Taxation Solved Assignment 001

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SCDL- PGDBA- IV Semester (Finance)
TAXATION - Paper Code -133
SCDL SOLVED ASSIGNMENT – TAXATION (133)
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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Multiple Choice Multiple Answer

Question The entertainment allowance received by the
Government employees is included in their salaries
and the deduction is allowed to the extent of least
of the following amounts :-
Correct Actual amount of Entertainment Allowance
Answer received. , Rs. 5,000 , 1/5th of Salary
Your Answer Actual amount of Entertainment Allowance
received. , Rs. 5,000 , 1/5th of Salary
True/False
Question Income Tax Act, 1961 recognizes Written Down
Value (WDV) method as well as straight line
method for the computation of depreciation u/s 32
this act.
Correct False
Answer
Your Answer False

Question Profits earned by an Industrial Undertaking
engaged in other than infrastructure development is
available under Section 80IB for :-
Correct Operation of Ship , Hotels situated in hilly area,
Answer rural area or place of pilgrimage , Company
engaged in scientific and industrial research
Your Answer Operation of Ship , Hotels situated in hilly area,
rural area or place of pilgrimage
Multiple Choice Single Answer

Question Which of the following expenditure is in the nature
of revenue expenditure?
Correct Expenditure incurred as discount on issue of
Answer debentures
Your Answer Expenditure incurred as discount on issue of
debentures
Select The Blank

Question If sum received is net of TDS then it is ________ to
include in income from other sources.
Correct Grossed up
Answer
Your Answer Grossed up
True/False
Question Interest paid on the loan for acquiring a capital
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Question A return is considered to be defective returns under section
139(9) unless :-
Correct Answer The return is accompanied by copies of required financial
statements of the assessee , The computation of income
under each head, Gross Total Income are properly filed in ,
The return is accompanied by the tax audit report under
section 44AB
Your Answer The return is accompanied by copies of required financial
statements of the assessee , The return is filed on 31st
August of the assessment year , The computation of income
under each head, Gross Total Income are properly filed in ,
The return is accompanied by the tax audit report under
section 44AB
Select The Blank

Question ________ is the tax payable on the manufacturing of goods.
Correct Answer Excise duty
Your Answer Excise duty

Question Income earned in previous year is subjected to tax in :-
Correct Answer Assessment year
Your Answer Assessment year
Select The Blank

Question The amount of rebate/s 88C is 100% of the income tax
liability before claiming the rebate under section 88 and relief
under section 89( 1) pr Rs.________ whichever is less.
Correct Answer 5000
Your Answer 20000

Question For filing the returns of income, Form No. 2C is to be filled in
by :-
Correct Answer Persons falling under One by Six Scheme
Your Answer Persons falling under One by Six Scheme

Question Mr. A whose Gross Total Income, before allowing deductions
under Chapter VI-A is Rs. 1,45,000, wants to make the
investments in the following alternative forms Rs. 80,000 in
PPF and Rs. 20,000 in Infrastructure Bonds. The amount of
rebate available to him u/s 88 is :-
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Select The Blank

Question The basic advantage of having an agent in the export market is ________.
Correct Answer He is knowledgeable of the marketing condition
Your Answer He is knowledgeable of the marketing condition

Question How does the customer know about the product & is influenced to buy it?
Correct Answer Publicity , Advertising , Sales promotion
Your Answer Publicity , Advertising , Sales promotion

Question Which of the following is not included in foreign environment?
Correct Answer Local dimension
Your Answer Local dimension

Question Why should a market researcher check a country's import tariffs when he is
investigating it as an export market?
Correct Answer It can affect the competitiveness of product against products made within the
market
Your Answer It can affect the competitiveness of product against products made within the
market

Question This question is based on the case study "Oriental Silk Pvt. Ltd.". What are the
distribution channels used for imports of silk products into USA market?
Correct Answer Merchant intermediaries , Departmental stores
Your Answer Merchant intermediaries , Departmental stores
True/False
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental entered
the US market in 1970 with a moderate export of Rs.20 million.
Correct Answer False
Your Answer False
Match The Following

Question Correct Answer Your Answer
Indirect exporting Home-based merchant Copyright
Business dimensions Channel network Channel network
Legal dimensions Copyright Use of patent
Licensing arrangement Use of patent Home-based merchant

Question What is important to take pricing decision?
Correct Answer Competition
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Your Answer Competition
Select The Blank

Question In ________, the firm faces only one set of customers.
Correct Answer Domestic marketing
Your Answer Domestic marketing

Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental was an
active member of some councils, which are those?
Correct Answer Apparel Export Promotion Council , Woolen Export Promotion Council
Your Answer Apparel Export Promotion Council , Woolen Export Promotion Council

Question This question is based on the case study 'AB Enterprises'. What is the problem in
adapting AB Enterprises product in the market?
Correct Answer Novelty is lost due to ethnic character in AB Enterprises
Your Answer Novelty is lost due to ethnic character in AB Enterprises

Question What are the important infrastructure factors in evaluating production site?
Correct Answer Industrial site , Transportation & communication
Your Answer Industrial site , Transportation & communication

Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Which are the two
years the imports of silk fabrics from Japan by USA was almost same?
Correct Answer 1982 , 1983
Your Answer 1982 , 1983
Select The Blank

Question ________dimensions include customs and practices
Correct Answer Business
Your Answer Business

Question What is the nature of direct export market?
Correct Answer Concentrated , Large potential sale
Your Answer Concentrated , Large potential sale

Question What does product-mix decision include?
Correct Answer Packaging
Your Answer Packaging

Question What are the internal sources of information?
Correct Answer Sales record , Correspondence from salesmen
Your Answer Sales record , Correspondence from salesmen
True/False
Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Mr.Patnaik felt
that it was high time that he appraises his agents' performance relating to the vast &
expanding US market.
Correct Answer True
Your Answer True
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Question This question is based on the case study "Oriental Silk Pvt. Ltd.". What were the
options Mr.Patnaik had to operate in the US market?
Correct Answer Opening a branch office , A subsidiary company
Your Answer Opening a branch office , A subsidiary company
Select The Blank

Question In indirect export channel, the market is ________.
Correct Answer Dispersed
Your Answer Dispersed
True/False
Question Strategies suggested in the Medium Term Export Plan include product-market
penetration strategy for existing products, product-market, diversification for new products &
new markets.
Correct Answer True
Your Answer True

Question Why is packaging so important for product planning?
Correct Answer As it enhances protection , As it gives shelf life for a product
Your Answer As it enhances protection , As it gives shelf life for a product
True/False
Question If foreign retailers are used, the products in question are industrial products rather
than consumer products.
Your Answer True

Question How is the nature of international strategy?
Correct Answer Depends on company's objectives , Varies from country to country
Your Answer Depends on company's objectives , Varies from country to country
Select The Blank

Question "make site booking" is a point of checklist of ________
Correct Answer Before the fair
Your Answer Before the fair

Question What marketing technique is used to know international marketing need?
Correct Answer Marketing information & research
Your Answer Marketing information & research

Question What are the benefits of participation in trade fair?
Correct Answer To get to know about competition , To know about the extent of product
adaption
Your Answer To get to know about competition , To know about the extent of product
adaption
Select The Blank

Question Experience survey, which is also called as ________.
Correct Answer Key informant survey
Your Answer Key informant survey
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Question What is a foreign agent?

Correct Answer Independent middleman
Your Answer Independent middleman

Question What does political environment include?
Correct Answer Legal dimension
Your Answer Legal dimension
Match The Following

External factor Competitive profile Competitive profile
Ethnocentric orientation Overseas operation conducted from home country Overseas

operation conducted from home country
Polycentric orientation Each market is unique Each market is unique
Target market Marketing strategy Marketing strategy
True/False
Question In marginal cost pricing for export, competition in foreign markets requires quotation
of a lower price
Correct Answer True
Your Answer True
True/False
Question Policies or regulations regarding quality control & inspection vary considerably
between nations.
Correct Answer True
Your Answer True
Select The Blank

Question This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental Silk
Private Limited, is a ________ unit, was one of the leading Indian manufacturers & exporters
of silk fabrics & made-ups
Correct Answer 100% export oriented
Your Answer 100% export oriented
Select The Blank

Question This question is based on the case study "Oriental Silk Pvt. Ltd.". The bulk of the
trade was handled by ________
Correct Answer Central buying organizations
Your Answer Foreign agents
True/False
Question If business is variable, the company will choose the purchasing or subcontracting
alternatives.
Correct Answer True
Your Answer True

Question What is the meaning of offshore purchasing?
Correct Answer Relationship between independent buyer & seller for exchange of good for
money
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Your Answer Relationship between independent buyer & seller for exchange of good for
money
Select The Blank

Question Many companies modify their products/promotion strategies to suit ________ of the
population of the different countries.
Correct Answer Tastes & preferences
Your Answer Tastes & preferences
True/False
Question Companies with smaller needs, an independent supplier will be less active.
Your Answer False
True/False
Question Catalogues contain a list of all competitors with product details.
Your Answer False

Question What is correct according to geocentric orientation?
Correct Answer Companies view the entire world as a single market , Uniform inventory
management & training
Your Answer Companies view the entire world as a single market , Uniform inventory
True/False
Question The area of change relates to product adaption requires upgradation of technology
and huge investment in brands.
Correct Answer True
Your Answer True
Select The Blank

Question This question is based on the case study "Chow Flowers Co. Ltd.". ________ was
Thailand's second largest export market for artificial flowers, mostly polyester or hand-
wrapped.
Correct Answer Canada
Your Answer Canada

Question What are the similarities between domestic & international marketing?
Correct Answer Satisfying consumers need
Your Answer Satisfying consumers need

Question What is the need of marketing research for export-import trade?
Correct Answer To reduce the distance between an exporter & his customers in terms of
marketing
Your Answer To reduce the distance between an exporter & his customers in terms of
marketing

Question What is the avenue of entry into foreign markets?
Correct Answer Contract manufacturing
Your Answer Contract manufacturing
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Question What is the principal functional division of ministry of commerce & industry?
Correct Answer Export Industries Division
Your Answer Export Industries Division
----------

Question What are the factors to be considered in cluster analysis?
Correct Answer Limited number of clusters due to limitation of market potential , Clusters are
not water tight compartment , Evaluating the quality of cluster is difficult
Your Answer Limited number of clusters due to limitation of market potential , Clusters are not
water tight compartment , Evaluating the quality of cluster is difficult

Question Clarity of questions and instructions for filling the form is essential in :-
Correct Answer Mail survey
Your Answer Data analysis

Question The technique through which objects/ cases are classified into relative
homogeneous groups or clusters is known as :-
Correct Answer Cluster analysis
Your Answer Cluster analysis

Question Mean or average value is used to estimate when data have been collected using :-
Correct Answer Interval or ratio scale
Your Answer Interval or ratio scale
Select The Blank

Question In ________ method the research analyst is not concerned with cause and research
relationship.
Correct Answer Diagnostic
Your Answer Diagnostic

Question Which are the New Delhi based Research Institutions?
Correct Answer NRDC , CSIR , Cement Research Institute of India
Your Answer NRDC , CSIR , Cement Research Institute of India

Question Market Research is done to
Correct Answer Explore the Opportunities
Your Answer Explore the Opportunities
True/False
Question "Consumer Panel" is a specialized market research technique.
Your Answer False
Match The Following

