80U except 80-IA will
be allowable
(C)
611) Agricultural income is exempt provided the:
(A) land is situated in India
(B) land is situated whether in India or outside India
(C) land is situated in any rural area in India
(A)
612) If the assessee is engaged in the business of growing and manufacturing tea in
India, the agricultural income in that case shall be:
(A) 40 % of the income from such business
(B) 60 % of the income from such business
(C) market value of the agricultural produce minus the expenses on
cultivation of such agricultural produce
(B)
613) If the assessee is engaged in the business of growing and manufacturing of
rubber, the agricultural income in that case shall be:
(C) 65 % of the income from such business
(C)
614) If the assessee is engaged in the business of growing and curing of coffee, the
agricultural income in that case shall be:
(B)
615) If the assessee is engaged in the business of manufacturing some products
other than tea, rubber or coffee for which he uses his own agricultural
produce, then agricultural income in that case shall be:
(D) 40 % of the income from such business
(A)
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- 78 616) If the assessee is engaged in the business of manufacturing some products

other than tea, rubber or coffee for which he uses his own agricultural
produce, then agricultural income in that case shall be:
(A) 40 % of the income from such business of growing and manufacturing
the products out of it
(B) 60 % of such income
(C) market value of such agricultural produce minus the expenses incurred
for cultivation of such agricultural produce
(C)
617) If the assessee uses its own agricultural produce for the purpose of
manufacturing certain products other than tea, rubber or coffee the cost of
such agricultural produce for the purpose of computing business income of
manufacturing shall be:
(A) cost of producing such agricultural produce
(B) market value of such agricultural produce as on the date of use
618) If an assessee uses the agricultural produce grown by him for his own
consumption then:
(A) the market value of such agricultural produce shall be treated as his
agricultural income
(B) the market value of the agricultural produce minus the cost of
cultivation shall be treated as his agricultural income
(C) nothing shall be treated as his agricultural income
(C)
619) An assessee has incurred Rs.1,00,000 on the cultivation of agricultural
produce. 50 % of the produce has been sold for Rs.1,10,000 and the balance
50 % has been used by the assessee for his self-consumption, the agricultural
income in this case shall be:
(A) Rs.10,000
(B) Rs.60,000
(C) Rs.1,20,000
(B)
620) The partial integration of agricultural income with non-agricultural income is
done in case of:
(A) all assessees
(B) any assessee other than who is liable to be taxed at the flat rate of
income-tax
(C) individual, HUF, AOP or BOI and artificial juridical person
(C)
621) Agricultural income is:
(A) fully exempt
(B) partially taxable
(C) fully taxable
(A)
622) The partial integration of agricultural income is done to compute tax on:
(A) agricultural income
(B) non-agricultural income
(C) both agricultural and non-agricultural income
(B)
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623) If a firm earns agricultural income, it will be exempt:
(A) in the hands of the firm
(B) in the hands of the firm but taxable in the hands of the partners
(C) in the hands of the firm as well as its partners
(D) in the hands of the firm as well as its partners but would be included in
the other income of the partners for computation of tax on his other
incomes
(D)
624) If a company declares dividend out of agricultural income, such dividend
declared by the company shall be:
(A) exempt in the hands of the shareholder but dividend tax will be payable
by the company
(B) not be subject to any income-tax, either in the hands of the company or
the shareholder
(C) included in the total income of the shareholder
(A)
625) There will be no partial integration of agricultural integration with
nonagricultural income, if the non-agricultural income of A who is less than
65
years does not exceed:
(A) Rs.5,000
(B) Rs.1,00,000
(C) Rs.50,000
(B)
626) There will be no partial integration, if the agricultural income does not exceed:
(A) Rs.50,000
(B) Rs.1,00,000
(C) Rs.5,000
(C)
627) Income derived from rubber plantation in Singapore but Received in India
shall be treated as:
(A) agricultural income and hence exempt
(B) agricultural income but taxable under the head income from other
source
(C) exempt as it is earned outside India
(B)
628) Dividend received by a shareholder from an Indian company the whole of
whose income is agricultural income shall be treated as:
(A) agricultural income in the hands of shareholder and thus exempt
(B) agricultural income and thus exempt but it will be subject to partial
integration
(C) exempt under section 10(34) but taxable in the hands of the company
(D) income taxable under the head income from other sources
(C)
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629) Rebate u/s 88E in respect of securities transaction tax is allowed to:
(A) any assessee
(C) an assessee whose total income includes any income chargeable under
the head profits and gains from business or profession which arises
from taxable securities transactions
(D) an assessee whose total includes any income which arises from taxable
securities transactions
(C)
630) Rebate u/s 88E in respect of securities transaction tax is allowed to the extent
of:
(A) securities transaction tax so paid
(B) an amount equal to the securities transaction tax paid in respect of
taxable securities transactions or the amount calculated by applying the
average rate of income-tax on income arising from taxable securities
transactions
(C) an amount equal to any securities transaction tax paid or the amount
calculated by applying the average rate of income-tax on income
arising from taxable securities transaction
(B)
631) Share of profits which a partner receives from a firm which is assessed as
firm shall be:
(A) fully exempt
(B) taxable under the head business and profession
(C) included in the total income of partner for rate purposes
(A)
632) Interest on Capital or loan received by a partner shall be:
(A) fully exempt
(B) fully taxable
(C) taxable to the extent the deduction is allowed to the firm
(D) taxable to the extent of 12 % p.a.
(C)
633) A firm assessed as firm shall be entitled to deduction on account of interest on
capital or loan paid to the partner:
(A) to the extent of 18 % p.a.
(B) to the extent what is mentioned in the partnership deed
(C) to the extent of 15 % p.a. or what is mentioned in partnership deed
(D) to the extent of 12 % or lower rate as is mentioned in the partnership
deed
(D)
634) The deduction of interest and remuneration subject to restriction u/s 40(b)
shall be allowed to the firm if the partnership is:
(A) evidenced by an instrument
(B) oral
(C) oral or evidenced by an instrument
(A)
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635) A firm is evidenced by an instrument and the individual share of the partners
are specified in that instrument, the firm in this case shall be assessed as firm
if the certified copy of the partnership is submitted to the jurisdictional
Assessing Officer:
(A) before the end of the previous year
(B) along with return of income before the due date of furnishing the return
of income u/s 139(1)
(C) along with the return of income
(C)
636) A firm which is assessed as firm shall be entitled to deduction on account of
remuneration paid to:
(A) any working partner only
(B) any partner whether working or non-working
(C) only one working partner
(A)
637) In case of a firm carrying on a specified profession, the deduction on account
of remuneration to working partners shall be to the maximum extent of:
(A) Rs.50,000
(B) On the first Rs.75,000 of book profits 90 % of book profits or
Rs.50,000 whichever is more, on the next Rs.75,000 of book profits
60 % and on the balance book profits 40 %
(C) On the first Rs.1,00,000 of book profits 90 % of book profits or
Rs.50,000 whichever is more, on the next Rs.1,00,000 of book profits
60 % and on the balance book profits 40 %
(C)
638) A firm carrying on business shall be entitled to deduction on account of any
remuneration to working partner to the maximum extent of:
(A) Rs.50,000
(B) Rs.50,000 or 90 % of the first Rs.75,000 of book profits, whichever is
more, 60 % of the next Rs.75,000 book profits & 40 % of the balance
book profits
(C) Rs.50,000 or 90 % of the first Rs.1,00,000 of book profit, 60 % of the
next Rs.1,00,000 of book profit and 40 % of balance book profits
(B)
639) Remuneration paid to a working partner by a firm carrying on non-specified
profession shall:
(A) not be eligible for deduction
(B) be eligible for deduction in the same manner as is allowed as deduction
