Top 250+ Solved Direct Taxation MCQ Questions Answer
Q. An individual is said to be resident in India if
a. He has a house in India
b. He is in India in the previous year for a period of 182 days or more
c. He is in India for a period of 30 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year
d. His parents are Indian citizen.
Q. An Indian citizen leaving India during the previous year for employment purpose is saidto be resident if
a. He has a house in India
b. He is in India in the previous year for a period of 182 days or more
c. He is in India for a period of 60 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year
d. His parents are Indian citizen.
Q. An individual, being foreign national, came to India first time during the previous year 2017-18 on 01-01-2018 for 200 days, his residential status for the previous year 2017-18 is.
a. Non-resident
b. Resident but not ordinarily resident in India
c. Resident and ordinarily resident in India
d. Resident in India
Q. Following income of a resident and ordinarily resident is taxable in India, that is
a. Bank interest from State Bank of India, Delhi
b. Bank interest from Bank of America, New York Branch
c. Rental income from house property located in London
d. All of the above
Q. One out of the following house properties is not exempted, which is:
a. House property of a political party
b. House property let out for the purpose of own business of tenant.
c. House property of a local authority
d. None of the Above
Q. A house property located outside India is:
a. Taxable in hands of all assessee
b. Taxable in hands of non residentassessee
c. Taxable in hands of resident and ordinarily resident assessee
d. Exempted from tax in India.
Q. Deduction u/s 24(a) is
a. 30% of net annual value of the house property
b. 30% of gross annual value of house property
c. 30% of actual rent received
d. None of the Above
Q. Interest relating to pre-construction period is allowable:
a. In 5 equal installments from the year in which it was incurred.
b. In the year in which it was incurred
c. In the year in which house property was constructed
d. None of the Above
Q. For the purpose of claiming higher deduction u/s 24(b), while computing income of a self-occupied property, assessee is required to take:
a. Loan on or before 01-04-1999
b. Loan on or after 01-04-1999
c. Loan after 01-04-1999
d. Loan on 01-04-1999
Q. Income from sub-letting is:
a. Taxable under the head ‘Income from House Property’
b. Taxable under the head ‘Income from Other Sources’
c. Exempted
d. None of the above
Q. Deduction u/s 24(a) is not available when:
a. Net annual value is zero
b. Net annual value is positive
c. Net annual value is zero or negative
d. None of the above
Q. Which of the following deductions is /are not allowed in case of a deemed to be let-out house?
a. New construction allowance
b. Repairs
c. Vacancy allowance
d. All of the above
Q. Which of the following is not allowed as a deduction for computation of business Income?
a. Loss incurred due to theft in factory after working hours
b. Anticipated future losses
c. Loss caused by white ants
d. Loss due to accidental fire in stock-in-trade
Q. Preliminary expenses are incurred in every business. What are the expenses that qualify for deduction u/s.35D?
a. Expenses for drafting memorandum and articles of association
b. Payment of duty at the office of Registrar of Companies
c. Expenditure incurred in preparation of project report
d. All of the above
Q. Expenditure incurred by a company for the purpose of promoting family planningamong its employees, being of a capital nature
a. Is not allowed as a deduction
b. Allowed as deduction in 4 equal installments in 4 years
c. 1/5 of expenditure is allowed as deduction in the previous year
d. 4/5 of expenditure is allowed as deduction in 4 equal installments in 4 years after the previous year