Top 150+ Solved Income Tax MCQ Questions Answer

From 76 to 90 of 159

Q. . Cost of long term debentures are.....................

a. eligible for indexing.

b. not eligible for indexing.

c. none of these.

d. all the above.

  • b. not eligible for indexing.

Q. What is the date on which Fair Market Value of capital assets acquired is determined?

a. 1.4.2001.

b. 1.4.1971.

c. 1.4.1981.

d. 1.4.1971.

  • c. 1.4.1981.

Q. FMV on 1.4.81 is applicable to assets.......................

a. acquired prior to 1.4.81.

b. transferred prior to 1.4.81.

c. acquired after 1.4.81.

d. none of the above.

  • a. acquired prior to 1.4.81.

Q. Cost of improvement incurred prior to 1.4.81 is................

a. indexed separately.

b. indexed along with cost of acquisition.

c. ignored fully.

d. none of these.

  • c. ignored fully.

Q. Medical reimbursement is exempt up to .................. if treatment is done in a private hospital.

a. rs: 5,000

b. rs: 10,000

c. rs: 15,000

d. rs: 50,000

  • c. rs: 15,000

Q. Excise duty and sales tax are allowed as deduction if paid before......................

a. late date of filing of return.

b. previous year end.

c. before 31 st december of the previous year.

d. after 31 st december of previous year.

  • a. late date of filing of return.

Q. Technical know-how acquired after 1.4.98 is eligible for depreciation at...............

a. 10% p.

b. 20% p.a.

c. 25% p.a.

d. 40% p.a.

  • c. 25% p.a.

Q. Which of the following is exempted.

a. c.c.a

b. d.a

c. foreign allowance

d. medical allowance

  • c. foreign allowance

Q. Free food provided to employees is exempted upto ...................... per meal.

a. rs: 40

b. rs: 50

c. rs: 60

d. rs: 15

  • b. rs: 50

Q. The income from the sale of house hold furniture is ......................

a. taxable income

b. exempted income

c. capital gain

d. business income

  • b. exempted income

Q. Deduction for other expenses except interest in the computation of income from house property isallowable to the extent of .........................

a. 1/5th of annual value

b. 30% of annual value

c. 25% of annual value

d. 20% of annual value

  • b. 30% of annual value

Q. Preliminary expenses shall be allowed as deduction in...............

a. 5 instalments.

b. 10 instalments.

c. 15 instalments

d. 12 instalments.

  • a. 5 instalments.

Q. Bad debts allowed earlier and recovered latter on is....................

a. business income.

b. non business income.

c. exempted income.

d. income from other sources.

  • a. business income.

Q. Under valuation of opening stock is....................

a. deducted from net profit.

b. added to net profit.

c. credited to p & l a/c

d. none of these.

  • a. deducted from net profit.
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