to the firm
(C) be eligible for deduction in the same manner as is allowed to a firm
carrying on specified profession
(B)
640) Where the book profits of the firm assessed as firm is negative, the
remuneration paid to working partner shall:
(A) not be allowed as deduction to the firm
(B) allowed as deduction to the firm
(C) allowed as deduction to the firm subject to a maximum of Rs.50,000
(C)
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641) If for a particular year relevant to an assessment year, the firm has incurred
loss, such loss:
(A) is shared by partners & set off with their respective other income
(B) shall be carried forward by the firm only
(C) shall be either carried forward by the firm or its partners
(B)
642) If there is a change in the constitution of the firm due to retirement, death, etc.,
of the partner then the brought forward loss of the firm shall:
(A) be allowed to be set off in the hands of reconstituted firm
(B) be allowed to be set off in the hands of reconstituted firm to the extent
of brought forward loss minus share of the brought forward loss of
partner who has retired or died
(C) not be allowed to be carried forward and set off
(B)
643) A firm assessed as firm shall be liable to income-tax:
(A) at the rates applicable to an individual
(B) @ 35 % + 10 % surcharge + education cess @ 2 %
(C) 10 % on short-term capital gain on shares sold through recognised
stock exchange, @ 20 % on long-term capital gain or any asset other
than shares sold through recognised stock exchange and 30 % on other
income + 10 % surcharge + education cess @ 2 %
(C)
644) Remuneration received by a non-working partner shall:
(A) be taxable in the hands of the partner
(B) not be taxable in the hands of such non-working partner
(C) not be taxable as the firm will not be allowed deduction on account of
such amount and it will be treated as share of profits
(C)
645) If a firm is not evidenced by an instrument or if the partners shares are not
determinate or if the partnership deed is not submitted along with the return of
income then such firm shall be:
(A) assessed as firm but firm shall not be entitled to deduction on account
of any interest or remuneration to partners
(B) assessed as individual
(C) assessed in the hands of its partners by including the share of profits in
their income
(D) assessed as AOP
(A)
646) Where in respect of any assessment year there is on the part of the firm any
such failure as is mentioned in section 144, the firm shall be:
(A) assessed as AOP
(B) so assessed that no deduction by way of any payment of interest,
salary, bonus, commission or remuneration made by such firm to any
partner shall be allowed in computing the income of the firm
chargeable under the head business or profession
(C) assessed in the hands of partners individually
(B)
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647) A firm is required to file return of income as per section 139(1):
(A) if its total income exceeds Rs.1,00,000
(B) if its total income exceeds the maximum amount which is not
chargeable to tax which in case of a firm is NIL
(C) in all cases, whether it has any income/loss or not
(C)
648) AOP or BOI for the purpose of levy of tax does not include:
(A) a company
(B) a company or co-operative society
(C) a company or co-operative society or a society registered under the
Societies Registration Act, 1860 or under any other law computing to
that Act in force in any part of India
(C)
649) A society registered under the Societies Registration Act, 1860 is taxable as:
(A) AOP/BOI as per section 167B
(B) AOP but the tax rate shall be same as is applicable in case of an
individual
(C) at special rate of tax
(B)
650) A co-operative society is although a body of individuals but is taxable at:
(A) the same rate as are applicable to individual
(B) the special rates given in Schedule-I of the Income-tax Act
(C) the maximum marginal rate of 30 %
(B)
651) In case of AOP/BOI, any interest paid to the member shall:
(A) be allowed as deduction to the AOP/BOI while computing its income
(B) be allowed as deduction to the AOP/BOI while computing its income
subject to maximum of 12 % p.a.
(C) not be allowed as deduction
(C)
652) In case of AOP/BOI, any salary, bonus, commission or remuneration paid by
AOP/BOI to its member shall:
(A) be allowed as deduction to the AOP/BOI while computing its income
(B) be allowed as deduction to the AOP/BOI while computing its income
subject to the limit prescribed u/s 40(b)
(C) not be allowed as deduction
(C)
653) In case of AOP whose members are other than foreign company and their
shares are unknown, the tax shall be charged:
(A) at the rate applicable to individuals
(B) at the maximum marginal rate i.e., 30 % + surcharge as applicable +
education cess @ 2 %
(C) at the rate of 40 % + 2.5 % surcharge + education cess @ 2 %
(B)
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- 84 654) In case of AOP whose members include a foreign company, and their shares
are unknown, the tax shall be charged:
(C) at the rate applicable to the foreign company i.e., 40 % + surcharge @
2.5 % + education cess at 2 %
(C)
655) In case of AOP whose members are other than foreign company, and whose
shares are known, but the total income of any of its members exceeds the
maximum exemption limit, tax to the AOP shall be charged:
(C) at the rate of 40 % + surcharge + education cess @ 2 %
(B)
656) In case of AOP whose members include a foreign company, and their shares
are known, the tax shall be charged:
(C) at the rate applicable to the foreign company i.e., 40 % + surcharge @
2.5 % + education cess at 2 %
(D) on that portion or portions of income of AOP which is relatable to the
share of the member which is a foreign company, the tax shall be
charged @ 40 % + surcharge + education cess @ 2 % and on the
balance income at the maximum marginal rate
(D)
657) In case of AOP/BOI where the share of the members are known but none of
the members has taxable income exceeding maximum exemption limit nor
any member is taxable at a rate higher than the maximum marginal rate, the
tax shall be charged:
(C) at the rate of 35 % + surcharge + education cess @ 2 %
(A)
658) In case of AOP where the share of the members are known but none of the
members has taxable income exceeding maximum exemption limit, but one or
more member is taxable at a rate higher than the maximum marginal rate, the
tax shall be charged:
(B) on that portion of income of AOP which is relatable to the member
taxable at higher rate, at the rate applicable to such member and the
balance taxable income at the rate applicable to individuals
(C) on that portion of income of AOP which is relatable to the member
taxable at higher rate, at the rate applicable to such member and the
balance taxable income at the maximum marginal rate
(C)
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659) Where the total income of the AOP/BOI, whose none of the members has
income exceeding maximum exemption limit nor any member is taxable at a
rate higher than maximum marginal rate, is less than Rs.1,00,000:
(A) the AOP/BOI shall not be liable to pay any tax and the share of the
profit of the member from AOP/BOI shall not be included in their
respective total income
(B) the AOP/BOI shall not be liable to pay any tax and the share of the
profit of the member from AOP/BOI shall be included in their
respective total income
(C) the AOP/BOI will be liable to tax at the maximum marginal rate
(B)
660) Where the AOP/BOI has paid tax on its income @ 30 % or at a higher rate,
the share of the profit which a member gets from the AOP/BOI:
(A) shall be included in the total income of a member
(B) shall be included in the total income of a member but a rebate of
income-tax at the average rate will be allowed as per section 86
(C) shall not be included in the total income of the member
(C)
661) Where the AOP/BOI has paid tax on its income at the rate applicable to
individuals, the share of the profit which a member gets from the AOP/BOI:
(A) shall be included in the total income of a member
(B) shall be included in the total income of a member but a rebate of
income-tax at the average rate will be allowed as per section 86
(C) shall not be included in the total income of the member
(B)
662) The tax on total income exclusive of long-term capital gain is 30 % + 10 %
surcharge + education cess @ 2 % in case of:
(B) a Domestic Company
(C) a Foreign Company
(B)
663) The maximum exemption limit in case of a company assessee is:
(A) Rs.10,000
(B) Rs.50,000
(C) Rs.NIL
(C)
664) A surcharge of 10 % on income-tax is payable by:
(A) any Company
(C) a Domestic Company
(C)
665) A foreign company is chargeable to income-tax:
(A) @ 35 %
(B) @ 35 % + surcharge @ 2.5 % + education cess @ 2 %
(C) @ 40 % + surcharge @ 2.5 %
(D) @ 40 % + surcharge @ 2.5 % + education cess @ 2 %
(D)