"What might this be ?" Inkblot test Inkblot test
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Aided Recall Depth Research Depth Research
Doesn’t intend to tell Projective techniques Projective techniques
Ease of construction Likert scale Likert scale
True/False
Question In regression analysis, dependent variables can be expressed as a linear function of
impendent variables.
Correct Answer True
Your Answer True
True/False
Question When company prepares a long range plan it is unpublished internal source of
information.
Correct Answer True
Your Answer True
Select The Blank

Question Association technique is a type of ________.
Correct Answer Projective technique
Your Answer Projective technique

Question The impact of promotional slogans on the consumers can be studied with
Correct Answer Association technique
Your Answer Association technique
True/False
Question Brand image building is not important in case of industrial product for quality.
Your Answer False

Question Which publications are used for research on Chemical Industry?
Correct Answer Indian Chemical Directory , Chemical Industry News , Chemical & Petro
Chemicals Journal
Your Answer Indian Chemical Directory , Chemical Industry News , Chemical & Petro
Chemicals Journal

Question Spreading the sample through the entire population following a regular pattern is
known as :-
Correct Answer Systematic sampling
Your Answer Systematic sampling
Select The Blank

Question In absence of proper________ the market research becomes a data collection
exercise.
Correct Answer Problem Definition
Your Answer Analysis

Question Which institutions should be contacted for research on Paint Chemicals?
Correct Answer National Chemical Laboratory, Pune , Industrial Research & Development
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Center , Building Research Institute

Your Answer National Chemical Laboratory, Pune , Industrial Research & Development
Center , Building Research Institute

Question The objectives of marketing research are
Correct Answer To understand the consumer needs and wants , To explore the new markets ,
To analyze the competitors
Your Answer To understand the consumer needs and wants , To explore the new markets ,
To analyze the competitors

Question Ultra violet ink is used to disguise customer coding. This activity is :-
Correct Answer A disapproved method
Your Answer A disapproved method
Select The Blank

Question Through cluster analysis objects/cases are classified into relatively________ group
called cluster.
Correct Answer Homogeneous
Your Answer Homogeneous
Match The Following

Dangler POP POP
POP Communication medium Communication medium
Opinion Polls Daily basis Daily basis
Corporate Image Study Advertising research Advertising research

Question Ethical issues to be observed while writing a report are :-
Correct Answer No deliberate misinterpretations , Marketing problems should be designed to
suit hidden agenda , Complete confidentiality and secrecy of data
Your Answer No deliberate misinterpretations , Marketing problems should be designed to
suit hidden agenda , Complete confidentiality and secrecy of data
Select The Blank

Question Multiple Choice is a ________type of question.
Correct Answer Close ended
Your Answer Close ended

Question The conjoint analysis helps to enable company's to :-
Correct Answer Conduct brand swot analysis
Your Answer Conduct brand swot analysis

Question In the Internet era, qualitative research is possible through :-
Correct Answer Chat sessions
Your Answer Chat sessions
Select The Blank
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Question ________is an important communication medium that helps recall advertising.

Correct Answer Point of Purchase(POP)items
Your Answer Point of Purchase(POP)items
True/False
Question In the Funnel approach, specific questions come first and general questions later.
Your Answer False

Question In resources for marketing research skilled staff plays an important role in :-
Correct Answer Maintaining data , Dealing with different situation and problems , Timely
completion of research
Your Answer Maintaining data , Dealing with different situation and problems , Timely
completion of research
Select The Blank

Question Convenience Sampling is used for ________.
Correct Answer Exploratory research
Your Answer Exploratory research
True/False
Question The person conducting pharma research should be well qualified so that not to
waste Doctors time.
Correct Answer True
Your Answer True
True/False
Question The limitations with regression forecasting is that independent variables must be
forecasted before forecasting the dependent variables.
Correct Answer True
Your Answer True

Question Main features of Technical Report are :-
Correct Answer Minute details of planning data collection , Analysis , Interpretation
Your Answer Minute details of planning data collection , Analysis , Interpretation

Question How people allocate their time and money to certain products and factors is
depicted by
Correct Answer Psychographic Variable
Your Answer Psychographic Variable
True/False
Question Question phrasing and structure are eliminated in Semantic differential scale.
Correct Answer True
Your Answer True
True/False
Question The popularity of Likert scale is due to its ease of construction and administration.
Correct Answer True
Your Answer True

Question Which are the Export Promotion Councils?
Correct Answer Cashew Export Promotion Council , Handloom Export Promotion Council ,
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Gem & Jewellery Export Promotion Council

Your Answer Cashew Export Promotion Council , Handloom Export Promotion Council , Gem
& Jewellery Export Promotion Council
True/False
Question The written contract of a research should cover the penalty clause covering deficits
such as delays, inadequate data.
Correct Answer True
Your Answer True

Question The producers in the sellers' market are also forced to take decisions based on the
market information because
Correct Answer The resources are scarce
Your Answer The resources are scarce

Question Scale Intervals can be used for
Correct Answer Age
Your Answer Age
Select The Blank

Question Bibliography contains ________.
Correct Answer Information of references and secondary data
Your Answer Information of references and secondary data

Question Online survey methods include :-
Correct Answer Email survey , HTML survey , Downloadable interactive surveys
Your Answer Email survey , HTML survey , Downloadable interactive surveys

Question Data of market research cannot be maintained :-
Correct Answer Without experienced and educated research staff
Your Answer Without experienced and educated research staff

Question Pretesting of Questionnaire includes testing of :-
Correct Answer Question content , Time taken to answer questions , Categorisation
Your Answer Question content , Time taken to answer questions , Categorisation

Question Identification of Target Population is facilitated by :-
Correct Answer Well defined research objectives , Alternative, reasonable/target population
definitions , Specifications for exclusion in target population
Your Answer Well defined research objectives , Alternative, reasonable/target population
definitions , Specifications for exclusion in target population
Select The Blank

Question ________are used for National Panel Studies.
Correct Answer Quota controls
Your Answer Quota controls
Select The Blank

Question Finding out the number of vehicles at a given junction is a ________ method.
Correct Answer Direct Observation
Your Answer Direct Observation
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Question Foreign allowance received by an Indian national is exempt if it
is paid by :-
Correct Government of India
Answer
Your Government of India
Answer

Question For the purpose of section 80IA, the term eligible business
means :-
Correct Developing, maintaining or operating any infrastructure facility
Answer where the term infrastructure facility means a road (including a
toll road, a bridge or a rail system) or a highway project or a
water supply project. , Developing, maintaining or operating an
industrial park or special economic zones notified by the
Central Government , Generation or distribution of power
Your Developing, maintaining or operating an industrial park or
Answer special economic zones notified by the Central Government ,
Generation or distribution of power , Developing, maintaining
or operating any infrastructure facility where the term
infrastructure facility means a road (including a toll road, a
bridge or a rail system) or a highway project or a water supply
project.
True/False
Question For being resident of India, a person must be citizen of India.
Correct False
Answer
Your False
Answer

Question The due date prescribed for filing the returns of income in Form
No. 2C is
Correct 31st October of the respective Assessment year
Answer
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Your 31st October of the respective Assessment year

Answer

Question The amount of accumulated interest on NSCs purchased in the
earlier years is assumed to be reinvested :-
Correct And qualifies for tax rebate under section 88.
Answer
Your And qualifies for tax rebate under section 88.
Answer
True/False
Question A person who is a Senior Citizen who has attained the age of
65 years is not entitled to the rebate u/s 88 of the Act.
Correct False
Answer
Your False
Answer

Question The total amount of rebates under Section 88, Section 88B,
Section 88C and Section 88D of the Act. shall :-
Correct Not exceed the amount of tax calculated on the total income.
Answer
Your Not exceed the amount of tax calculated on the total income.
Answer
True/False
Question A company is resident of India if in any previous year it is an
Indian Company even though control & management are
situated outside India.
Correct False
Answer
Your False
Answer

Question From GTI of a company following deductions under chapter VI
A are allowed
Correct 80 G Donations , 80 HHB profits and gains from projects
Answer outside India , 80 IA profits and gains of infrastructure
companies
Your 80 G Donations , 80 HHB profits and gains from projects
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Answer outside India , 80 IA profits and gains of infrastructure

companies
True/False
Question Clause N0-30 of the Tax Audit requires that, if the cost Audit of
the company carried out, the report of such audit should be
enclosed to the Tax Audit Report.
Correct True
Answer
Your True
Answer
Match The Following
Deductions of Rent, Rates, Repairs, Taxes and Insurance on u/s u/s

Buildings are available 30 30
Deduction of Depreciation is available u/s 32 u/s 32
General deductions are allowed as deductions while calculating u/s u/s

profits from business and profession 37 37
Deductions of Repairs & maintenance of machinery, plant & u/s u/s

furniture are available 31 31

Question In case of any contribution made by an individual or a HUF to
notified units of any approved mutual fund or of Unit Trust of
India in accordance with a notified scheme (Equity Linked
Savings Scheme) :-
Correct The maximum allowable limit is Rs. 10,000
Answer
Your The maximum allowable limit is Rs. 10,000
Answer
True/False
Question The value of benefit resulting from the payment made by the
employer in a club for any expenditure incurred by the
employee shall be taken as perquisites unless the said
expenses are incurred wholly and exclusively for official
purposes.
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Correct True
Answer
Your True
Answer

Question What is the treatment of principal amount of loan borrowed for
the purchase or construction of a residential house?
Correct Rebate u/s 88 for such amount not exceeding Rs. 20,000
Answer
Your Rebate u/s 88 for such amount not exceeding Rs. 20,000
Answer
True/False
Question Rebates as per the provisions of Section 88 of the Act are not
available from the tax on longterm capital gains.
Correct True
Answer
Your True
Answer

Question Following specific incomes are taxable under the heading
income from other sources :-
Correct Winning from betting , Interest on securities of local authority ,
Answer Bonus from key man insurance policy
Your Winning from betting , Interest on securities of local authority
Answer
True/False
Question Deductions available as per the provisions of Chapter VI of the
Act are not available for the long-term capital gains.
Correct True
Answer
Your True
Answer
True/False
Question Income earned & received outside India & remitted to India is
taxable for resident & ordinary resident
Correct True
Answer
Your True
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Answer

Question What is the due date for filing Annual return for TDS from
Salaries?
Correct 30th June of Assessment Year
Answer
Your 30th June of Assessment Year
Answer

Question The least of the following is the exemption available to an
employee if he is in receipt of house rent allowance :-
Correct 50% of the Salary where such accommodation is situated in
Answer Mumbai, Kolkata, Chennai and Delhi and 40% of the Salary
when the accommodation is situated at any other place. ,
Actual amount of HRA received by the employee. , Excess of
rent paid over 10% of the Salary.
Your 50% of the Salary where such accommodation is situated in
Answer Mumbai, Kolkata, Chennai and Delhi and 40% of the Salary
when the accommodation is situated at any other place. ,
Actual amount of HRA received by the employee.
Select The Blank

Question If the CC of the engine is more than 1..6 liters and the motor
car is owned or hired by the employer and is used partly of
official and partly for personal purposes and if running and
maintenance expenses are borne by the employee then the
value of perquisite will be Rs.________ per month plus Rs.600
if car is chauffer driven car.
Correct 600
Answer
Your 600
Answer

Question As a general principle, the Basic Salary or Wages, Dearness
Allowance and Bonus / Commission is :-
Correct Fully taxable.
Answer
Your Fully taxable.
Answer
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Question Under the clause No-32 of the Act, in the Tax Audit Report, the
Auditor is required to give the accounting calculation in ratios
of :-
Correct Gross profit/turnover , Net profit/turnover , Stock in
Answer trade/turnover
Your Gross profit/turnover , Net profit/turnover , Stock in
Answer trade/turnover

