Top 150+ Solved Audit Taxation MCQ Questions Answer
Q. According to Section 2(7) of Income Tax Act "Assessee" means a person
a. By whom any tax or other sum of money is payable
b. By whom any proceeding under the Act has been taken
c. Who is deemed to be an assessee in default under any provision of this Act
d. All of the above
Q. Amongst the following _________________ is empowered to levy tax on agricultural income.
a. Central Government
b. State Government
c. Commissioner
d. President
Q. A person includes:
a. Only Individual
b. Only Individual and HUF
c. Individuals, HUF, Firm, Company only
d. Individuals, HUF, Company, Firm, AOP or BOI, Local Authority, Every
Q. XYZ LLP falls under which---------- category of person -
a. Individual
b. Partnership firm
c. Company
d. Association of person
Q. Which amongst the following is not a head of Income?
a. Salaries
b. Income from house Property
c. Capital gains
d. Income from exports
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. Which amongst the following is Artificial Juridical Person?
a. Corporation
b. Local Fund
c. District Board
d. None of these
Q. An assessee incurred expense of tax on non monetary perquisites of employees.Such expenditure shall be considered as:
a. Revenue expenditure
b. Deferred revenue
c. Capital expenditure
d. Expressly disallowed
Q. Contribution was made by PFI towards Credit Guarantee Fund Trust. Suchexpenditure shall be considered as:
a. Revenue expenditure
b. Capital expenditure
c. Deferred revenue expenditure
d. Illegal expenditure
Q. Surcharge of 10 per cent is payable by an individual where the total income exceeds:
a. Rs.7,50,000
b. Rs.8,50,000
c. Rs.10,00,000
d. None of the three
Q. For an employee in receipt of hostel expenditure allowance for his three children, themaximum annual allowance exempt under section 10(14) is
a. Rs.10, 800
b. Rs.7,200
c. Rs.9,600
d. Rs.3,600
Q. Calculate the Gross Annual value from the following details:Municipal Value - Rs. 45,000 Fair rental value - Rs. 50,000 Standard rent - Rs. 48,000 Actual Rent - Rs. 42,000
a. Rs. 50,000
b. Rs. 48,000
c. Rs. 45,000
d. Rs. 42,000
Q. M took a loan of Rs. 6,00,000 on 1.4.2011 from a bank for construction of a house. The loan carries an interest @ 10% p.a. The construction is completed on 15.6.2013. The entire loan is still outstanding. Compute the interest allowable for the assessment year 2020- 21
a. Rs. 60,000
b. Rs. 1,80,000
c. Rs. 84,000
d. Rs. 24,000