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- 86 666) As per section 115 JB relating to Minimum Alternate Tax, the tax payable by
the assessee shall be deemed to be:
(A) 10 % of the net profits as per profit & loss account
(B) 10 % of book profits
(C) 10 % of book profits plus surcharge and education cess as applicable
(C)
667) MAT provisions are applicable in case of:
(A) any assessee
(B) a company
(C) a company or a firm
(B)
668) Income-tax on dividend is payable by:
(A) any Indian Company
(B) a Public Limited Company
(C) a shareholder
(D) a Domestic Company
(D)
669) If a company pays tax u/s 115JB the credit for the excess tax paid by the
company can be claimed in the immediately succeeding:
(A) 5 years
(B) 7 years
(C) 10 years
(B)
670) Long-term capital gain which is exempt u/s 10(38) (relating to long-term
capital gain on sale of shares through stock exchange) shall:
(A) not be included for computing book profits u/s 115JB
(B) be included for computing book profits u/s 115JB
(B)
671) As per section 139(1), a company shall have to file return of income:
(A) when its total income exceeds Rs.1,00,000
(B) when its total income exceeds the maximum amount which is not
chargeable to income-tax
(C) in all cases, irrespective of any income or loss earned by it
(C)
672) As per section 139(1), a firm shall have to file return of income:
(A) when its total income exceeds Rs.1,00,000
(B) when its total income exceeds the maximum amount which is not
(C) in all cases, irrespective of any income or loss incurred by it
(C)
673) As per section 139(1), an individual other than a senior citizen or a woman
shall have to file return of income if:
(A) his total income exceeds Rs.1,00,000
(B) his total income exceeds Rs.1,85,000
(C) his total income exceeds Rs.1,35,000
(D) his total income exclusive of deduction u/s 80C to 80U and section
10A, 10B and 10BA exceeds Rs.1,00,000
(E) his gross total income exceeds Rs.1,00,000
(D)
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674) As per section 139(1) an individual, who is a senior citizen shall have to file
return of income if:
(B) his gross total income exceeds Rs.1,85,000
(C) his total income exclusive of deduction u/s 80C to 80U and section
(D) his total income exclusive of deduction u/s 80C to 80U and section
(C)
675) As per section 139(1), a person other than a company or a firm shall have to
file return of income if:
(B) his total income exceeds the maximum amount which is not chargeable
to tax
(C) his total income exclusive of deduction under Chapter VI and Sections
10A, 10B and 10BA exceeds the maximum amount which is not
(D) in all cases, irrespective of any income or loss
(D)
676) The total income of a trust before claiming exemption u/s 11 is Rs.1,90,000.
It is eligible for exemption u/s 11 to the extent of Rs.1,00,000. Such trust
shall:
(A) have to file a return of income
(B) not be required to file return of income as its taxable income is
Rs.90,000
(B)
677) A dies on 15.11.2006 and his total income till 15.11.2006 was Rs.1,10,000.
Thereafter, the business of A was inherited by his son R and his total income
from such business was Rs.95,000. The son do not have any other income.
In this case the son:
(A) has to file a consolidated return of income amounting to Rs.2,05,000
(B) has to file two returns of income, one on behalf of his father for
Rs.1,10,000 and other in his own capacity for Rs.95,000
(C) has to file one return of income on behalf of his father for Rs.2.05,000
(D) has to file one return of income on behalf of his father for Rs.1,10,000
(D)
678) The last date of filing the return of income u/s 139(1) for assessment year
2007-08 in case of a Company assessee is:
(A) 30th November of the assessment year
(B) 31st October of the assessment year
(C) 31st March of the assessment year
(B)
679) The last date of filing the return of income u/s 139(1) for assessment year
2007-08 in case of non-corporate assessee who does not have any income
under the head Profits and gains from business or profession is:
(A) 31st July of the assessment year
(C) 31st March of the assessment year
(A)
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680) The last date of filing the return of Income u/s 139(1) for assessment year
2007-08 in case of non-corporate business assessee whose accounts are not
liable to be audited shall be:
(B) 30th June of the assessment year
(C) 31st October of the assessment year
(A)
681) The due date of filing the return of income for assessment year 2007-08 in the
case of a working partner of a firm whose accounts are liable to be audited
shall be:
(C) 30th June of the assessment year
(B)
682) All companies other than those covered u/s 25 are required to file return of
income in:
(A) Form No.1
(B) Form No.2
(C) Form No.3
(D) Form No.3A
(A)
683) Assessees other than companies having income under the head Profits and
gains from business or profession are required to file the return in:
(A) Form No.1
(B) Form No.2 or 2D
(C) Form No.3
(D) Form No.3A
(B)
684) e-filing of return in case of a company assessee is:
(A) mandatory
(B) optional
(A)
685) The filing of return of loss is:
(A) mandatory
(B) not mandatory
(C) mandatory if the assessee has to carry forward the loss which are
allowed to be carried forward and set off
(C)
686) If the assessee has to carry forward the loss, the return of loss must be
submitted:
(A) on or before the due date mentioned in section 139(1)
(B) at any time before the end of the relevant assessment year
(C) at any time before the expiry of one year from the end of the relevant
assessment year
(A)
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687) If there is a loss under the head house property, it will be allowed to be carried
forward (if it could not be set off from other heads of income). In this case,
however, the assessee:
(A) has to submit the return of loss before the due date as mentioned in
section 139(1)
(B) need not submit the return of income
(C) must submit the return of income but it can be belated return submitted
as per section 139(4)
(C)
688) Belated return u/s 139(4) can be filed at any time:
(A) before the expiry of the relevant assessment year
(B) before the expiry of one year from the end of the relevant assessment
year
(C) before the expiry of one year from the end of the relevant assessment
year or before the assessment is complete, whichever happens to be
earlier
(C)
689) An assessee was issued notice u/s 142(1)(i) to file his return of income within
30 days of the receipt of notice. He submitted his return within 30 days. Such
return shall be treated as:
(A) belated return as per section 139(4) though filed within time
(B) return filed within time
(C) return filed within due date mentioned u/s 139(1)
(D) return filed within time, if he is neither covered u/s 139(1) or proviso
to section 139(1) and belated return as per section 139(4) though filed
within time if he is covered either u/s 139(1) or proviso to section
139(1)
(D)
690) The assessee could not file his return of income for the assessment year
2006-07 within the time allowed u/s 139(1). No assessment has so far been
made. The assessee in this case can file his return of income till:
(A) 31.3.2008
(B) 31.3.2009
(C) 31.3.2010
(A)
691) The assessee could not file his return of income for the previous year 2006-07
within the time allowed u/s 139(1). No assessment has so far been made. The
assessee in this case can file his return of income till:
(A) 31.3.2008
(B) 31.3.2009
(C) 31.3.2010
(B)
692) The assessee could not file his return of income for assessment year 2005-06
within the time allowed as per section 139(1). His assessment u/s 144 was
completed on 15.1.2007 and it was communicated to him on 19.1.2007. The
assessee in this case could file the belated return till:
(A) 14.1.2007
(B) 15.1.2007
(C) 18.1.2007
(A)
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693) For the previous year 2005-06 assessee has suffered a business loss of
Rs.2,50,000. His income from other sources is Rs.1,80,000. His due date of
return was 31.7.2006 but he submitted he return on 9.9.2006, the assessee in
this case:
(A) shall be allowed to carry forward the loss of Rs.70,000
(B) shall not be allowed to carry forward any loss
(C) shall be allowed to set off current year business loss to the extent of
Rs.1,80,000 but shall not be allowed to carry forward the balance loss
of Rs.70,000
(D) shall not be allowed to set off the business loss to the extent of
Rs.1,80,000 and would be liable to tax on Rs.1,80,000
(C)
694) For the previous year 2005-06, the assessee incurred loss under the head,
income from house property amounting to Rs.1,20,000. His other income for
the same previous year is Rs.50,000. The due date of filing the return of
income is 31.7.2006 but he submitted the return of income on 9.9.2006. In
this case, the assessee:
(A) shall be allowed to carry forward the loss of Rs.70,000
(B) shall not be allowed to carry forward the loss of Rs.70,000
