Top 250+ Solved Direct Taxation MCQ Questions Answer
Q. Loss from specified business covered u/s 35AD can be adjusted against the income of
a. Any other business income
b. Cannot be adjusted
c. Any income other than salary
d. Income from other specified business
Q. ICDS-II stands for _______.
a. Accounting policies
b. Construction Contract
c. Revenue recognition
d. Valuation of inventories
Q. ICDS-IV stands for _______.
a. Accounting policies
b. Construction Contract
c. Revenue recognition
d. Valuation of inventories
Q. In case of local authority the return of income is verified by
a. Karta
b. Managing director
c. Principal officer
d. Partner
Q. In case of self-occupied house property, following category of person are considered:
a. All assessee
b. All assessee other than company
c. All Assessee other than HUF
d. Individual and HUF
Q. Amortization of preliminary expenses has been restricted to ___ of the cost of project.
a. 2%
b. 3%
c. 5%
d. 8%
Q. Unabsorbed business losses cannot be carried forward for more than
a. 5 A.Y
b. 6 A.Y
c. 8 A.Y
d. 10 A.Y
Q. Monetary limit for exemption in the case of encashment of earned leave onsuperannuation received by private sector employee is
a. 1 Lakh
b. 2 Lakh
c. 3 Lakh
d. None of the above
Q. Deduction is not allowed to the assessee while computing income from other sources for
a. Direct Tax
b. Interest payable outside India without TDS
c. Personal expenditure
d. All of the above
Q. When Mr. Balu paid royalty to Dr. Peter of Sweden for use of know-how in India, such paymentis
a. exempt from tax
b. accruing in India
c. accrues in Sweden
d. received in India.
Q. Mr. Hari resident in India received Rs. 11 lakhs by way of dividend from Indiancompanies. Such dividend is:
a. exempt from tax
b. taxable at regular rates.
c. taxable at maximum marginal rate
d. taxable at 10%