Top 250+ Solved Direct Taxation MCQ Questions Answer
Q. While computing taxable interest on delayed compensation, a standard deduction isallowed @
a. 50%
b. 30%
c. 15%
d. Nil
Q. An individual purchased a painting on 01-11-2017 for Rs. 5,00,000 though fair marketvalue of the asset is `5,25,000. Income taxable u/s 56(2)(x) is:
a. Rs. 25,000 i.e., difference between market value and actual consideration
b. Nil as this is not gift
c. Nil as difference between market value and actual consideration does not exceed Rs. 50,000
d. The provision of sec. 56(2)(x) is not applicable for any transaction entered during P.Y. 2017-18.
Q. The provision of sec.56(2)(x) is applicable on
a. All assessee
b. Only on corporate assessee
c. On an individual only
d. On an individual and HUF only
Q. Tax is deducted at source on winning from lottery, the rate for such deduction in case of resident individual deductee is:
a. 30.9%
b. Maximum marginal rate of tax
c. 30% if such winning exceeds Rs. 10,000
d. 33.99%
Q. While computing income from other sources, deduction is not allowed to the assessee for:
a. Personal expenditure
b. Direct tax
c. Interest payable outside India without TDS
d. All of the above
Q. Gift received by an individual in certain circumstances is not taxable, one of them is:
a. Any gift received from family friend
b. Any gift received on the occasion of any marriage in the family
c. Any gift received on the occasion of the marriage of the individual-assessee
d. All of the above
Q. Generally, dividend is exempt from tax. Exceptions to this rule is:
a. Dividend distributed by foreign company
b. Dividend covered u/s 2(22)(e)
c. Dividend from co-operative society
d. All of the above
Q. One of the following receipt is taxable under the head ‘Income from Other Sources’:
a. Uncommuted pension received from ex-employer
b. Income from racing establishment
c. Rental income from house property
d. Income on transfer of rural agro land
Q. A person is deemed to have substantial interest in a company if he is
a. The owner of at least 20% of equity capital of the company
b. The owner of at least 25% of equity capital of the company
c. Entitled to 10% of profits of the concern
d. An employee director
Q. Income of minor is clubbed however the clubbing provision is not applicable if
a. Minor is a married daughter
b. Minor is handicapped as specified u/s 80U
c. Parents are separated
d. None of the above
Q. As per sec.60, income is clubbed if
a. Asset yielding income is transferred as revocable transfer
b. Income is transferred without transferring asset yielding income
c. Asset yielding income is transferred as irrevocable transfer
d. None of the above
Q. Any income from an asset transferred to spouse without adequate consideration is clubbed in the hands of the transferor if:
a. Such asset is held by the spouse as on the last day of the previous year
b. Relationship between them exist as on the date of accrual of income
c. Transferee is not a senior citizen
d. None of the above
Q. For the purpose of sec.64, an individual have substantial interest in a company if he holds 20% of voting right alongwith his relative. Here, relative do not include:
a. Spouse
b. Father
c. Father-in-law
d. None of the above
Q. Unabsorbed business losses cannot be carried for more than
a. 7 assessment years
b. 8 assessment years
c. 10 assessment years
d. 12 assessment years
Q. Long term capital loss can be adjusted against
a. Any income excluding winning from lottery
b. Any capital gain
c. Any long term capital gain
d. Any speculative business income