(A)
695) For the previous year 2005-06, the business income of the assessee, before
providing current year depreciation of Rs.300,000 was Rs.2,40,000. His due
date for furnishing the return of income was 31.10.2006 but he submitted the
return on 15.12.2006. In this case, the assessee shall:
(A) be allowed to carry forward unabsorbed depreciation of Rs.60,000
(B) not allowed to carry forward unabsorbed depreciation of Rs.60,000
(A)
696) For the previous year 2005-06, the business loss of the assessee was
Rs.1,00,000 and the current year depreciation was Rs.1,40,000. The assessee
furnished the return of income on15.12.2006 although the due date was
31.10.2006. In this case, the assessee shall:
(A) be allowed to carry forward business loss of Rs.1,00,000 and
unabsorbed depreciation of Rs.1,40,000
(B) neither be allowed to carry forward business loss nor the unabsorbed
depreciation
(C) not be allowed to carry forward business loss but shall be allowed to
carry forward unabsorbed depreciation
(C)
697) The assessee in response to a notice u/s 142(1) submitted a return of loss of
Rs.1,10,000 within the time allowed in the said notice. In this case the
assessee:
(A) shall be allowed to carry forward such loss as the return is filed within
the time allowed.
(B) shall not be allowed to carry forward such loss
(B)
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in case of charitable trust is:
(A) 30th June of the assessment year
(B) 31st July of the assessment year
(C) 31st October of the assessment year
(C)
699) R finds some mistake in the return of income submitted by him on 5.6.2006
for assessment year 2006-07. He wishes to revise such return. No assessment
has been done in this case. R can revise such return till:
(A) 31.3.2007
(B) 31.3.2008
(C) 31.3.2009
(B)
700) R Ltd., who submitted the return of income for assessment year 2006-07 on
5.12.2006 finds some mistake in the return submitted by it. In this case R
Ltd.:
(A) can revise the return of income till 31.3.2007
(B) can revise the return of income till 31.3.2008
(C) cannot revise such return of income
(C)
701) R did not file any return of income for assessment year 2006-07 although he
was required to do so by 31.7.2006. He was issued notice u/s 142(1) to file
return of income which he furnished within the time allowed in the notice. He
later on finds some mistake in the return. In this case R:
(A) can revise such return
(B) cannot revise such return
(C) can revise such return but the loss, if any, cannot be carried forward
(C)
702) R, who submitted his return of income for the assessment year 2006-07 on
31.7.2006, finds some mistake in the return submitted by him. The
assessment orders u/s 143(3) for such return was passed on 15.2.2007 and
were served to R on 18.2.2007. He could, in this case, revise the return till:
(A) 14.2.2007
(B) 31.3.2008
(C) 17.2.2007
(A)
703) R, who submitted the return of income for assessment year 2006-07 declaring
an income of Rs.1,80,000. In this case R:
(A) shall be allowed to carry forward such loss
(B) shall not be allowed to carry forward such loss
(A)
704) R submitted his return of income for the assessment year 2006-07 on
29.7.2006. Summary assessment u/s 143(1) was done on 24.12.2006. A
notice under section 143(2) was thereafter issued. R wishes to revise the
return as there is some omission in this case:
(A) R cannot revise the return as the assessment has already done
(B) can revise the return till 31.3.2008
(C) can revise the return till 31.3.2008 or before the regular assessment is
completed whichever is earlier
(C)
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705) R wishes to revise the return submitted by him within the due date but in the
mean time he received a notice u/s 143(2) for scrutiny assessment. In this
case R:
(A) can revise the return
(B) cannot revise the return
(A)
706) The Assessing Officer finds some defects in the return submitted by R and
intimated the defect to R, Vide letter dated 15.10.2006 which was received by
the assessee on 18.10.2006. The assessee in this case (unless he applies for
extension of time) shall have to rectify the defect by:
(A) 30.10.2006
(B) 29.10.2006
(C) 03.11.2006
(D) 02.11.2006
(D)
707) The self-assessment tax computed u/s 140A by R is Rs.65,000 which includes
Rs.25,000 as interest for late filing of return. The assessee deposited
Rs.30,000 as self-assessment tax. In this case:
(A) Rs.30,000 shall be adjusted towards tax due
(B) Rs.25,000 shall be adjusted towards interest due and balance Rs.5,000
shall be adjusted towards tax due
(C) Rs.30,000 shall be adjusted in the proportion of 8 : 5 towards tax and
interest
(B)
708) The Assessing Officer has issued a notice u/s 142(1)(ii) for production of
books of account. Such notice relates to the assessment of previous year
2006-07. In this case the assessing officer can ask for books of accounts of:
(A) any past previous year
(B) previous years 2006-07, 2005-06 and 2004-05
(C) previous years 2006-07, 2005-06, 2004-05 and 2003-04
(C)
709) Where the Assessing Officer, as per section 142(2A), has asked the assessee
to get his accounts audited, the audit report should be submitted within the
maximum period (including extended time of):
(A) 120 days from the date of the directions of audit by the Assessing
Officer
(B) 180 days from the date of the directions of audit by the Assessing
Officer
(C) 180 days from the date of which the directions for audit were received
by the assessee
(C)
710) The notice u/s 143(2) must be served within:
(A) 12 months from the date of filing the return
(B) 12 months from the due date of filing the return u/s 139(1) or from the
date of filing of return of income
(C) 12 months from the end of the month in which the return was furnished
(C)
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711) Intimation u/s 143(1) cannot be sent after the expiry of:
(A) 4 years from the end of the month in which return of time was
furnished
(B) 2 years from the end of the month in which return of income was
furnished
(C) 2 years from the end of the assessment year in which the income was
so assessable
(D) One year from the end of the financial year in which the return is made
(D)
712) Return of income of assessment year 2006-07 was furnished on 16.8.2006.
Intimation in respect of such assessment year must be sent by:
(A) 31.3.2007
(B) 31.3.2008
(C) 31.3.2009
(B)
713) Assessment u/s 143(3) for assessment year 2002-03 was completed
on10.2.2005. Thereafter, on 1.6.2006 the Assessing Officer notices that
income of Rs.72,000 had escaped assessment. The Assessing Officer in this
case could issue notice till:
(A) 31.3.2006
(B) 31.3.2007
(C) 31.3.2010
(D) 31.3.2009
(B)
714) The last date for issue of notice u/s 148 was 31.3.2006. The Assessing Officer
issued the notice on 31.3.2006 which was received by the assessee on
4.4.2006. In this case, the notice:
(A) is not a valid notice
(B) is a valid notice
(B)
715) Assessment u/s 143(3) for the assessment year 2001-02 was completed on
28.3.2004. On 28.12.2006 the Assessing Officer notices that income of
Rs.90,000 has escaped assessment. The notice u/s 148 in this case can be
issued till:
(A) 31.3.2006
(B) 31.3.2008
(C) 31.3.2009
(A)
716) Assessment u/s 144 for assessment year 2000-2001 was completed on
25.2.2003 at Rs.3,00,000. On 28.10.2006 the Assessing Officer issued a
notice u/s 148 as the income of Rs.65,000 had escaped assessment. The
notice issued is:
(A) valid notice
(B) not a valid notice
(B)
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717) If the person on whom a notice u/s 148 is to be served is a person treated as
agent of a non-resident, such notice cannot be issued:
(A) after the expiry of 4 years from the end of the relevant assessment year
for which notice for reassessment is to be issued
(B) after the expiry of 2 years from the end of the relevant assessment year
(C) after the expiry of 7 years from the end of the relevant assessment year
(B)
718) The time-limit for completion of assessment u/s 143/144 shall be:
(A) 4 years from the end of the relevant assessment year in which income
was first assessable
(B) 21 months from the end of the relevant assessment year in which
income was first assessable
(C) 21 months from the end of the month in which the return was so
furnished
(B)
719) The time limit for completion of assessment/reassessment u/s 147 shall be:
(A) 9 months from the end of the financial year in which notice u/s 148
was served on the assessee
(B) 21 months from the end of the financial year in which notice u/s 148
was served
(C) 48 months from the end of the financial year in which notice u/s 148
was served
(A)
720) The assessee furnished the return of income for the assessment year 2004-05
on 28.3.2006. The Assessing Officer in this case should complete the
assessment by:
(A) 31.12.2007
(B) 31.12.2008
(C) 31.03.2007
(D) 31.03.2008
(A)