Question If taxable income is less than 7.5% of book profit, income tax is
payable @ of :-
Correct 0.1
Answer
Your 0.1
Answer
Select The Blank

Question In case of foreign companies rate of tax is ________.
Correct 0.35
Answer
Your 0.2
Answer
True/False
Question Interest is payable by the assessee for not paying the Advance
tax or if the Advance tax paid by the assessee is less than 80%
of the Assessed tax after adjusting the amount of TDS and
Advance tax Paid
Correct False
Answer
Your True
Answer

Question For the purpose of income tax, the perquisites can be
classified into :-
Correct Perquisites which are taxable in case of all types of employees
Answer , Perquisites which are taxable only in the hands of specified
employee
Your Perquisites which are taxable in case of all types of employees
Answer , Perquisites which are taxable only in the hands of specified
employee
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Question Loss from owning and maintaining race horses can be
adjusted against :-
Correct Only the income arising out of the same activity
Answer
Your Only the income arising out of the same activity
Answer

Question Municipal taxes are payable on :-
Correct Municipal valuation
Answer
Your Municipal valuation
Answer
True/False
Question Dividend received from domestic company to its shareholders
is taxable in the hands of the shareholder.
Correct False
Answer
Your False
Answer
Select The Blank

Question Company means any ________ Company.
Correct Indian
Answer
Your Domestic Company
Answer

Question Section 35D applies to the preliminary expenses incurred by a
company, which consists of :-
Correct Expenditure in connection with the preparation of
Answer feasibility/project report, engineering services, or conducting
market survey , Legal charges and fees for registering the
company as per the provisions of company Act, 1956 ,
Charges in connection with drafting and printing of
memorandum of association and Articles of Association
Your Expenditure in connection with the preparation of
Answer feasibility/project report, engineering services, or conducting
market survey , Legal charges and fees for registering the
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company as per the provisions of company Act, 1956 ,

Charges in connection with drafting and printing of
memorandum of association and Articles of Association

Question Perquisites which are taxable only in the hands of specified
employee include the following categories of perquisites :-
Correct Motor Car , Services of sweeper, gardener, watchman or
Answer personal attendant , Gas, electricity and water provided for
personal consumption
Your Motor Car , Gas, electricity and water provided for personal
Answer consumption , Amount spent on training of employees or fees
paid for refresher management course
Select The Blank

Question Loss under the head Income from Capital Gains, to the extent
it is long term capital loss can be carried forward and set off in
the subsequent Assessment Years against the ________
subject to the limit of 8 Assessment years.
Correct Long term Capital Gains
Answer
Your Long term Capital Gains
Answer

Question For charging the income in the form of salaries :-
Correct There needs to be an employer-employee relationship
Answer between the payer and the payee.
Your There needs to be an employer-employee relationship
Answer between the payer and the payee.
True/False
Question The amount of telephone bills (including the mobile phone bills)
of the employee reimbursed by the employer is exempt from
tax.
Correct True
Answer
Your True
Answer
True/False
Question The amount of expenses including membership fees and
annual fees incurred by the employee on credit card and which
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are paid by the employer shall be added as the perquisites

unless the said expenses are incurred wholly and exclusively
for official purposes.
Correct True
Answer
Your True
Answer

Question The amount of advance tax payable by corporate assessees
before 15th September of Previous year is :-
Correct 45% of advance tax payable
Answer
Your 45% of advance tax payable
Answer

Question As per which provision and section, every person, company or
any other person shall furnish his returns of income in the
prescribed form on or before the specified due date?
Correct Section 139(1)
Answer
Your Section 139(1)
Answer
Select The Blank

Question ________ is the tax payable on the manufacturing of goods.
Correct Excise duty
Answer
Your Sales tax
Answer

Question The return of income is required to be filed by all the
companies, except those covered under section 25 of the
companies Act,1956 in the :-
Correct Form No. 1
Answer
Your Form No. 1
Answer
Match The Following
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Disallowable Litigation Expenses in Litigation Expenses in

Expenditure connection with recovery of a connection with recovery of a
debt which is not a trading debt which is not a trading
debt debt
Business Includes trade, commerce, or Includes trade, commerce, or

manufacture or any adventure manufacture or any adventure
or concern in the nature of or concern in the nature of
trade, commerce or trade, commerce or
manufacture manufacture
Profession Includes vocation Includes vocation
Capital Expenditure incurred by a Expenditure incurred by a

Expenditure company with the issue of company with the issue of
rights shares rights shares

Question The sum total of all the heads of income clubbed together
gives the amount of :-
Correct Gross Total Income
Answer
Your Gross Total Income
Answer
Select The Blank

Question Short term Capital Gains is taxed at ________.
Correct Normal Tax rates
Answer
Your Normal Tax rates
Answer

Question From annual value, following deductions are allowed :-
Correct Standard deduction , Interest on borrowed capital , Municipal
Answer taxes
Your Standard deduction , Interest on borrowed capital , Municipal
Answer taxes
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Question The rebate u/s 88 is available to an :-

Correct Individual , Hindu Undivided Family.
Answer
Your Individual , Hindu Undivided Family.
Answer
Taxation-Saroj2
Select The Blank

Question For an individual as a citizen of India who leaves India in the
relevant previous year for the purpose of employment has to be in India for
________ days or more during previous year.
Correct Answer 182

Your Answer 182

No. 2C is
Correct Answer 31st October of the respective Assessment year
Your Answer 31st October of the respective Previous year

Question The payments for claiming the rebate u/s 88 should :-
Correct Answer Be made out of the income chargeable to tax.
Your Answer Be made out of the income chargeable to tax.

any other person shall furnish his returns of income in the prescribed form
on or before the specified due date?
Correct Answer Section 139(1)

Your Answer Section 139(1)
Select The Blank

Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can
claim tax rebate of ________u/s 88C of the IT Act.
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Correct Answer Rs. 5,000

Your Answer Nil

Question Rebate is allowed on any subscription made to National Saving
Scheme by :-
Correct Answer An individual , A HUF
Your Answer An individual , A HUF , Partnership Firms

Question For the purpose of taxability of perquisite a specified employee
means :-
Correct Answer The person who is director of a company , The employee
who has substantial interest in the company by having 20% or more of the
voting power , The employee whose income under the head salaries
(including all the taxable monetary payments of salary but excluding the
value of any non-monetary benefits or perquisites), after allowing
deductions under Section 16, exceeds Rs. 50,000
Your Answer The person who is director of a company , The employee


Question Following professional institutions have their incomes exempt
from tax :-
Correct Answer Town planning , Company secretary , Accounting
Your Answer Town planning , Company secretary , Accounting
True/False
Question Deduction u/s 80E for repayment of loan taken for higher
education is available if the loan must have borrowed by the assessee
himself or his Father

Your Answer False
True/False
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Question The consideration for transfer of Capital Asset is received by the

transferor is not material while Capital gain chargeable to tax.
Correct Answer True

Your Answer True

Question Any loans or deposits borrowed or repaid under section 269SS
of the Act provides that the said provisions will not apply to the loans or
deposits accepted by :-
Correct Answer Banking company including cooperative bank and post

office savings bank , Government , Government company
Your Answer Government , Government company , Banking company

including cooperative bank and post office savings bank
Match The Following

Employee stock option plan ESOPS ESOPS
Uncommuted Pension Indicates the periodical payment of pension

Indicates the periodical payment of pension
Commuted Pension Indicates the lump sum received in lieu of the

periodical Indicates the lump sum received in lieu of the periodical
Treatment of Perquisite Taxed in the hands of employee as taxable

salary Taxed in the hands of employee as taxable salary
True/False
Question A person who is a Senior Citizen who has attained the age of 65
years is not entitled to the rebate u/s 88 of the Act.

Your Answer True
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Question For Deduction u/s 54EC from Capital Gains the assessee should
invest the whole or part of the capital gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the long-
term capital asset
Your Answer Within six months from the date of transfer of the long-
term capital asset
Select The Blank

Question Unabsorbed business loss can carried forward and set off in the
subsequent Assessment Years subject to the time limit of ________
Assessment years.
Correct Answer 8
Your Answer 3

under Chapter VI-A is Rs. 2,40,000 wants to make the investments in the
following alternative forms Rs. 50,000 in PPF and Rs. 50,000 in
Infrastructure Bonds. The amount of rebate available to him u/s 88 is :-

Your Answer Rs. 15,000

Question Annual value of any one palace in possession of a former ruler
is :-
Correct Answer Exempt
Your Answer Exempt
Match The Following

Any subscription made to National Saving Scheme
By an individual or a HUF is eligible for rebate u/s 88 By an individual

or a HUF is eligible for rebate u/s 88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs.
2,50,000 during the Assessment Year 2005-2006. He invested Rs. 50,000 in
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the tax saving bonds of ICICI on 10th June 2004. His tax liability for the A
Y 2005-2006.
RS.12,500 RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the
Gross Total Income of Rs. 1,45,000 including the dividend from Indian
companies amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during
the said Assessment Year. her tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made to a Public Provident Fund
Is eligible for rebate u/s 88 Is eligible for rebate u/s 88
Select The Blank

Question To claim sec 10A deduction unit must be established in
________.
Correct Answer Free Trade Zone
Your Answer Free Trade Zone
Select The Blank

Question Non resident individual satisfies ________ of the basic
conditions.
Correct Answer None
Your Answer Any one

Question Deduction from Capital Gains under Section 54 is for Capital
Gains arising from transfer of :-
Correct Answer House Property
Your Answer House Property
Select The Blank

Question Deduction for remuneration from foreign sources for professors,
teachers etc under Section 80R is limited to ________% of such
remuneration brought in India.
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Correct Answer 15
Your Answer 15
Select The Blank

Question Relief under section 89 is available to an employee in respect of
the amount of salary received ________.
Correct Answer In advance or in arrears
Your Answer In the immediately succeeding year.
Select The Blank

Question AOP id formed when two or more ________ come together to
earn income.
Correct Answer Persons
Your Answer Persons

Question Capital Gains arise on account of excess of transfer
consideration over the following amounts
Correct Answer Cost of acquisition , Cost of improvement , Expenditure
incurred wholly and exclusively in connection with the transfer
Your Answer Cost of acquisition , Cost of improvement , Expenditure


Question Which of the following amounts credited to P & L Account but
not taxable from Income tax Purposes as Profits from Business and
Profession?
Correct Answer Refund of Income tax , Capital Gains , Dividend Income
Your Answer Refund of Income tax , Capital Gains , Dividend Income
True/False
available from the tax on long-term capital gains.
Correct Answer True

Your Answer True
Select The Blank
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Question If assessee owns more than one house properties, he can get
benefit of nil annual value for any one house property ________.
Correct Answer As per his choice

Your Answer As per his choice

Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000
Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000

Question The provisions for payment of gratuity is not allowed under
section 40A(7) but, under the head, profits from business and profession, the
amount of gratuity will be allowed as deduction only when :-
Correct Answer The amount of gratuity has actually become payable to

the employees during the previous year , The provision has been made for
the payment of a sum by way of contribution to an approval gratuity , The
other than the above two situations, any provision made for the payment of
gratuity is not allowed as deduction
Your Answer The amount of gratuity has actually become payable to the
employees during the previous year , The provision has been made for the
payment of a sum by way of contribution to an approval gratuity

Question If the Salary is less than Rs. 5,00,000, Standard Deduction will
be the least of the following :-
Correct Answer 40% of the Salary , Rs. 30,000
Your Answer 40% of the Salary , Rs. 30,000

