Top 250+ Solved Direct Taxation MCQ Questions Answer
Q. In case of a Hindu Undivided Family, where the return of income cannot be signed by theKarta, the same can be signed by
a. the next senior-most male member.
b. Karta's wife.
c. any male member of the family.
d. any adult member of the family.
Q. In case of an individual or HUF, to determine whether certain TDS provisions are attracted,what has to be seen is whether the person is subject to tax audit under section 44AB in
a. the immediately preceding financial year.
b. current year.
c. last two continuous financial years.
d. None of the above
Q. A senior citizen having total income consisting of pension and let out property incomeaggregating to Rs. 6 lakhs must have paid advance tax during the financial year 2015-16 of
a. NIL
b. 90% of Rs. 28,840
c. 90% of 44,290
d. 90% of Rs. 39,140
Q. Mr. Ramji is employed in ABC Ltd. who maintained a hospital for treatment of employees.During the financial year 2015-16, the value of medical benefit availed by Ramji’s family from the hospital was Rs. 2,10,000. The amount of medical perquisite chargeable to income tax would be
a. Rs. 2,10,000
b. Rs. 1,05,000
c. Rs. 21,000
d. Nil
Q. Mr. A has loss from regular business of Rs. 8lakhs and income from speculation businessof Rs. 11 lakhs. His total income chargeable to tax would be
a. Rs. 3,00,000
b. Rs. 11,00,000
c. Rs. 7,00,000
d. Rs. 2,50,000
Q. AOP should consist of:
a. Individuals only
b. Persons other than individuals only
c. Individuals and HUF only
d. None of the above
Q. An Indian Company, where place of effective management is outside India, shall be:
a. Resident in India
b. Non-resident in India
c. Not ordinarily resident in India
d. None of the above
Q. Casual income received by the assessee
a. Exempt upto 50,000
b. Fully exempt
c. Fully taxable
d. None of the above
Q. Free meal worth 120 per meal for 200 days provided by the employer during workinghours in a remote area is:
a. Exempt upto 50 per meal
b. Taxable upto 50 per meal
c. Fully exempt
d. Fully taxable
Q. Unrealised rent of a property shall be excluded from:
a. Gross Annual Value
b. Net Annual Value
c. Income from property
d. All the three
Q. Deduction under Section 32AD is allowed to:
a. Corporate assessee in notified are
b. Non-corporate assessee in notified area.
c. Corporate and non-corporate assessee in notified area.
d. None of the above.
Q. For the purpose of computation of capital gain, securities transaction tax is:
a. Allowed as deduction
b. Form part of cost
c. Neither allowed as deduction nor form part of cost
d. None of the above
Q. Loss from trading in derivates through a recognised stock exchange can be carriedforward for:
a. 8 years
b. 4 years
c. Unlimited years.
d. None of the above
Q. Deduction u/s. 80E in respect of interest on education loan is allowed for:
a. 10 years or till the interest is paid whichever is earlier.
b. 8 years or till the interest is paid whichever is earlier.
c. 10 years
d. 8 years
Q. Dividend received by a shareholder of an Indian Company engaged in growing andmanufacturing of tea shall be treated as:
a. Agricultural income upto 60%
b. Agricultural income upto 100%
c. Non-agricultural income upto 60%
d. Non-agricultural income upto 100%