721) For assessment year 2001-02, assessment u/s 143(3) was completed on
3.2.2004, assessing the income at Rs.2,50,000. On 29.3.2007, the Assessing
Officer issued notice for reassessment of income as he notices a sum of
Rs.1,20,000 has escaped assessment. The above notice was issued on
29.3.2007 but was received by the assessee on 3.4.2007. In this case the
reassessment should be completed by:
(A) 31.03.2008
(B) 31.12.2007
(C) 02.04.2010
(B)
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u/s 143(3) for Rs.3,00,000 whereas the income returned was Rs.1,00,000.
The CIT on a revision petition set aside the above order u/s 264. The said
order was passed by CIT on 29.3.2007 which was received by the Assessing
Officer and the assessee on 3.4.2007. In this case the assessment should be
completed by:
(A) 31.3.2008
(B) 31.3.2009
(C) 29.3.2008
(A)
723) The amendment of an order u/s 154 can be made:
(A) within 4 years from the date when the order sought to be amended was
passed
(B) within 4 years from the date of receipt of such order by the assessee
(C) within 4 years from the end of the financial year in which the order
sought to be amended was passed
(C)
724) Deduction of tax from salary as per section 192 shall be:
(A) @ 10 % of salary
(B) at the average rate of income-tax computed on the basis of rates in
force for the financial year in which payment is made
(C) at the maximum rate of 30 %
(B)
725) The deduction of tax at source from the salary shall be made at the time of:
(A) accrual of salary
(B) payment of salary
(C) credit or payment of the salary, whichever is earlier
(B)
726) The salary for the purpose of deduction of tax at source shall be rounded off to
the nearest:
(A) Rupee one
(B) Rupees ten
(C) Rupees hundred
(B)
727) The liability to deduct tax at source in case of income from interest on
securities arises at the time of:
(A) payment of interest
(B) accrual of interest
(C) credit of interest to the account of the payee/interest payable account or
payment thereof whichever is earlier
(C)
728) No deduction of tax at source on interest on listed debentures is to be done by
the widely held company:
(A) if the interest is paid by cheque
(B) if the interest is paid by account payee cheque and the amount of
interest paid or payable during the financial year does not exceed
Rs.2,500
(C) same as (B), but interest is paid or payable to an individual who is
resident in India
(C)
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729) The rate of TDS in the case of listed debentures for the financial year 2006-07
is:
(A) 20 %
(B) 21 %
(C) 10 %
(D) 10 %, but where income exceeds Rs.8,50,000, 10 % plus surcharge @
10 %
(E) 10 % plus surcharge @ 10 % plus education cess @ 2 % if the
payment is made to an assessee other than individual, HUF and AOP.
Where payment is made to an individual, HUF and AOP 10 %.
Surcharge @ 10 % shall be leviable only where the income exceeds
Rs.10,00,000 and education cess of 2 % on tax + surcharge
(E)
730)(i) R, an individual, who is not carrying on a business has borrowed a sum of
Rs.1,00,000 on 1.4.2006 @ 18 % p.a. from a Finance Company. R in this
case should deduct tax on such interest paid amounting to:
(A) Rs.1,845
(B) Rs.2,020
(C) Rs.4,029
(D) Rs.NIL
(D)
(ii) What shall be your answer in the above case if R had been carrying on a
business and its turnover of the preceding previous year exceeds
Rs.50,00,000.
(B)
(iii) What shall be your answer in the above case if R had been carrying on a
business and its turnover of the preceding previous year was Rs.35,00,000
and the turnover of the current previous year is Rs.45,00,000.
(D)
731)(i) R has deposited a sum of Rs.1,00,000 on 1.4.2006 with a scheduled bank
for one year at the interest rate of 6 % p.a. The bank should deduct tax at
source amounting to:
(A) Rs.673
(B) Rs.612
(C) Rs.1,200
(D) Rs.1,224
(E) Rs.1,346
(B)
(ii) R deposited a sum of Rs.1,00,00,000 with a scheduled bank for a year at the
interest rate of 6 % p.a. The bank should deduct tax at source amounting to:
(A) Rs.66,000
(B) Rs.61,200
(C) Rs.1,32,000
(D) Rs.67,320
(E) Rs.1,34,640
(D)
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732) R has won a State Government Lottery of Rs.1,00,000 on 11.10.2006. The
State Government should deduct tax on such winning amounting to:
(A) Rs.30,000
(B) Rs.33,000
(C) Rs.29,070
(D) Rs.30,600
(D)
733)(i) R has a horse race on 11.10.2006 and is entitled to a prize of Rs.2,00,000.
The race club should deduct the tax at source amounting to:
(A) Rs.66,000
(B) Rs.60,000
(C) Rs.60,435
(D) Rs.61,200
(D)
(ii) R has won the horse race and is entitled to a prize of Rs.12,00,000. The
race club should deduct the tax at source amounting to:
(A) Rs.3,67,200
(B) Rs.3,96,000
(C) Rs.4,03,920
(C)
734) R, an individual has engaged a contractor for building his house. On
5.11.2006, R has made a payment of Rs.1,00,000 to the contractor. R should
deduct the tax at source amounting to:
(A) Rs.2,040
(B) Rs.2,200
(C) Rs.10,000
(D) Rs.1,020
(E) Rs.NIL
(E)
735) A company has given an advertising contract to an advertising agency which
is also a company. On 5.11.2006, it has paid a sum of Rs.2,40,000 to the
advertising agency. The company should deduct tax amounting to:
(A) Rs.2,693
(B) Rs.5,386
(C) Rs.2,400
(D) Rs.2,640
(E) Rs.5,280
(A)
736) R Ltd., a firm of contractors have given some works contract to G Ltd. On
6.10.2006, it has made a payment of Rs.4,00,000 to G Ltd. R Ltd., should
deduct tax amounting to:
(A) Rs.8,000
(B) Rs.4,488
(C) Rs.8,976
(D) Rs.4,400
(E) Rs.8,800
(B)
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year was Rs.45,00,000; got tax audit done from a firm of Chartered
Accountants for the current previous year 2006-07. An audit fee of
Rs.30,000 was paid by R & Sons during the previous year 2006-07. R &
Sons should deduct tax amounting to:
(A) Rs.1,500
(B) Rs.1,650
(C) Rs.1,683
(D) Rs.673
(E) Rs.NIL
(C)
(ii) What shall be your answer if in the above case, the turnover of HUF in the
last year was Rs.39,00,000 instead of Rs.45,00,000.
(E)
738)(i) Ahuja Continental Ltd., has credited a sum of Rs.80,000 on account of its
Chartered Accountants, a sole proprietary firm during the previous year
2006-07. The company should deduct tax amounting to:
(A) Rs.4,000
(B) Rs.4,400
(C) Rs.4,080
(D) Rs.4,488
(E) Rs.NIL
(C)
(ii) Ahuja Continental Ltd., has credited a sum of Rs.12,00,000 to the account
of its Chartered Accountants, a sole proprietary firm during the previous
year 2006-07. The company should deduct tax amounting to:
(A) Rs.60,000
(B) Rs.66,000
(C) Rs.67,320
(D) Rs.NIL
(C)
739) No tax is to be deducted at source if the amount credited/paid to the contractor
during the relevant previous year does not exceed:
(A) Rs.20,000
(B) Rs.50,000
(C) Rs.20,000 at one time or Rs.50,000 in aggregate in the financial year
(C)
740) No tax is to be deducted at source if the amount credited/paid during the
previous year as fee for profession or technical services does not exceed:
(A) Rs.10,000
(B) Rs.20,000
(C) Rs.50,000
(B)
741) R Ltd., has taken a house on rent @ Rs.15,000 p.m. from G an individual. R
Ltd., should deduct tax on account of such rent paid/credited amounting to:
(A) Rs.36,000
(B) Rs.36,720
(C) Rs.27,000
(D) Rs.27,540
(D)
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742) R Ltd., has taken a showroom on rent @ Rs.15,000p.m. from G Ltd. R Ltd.,
should deduct tax at source amounting to:
(A) Rs.36,000
(B) Rs.36,900
(C) Rs.40,392
(D) Rs.39,600
(E) Rs.37,638
(C)
743) R Ltd., has taken a house on rent on 1.11.2006 @ Rs.20,000 p.m. from G Ltd.
R Ltd., should deduct tax at source amounting to:
(A) Rs.15,000
(B) Rs.15,750
(C) Rs.20,000
(D) Rs.20,500
(E) Rs.NIL
(E)
744) The advance tax is payable by the assessee if the advance tax payable during
the year:
(A) exceeds Rs.1,500
(B) exceeds Rs.5,000
(C) is Rs.5,000 or more
(C)
745) The first instalment of advance tax in case of a company assessee should be
made:
(A) on or before 15th June
(B) on or before 15th July
(C) on or before 15th September
(A)
746) The first instalment of advance tax in case of a non-company assessee should
be made:
(A) on or before 15th June
(B) on or before 15th September
(C) on or before 15th October
(B)
747) The amount of advance tax payable by the company assessee on or before 15 th
June shall be:
(A) 30 % of the advance tax payable
(B) 15 % of the advance tax payable
(C) 12 % of the advance tax payable
(B)
748) A company assessee has to make the payment of advance tax:
(A) in 3 instalments
(B) in 4 instalments
(C) every month
(B)
749) A non-company assessee has to make payment of advance tax:
(A) in 4 instalments
(B) in 3 instalments
(C) every month
(B)
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750) Advance tax is payable by:
(A) a company assessee only
(B) an assessee other than individual or HUF
(C) any assessee
(C)
751) Advance tax can:
(A) be paid after 15th March of the relevant financial year
(B) not be paid after 15th March