Question The amount of advance tax payable by non corporate assessees
before 15th December of Previous year is :-
Correct Answer 60% of advance tax payable
Your Answer 100% of advance tax payable
Select The Blank
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Question It should be noted that the tax liability of an individual having

the total income of less than Rs ________ is Nil u/s 88D.
Correct Answer 1,00,000

Your Answer 1,00,000
True/False
Question If assessee owns more than one house properties, annual value
of any one of the house property can be treated as nil, and such option can
be changed year on year basis.
Correct Answer True

Your Answer True
True/False
Question Income from subletting is treated as income from house
property.
Your Answer False

Question Following persons are deemed to be an assessee :-
Correct Answer Legal heir of deceased person , Parents of minor assessee
, Agent of NRI
Your Answer Legal heir of deceased person , Parents of minor assessee ,
Agent of NRI

Question Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of
news
Your Answer They apply their income for collection & distribution of
news
Select The Blank

Question The rebate u/s 88B is available to an individual who has attained
the age of ________ or more at any time during the previous year.
Correct Answer 65
Your Answer 65
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Question What is the tax treatment of the Lump sum received from
unrecognized provident fund on the retirement or resignation or death of the
employee?
Correct Answer Employee's contribution to PF is exempt from tax ,

Interest on employee's contribution is taxable as "Income from Other
Sources" , Employer's Contribution to PF and interest thereon is taxable as
"Income from salaries"
Your Answer Employee's contribution to PF is exempt from tax , Interest

on employee's contribution is taxable as "Income from Other Sources" ,
Employer's Contribution to PF and interest thereon is taxable as "Income
from salaries"
True/False
Question Any advance tax paid before 31st March is treated as advance
tax paid during the previous year.
Correct Answer True
Your Answer True
True/False
Question A woman assessee below the age of 65 years is also entitled to
rebate u/s 88.
Correct Answer True
Your Answer True

Question Rent for other amenities like lift, electricity, telephone etc. is
taxed under the heading :-
Correct Answer Income from other sources
Your Answer Income from salaries

before 15th June of Previous year is :-
Correct Answer Nil

Question The entertainment allowance received by the Government
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employees is included in their salaries and the deduction is allowed to the

extent of least of the following amounts :-
Correct Answer Rs. 5,000 , 1/5th of Salary , Actual amount of

Entertainment Allowance received.
Your Answer Rs. 5,000 , 1/5th of Salary , Actual amount of
True/False
Question Loss from house property can be adjusted against the income
from any other house property.
Correct Answer True
Your Answer True
True/False
Question Annual premium paid by the employer for the accident
insurance policy taken by the employer in the name of the employee is
chargeable to tax.

Your Answer True

Question Annual return for TDS from Salaries is to be filed in :-
Correct Answer Form No. 24
Your Answer Form No. 24
Taxation-Saroj2
Select The Blank

Question For an individual as a citizen of India who leaves India in the
relevant previous year for the purpose of employment has to be in India for
________ days or more during previous year.
Correct Answer 182

Your Answer 182

No. 2C is
www.oqp.in
Correct Answer 31st October of the respective Assessment year

Your Answer 31st October of the respective Previous year

Question The payments for claiming the rebate u/s 88 should :-
Correct Answer Be made out of the income chargeable to tax.
Your Answer Be made out of the income chargeable to tax.

any other person shall furnish his returns of income in the prescribed form
on or before the specified due date?

Select The Blank

Question Mrs. X of 45 years has received salary of Rs 5,50,000 she can
claim tax rebate of ________u/s 88C of the IT Act.

Your Answer Nil

Question Rebate is allowed on any subscription made to National Saving
Scheme by :-
Correct Answer An individual , A HUF
Your Answer An individual , A HUF , Partnership Firms

Question For the purpose of taxability of perquisite a specified employee
means :-
Correct Answer The person who is director of a company , The employee
Your Answer The person who is director of a company , The employee

www.oqp.in

Question Following professional institutions have their incomes exempt
from tax :-
True/False
Question Deduction u/s 80E for repayment of loan taken for higher
education is available if the loan must have borrowed by the assessee
himself or his Father

Your Answer False
True/False
Question The consideration for transfer of Capital Asset is received by the
transferor is not material while Capital gain chargeable to tax.
Correct Answer True

Your Answer True

Question Any loans or deposits borrowed or repaid under section 269SS
of the Act provides that the said provisions will not apply to the loans or
deposits accepted by :-
Correct Answer Banking company including cooperative bank and post

office savings bank , Government , Government company
Your Answer Government , Government company , Banking company

including cooperative bank and post office savings bank
Match The Following

Employee stock option plan ESOPS ESOPS
www.oqp.in
Uncommuted Pension Indicates the periodical payment of pension

Indicates the periodical payment of pension
Commuted Pension Indicates the lump sum received in lieu of the

periodical Indicates the lump sum received in lieu of the periodical
Treatment of Perquisite Taxed in the hands of employee as taxable

salary Taxed in the hands of employee as taxable salary
True/False
Question A person who is a Senior Citizen who has attained the age of 65
years is not entitled to the rebate u/s 88 of the Act.

Your Answer True

Question For Deduction u/s 54EC from Capital Gains the assessee should
invest the whole or part of the capital gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the long-
term capital asset
Your Answer Within six months from the date of transfer of the long-
term capital asset
Select The Blank

Question Unabsorbed business loss can carried forward and set off in the
subsequent Assessment Years subject to the time limit of ________
Assessment years.
Correct Answer 8
Your Answer 3

under Chapter VI-A is Rs. 2,40,000 wants to make the investments in the
following alternative forms Rs. 50,000 in PPF and Rs. 50,000 in
Infrastructure Bonds. The amount of rebate available to him u/s 88 is :-
www.oqp.in


Question Annual value of any one palace in possession of a former ruler
is :-
Your Answer Exempt
Match The Following

Any subscription made to National Saving Scheme
By an individual or a HUF is eligible for rebate u/s 88 By an individual

or a HUF is eligible for rebate u/s 88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs.
2,50,000 during the Assessment Year 2005-2006. He invested Rs. 50,000 in
the tax saving bonds of ICICI on 10th June 2004. His tax liability for the A
Y 2005-2006.
RS.12,500 RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the
Gross Total Income of Rs. 1,45,000 including the dividend from Indian
companies amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during
the said Assessment Year. her tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made to a Public Provident Fund
Is eligible for rebate u/s 88 Is eligible for rebate u/s 88
Select The Blank

Question To claim sec 10A deduction unit must be established in
________.
www.oqp.in
Select The Blank

Question Non resident individual satisfies ________ of the basic
conditions.
Correct Answer None
Your Answer Any one

Question Deduction from Capital Gains under Section 54 is for Capital
Gains arising from transfer of :-
Correct Answer House Property
Select The Blank

Question Deduction for remuneration from foreign sources for professors,
teachers etc under Section 80R is limited to ________% of such
remuneration brought in India.
Correct Answer 15
Your Answer 15
Select The Blank

Question Relief under section 89 is available to an employee in respect of
the amount of salary received ________.
Correct Answer In advance or in arrears
Your Answer In the immediately succeeding year.
Select The Blank

Question AOP id formed when two or more ________ come together to
earn income.
Correct Answer Persons
Your Answer Persons

Question Capital Gains arise on account of excess of transfer
consideration over the following amounts
Correct Answer Cost of acquisition , Cost of improvement , Expenditure
Your Answer Cost of acquisition , Cost of improvement , Expenditure

www.oqp.in

Question Which of the following amounts credited to P & L Account but
not taxable from Income tax Purposes as Profits from Business and
Profession?
Correct Answer Refund of Income tax , Capital Gains , Dividend Income
Your Answer Refund of Income tax , Capital Gains , Dividend Income
True/False
available from the tax on long-term capital gains.
Correct Answer True

Your Answer True
Select The Blank

Question If assessee owns more than one house properties, he can get
benefit of nil annual value for any one house property ________.
Correct Answer As per his choice

Your Answer As per his choice

Correct Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000
Your Answer Rebate u/s 88 for such amount not exceeding Rs. 20,000

Question The provisions for payment of gratuity is not allowed under
section 40A(7) but, under the head, profits from business and profession, the
amount of gratuity will be allowed as deduction only when :-
Correct Answer The amount of gratuity has actually become payable to

the employees during the previous year , The provision has been made for
the payment of a sum by way of contribution to an approval gratuity , The
other than the above two situations, any provision made for the payment of
gratuity is not allowed as deduction
www.oqp.in
Your Answer The amount of gratuity has actually become payable to the
employees during the previous year , The provision has been made for the
payment of a sum by way of contribution to an approval gratuity

Question If the Salary is less than Rs. 5,00,000, Standard Deduction will
be the least of the following :-
Correct Answer 40% of the Salary , Rs. 30,000
Your Answer 40% of the Salary , Rs. 30,000

before 15th December of Previous year is :-
Correct Answer 60% of advance tax payable
Select The Blank

Question It should be noted that the tax liability of an individual having
the total income of less than Rs ________ is Nil u/s 88D.

True/False
Question If assessee owns more than one house properties, annual value
of any one of the house property can be treated as nil, and such option can
be changed year on year basis.
Correct Answer True

Your Answer True
True/False
Question Income from subletting is treated as income from house
property.
Your Answer False

Question Following persons are deemed to be an assessee :-
Correct Answer Legal heir of deceased person , Parents of minor assessee
, Agent of NRI
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Your Answer Legal heir of deceased person , Parents of minor assessee ,

Agent of NRI

Question Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution of
news
news
Select The Blank

Question The rebate u/s 88B is available to an individual who has attained
the age of ________ or more at any time during the previous year.
Correct Answer 65
Your Answer 65

Question What is the tax treatment of the Lump sum received from
unrecognized provident fund on the retirement or resignation or death of the
employee?

Interest on employee's contribution is taxable as "Income from Other
Sources" , Employer's Contribution to PF and interest thereon is taxable as
"Income from salaries"
Your Answer Employee's contribution to PF is exempt from tax , Interest

on employee's contribution is taxable as "Income from Other Sources" ,
Employer's Contribution to PF and interest thereon is taxable as "Income
from salaries"
True/False
Question Any advance tax paid before 31st March is treated as advance
tax paid during the previous year.
Correct Answer True
Your Answer True
True/False
Question A woman assessee below the age of 65 years is also entitled to
rebate u/s 88.
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Correct Answer True

Your Answer True

Question Rent for other amenities like lift, electricity, telephone etc. is
taxed under the heading :-
Correct Answer Income from other sources

before 15th June of Previous year is :-
Correct Answer Nil

Question The entertainment allowance received by the Government
employees is included in their salaries and the deduction is allowed to the
extent of least of the following amounts :-

True/False
Question Loss from house property can be adjusted against the income
from any other house property.
Correct Answer True
Your Answer True
True/False
Question Annual premium paid by the employer for the accident
insurance policy taken by the employer in the name of the employee is
chargeable to tax.

Your Answer True

Question Annual return for TDS from Salaries is to be filed in :-
www.oqp.in
Correct Answer Form No. 24

Your Answer Form No. 24
Match The Following

Intangible Capital Asset Tenancy Rights Equity Shares held for a period of Less than
36 months
Excluded from ambit of term Capital Asset Stock in Trade Land
Short Term Capital Asset Equity Shares held for a period of Less than 36 months
Stock in Trade
Long Term Capital Asset Land held for a period of 36 months or more Land held for a
period of 36 months or more
Select The Blank

Question Long term Capital Gains is taxed at ________.
Correct Answer 0.1
Your Answer 0.1
Select The Blank

Question Free meals provided by the employer during the office hours provided
that the value per meal does not exceed Rs. ________.
Correct Answer 50
Your Answer 25
True/False
Question Professional Tax paid by a person carrying on the business is allowed as
business expenditure.
Correct Answer True
Your Answer True
Match The Following

Retrenchment Compensation Exemption can be claimed u/s 10(10B) of the Income

Tax Act Terminal Compensation
Salary or wages for the purpose of calculating Death-Cum -Retirement Gratuity.

