Top 250+ Solved Direct Taxation MCQ Questions Answer
Q. Income of REIF being a business trust by way of renting or leasing of an asset is exempt if:
a. Such asset is a land owned by it
b. Such asset is any Real Estate Asset owned by it
c. Such asset is a land hired by it
d. Such asset is any Real Estate Asset hired by it
Q. Cash gifts received by HUF from his members to the extent of Rs. 75,000 will be treatedas income of:
a. The HUF
b. The members
c. None, as it is exempt
d. Both the HUF and the members
Q. The following is taxable under the head “Salaries”:
a. Gifts received by employee from employer
b. Salary received by partner from a firm
c. Fees received by director from a company
d. Commission received by agent from a principal
Q. Maximum amount which is not chargeable to tax in case of a non-resident very seniorcitizen is
a. Rs. 2,50,000
b. Rs. 3,00,000
c. Rs. 5,00,000
d. None of above
Q. A partnership firm will become resident in India if
a. Its control and management is totally in India
b. Its control and management is totally or partly in India
c. Its place of effective management is in India
d. Its partners become resident in India
Q. Transport allowance in case of a disabled employee is exempt upto:
a. Rs. 800 p.m.
b. Rs. 1,600 p.m.
c. Rs. 3,200 p.m.
d. No limit
Q. A religions trust received anonymous donations of Rs. 10 lakhs, the said sum is:
a. Fully exempt
b. Partly exempt
c. Chargeable at MMR
d. Not taxable at MMR
Q. Income from farm house outside India is:
a. Agricultural income
b. Agricultural income, if certain conditions are satisfied
c. Non-agricultural income
d. Partly agricultural and partly non-agricultural income
Q. While calculating TDS, surcharge is also considered if the payee is:
a. Non-Resident
b. Foreign company
c. Domestic company
d. Any assessee
Q. When the shares are held in unlisted company, it is treated as long term capital assetswhen the holding period exceeds
a. 36 months
b. 12 months
c. 6 months
d. 24 months
Q. Personal effect do not cover the following
a. Jewellery
b. Immovable property
c. Drawings
d. All of the above
Q. TDS on interest on securities is covered under section
a. Section 192
b. Section 192A
c. Section 193
d. None of the above
Q. Income of minor child is exempt upto ______.
a. Rs. 1,000
b. Rs. 1,500
c. Rs. 2,500
d. None of the above.
Q. The accounts of the political party shall be audited by a __________.
a. Cost Accountant
b. Chartered Accountant
c. Company Secretary
d. None of the above.