(C) be paid after 15th March but by 31st March of the relevant financial
year
(C)
752) The advance tax is payable by the assessee:
(A) on his own account
(B) only when the order for payment is passed by the Assessing Officer
(C) on his own account or when the order for payment is passed by the
Assessing Officer
(C)
753) R submitted his return of income for the assessment year 2006-07 on
15.1.2007. The due date for filing the return of income in his case was
31.10.2006. R in this case shall have to pay interest:
(A) 1.25 % per month or part of the month
(B) 1 % per month of part of the month
(C) 1.5 % per month or part of the month
(B)
754) In the above case R shall have to pay interest for:
(A) 3 months
(B) 2 months
(C) 2.5 months
(A)
755) R did not file his return of income for the assessment year 2006-07. The due
date of filing the return was 31.10.2006. His income was assessed under
section 144 on 5.3.2008. R shall have to pay interest for:
(A) 16 months
(B) 17 months
(C) 12 months
(C)
756) Interest shall be payable u/s 234B if the advance tax paid by the assessee
during the financial year is:
(A) less than the assessed tax
(B) less than 90 % of the assessed tax
(C) less than 90 % of tax payable on the returned income
(B)
757) Interest u/s 234B for default in payment of advance tax is payable:
(A) for the period starting from due date of return to the date of assessment
(B) for the period starting from 1st April of the relevant assessment year to
the date of assessment
(C) for the period starting from 1st April of relevant assessment year to the
date of submission of return
(B)
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758) Interest for default in payment of advance tax for assessment year 2007-08
shall be payable @:
(B) 1 % per month or part of the month
(C) 1.5 % per month or part of the month
(D) 3 % per month or part of the month
(B)
759) Interest for deferment of advance tax as per section 234C for assessment year
2007-08 shall be payable @:
(B) 1.25 % per month or part of the month
(C) 1 % per month or part of the month
(C)
760) The first instalment of advance tax of Rs.15,000 was due 15.9.2006, the
assessee deposited the money on 16.9.2006. In this case interest will be
payable @ 1 % per month on Rs.15,000 for:
(A) 1 day
(B) 1 month
(C) 3 months
(C)
761) The first instalment of advance tax of Rs.15,000 was due on 15.9.2006. The
assessee deposited Rs.10,000 on 14.8.2006 and balance on 16.11.2006/ In
this case interest shall be payable @ 1 % p.m. on:
(A) Rs.15,000 for 3 months
(B) Rs.5,000 for 3 months
(C) Rs.5,000 for 2 months
(B)
762) The last instalment of Rs.15,000 of advance tax due on 15.3.2007 is deposited
by the assessee on 25.3.2007. In this case the assessee shall have to pay
interest @ 1 % per month for:
(A) 3 months
(B) 1 month
(C) 10 days
(B)
763) The last instalment of Rs.15,000 of advance tax due on 15.3.2006 was
deposited on 2.4.2006. In this case, the amount deposited:
(A) shall be treated as advance tax but the assessee shall have to pay
interest @ 1 % per month
(B) shall not be treated as advance tax and no interest shall be payable u/s
234C
(C) shall not be treated as advance tax and the interest will be payable u/s
234C @ 1 % for one month
(C)
764) Where an assessee has submitted a return of income and any refund of
Income-tax is due to him, he is:
(A) required to file a claim for such refund in a prescribed form
(B) not required to file any claim for such refund and it will be granted by
Assessing Officer Suo Moto
(B)
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765) Where any refund arises due to an order of appeal, rectification of mistakes,
revision/appeal to High Court, the assessee in this case is:
(A) required to file a claim for such refund in a prescribed manner
(B) not required to file any claim for such refund and it will be granted by
(B)
766) Where tax has been deducted at source, but the total income of the assessee is
not more than the maximum exemption limit on which no income-tax is
payable, the assessee is:
(A) required to file a claim for refund
(B) not required to file any claim for refund and it will be granted by the
(A)
767) If any person is not required to file any return of income as per section 139(1)
but any refund of income-tax is due to him, he:
(A) is required to file claim for refund of such income-tax
(B) is not required to file claim for such refund and it will be granted by
the Assessing Officer Suo Motu
(A)
768) The application for refund in Form No.30 should be made:
(A) within 2 years from the last day of the relevant assessment year
(B) within 1 year from the last day of the relevant assessment year
(C) any time by the assessee
(B)
769) The application for refund of tax shall be made in:
(A) Form No.28
(B) Form No.30
(C) Form No.35
(B)
770) Where the income of one person is included under any provision of the
Income-tax Act in the total income of any other person, the person entitled to
refund shall be:
(A) the person whose income has been included in the income of other
person
(B) the person in whose income, income of other person is included
(B)
771) Where due to death, a person is unable to claim refund, such refund can:
(A) be claimed by his legal representative
(B) not be claimed by his legal representative
(A)
772) Where due to any order passed in the appeal, an assessment is set aside or
cancelled and order of fresh assessment is directed to be made, the refund, if
any, shall:
(A) become due immediately
(B) become due only on the making of such fresh assessment
(B)
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773) Where due to order passed in the appeal, the assessment is annulled, the
refund:
(A) of entire amount shall become due
(B) of that amount shall become due which is paid in excess of the tax
chargeable on the total income returned by the assessee
(C) of that amount shall become due which is in excess of the amount
assessed by the Assessing Officer
(B)
774) The Assessing Officer has:
(A) no power to withhold refund
(B) power to withhold refund
(C) power to withhold refund with the prior approval of Chief
Commissioner of Income Tax
(A)
775) Belated claim for refund:
(A) can be made by the assessee
(B) can be made by the assessee provided the Assessing Officer condones
such delay
(C) can be made by the assessee provided the Assessing Officer condones
the delay based on certain conditions being satisfied
(C)
776) If any tax or any other demand is outstanding against the assessee for any
assessment year, the Assessing Officer has:
(A) no power to set off the refund due to the assessee against such
tax/demand
(B) power to set off the refund due to the assessee against such tax/demand
(C) power to set off the refund due to the assessee but after intimation in
writing to such person
(C)
777) Refund due to the firm can:
(A) be adjusted against the tax liability of the individual partners
(B) not be adjusted against the tax liability of the individual partners
(B)
778) The minimum and maximum penalty under section 221(1) for failure to pay
the whole or any part of income-tax or interest or both in accordance with the
provisions of section 140A(1) shall be:
(A) such amount as Assessing Officer may impose for default or
continuing default
(B) same as mentioned as Clause (A) above subject to maximum of
amount of tax in arrears
(C) 100 % tax in arrears subject to maximum of 300 % of tax in arrears
(B)
779) The minimum penalty for failure to comply with a notice under section 142(1)
shall be:
(A) Rs.1,000
(B) Rs.10,000
(C) Rs.5,000
(B)
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780) The maximum penalty for failure to comply with a notice u/s 142(1) shall be:
(A) Rs.25,000
(B) Rs.15,000
(C) Rs.10,000
(C)
781) The minimum and maximum penalty under section 271(1)(b) for failure to
comply with a notice issued u/s 143(2) shall be:
(A) Rs.1,000 and Rs.25,000 respectively
(B) Rs.10,000
(C) Rs.25,000
(B)
782) The minimum and maximum penalty for failure to comply with a direction
regarding getting of accounts audited under section 143(2A) shall be:
(A) Rs.25,000
(B) Rs.10,000
(C) Rs.1,000 and Rs.25,000 respectively
(B)
783) The minimum and maximum penalty u/s 271(1)(c) for concealing particulars
of income or furnishing inaccurate particulars of such income shall be:
(A) 100 % of the amount of tax sought to be evaded and 300 % of such tax
respectively
(B) 100 % of the amount of tax sought to be evaded and 200 % of such tax
respectively
(C) 100 % of the amount of the income sought to be evaded and 300 % of
such income
(A)
784) The minimum and maximum penalty u/s 271A for failure to keep, maintain or
retain books of accounts, documents, etc., as required u/s 44AA shall be:
(A) Rs.2,000 and Rs.1,00,000 respectively
(B) Rs.1,00,000
(C) Rs.25,000
(C)
785) The minimum and maximum penalty u/s 271B for failure to get accounts
