Top 150+ Solved Income Tax Law and Practices MCQ Questions Answer
Q. An assessee has borrowed money for purchase of a house & Interest is payable outside India.
a. Such interest shall:
b. Be allowed as deduction
c. Not to be allowed on deduction
d. Be allowed as deduction if the tax is deducted at source
Q. Salary, bonus, commission or remuneration due to or received by a working partner from the firm is taxable under the head.
a. Income from salaries
b. Other sources
c. PGBP
d. none
Q. Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head.
a. Salary
b. Other sources
c. PGBP
d. none
Q. Interest on capital or loan received by a partner from a firm is:
a. Exempt U/S 10(2A)
b. Taxable U/H business and profession
c. Taxable U/H income from other sources
d. none
Q. Under the head Business or Profession, the method of accounting which an assessee can follow shall be:
a. Mercantile system only
b. Cash system only
c. Mercantile or cash system only
d. Hybrid system
Q. Gain arising from the disposal of _________ is taxable under the head capital gains.
a. Depreciable asset
b. Eligible depreciable asset
c. Securities
d. All of the above
Q. ____________are capital assets.
a. Stock in trade
b. Sculpture
c. Immovable property
d. Both b and c
Q. A person who derives his income by dealing in shares of private, unlisted and public limited companies are covered under the head.
a. Income from business
b. Income from other sources
c. Capital gains or
d. All of the above
Q. Bonus shares are issued by a company to its ______ without receiving any amount from them.
a. Employees
b. Customer
c. Shareholders
d. All of the above
Q. Gain from sale of shares of Private Limited companies is taxable under section_________.
a. 37
b. 37A
c. Not taxable
d. None of (a) to (c)
Q. Bonus shares are the shares issued by a company_____________.
a. Free of cost
b. Issued at concessional rate
c. On credit
d. None of the above
Q. A company in which at least 50% of the shares are held by a foreign government is ___________.
a. Private company
b. Public company
c. Foreign company
d. All of the above
Q. Any incidental expenditure on disposal of capital assets shall form part of _____________.
a. Cost of assets
b. Disposal consideration
c. Selling cost
d. None of a to c
Q. Capital loss u/s 37 is allowed as deduction for those assets the gain of which is___________.
a. Chargeable to tax
b. Exempt from tax
c. Both of these
d. None of (a) to (c)
Q. At the time of devolution ___________ would be the cost of the asset.
a. FMV
b. Historical cost
c. higher of a and b
d. none