Basic Salary plus Dearness allowance Basic Salary plus Dearness allowance
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Any amount of compensation received or receivable by the employee from the

employer at the time of termination of his employment or at the time of modification of
terms and conditions in connection with the employment. Terminal Compensation
Treated as income from other sources.
Any Death-Cum-Retirement Gratuity received Treated as income from salary Treated

as income from salary
True/False
Question Dividend received by the shareholder is treated as income chargeable to
tax u/s 10(34) of the IT Act.
Your Answer False
Select The Blank

Question The valuation of perquisites in the case of interest free loans or the loans
at the concessional rate of interest will be the sum equal to the interest calculated at
the rate charges by State Bank of India, on the first day of the relevant previous year
in respect of the loans for the same purpose. Such interest is calculated on the
________ monthly balance.
Correct Answer Maximum outstanding
Your Answer Minimum outstanding

Question For the purpose of calculating the value of perquisite of residential
accommodation the term salary does not include :-
Correct Answer Dearness Allowance , Employer's contribution to Provident Fund ,
Allowances which are exempt from tax
Your Answer Dearness Allowance , Employer's contribution to Provident Fund

Question Following incomes are deemed to have accrued or arisen in India :-
Correct Answer Salary earned in India even if paid outside India , Salary paid by
Government to Indian national for services rendered outside India , Tax deducted in
India
Your Answer Salary earned in India even if paid outside India , Salary paid by
Government to Indian national for services rendered outside India , Income from any
capital asset situated outside India
True/False
Question Any sum payable by the assessee as interest on any loan borrowed by
him from any state financial corporation as per the terms on the agreement is not
allowed as deduction from profit as per P & L account, if they are actually paid before
the due date of furnishing return of income.
Your Answer True

Question What is the treatment of the perquisite in the form of Gas, electricity and
water supplied to the employee?
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Correct Answer If the facility of gas, electricity and water is supplied by the
employer to the employee purchasing the same from an outside agency, the
valuation of perquisite will be the charges paid by the employer to the outside agency
supplying gas, electricity and water. , If the facility in the form of gas, electricity and
water is supplied by the employer out of his own resources, the valuation of
perquisite will be the manufacturing cost per unit incurred by the employer.
Select The Blank

Question Dividends from the ________ is an exempt income and hence will not be
included in the Taxable income.
Correct Answer Indian Companies
Your Answer Indian Companies

Question The various payments which are referred as deductions under section
43B, Clause No-21 are :-
Correct Answer Any employees contribution payable by the assessee towards any
Provident Fund or Superannuation Fund or Gratuity Fund for the welfare of the
employees , Any sum payable by the assessee by way of tax duty, cess or fee , Any
sum payable by the assessee as interest on any loan or borrowing made by him from
any public financial institution or state financial corporation as per the terms of the
agreement

Question If the capital gains arise on account of compulsory acquisition of the
capital asset under any law and any compensation is paid for such acquisition :-
Correct Answer The capital gains liability will be computed in the previous year in
which the compensation or the part thereof is first received

Question What is the tax treatment of the Lump sum received from unrecognized
provident fund on the retirement or resignation or death of the employee?
Correct Answer Employee's contribution to PF is exempt from tax , Interest on
employee's contribution is taxable as "Income from Other Sources" , Employer's
Contribution to PF and interest thereon is taxable as "Income from salaries"

Question The head of income in the form of Income from Salaries is applicable in
respect of the :-
Correct Answer Remuneration received by an employee from the employer
Your Answer Remuneration received by an employee from the employer
Select The Blank

Question As per the Clause N0-30 of the Act ________ requires company
engaged in production, mining, and manufacturing activities should maintain proper
books of accounts showing the particulars of utilization of material, labour or any
other item.
Correct Answer Section 209 of the Companies Act,1956
Your Answer Section 209 of the Income Tax Act, 1961
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Question A domestic company has following features :-
Correct Answer It is an Indian Co. , It can be any other Co. , Has made prescribed
arrangements for declaration and payment of dividend

Question For filing the returns of income, Form No. 2C is to be filled in by :-
Correct Answer Persons falling under One by Six Scheme

Question For the purpose of Section 40 A (2) of the IT Act, if assessee is a firm,
the term "Specified Persons" may include :-
Correct Answer Any partner of the firm or his relative , Any person having the
substantial interest in the business or profession of the firm or any director or partner
of such company or firm or any relative of such person. , Any person who carries on
business or profession and in his business or profession the assessee or any partner
of such firm or relative of such partner has substantial interest.
True/False
Question Refund of Income tax is taxable as Income from other sources.
Select The Blank

Question Prior period interest is calculated from the date of ________ to the date
of completion.
Correct Answer Borrowing
Your Answer Borrowing
Question Capital Gains are chargeable to Income Tax if there is any profit or gain
arising from the transfer of a :-
Correct Answer Capital Asset
Taxation
-------------
Select The Blank
Question The basic advantage of having an agent in the export
market is ________.
Correct Answer He is knowledgeable of the marketing condition
Your Answer He is knowledgeable of the marketing condition
Question How does the customer know about the product & is
influenced to buy it?
Correct Answer Publicity , Advertising , Sales promotion
Your Answer Publicity , Advertising , Sales promotion
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Question Which of the following is not included in foreign

environment?
Correct Answer Local dimension
Your Answer Local dimension
Question Why should a market researcher check a country's import
tariffs when he is
investigating it as an export market?
Correct Answer It can affect the competitiveness of product against
products made within the
market
Your Answer It can affect the competitiveness of product against
products made within the
market
Question This question is based on the case study "Oriental Silk Pvt.
Ltd.". What are the
distribution channels used for imports of silk products into USA
market?
Correct Answer Merchant intermediaries , Departmental stores
Your Answer Merchant intermediaries , Departmental stores
True/False
Ltd.". Oriental entered the
US market in 1970 with a moderate export of Rs.20 million.
Your Answer False
Match The Following
Indirect exporting Home-based merchant Copyright
Business dimensions Channel network Channel network
Legal dimensions Copyright Use of patent
Licensing arrangement Use of patent Home-based merchant
Question What is important to take pricing decision?
Correct Answer Competition
Your Answer Competition
Select The Blank
Question In ________, the firm faces only one set of customers.
Correct Answer Domestic marketing
Your Answer Domestic marketing
Ltd.". Oriental was an active
member of some councils, which are those?
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Correct Answer Apparel Export Promotion Council , Woolen Export

Promotion Council
Your Answer Apparel Export Promotion Council , Woolen Export
Promotion Council
Question This question is based on the case study 'AB Enterprises'.
What is the problem in
adapting AB Enterprises product in the market?
Correct Answer Novelty is lost due to ethnic character in AB
Enterprises
Your Answer Novelty is lost due to ethnic character in AB
Enterprises
Question What are the important infrastructure factors in evaluating
production site?
Correct Answer Industrial site , Transportation & communication
Your Answer Industrial site , Transportation & communication
Ltd.". Which are the two
years the imports of silk fabrics from Japan by USA was almost
same?
Correct Answer 1982 , 1983
Your Answer 1982 , 1983
Select The Blank
Question ________dimensions include customs and practices
Correct Answer Business
Your Answer Business
Question What is the nature of direct export market?
Correct Answer Concentrated , Large potential sale
Your Answer Concentrated , Large potential sale
Question What does product-mix decision include?
Correct Answer Packaging
Your Answer Packaging
Question What are the internal sources of information?
Correct Answer Sales record , Correspondence from salesmen
Your Answer Sales record , Correspondence from salesmen
True/False
Ltd.". Mr.Patnaik felt that it
was high time that he appraises his agents' performance relating to
the vast & expanding US
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market.
Correct Answer True
Your Answer True
Ltd.". What were the options
Mr.Patnaik had to operate in the US market?
Correct Answer Opening a branch office , A subsidiary company
Your Answer Opening a branch office , A subsidiary company
Select The Blank
Question In indirect export channel, the market is ________.
Correct Answer Dispersed
Your Answer Dispersed
True/False
Question Strategies suggested in the Medium Term Export Plan
include product-market
penetration strategy for existing products, product-market,
diversification for new products & new
markets.
Correct Answer True
Your Answer True
Question Why is packaging so important for product planning?
Correct Answer As it enhances protection , As it gives shelf life for a
product
Your Answer As it enhances protection , As it gives shelf life for a
product
True/False
Question If foreign retailers are used, the products in question are
industrial products rather than
consumer products.
Your Answer True
Question How is the nature of international strategy?
Correct Answer Depends on company's objectives , Varies from
country to country
Your Answer Depends on company's objectives , Varies from
country to country
Select The Blank
Question "make site booking" is a point of checklist of ________
Correct Answer Before the fair
Your Answer Before the fair
Question What marketing technique is used to know international
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marketing need?
Correct Answer Marketing information & research
Your Answer Marketing information & research
Question What are the benefits of participation in trade fair?
Correct Answer To get to know about competition , To know about
the extent of product adaption
Your Answer To get to know about competition , To know about the
extent of product adaption
Select The Blank
Question Experience survey, which is also called as ________.
Correct Answer Key informant survey
Your Answer Key informant survey
Question What is a foreign agent?
Correct Answer Independent middleman
Your Answer Independent middleman
Question What does political environment include?
Correct Answer Legal dimension
Your Answer Legal dimension
Match The Following
External factor Competitive profile Competitive profile
Ethnocentric orientation Overseas operation conducted from home
country Overseas operation
conducted from home country
Polycentric orientation Each market is unique Each market is unique
Target market Marketing strategy Marketing strategy
True/False
Question In marginal cost pricing for export, competition in foreign
markets requires quotation of a
lower price
Correct Answer True
Your Answer True
True/False
Question Policies or regulations regarding quality control &
inspection vary considerably between
nations.
Correct Answer True
Your Answer True
Select The Blank
Ltd.". Oriental Silk Private
Limited, is a ________ unit, was one of the leading Indian
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manufacturers & exporters of silk