audited or to furnish a report of such audit as required u/s 44AB shall be:
(A) Rs.2,000 and Rs.1,00,000 respectively
(B) % of total sales/turnover/gross receipts as the case may be and
Rs.1,00,000 respectively
(C) 10 % of total sales, etc., andRs.1,00,000 respectively
(B)
786) The minimum and maximum penalty u/s 271C for failure to deduct the whole
or any part of tax under TDS provisions shall be:
(A) amount equal to tax which has not been deducted and 200 % of such
tax respectively
(B) amount equal to tax which has not been deducted and 300 % of such
tax respectively
(C) amount equal to tax which has not been deducted
(C)
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787) The minimum and maximum penalty u/s 271D for any loan or deposit taken
or accepted in contravention of section 269SS shall be:
(A) amount equal to loan or deposit taken or accepted and 200 % of such
amount respectively
(B) amount equal to loan or deposit taken or accepted and 300 % of such
amount respectively
(C) amount equal to loan or deposit taken or accepted
(C)
788) The minimum and maximum penalty u/s 271E for any deposit which is repaid
in contravention of section 269T shall be:
(A) amount equal to the deposit which is repaid and 200 % of such deposit
respectively
(B) amount equal to the deposit which is repaid and 300 % of such deposit
respectively
(C) amount equal to the deposit which is repaid
(C)
789) The penalty u/s 271F for failure to furnish a return of income shall be leviable
if the return is submitted after:
(A) the due date mentioned u/s 139(1)
(B) the end of the relevant assessment year
(C) 12 months for the due date mentioned u/s 139(1)
(B)
790) The penalty u/s 271F for failure to furnish the return of income before the end
of the relevant assessment year shall be:
(A) Rs.500
(B) Rs.5,000
(C) Rs.1,000
(B)
791) The penalty u/s 271F for failure to furnish a return of income as required by
first proviso to section 139(1) is leviable, if the return is furnished after:
(A) the due date mentioned u/s 139(1)
(B) the end of the relevant assessment year
(C) 12 months from the due date mentioned u/s 139(1)
(B)
792) The penalty u/s 271F for failure to furnish return of income as required by
first proviso to section 139(1) on or before the due date mentioned u/s 139(1)
shall be:
(A) Rs.5,000
(B) Rs.1,000
(C) Rs.500
(A)
793) The minimum and maximum penalty u/s 272A(1)(d) for failure to apply for
allotment of PAN u/s 139A or quote such number in Challans, etc., shall be:
(A) Rs.500
(B) Rs.500 and Rs.5,000
(C) Rs.10,000
(C)
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794) The minimum and maximum period of rigorous imprisonment u/s 275A for
dealing with seized assets in contravention of the order made u/s132(3) shall
be:
(A) any period up to 1 year and fine
(B) any period up to 2 years and fine
(C) any period up to 3 years and fine
(B)
795) The minimum and maximum period of rigorous imprisonment u/s 276 for
removal, concealment, transfer or delivery of property to thwart tax recovery
shall be:
(A) any period up to 1 year and fine
(B) any period up to 2 years and fine
(C) any period up to 3 years and fine
(B)
796) Wilful failure to furnish return of income in time u/s 139(1) or in response to
notice u/s 142(1) or section 148 if tax evaded exceeds Rs.1,00,000 shall be:
(A) minimum 3 months rigorous imprisonment and fine and maximum
3 years and fine
(B) minimum 6 months rigorous imprisonment and fine and maximum
7 years and fine
(C) minimum 1 year rigorous imprisonment and fine and maximum
10 years and fine
(B)
797) Wilful failure to file return of income in time u/s 139(1) or in response to a
notice u/s 142(1) or section 148 if tax evaded does not exceed Rs.1,00,000
shall be:
(A) minimum 3 months rigorous imprisonment and fine and maximum
3 years and fine as per section 276CC
(B) minimum 6 months rigorous imprisonment and fine and maximum
7 years and fine as per section 276CC
(A)
798) No prosecution u/s 276CC if:
(A) the return is filed before expiry of the assessment year
(B) the tax payable on regular assessment as reduced by TDS and advance
tax does not exceed Rs.3,000
(C) the return is filed before expiry of the assessment year or the tax
payable on regular assessment as reduced by TDS and advance tax
does not exceed Rs.3,000
(C)
799) Wilful failure to produce books of accounts and documents u/s 142(1) or
failure to comply with a direction to get the accounts audited u/s 142(2A) will
attract rigorous imprisonment:
(A) up to 1 year
(B) up to 1 year and fine of Rs.4 for every day during which default
continues
(C) up to 1 year minimum and fine of Rs.4 and maximum of Rs.10 per
every day during which default continues
(C)
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(A) Deputy Commissioner (Appeals)
(B) Commissioner (Appeals)
(C) Appellate Tribunal
(B)
801) The first appeal can be filed by:
(A) the assessee only
(B) Assessing Officer only
(C) either the assessee or the Assessing Officer
(A)
802) If the assessee is not satisfied with any order passed by the Assessing Officer,
he can:
(A) file appeal to Commissioner (Appeal)
(B) apply for revision to the CIT u/s 264
(C) either file appeal or apply for revision u/s 264
(D) file appeal as well as apply for revision
(C)
803) The appeal against the order of Commissioner (Appeals) can be filed by:
(A) an assessee only
(B) an Assessing Officer only subject to approval of CIT
(C) either by the assessee or the Assessing Officer subject to approval of
CIT
(C)
804) If the assessee or the Assessing Officer is not satisfied with the order of
Commissioner (Appeals), the second appeal lies to:
(A) High Court directly
(B) Appellate Tribunal
(C) High Court on a reference by the Appellate Tribunal
(B)
805) If the assessee or the CIT is not satisfied with the order of Appellate Tribunal,
then either of them can:
(A) request the Appellate Tribunal to refer the matter to the High Court
(B) file the appeal direct to High Court
(C) file the appeal either to High Court or Supreme Court if there are
conflicting decision by the various High Courts
(B)
806) The appeal against the order of Appellate Tribunal can be filed in High Court:
(A) for any matter in the order
(B) only if any question of fact is involved
(C) only if any question of law is involved
(C)
807) The first appeal to Commissioner (Appeals) must be filed in:
(A) Form No.35
(B) Form No.36
(C) Form No.36A
(A)
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808) The first appeal against the order of the Assessing Officer can be filed within
a period of:
(A) 30 days from the date of the order
(B) 30 days from the date of service of the order to the assessee
(C) one month from the date of the service of the order to the assessee
(B)
809) If the appeal against the order of the Assessing Officer was not filed within 30
days as required then the assessee:
(A) has no option left with him
(B) can apply for condonation of delay
(C) can either apply for condonation of delay or apply for revision u/s 264
(D) can only apply for revision u/s 264
(D)
810) The order passed by the Commissioner (Appeals) should be communicated to:
(A) assessee
(B) CIT who has jurisdiction over the case
(C) both to the assessee and CIT
(D) the assessee through CIT
(C)
811) The Commissioner (Appeals) should decide the appeal:
(A) within one year from the date of filing of the appeal
(B) one year from the end of the financial year in which appeal is filed
before him
(C) as far as possible within one year from the end of the financial year in
which appeal is filed before him
(C)
812) An assessee who submitted a return declaring an income of Rs.90,000 was
assessed by the Assessing Officer at Rs.1,60,000. He wishes to file an appeal.
The fee for filing appeal should be:
(A) Rs.250
(B) Rs.500
(C) non-Judicial stamp of 50 paise
(D) Rs.1,000
(B)
813) The assessee wishes to file an appeal against the order of ITO for levying a
penalty for TDS default. The fee for filing such appeal shall be:
(A) Rs.250
(B) Rs.500
(C) Rs.1,000
(A)
814) The time limit for filing an appeal to the Appellate Tribunal is:
(A) 30 days from the receipt of the order to be appealed against
(B) 30 days from the passing of the order to be appealed against
(C) 60 days from the receipt of the order to be appealed against
(D) 60 days from the passing of the order to be appealed against
(C)
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815) The appeal to the Appellate Tribunal should be made in:
(A) Form No.35
(B) Form No.36
(C) Form No.36A
(B)
816) The time limit for filing memorandum of cross objection to Appellate
Tribunal shall be:
(A) 60 days from the receipt of notice that appeal has been filed by the
other party
(B) 30 days from the receipt of notice that appeal has been filed by the
other party
(C) 90 days from the receipt of such notice
(B)
817) The memorandum of cross objection must be filed in:
(A) Form No.36
(B) Form No.36A
(C) Form No.37
(B)
