Top 150+ Solved Audit Taxation MCQ Questions Answer
Q. The entertainment allowance is applicable to_______________.
a. Private sector employees
b. Public sector employees
c. Government employees
d. All of the above
Q. _______ is the rent fixed under Rent control Act.
a. Municipal rental value
b. Fair rental value
c. Standard rent
d. Real rent
Q. Deduction under section 80C to 80U cannot exceed:
a. Gross Total Income
b. Total Income
c. Income from business or profession
d. Income from house property
Q. Expected Rent can be determined in the following way
a. Higher of Municipal Value & Fair Rent
b. Lower of Municipal Value & Fair Rent
c. Higher of Municipal Value & Fair Rent subject to maximum of Standard Rent
d. Any of the above
Q. Under the Head Income from House Property, the basis of charge is the______________ of property.
a. Annual value
b. Quarterly value
c. Half-quarterly value
d. None of the above
Q. Mr. Ram owns a house property. He lent it to Laxman at`10,000 p.m. Laxman sublet it to Mr. Maruti on monthly rent of`20,000 p.m. Rental income of Ram is taxable under the head______________.
a. Income from Salary
b. Income from Other Sources
c. Income from House Property
d. Income from Business
Q. Deduction from annual value is allowed under ______________.
a. Section 24
b. Section 25
c. Section 27
d. Section 28
Q. For computation of Gross Annual Value, if actual rent is more than expected rent,then we select the ______________.
a. Actual rent
b. Expected rent
c. Any of the above
d. None of the above
Q. Under the Income Tax Act, 1961, depreciation on machinery is charged on_______________.
a. Purchase price of the machinery
b. Written down value of the machinery
c. Market price of the machinery
d. All of the above
Q. Income chargeable under the head ‘Profits and Gains from Business or Profession’is covered under _______________.
a. Section 23
b. Section 24
c. Section 28
d. Section 27
Q. As per Section 2(e a), which of the following is an asset in case of an individual:
a. Cash in hand up to Rs. 50,000
b. Shares
c. Debentures or Bonds
d. Motor car used for official purposes
Q. Salary of S (Rs. 40,000 per month) becomes due on the last day of the month but is paid on 7th of next month. Also, salary of April, 2014 and May, 2014 is received in advance in March, 2014. What will be his gross income for Assessment Year 2014-15?
a. Rs. 5,60,000
b. Rs. 4,80,000
c. Rs. 4,40,000
d. Rs. 5,20,000
Q. Gross Total Income is arrived after:
a. only adding Income under five heads of Income;
b. adding Income under five heads of Income excluding losses;
c. adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses
d. adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses and after allowing deduction under section 80C to 80U
Q. An assessee incurred a sum of Rs.1,10,000 for alteration of the memorandum andarticles of association. Such expenditure shall be considered as:
a. Revenue expenditure
b. Deferred revenue expenditure
c. Capital expenditure
d. Non-deductible expenditure