fabrics & made-ups
Correct Answer 100% export oriented
Your Answer 100% export oriented
Select The Blank
Ltd.". The bulk of the trade
was handled by ________
Correct Answer Central buying organizations
Your Answer Foreign agents
True/False
Question If business is variable, the company will choose the
purchasing or subcontracting
alternatives.
Correct Answer True
Your Answer True
Question What is the meaning of offshore purchasing?
Correct Answer Relationship between independent buyer & seller for
exchange of good for
money
Your Answer Relationship between independent buyer & seller for
exchange of good for money
Select The Blank
Question Many companies modify their products/promotion
strategies to suit ________ of the
population of the different countries.
Correct Answer Tastes & preferences
Your Answer Tastes & preferences
True/False
Question Companies with smaller needs, an independent supplier
will be less active.
Your Answer False
True/False
Question Catalogues contain a list of all competitors with product
details.
Your Answer False
Question What is correct according to geocentric orientation?
Correct Answer Companies view the entire world as a single
market , Uniform inventory
Your Answer Companies view the entire world as a single market ,
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Uniform inventory
True/False
Question The area of change relates to product adaption requires
upgradation of technology and
huge investment in brands.
Correct Answer True
Your Answer True
Select The Blank
Question This question is based on the case study "Chow Flowers
Co. Ltd.". ________ was
Thailand's second largest export market for artificial flowers, mostly
polyester or hand-wrapped.
Correct Answer Canada
Your Answer Canada
Question What are the similarities between domestic & international
marketing?
Correct Answer Satisfying consumers need
Your Answer Satisfying consumers need
Question What is the need of marketing research for export-import
trade?
Correct Answer To reduce the distance between an exporter & his
customers in terms of
marketing
Your Answer To reduce the distance between an exporter & his
customers in terms of marketing
Question What is the avenue of entry into foreign markets?
Correct Answer Contract manufacturing
Your Answer Contract manufacturing
Question What is the principal functional division of ministry of
commerce & industry?
Correct Answer Export Industries Division
Your Answer Export Industries Division
at 6:31 AM 0 comments Links to this post
Labels: Taxation
Wednesday, March 26, 2008
Taxation - 3
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Question The entertainment allowance received by the
Government employees is included in their salaries
and the deduction is allowed to the extent of least of
the following amounts :-
Correct Answer Actual amount of Entertainment Allowance received.
,
Rs. 5,000 , 1/5th of Salary
Your Answer Actual amount of Entertainment Allowance received. ,
Rs. 5,000 , 1/5th of Salary
True/False
Question Income Tax Act, 1961 recognizes Written Down Value
(WDV) method as well as straight line method for the
computation of depreciation u/s 32 this act.
Your Answer False
Question Profits earned by an Industrial Undertaking engaged
in other than infrastructure development is available
under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area,
rural
area or place of pilgrimage , Company engaged in
scientific and industrial research
Your Answer Operation of Ship , Hotels situated in hilly area, rural
area or place of pilgrimage
Question Which of the following expenditure is in the nature of
revenue expenditure?
Correct Answer Expenditure incurred as discount on issue of
debentures
debentures
Select The Blank
Question If sum received is net of TDS then it is ________ to
include in income from other sources.
Correct Answer Grossed up
True/False
Question Interest paid on the loan for acquiring a capital asset
will be considered to be a part of cost of acquisition.
Correct Answer True
Your Answer True
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Question Mr. A whose Gross Total Income, before allowing

deductions under Chapter VI-A is Rs. 1,45,000, wants
to make the investments in the following alternative
forms Rs. 80,000 in PPF and Rs. 20,000 in
Infrastructure Bonds. The amount of rebate available
to him u/s 88 is :-
Question Interest on specified securities or premium on
redemption is exempt for :-
Correct Answer Non resident Indian
Your Answer Non resident Indian
True/False
Question As per section 2(11) of the Income Tax Act, Block of
Assets includes both tangible as well as intangible
assets.
Correct Answer True
Your Answer True
Question Deductions in respect of Certain Incomes received
under Section 80L is available in respect of
Correct Answer Interest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs)
Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Your Answer Interest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs)
Interest on National Saving Scheme, 1992 (NSS) ,
Bank Interest
Question Tax liability of a person is based on :-
Correct Answer Residential status
Your Answer Residential status
Question For the purpose of income tax, the perquisites can be
classified into :-
Correct Answer Perquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the
hands of specified employee
Your Answer Perquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the
hands of specified employee
Select The Blank
Question For an individual as a citizen of India who leaves India
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in the relevant previous year for the purpose of

employment has to be in India for ________ days or
more during previous year.
Correct Answer 182
Your Answer 182
Question Income earned in previous year is subjected to tax in
:-
Correct Answer Assessment year
Your Answer Assessment year
Question Following professional institutions have their incomes
exempt from tax :-
Select The Blank
Question ________ of the Tax Audit Report refers to the details
of various payments which are allowed as deduction
only if they are actually paid for.
Correct Answer Section 43B Clause No-21
Your Answer Section 43B Clause No-21
Question Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Short Term Capital Gains. , Long term Capital Gains
Select The Blank
Question To claim sec 10A deduction unit must be established
in ________.
Question Assessment year is the period of 12 months starting
from :-
Correct Answer 1st April to 31st March
Your Answer 1st April to 31st March
Question Combined total of five heads of income equals :-
Correct Answer Gross total income
Your Answer Gross total income
Question If an employee does not avail of this leave travel
concession or assistance during a block of four
calendar years :-
Correct Answer Only one journey can be carried forward to the next
block.
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Your Answer Only one journey can be carried forward to the next
block.
Select The Blank
Question To acquire PAN, a person shall apply in ________ to
the assessing officer.
Correct Answer Form No. 49A
Your Answer Form No. 49A
Question Deduction from Capital Gains under Section 54F is for
Capital Gains arising from transfer of :-
Correct Answer Any Long Term Capital Asset
Select The Blank
Question Where an assessee files or submits the returns as per
provisions of section 139 or in response to the notice
under section 142, the assessment officer undertakes
________ as per section 143(2) and section 143(3).
Correct Answer Scrutiny Assessment
Your Answer Scrutiny Assessment
Question Income of a professional association is exempt if its
objectives are :-
Correct Answer Supervision , Control , Encouragement
Your Answer Supervision , Control , Encouragement
True/False
Question While computing the profits from Business and
profession, the business or profession must be carried
out during the previous year.
Correct Answer True
Your Answer True
Question In respect of leave travel concession If Mr. A has
availed the exemption only once or has not availed
any exemption at all, in the block of four years i.e.
1998-2001 then :-
Correct Answer He can carry over the exemption to the next block
of
four years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next
block i.e. 2002.
Your Answer He can carry over the exemption to the next block of
four years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next
block i.e. 2002.
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Question The amount accumulated to the credit of the

employee's provident fund account is paid at the time
of :-
Correct Answer Retirement , Resignation
Your Answer Retirement , Resignation
Question From annual value, following deductions are allowed :-
Correct Answer Standard deduction , Interest on borrowed capital ,
Municipal taxes
Your Answer Interest on borrowed capital , Municipal taxes
Question As a general principle, the Basic Salary or Wages,
Dearness Allowance and Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
Question From GTI of a company following deductions under
chapter VI A are allowed
Correct Answer 80 G Donations , 80 HHB profits and gains from
projects outside India , 80 IA profits and gains of
infrastructure companies
Your Answer 80 G Donations , 80 IA profits and gains of
infrastructure companies
Question Annual value of any one palace in possession of a
former ruler is :-
Your Answer Taxable
Select The Blank
Question If the Salary is more than Rs. 5,00,000, Standard
Deduction will be Rs.________.
Correct Answer 20000
Your Answer 20000
Question The amount of accumulated interest on NSCs
purchased in the earlier years is assumed to be
reinvested :-
Correct Answer And qualifies for tax rebate under section 88.
Your Answer And qualifies for tax rebate under section 88.
Select The Blank
Question Deduction u/s ________B is available for 10
consequent assessment years from the year of
commencement of production.
Correct Answer 10
Your Answer 10
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True/False
Question Income from subletting is treated as income from
house property.
Your Answer False
Select The Blank
Question Section 80U allows the deduction in respect of the
________ .
Correct Answer Permanent physical disability
Your Answer Permanent physical disability
Match The Following
Disallowable
Expenditure
Litigation Expenses in
connection with
recovery of a debt
which is not a trading
debt
Litigation Expenses in
connection with
recovery of a debt
which is not a trading
debt
Business Includes trade,
commerce, or
Includes trade,
commerce, or
manufacture or any
adventure or concern
in the nature of trade,
commerce or
manufacture
manufacture or any
adventure or concern in
the nature of trade,
commerce or
manufacture
Profession Includes vocation Includes vocation
Capital Expenditure Expenditure incurred
by a company with the
issue of rights shares
Premium on
redemption of
Debentures
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True/False
Question Any recreational facility provided by the employer to a
group of employees (not being restricted to a select
few employees) is not exempt from tax.
Your Answer False
True/False
Question In case of deductions for medical treatment under
Section 80DDB the amount of deduction will be
reduced by the amount received under an insurance
policy or the amount reimbursed by the employer.
Correct Answer True
Your Answer True
True/False
Question Any advance tax paid before 31st March is treated as
advance tax paid during the previous year.
Correct Answer True
Your Answer True
Question Municipal taxes paid is allowed as deduction from :-
Correct Answer Gross annual value
Your Answer Gross annual value
True/False
Question Entertainment Allowance received by the employees
from the private sector is taxable in the hands of the
employee.
Correct Answer True
Your Answer True
Match The Following
Any subscription made
to National Saving
Scheme
By an individual or a
HUF is eligible for
rebate u/s 88
By an individual or a
HUF is eligible for
rebate u/s 88
Mr. A, a 70 years old
Senior Citizen, has the
Gross Total Income of
Rs. 2,50,000 during
the Assessment Year
2005-2006. He
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invested Rs. 50,000 in

the tax saving bonds of
ICICI on 10th June
2004. His tax liability
for the A Y 2005-2006.
RS.12,500 RS.12,500
During the
Assessment Year2005-2006, Mrs. A,age 58 years, has the Gross
Total Income of Rs. 1,45,000 including
the dividend from
Indian companies
amounting to Rs.
10,000. She invests
Rs. 50,000 in PPF
during the said
Assessment Year. her
tax liabilit is
Rs. 1,000 Rs. 1,000
Any contribution made
to a Public Provident
Fund
Is eligible for rebate
u/s 88
Is eligible for rebate u/s
88
Question Following incomes of local authorities are exempt :-
Correct Answer Capital gains , Other income , House property
Your Answer Capital gains , Other income , House property
Question For Deduction u/s 54EC from Capital Gains the
assessee should invest the whole or part of the capital
gains in the specified assets :-
Correct Answer Within six months from the date of transfer of the
longterm
capital asset
Your Answer Within six months from the date of transfer of the
longterm
capital asset
True/False
Question Income from partnership firms is exempt from taxation
for the partners
Correct Answer True
Your Answer False
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Labels: Taxation
Taxation - 2

