Top 250+ Solved Direct Taxation MCQ Questions Answer
Q. Unabsorbed depreciation can be carried forward for
a. Any number of years
b. 8 years
c. 4 years
d. 7 years
Q. Deduction u/s 80CCC allowed to an individual for amount paid by him in an annuityplan of LIC is restricted to
a. Rs. 5,000
b. Rs. 7,500
c. Rs. 1,50,000
d. Rs. 12,500
Q. Deduction under the section 80E is allowed in respect of
a. Donations to charitable institutions
b. Medical treatment of handicapped person
c. Interest on loan taken for education
d. Profits earned from exports
Q. 80GGA available for donations made to
a. Charitable Institutions
b. Educational Institutions
c. Research Associations
d. Religion organizations
Q. Deduction u/s. 80JJA is available if the assessee
a. Is engaged in scientific research
b. Sets up an industrial unit in a backward area
c. Is engaged in agriculture business
d. Is engaged in the business of collecting and processing biodegradable waste.
Q. On donation to whom of the following a 50% deduction is allowable u/s.80G of the Income Tax Act?
a. National Defence Fund
b. Prime Ministers National Relief Fund
c. Rajiv Gandhi Foundation
d. National foundation for Communal Harmony
Q. Section 80QQB of the Income Tax Act, 1961, deals with
a. Interest on debentures of a govt. company
b. Royalty Income of authors
c. Royalties from textbooks
d. Profits from export of computer software
Q. Advance tax is required to be paid by all assessee only if estimated advance tax liabilityis
a. Rs. 5,000 or more
b. Rs. 10,000 or more
c. More than zero
d. Rs. 50,000 or more
Q. While computing advance tax following income shall not be considered:
a. Agricultural income
b. Long term capital gain
c. Speculative profit
d. None of these
Q. Tax is required to be deducted at ……… from payment made to a road transport operator who declares that he does not own more than 10 goods carriage.
a. Nil
b. Nil if he furnished the PAN
c. 1%
d. 2%
Q. Tax is required to be deducted at …….. from interest payable to a resident. (AssumingPAN details are available)
a. 10%
b. 20% if payee is domestic company else 10%
c. 10% + Surcharge (if any) + Cess + SHEC
d. 20%
Q. Tax is required to be collected on sale of:
a. Scrap
b. Tendu Leaves
c. Alcoholic Liquor
d. All of the above
Q. TDS is not required to be deducted u/s 194A if the amount of interest on loan does notexceed:
a. Rs. 5,000
b. Rs. 2,500
c. Rs. 7,500
d. Rs. 20,000
Q. On salary, tax is required to be deducted at the time of:
a. Payment or crediting the employee, whichever is earlier
b. Crediting the employee
c. Payment
d. Retirement of employee