Top 150+ Solved Audit Taxation MCQ Questions Answer
Q. franchise fee received by an assessee in tourism business, against special rights given to franchisees to undertake hotel business in assessee’s property is taxable under the head _____
a. Income from house property
b. Income from PGBP
c. Income from Capital gain
d. Income from other sources
Q. Amendments by the finance act are made applicable from
a. First day of next financial year
b. First day of same financial year
c. Last day of same Accounting year
d. None of the above.
Q. Which of the following is not included in taxable income -
a. Reimbursement of expenses
b. Cash gifts received from non relatives
c. Income from illegal activity
d. Profit on sale of equity shares of unlisted company.
Q. Income Tax is levied on the ___________ of a person.
a. Total Income
b. Total Income-Debt
c. Gross Total Income
d. Net Income-Debt Perquisites
Q. Describe the status of the following person (i.e. individual, HUF, Firm, Company etc.) X and Yare legal heirs of Z. Z died in 2018 and X and Y carry on his business without entering into a partnership.
a. Firm
b. Limited Liability Partnership
c. Company
d. Body of Individual
Q. Mr. X made payment to Mr. Y on which Mr. X failed to deduct the TDS. Mr. Y (Resident) fulfilled the following requirements so that Mr. X should not be deemed to be an assesses in default. Which of the following was wrongly complied by Mr.Y because of which Mr. X was treated as assesses in default?
a. Furnished his return u/s 139.
b. Offered the income in return on which TDS should have been done by Mr. X.
c. Paid the Tax Due on the income declared by him in such return of Income.
d. Furnished a Certificate to this effect from C.A. in Form 27BA.
Q. Mr.Marshal owned network of telecom towers and infrastructure services. He let out these to major telecom operators of the country. He applied u/s. 197 for obtaining a certificate of lower deduction of tax. As per the Judgment of Indus Towers Ltd. Vs CIT (2014)(Del.) at what rate Tax shall be deducted
a. 1% u/s 194C
b. 10% u/s 194I
c. 2% u/s 194I
d. 0.5% u/s 194C
Q. State Government pays commission of Rs.20, 000/- to one of its agent on sale ofLottery Tickets.
a. TDS is required to be made @ 5% on any amount paid as commission for sale of lottery tickets
b. TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 15,000/-
c. TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 30,000/-
d. TDS shall not be deducted as payment is made by State Government
Q. Full form of TDS is :
a. Tax Deducted at source.
b. Tax sources.
c. Tax Challan
d. Tax Deposited at source
Q. ITR -5 is related to :
a. For Individuals
b. For HUF.
c. For Firms, AOPs And BOIs.
d. For Companies.
Q. Challan No……………. is used by all categories of tax payers for payment of incometax.
a. Challan no.280
b. Challan no.282
c. Challan no.281
d. Challan no.281(A)