Question 48 Deduction in respect of Contribution to certain pension
funds is related to :-
Correct Answer Section 80CCC
Your Answer Section 80CCC
True/False
Question 49 The rebate u/s 88B is allowed before the rebate u/s 88
is allowed.
Correct Answer True
TAXATION
9
Your Answer False
Select The Blank
Question 50 Expenditure incurred in connection with the local
festivals like Diwali etc. are
________ as business expenditure.
Correct Answer Allowed
Your Answer Allowed
Select The Blank
Question 51 Deduction is available for income from foreign sources
under Section 80RR if
such remuneration brought into India in convertible foreign
exchange within a
period of________ months from the end of the previous year.
Correct Answer 6
Your Answer 6
Question 52 Short Term Capital Loss can be adjusted against :-
Correct Answer Short Term Capital Gains. , Long term Capital Gains
Your Answer Short Term Capital Gains. , Long term Capital Gains
Question 53 Income from winning from lotteries / crossword
puzzles/ horse races is taxed at
flat rate of :-
Correct Answer 0.3
Your Answer 0.35
Select The Blank
Question 54 Section 35D of the Act provides that the preliminary
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expenses can be ________

over a period of 5 years commencing from the year of
commencement of
business.
Correct Answer Amortized and written off to profit and loss account
Your Answer Amortized and written off to profit and loss account
Select The Blank
Question 55 Section 43B of the IT Act provides that the certain
payments are allowed as
deduction only if they are ________.
Correct Answer Actually paid
Your Answer Reasonable
Question 56 The rebate u/s 88 is available to an :-
TAXATION
10
Correct Answer Individual , Hindu Undivided Family.
Your Answer Individual , Hindu Undivided Family.
Question 57 Income from other sources covers agricultural income
from land situated :-
Correct Answer Outside India
Your Answer Outside India
Question 58 A return is considered to be defective returns under
section 139(9) unless :-
Correct Answer The computation of income under each head, Gross
Total Income are properly
filed in , The return is accompanied by the tax audit report under
section 44AB ,
The return is accompanied by copies of required financial
statements of the
assessee
Your Answer The computation of income under each head, Gross
Total Income are properly
filed in , The return is accompanied by the tax audit report under
section 44AB ,
The return is accompanied by copies of required financial
statements of the
assessee
Question 59 If an employee does not avail of this leave travel
concession or assistance
during a block of four calendar years :-
Correct Answer Only one journey can be carried forward to the next
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block.
Your Answer Only one journey can be carried forward to the next
block.
Select The Blank
Question 60 The person who does not deduct the tax source as
required by the Act or after
deducting fails to pay the tax as required by the Act, shall be liable
to pay the
simple interest @________ % per month on the amount of such tax
from the
date on which the tax was deductible till the date on which such tax
is actually
paid.
Correct Answer 1
Your Answer 1.25
Question 61 The assessing officer may allot the Permanent Account
Number(PAN) to :-
Correct Answer Person whose Total Income during previous year
exceeds the maximum
amount, chargeable to tax , Person carrying on the business or
profession
whose turnover exceeds Rs.5 lakhs in any previous year , Any other
person by
whom tax is payable
Your Answer Person carrying on the business or profession whose
turnover exceeds Rs.5
lakhs in any previous year , Any other person by whom tax is
payable , Any
person not applying for permanent account number but, tax is
payable by him
TAXATION
11
Question 62 The provisions for payment of gratuity is not allowed
under section 40A(7) but,
under the head, profits from business and profession, the amount of
gratuity will
be allowed as deduction only when :-
Correct Answer The amount of gratuity has actually become payable
to the employees during
the previous year , The provision has been made for the payment of
a sum by
way of contribution to an approval gratuity , The other than the
above two
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situations, any provision made for the payment of gratuity is not

allowed as
deduction
Your Answer The amount of gratuity has actually become payable to
the employees during
the previous year , The provision has been made for the payment of
a sum by
way of contribution to an approval gratuity , The other than the
above two
situations, any provision made for the payment of gratuity is not
allowed as
deduction
Question 63 For the purpose of taxability of perquisite a specified
employee means :-
Correct Answer The person who is director of a company , The
employee who has substantial
interest in the company by having 20% or more of the voting power
, The
employee whose income under the head salaries (including all the
taxable
monetary payments of salary but excluding the value of any non-
monetary
benefits or perquisites), after allowing deductions under Section 16,
exceeds
Rs. 50,000
Your Answer The person who is director of a company , The
employee who has substantial
interest in the company by having 20% or more of the voting power
, The
employee whose income under the head salaries (including all the
taxable
monetary payments of salary but excluding the value of any non-
monetary
benefits or perquisites), after allowing deductions under Section 16,
exceeds
Rs. 50,000
True/False
Question 64 Sum received under a will / inheritance is not exempt.
Correct Answer True
Your Answer False
Select The Blank
Question 65 It should be noted that the tax liability of an individual
having the total income of
less than Rs ________ is Nil u/s 88D.
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Match The Following
Question 66 Correct Answer Your Answer
All intangible assets like
Patents, Trademarks, Copy
Rights, Licenses etc.
Rate of depreciation is 25% Rate of depreciation is 25%
Temporary Structures Rate of depreciation is 100% Rate of
depreciation is 10%
TAXATION
12
Computers Rate of depreciation is 60% Rate of depreciation is 40%
Containers made of glass or
plastic used as refills
Rate of depreciation is 40% Rate of depreciation is 60%
Select The Blank
Question 67 In case of foreign companies rate of tax is ________.
Correct Answer 0.35
Your Answer 0.35
Question 68 Which of the following expenditure is in the nature of
revenue expenditure?
Correct Answer Expenditure incurred as discount on issue of
debentures
debentures
Question 69 For the purpose of Section 40 A (2) of the IT Act, if
assessee is a firm, the term
"Specified Persons" may include :-
Correct Answer Any partner of the firm or his relative , Any person
having the substantial interest
in the business or profession of the firm or any director or partner
of such
company or firm or any relative of such person. , Any person who
carries on
business or profession and in his business or profession the
assessee or any
partner of such firm or relative of such partner has substantial
interest.
Your Answer Any partner of the firm or his relative , Any person
having the substantial interest
in the business or profession of the firm or any director or partner
of such
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company or firm or any relative of such person. , Any person who

carries on
business or profession and in his business or profession the
assessee or any
partner of such firm or relative of such partner has substantial
interest.
Question 70 For charging the income in the form of salaries :-
Correct Answer There needs to be an employer-employee
relationship between the payer and
the payee.
Your Answer There needs to be an employer-employee relationship
between the payer and
the payee.
True/False
Question 71 For claiming the deduction under section 80IA, the
industrial undertaking should
be owned by a company registered in India or a consortium of such
companies.
Correct Answer True
Your Answer True
Select The Blank
Question 72 Any expenditure incurred by the assessee for any
purpose which is ________
or which is prohibited by law shall not be allowed as business
expenditure
TAXATION
13
Correct Answer Offence
Your Answer Offence
Question 73 As a general principle, the Basic Salary or Wages,
Dearness Allowance and
Bonus / Commission is :-
Correct Answer Fully taxable.
Your Answer Fully taxable.
True/False
Question 74 Rebates as per the provisions of Section 88 of the Act
are not available from the
tax on long-term capital gains.
Correct Answer True
Your Answer True
True/False
Question 75 MAT is applicable if there is a difference of 7.5%
between net profit & book
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profit.
Correct Answer True
Your Answer False
Question 76 For the purpose of Section 40 A (2) of the IT Act, if
assessee is an individual,
the term "Specified Persons" may include :-
Correct Answer Any relative of such individual , Any person
(individual, company, firm etc.)
having a substantial interest in the business or profession of the
individual or
any director or partner of such company or firm or any relative of
such person. ,
Any person who carries on a business or profession and in his
business or
profession, the assessee himself or his relative has a substantial
interest.
Your Answer Any relative of such individual , Any person (individual,
company, firm etc.)
having a substantial interest in the business or profession of the
individual or
any director or partner of such company or firm or any relative of
such person. ,
Any person who carries on a business or profession and in his
business or
profession, the assessee himself or his relative has a substantial
interest.
Select The Blank
Question 77 Deduction for remuneration from foreign sources for
professors, teachers etc
under Section 80R is limited to ________% of such remuneration
brought in
India.
Correct Answer 15
Your Answer 10
True/False
Question 78 Any expenditure incurred for earning the income which
is included under the
head income from other sources will be allowed as deduction from
such income
TAXATION
14
provided that certain conditions are satisfied
Correct Answer True
Your Answer True
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Question 79 Deduction from Capital Gains from the transfer of
residential house property
under Section 54 is available to :-
Correct Answer Individual , HUF
Your Answer Individual , HUF , Company
True/False
Question 80 Income earned & received outside India & remitted to
India is taxable for
resident & ordinary resident
Correct Answer True
Your Answer True
Question 81 Mr X has received Rs 200000 as income from salary, Rs
50000 income from
house property and he also received Rs 100000 income from
specified units of
the mutual fund. What will be his total income
Correct Answer Rs 250000
Your Answer Rs 250000
Question 82 Standard deduction takes care of :-
Correct Answer Repairs & maintenance , Insurance premium ,
Ground rent
Your Answer Insurance premium
Match The Following
Individual partners & firms Are separate taxable entities Losses are
shared equally
Partnership firm Companies can be partners Are separate taxable
entities
Company partners Can not get salaries Companies can be partners
Individual partners Can be partners in any number
of firms
Can be partners in any number
of firms
TAXATION
15
Question 84 Capital Gains arise on account of excess of transfer
consideration over the
following amounts
Correct Answer Cost of acquisition , Cost of improvement ,
Expenditure incurred wholly and
exclusively in connection with the transfer
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Your Answer Cost of acquisition , Cost of improvement ,

Expenditure incurred wholly and
exclusively in connection with the transfer
True/False
Question 85 Income of a mutual fund is taxable even if it is
authorized by RBI.
Your Answer False
Select The Blank
Question 86 If sum received is net of TDS then it is ________ to
include in income from other
sources.
Correct Answer Grossed up
Question 87 What is the tax treatment of Statutory Provident Fund?
Correct Answer Employer's Contribution to PF is not liable for any
tax payment , Interest
credited to the employee's account is not liable for any tax
payment. , The lump
sum received at the time of retirement or resignation or death is
also exempt
under section 10(11) and 10(12).
Your Answer Employer's Contribution to PF is not liable for any tax
payment , Interest
credited to the employee's account is not liable for any tax
payment. , The lump
sum received at the time of retirement or resignation or death is
also exempt
under section 10(11) and 10(12).
True/False
Question 88 Interest paid on the loan for acquiring a capital asset
will be considered to be a
part of cost of acquisition.
Correct Answer True
Your Answer True
Question 89 What is the manner in which Income from Salaries is
taxable?
Correct Answer Due basis or 'receipt' basis whichever is earlier.
Your Answer Due basis or 'receipt' basis whichever is earlier.
Question 90 Deduction from Capital Gains under Section 54F is for
Capital Gains arising
from transfer of :-
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Correct Answer Any Long Term Capital Asset

TAXATION
16
Your Answer Any Long Term Capital Asset
Question 91 In case the assessee is not a company, a person(other
than a company) who is
falling under One by Six economic criteria, the last date for filing
the return is
prescribed as :-
Correct Answer 31st July of the Assessment year
Your Answer 31st July of the Assessment year
Select The Blank
Question 92 Registration charges in connection with the increasing
of ________ share
capital of the company is not allowed as revenue expenditure.
Correct Answer Authorized
Your Answer Authorized
True/False
Question 93 The amount of telephone bills (including the mobile
phone bills) of the employee
reimbursed by the employer is taxable in the hands of the
employee.
Your Answer False
Question 94 As per which provision and section, every person,
company or any other person
shall furnish his returns of income in the prescribed form on or
before the
specified due date?
Labels: Taxation
Taxation - 1
TAXATION
1
Select The Blank
Question 1 Mr X a salaried employee has received total educational
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allowance of Rs 8,000
for his four children, the maximum allowance exempt is ________
u/s 10(14) of
the IT Act.
Correct Answer Rs 2,400
Your Answer Rs 2,400
Question2 What is the tax treatment of the Lump sum received
from unrecognized
provident fund on the retirement or resignation or death of the
employee?
Interest on employee's
contribution is taxable as "Income from Other Sources" , Employer's
Contribution to PF and interest thereon is taxable as "Income from
salaries"
Your Answer Interest on employee's contribution is taxable as
"Income from Other Sources" ,
Employer's Contribution to PF and interest thereon is taxable as
"Income from
salaries" , Employee's contribution to PF is exempt from tax
True/False
Question 3 Software technology park means set up according to
Software Technology Park
Scheme framed by Ministry of Commerce & Industries.
Correct Answer True
Your Answer True
Select The Blank
Question 4 It is mandatory for ________ to file a return even if
there is loss or the income is
nil.
Correct Answer A company
Your Answer Persons under "One by Six" scheme
Question 5 Following professional institutions have their incomes
exempt from tax :-
Question 6 Which of the following amounts credited to P & L
Account but not taxable from
Income tax Purposes as Profits from Business and Profession?
Correct Answer Refund of Income tax , Capital Gains , Dividend
Income
Your Answer Refund of Income tax , Capital Gains , Dividend
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Income
Select The Blank
Question 7 ________ is the tax payable on the manufacturing of

goods.
Correct Answer Excise duty
Your Answer Excise duty
Select The Blank
Question 8 The amount paid by the employer to the employee to
meet the expenditure for
residential accommodation occupied by the employee is called
________.
Correct Answer House rent allowance
Your Answer House rent allowance
Question 9 Any amount deposited by an Individual or a HUF in 10
year or 15 year account
under the Post Office Saving Bank (CTD) Rules, 1959. The account
can be in
the name of :-
Correct Answer The individual himself , A minor of whom he is the
guardian.
Your Answer The individual himself , A minor of whom he is the
guardian.
Select The Blank
Question 10 Section 80U allows the deduction in respect of the
________ .
Correct Answer Permanent physical disability
Your Answer Permanent physical disability
Question 11 Income of notified news agencies is exempt provided :-
Correct Answer They apply their income for collection & distribution
of news
news
Question 12 The total amount of rebates under Section 88, Section
88B, Section 88C and
Section 88D of the Act. shall :-
Correct Answer Not exceed the amount of tax calculated on the
total income.
Your Answer Not exceed the amount of tax calculated on the total
income.
Question 13 What is the treatment of Uncommuted Pension?
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Correct Answer It is taxable as Income from Salaries.