818) The delay in filing appeal or memorandum of cross objection to Appellate
Tribunal can:
(A) be condoned by the Appellate Tribunal
(B) not be condoned
(C) be condoned by the CBDT
(A)
819) The total income assessed by the Assessing Officer was Rs.4,50,000. The
assessee wishes to file an appeal to Appellate Tribunal as he was not satisfied
with the order of Commissioner (Appeals). The fee for filing such appeal
shall be:
(A) Rs.1,500
(B) Rs.2,500
(C) Rs.4,500
(D) Rs.10,000
(C)
820) The maximum fee for filing an appeal to Appellate Tribunal is:
(A) Rs.5,000
(B) 1 % of the assessed income
(C) 1 % of the assessed income subject to a maximum of Rs.10,000
(C)
821) Revision u/s 263 is to be done by the Commissioner:
(A) on his own motion
(B) on the request of the Assessee
(C) on the request of the Assessing Officer
(D) on his own motion or on the request of the assessee or the Assessing
Officer
(A)
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822) The Commissioner cannot revise the order of the Assessing Officer under
section 263 after the expiry of:
(A) one year from the end of the financial year in which order sought to be
revised was passed
(B) 2 years from the end of the financial year in which order sought to be
revised was passed
(C) 2 years from the date of such order
(B)
823) Revision of order not covered by section 263 can be done by the
Commissioner:
(A) on his own motion
(B) on the request of the assessee
(C) on the request of the Assessing Officer
(D) on his own motion or on the request of the assessee
(E) on his own motion or on the request of the assessee/Assessing Officer
(D)
824) The Commissioner shall not revise the order u/s 264:
(A) where an order has been made more than one year previously
(B) where an order has been made more than 2 years previously
(C) where an order has been made more than 4 years previously
(A)
825) The Central Board of Direct taxes is:
(A) an Income-tax Authority under the Income-tax Act
(B) not an Income-tax Authority under the Income-tax Act
(A)
826) The Income Tax Appellate Tribunal is:
(B)
827) The Inspector of Income-tax is:
(A)
828) Income-tax Authority below the rank of Deputy Commissioner of Income-tax:
(A) is appointed by the Central Board of Direct Taxes
(B) may be appointed by the Board/Director General/Chief Commissioner/
Director/Commissioner if authorised by the Board
(C) is appointed only the Central Government
(B)
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829) The Board may issue:
(A) any order, instructions and directions to other Income-tax Authorities
as it may deem fit for the proper Administration of the Income-tax Act
(B) any order, instructions and directions as (A) above but cannot require
income tax authority to make an assessment or to dispose off a
particular case in a particular manner
(C) any order, instructions and directions as per clause (A) above but
cannot interfere with the discretion of the Commissioner (Appeals) in
the exercise of his appellate functions
(D) any order, instructions and directions as per clause (A) above but
subject to clauses (B) & (C) above
(D)
830) The Board may by general or special order:
(A) authorize any income-tax authority to admit an application of claim for
any exemption, deduction, refund or any other relief under this Act,
after the expiry of the period specified by or under the Income-tax Act
in this respect
(B) same as clause (A) above but such order cannot be issued to
Commissioner (Appeals)
(B)
831) The circulars issued by the Board are:
(A) binding on assessee as well as Income-tax Authorities
(B) binding on Income-tax Authority
(C) neither binding on Income-tax Authorities nor on the assessee
(B)
832) The Board has:
(A) power to relax any requirement contained in any of the provisions of
Chapter IV or Chapter VIA subject to certain conditions
(B) no power to relax requirements of Chapter IV & VIA
(C) power to relax such requirements but the Central Government shall get
the approval of Parliament
(D) power to relax such requirement but the Central Government shall
cause every such order to be laid before each house of Parliament
(D)
833) A Circular of the Central Board of Direct Taxes u/s 119 of the Income Tax
Act,1961:
(A) can override or detract from the Act
(B) cannot override or detract from the Act
(B)
834) A circular in matters relating to the general interpretation of any provisions of
the Statute:
(A) shall be binding on any Income Tax Authority
(B) shall be binding on any Income Tax Authority except Commissioner
(Appeals)
(C) shall be binding on any Income Tax Authority as well as Tribunal
(A)
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835) Income Tax Authorities shall exercise all or any of the powers and perform
all or any of the functions conferred on them in accordance with the
directions:
(A) issued by the Board only
(B) issued by the Board or any other income-tax authority authorized by
the Board
(C) issued by Director General/Chief Commissioner of Income-tax
(B)
836) The jurisdiction of the Assessing Officer shall be in case of any person:
(A) who is carrying on business or profession within the area vested with
him
(B) who is having place of residence within that area
(C) who is carrying on business or profession or having place of residence
within that area
(C)
837) Where a person is carrying on business or profession in more places than one,
the jurisdiction of such person shall be with:
(A) each Assessing Officer in whose jurisdiction such person carries on
such business
(B) that Assessing Officer in whose jurisdiction the principal place of
business or profession is situated
(B)
838) Any dispute relating to jurisdiction of an Assessing Officer to assess any
person shall be determined by:
(A) The Board
(B) The Director General/Chief Commissioner or Commissioner of
Income Tax
(C) Joint Commissioner/Joint Director of Income-tax
(B)
839) The assessee can object to the jurisdiction of Assessing Officer, if no return is
filed:
(A) within 3 months of notice u/s 142(1) or 148 for filing the return of
income or time allowed to show cause why best judgement u/s 144
should not be made, whichever is earlier
(B) within one month of notice u/s 142(1) or 148 for filing the return of
income or time allowed to show cause why best judgement u/s 144
should not be made, whichever is earlier
(C) within the time allowed in notice u/s 142(1) or 148 for filing return of
income or time allowed to show cause u/s 144 whichever is earlier
(C)
840) Where an assessee has already filed a return of income, he can object to the
jurisdiction of Assessing Officer:
(A) within one month from the date of service of notice u/s 142(1)/143(2)
(B) within one month from the date of service of notice issued
u/s 142(1)/143(2) or before completion of assessment whichever is
earlier
(C) within one month from the date of issue of notice u/s 142(1)/143(2)
(B)
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841) Search and seizure can be authorized by:
(A) Director General/Chief Commissioner/Director/Commissioner
(B) Director General/Chief Commissioner/Director/Commissioner/Joint
Commissioner/Joint Director
(C) Any Income-tax Authority
(B)
842) Power regarding discovery, production of evidence, etc., u/s 131 can be
exercised by any Income-tax Authority:
(A) if any proceedings are pending under the Income-tax Act
(B) whether or not any proceedings are pending under the Income-tax Act
(B)
843) The Income-tax Authority can conduct the Survey:
(A) any time
(B) only during the hours at which the place of business or profession is
open for the conduct of such business or profession
(C) between 10 A.M. and 6 P.M.
(B)
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MULTIPLE CHOICE QUESTIONS ON

INCOME TAX FOR RECAPITULATION

-423) Education cess is leviable in case of:

- 14 98) An employee is covered under Payment of Gratuity Act, 1972

- 17 111) Compensation received on voluntary retirement is exempt under section

- 18 118) Entertainment allowance in case of Government employee is:

- 19 (ii) In case of any other employee:

- 22 144) Employees/assessees own contribution to statutory provident fund or

- 30 194) Electricity companies are allowed depreciation on the basis of:

- 40 (iii) A person carrying on specified profession is required to maintain:

- 43 370) In case of non-resident, who is engaged in the business of operation of

- 47 398) No indexation of cost of acquisition is done even though there is long-term

- 49 413) If goodwill of a profession which is self-generated is transferred, there will:

- 54 449) Exemption u/s 54 F is available if the asset transferred is:

- 72 577) Deduction u/s 80-IA for enterprise engaged in the business of

- 76 602) Deduction u/s 80-IC is allowed to the extent of:

- 78 616) If the assessee is engaged in the business of manufacturing some products

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