Your Answer It is taxable as Income from Salaries.

Question 14 Perquisites which are taxable only in the hands of
specified employee include
the following categories of perquisites :-
Correct Answer Motor Car , Services of sweeper, gardener,
watchman or personal attendant ,
Gas, electricity and water provided for personal consumption
Your Answer Motor Car , Services of sweeper, gardener, watchman
or personal attendant ,
Gas, electricity and water provided for personal consumption
Question 15 The Central Government has introduced a new pension
scheme for the
employees employed on or after 15th January, 2004. These
employees are
required to contribute 10% of their salaries to this pension scheme.
How much
will the Central Government contribute to the Fund?
Correct Answer Equal amount
Your Answer Equal amount
True/False
Question 16 In case of deductions for medical treatment under
Section 80DDB the amount of
deduction will be reduced by the amount received under an
insurance policy or
the amount reimbursed by the employer.
Correct Answer True
Your Answer True
Question 17 If any person fails to get the accounts audited by a
Chartered Accountant and
fails to submit the copy of such report under section 44AB, he will
be liable to
pay the penalty equal to :-
Correct Answer 0.5% of sales turnover/gross receipts or Rs.1lakh
whichever is less
Your Answer 0.5% of sales turnover/gross receipts or Rs.1lakh
whichever is less
Select The Blank
Question 18 Section 35E of the Act applies to all the ________
engaged in the business of
prospecting for or extraction or production of certain specified
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minerals.
Correct Answer Resident assessees
Your Answer Non-ordinary resident assessees
Question 19 Profits earned by an Industrial Undertaking engaged in
other than infrastructure
development is available under Section 80IB for :-
Correct Answer Operation of Ship , Hotels situated in hilly area,
rural area or place of pilgrimage
, Company engaged in scientific and industrial research
Your Answer Operation of Ship , Hotels situated in hilly area, rural
area or place of pilgrimage
, Company engaged in scientific and industrial research
True/False
Question 20 Jewellery held by the assessee is not a Capital Asset.

Your Answer False
Select The Blank
Question 21 House rent allowance is exempt from the heading
________.
Correct Answer Income from salaries
Question 22 The various payments which are referred as deductions
under section 43B,
Clause No-21 are :-
Correct Answer Any employees contribution payable by the
assessee towards any Provident
Fund or Superannuation Fund or Gratuity Fund for the welfare of
the employees
, Any sum payable by the assessee by way of tax duty, cess or fee ,
Any sum
payable by the assessee as interest on any loan or borrowing made
by him from
any public financial institution or state financial corporation as per
the terms of
the agreement
Your Answer Any employees contribution payable by the assessee
towards any Provident
Fund or Superannuation Fund or Gratuity Fund for the welfare of
the employees
, Any sum payable by the assessee by way of tax duty, cess or fee ,
Any sum
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payable by the assessee as interest on any loan or borrowing made

by him from
any public financial institution or state financial corporation as per
the terms of
the agreement
Select The Blank
Question 23 The rebate u/s ________ is available to a woman
assessee below the age of 65
years at any time during the previous years.
Correct Answer 88C
Your Answer 88B
True/False
Question 24 An deduction is allowed to an assesse as an employer
in respect of contribution
made to any non-statutory fund under the section 40A(9).
Your Answer True
True/False
Question 25 Dividend received by the shareholder is treated as
income chargeable to tax u/s
10(34) of the IT Act.
Your Answer False
Question 26 The assessee is required to quote PAN in :-
Correct Answer All returns to or correspondence with the Income

Tax Authorities , All the
challans for the payment of any amount under the Act , All the
documents
pertaining to purchase, sale and bank transactions
Your Answer All returns to or correspondence with the Income Tax
Authorities , All the
challans for the payment of any amount under the Act , All the
documents
pertaining to purchase, sale and bank transactions
Question 27 Any person carrying on business or profession has to
submit the Audit Report in
prescribed form, signed by Chartered Accountant before 31st
October of the
assessment year, whether the return of income is filed or not. This
is in
compliance with :-
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Correct Answer Section 44AB of the Act

Your Answer Section 44AB of the Act
Question 28 In case of the individual or HUF whose Gross Total
Income, before deductions
under Chapter VI-A, is more than Rs. 5,00,000, then :-
Correct Answer No rebate will be available u/s 88.
Your Answer Rebate will be available u/s 88
Question 29 If firm fails to submit copy of deed along with return of
income :-
Correct Answer It will not constitute a separate taxable entity
Your Answer It will not constitute a separate taxable entity
Question 30 In order to avoid the cases of tax evasion on the part
of the assessees, the Act
has provided for :-
Correct Answer Tax deduction at source
Your Answer Tax deduction at source
Question 31 Which of the following expenditures are expressly
disallowed to be deducted
while computing the profits from business and profession
Correct Answer Income Tax , Wealth Tax
Your Answer Income Tax , Wealth Tax
True/False
Question 32 Section 80QQB is applicable to the individual resident
who is an author of text
books.
Your Answer False
Select The Blank

Question 33 Section 35AC of the Act applies to any sum paid by the
assessee to a public
sector company or a local authority or an association approved by
the national
committee for ________ for carrying out any project in upliftment
of public.
Correct Answer Promotion of social and economic welfare
Your Answer Promotion of social and economic welfare
Question 34 Income from sub-letting of a house property is income
from :-
Correct Answer Other sources
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Your Answer Subletting

Question 35 Income of a professional association is exempt if its
objectives are :-
Correct Answer Supervision , Control , Encouragement
Your Answer Supervision , Control , Encouragement
Question 36 Choose capital expenditure from the following list :-
Correct Answer Purchase of Building , Purchase of machinery
Your Answer Purchase of Building , Construction of temporary
structures , Purchase of
machinery
True/False
Question 37 Loss under the head Profits from Business or Profession
can be adjusted
against the Income from Salaries.
Your Answer False
Select The Blank
Question 38 Deduction u/s 10A is ________ of export proportion of
profits.
Correct Answer 0.9
Your Answer 0.9
True/False
Question 39 Rebates as per the provisions of Section 88C of the Act
are not available from
the tax on long-term capital gains.
Your Answer False

True/False
Question 40 Dividend received from domestic company to its
shareholders is taxable in the
hands of the shareholder.
Your Answer True
Match The Following
Super Annuation Fund This is an employee welfare
scheme which is usually
applicable in case of very
senior employees
This is an employee welfare
scheme which is usually
applicable in case of very senior
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employees
Statutory Provident Fund This is set up as per the
provisions of Provident Fund
Act, 1925. This is maintained
by Government organizations,
local authorities, universities
and educational institutions.
This is set up as per the
provisions of Provident Fund
Act, 1925. This is maintained by
Government organizations, local
authorities, universities and
educational institutions.
Recognised Provident Fund This is the provident fund to
which the provisions of
Employees Provident Fund and
Miscellaneous Provisions Act,
1952 apply.
This is the provident fund to
which the provisions of
Employees Provident Fund and
Miscellaneous Provisions Act,
1952 apply.
Unrecognised Provident Fund The provident fund which is not
recognized by the income tax
authorities is called as
unrecognized provident fund.
The provident fund which is not
recognized by the income tax
authorities is called as
unrecognized provident fund.
Question 42 Tax liability of a person is based on :-
Correct Answer Residential status
Your Answer Residential status
Select The Blank
Question 43 The amount of compensation received or receivable by
the employee from the
employer at the time of termination of his employment or at the
time of
modification of terms and conditions in connection with the
employment is called
as ________.
Correct Answer Terminal compensation.
Your Answer Terminal compensation.
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Match The Following

Intangible Capital Asset Tenancy Rights Tenancy Rights
Excluded from ambit of term
Capital Asset
Stock in Trade Land held for a period of 36
months or more
Short Term Capital Asset Equity Shares held for a period
of Less than 36 months
Stock in Trade
Long Term Capital Asset Land held for a period of 36
months or more
Building
Question 45 The entertainment allowance received by the
Government employees is
included in their salaries and the deduction is allowed to the extent
of least of
the following amounts :-
Entertainment Allowance
received.
Entertainment Allowance
received.
True/False
Question 46 Annual premium paid by the employer for the accident
insurance policy taken by
the employer in the name of the employee is chargeable to tax.
Your Answer False
Question 47 Following condition needs to be satisfied for claiming
the exemption under
Section 54F :-
Correct Answer The assessee is an individual or a HUF
Your Answer The assesse is Firm

Taxation Solved Assignment 001

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SCDL SOLVED ASSIGNMENT – TAXATION (133)

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Select The Blank

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer

Select The Blank

Correct Answer Excise duty

Your Answer Excise duty

Multiple Choice Single Answer

Correct Answer Assessment year

Your Answer Assessment year

Select The Blank

Your Answer 20000

Multiple Choice Single Answer

Your Answer Persons falling under One by Six Scheme

Multiple Choice Single Answer

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Multiple Choice Single Answer

Multiple Choice Multiple Answer

Match The Following

Indirect exporting Home-based merchant Copyright

Business dimensions Channel network Channel network

Legal dimensions Copyright Use of patent

Licensing arrangement Use of patent Home-based merchant

Multiple Choice Single Answer

Your Answer Competition

Select The Blank

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Multiple Choice Multiple Answer

Multiple Choice Multiple Answer

Select The Blank

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Multiple Choice Multiple Answer

Multiple Choice Multiple Answer

Select The Blank

Multiple Choice Multiple Answer

Multiple Choice Multiple Answer

Select The Blank

Multiple Choice Single Answer

Multiple Choice Multiple Answer

Select The Blank

Multiple Choice Single Answer

Question What is a foreign agent?

Multiple Choice Single Answer

Match The Following

External factor Competitive profile Competitive profile

Ethnocentric orientation Overseas operation conducted from home country Overseas

Polycentric orientation Each market is unique Each market is unique

Target market Marketing strategy Marketing strategy

Select The Blank

Select The Blank

Multiple Choice Single Answer

Select The Blank

Multiple Choice Multiple Answer