MCQ ON INCOME TAX LAW & ACCOUNTS
UNIVERSITY OF LUCKNOW
B.COM SEM VI
PART 2
MCQ FROM( CHAPTER 7 TO 12)
CH 7:( MCQ ON Income From House Property Rent )
1.Deduction for other expenses except for interest in the computation of Income from House Property is allowable to the extent of:
(A)1/5 of Annual Value
(B)1/4 of Annual Value
(C)30% of Annual Value
(D)1/4 of rent received
2.Suresh purchased a house for his residential purposes after taking a loan in May, 2018. During the Previous Year 2019-20 he paid interest on loan 2,10,000. In computing Income from House Property the deduction is allowable to the extent of:
(A)2,10,000
(B)1,00,000
(C)75,000
(D)2,00,000
3.Interest on Loan paid prior to completion of construction of house shall be allowed as deduction:
(A)In 2 installments for 2 years
(B)In 3 installments for 3 years
(C)In 4 installments for 4 years
(D)In 5 installments for 5 years
4.Interest paid 1,20,000 on loan taken in the Previous Year 2019-20 for the renovation of self-occupied house. In computing Income from House Property the deduction is allowable to the extent of:
(A)1,20,000
(B)1,00,000
(C)30,000
(D)Nil
5.The annual value of the vacant house property referred to in Sec. 23(2)(b) shall be:
(A)Municipal value
(B)Fair rent
(C)Standard rent
(D)Nil
6.For income tax purposes, the house means:
(A)Dwelling house
(B)Building for office use
(C)Godown
(D)Above all are included in the house
7.The maximum deduction of interest on loan is taken for construction of house given on rent is
(A)1,50,000
(B)1,00,000
(C)30,000
(D)No limit
8. Income from the house for self business is:
(A)Net profit
(B)Fair rent
(C)Municipal value
(D)Nil
9.X purchased a house for his residence and borrowed a loan of 9,75,000 in 2011. The deduction for interest when interest payable in P.Y. is 1,50,000 will be:
(A)30,000
(B)1,75,000
(C)1,50,000
(D)45,000
10.The annual value of self-occupied house is:
(A)Municipal valuation
(B)Fair rent
(C)(Nil) Zero
(D)Whichever is less
11.Which house property is not charged to tax?
(A)Farmhouse
(B)Palace of an Ex-Ruler
(C)Business Building
(D)All of these
12.The annual value of a house property is 1,20,000. B and C are equal co-owners of the house. B’s income from house property shall be:
(A)42,000
(B)60,000
(C)80,000
(D)1,20,000
13.The annual value of a house property is 40,000. Standard deduction u/s 24(a) shall be:
(A)8,000
(B)10,000
(C)12,000
(D)15,000
14.Arrears of rent received during the previous year 1,00,000. From this amount deduction shall be allowed:
(A)Zero
(B)20,000
(C)30,000
(D)50,000
15.Unrealised rent subsequent to claiming deduction realised 1,00,000. From this amount deduction shall be allowed:
(A)Zero
(B)20,000
(C)30,000
(D)40,000
16.The base of computation of income under the head Income from House Property’ is
(A)Municipal value
(B)Rent received
(C)Standard rent
(D)Annual value
17.Municipal taxes to be deducted from GAV should be:
(A)Paid by the tenant during the previous year
(B)Paid by the owner during the previous year
(C)Accrued during the previous year
(D)All of these
18. A received 60,000 as arrears of rent during the Previous Year 2019-20. The amount taxable under section 25A would be:
(A)60,000
(B)42,000
(C)40,000
(D)30,000
CH 8: (MCQ ON PROFIT & GAIN OF Business and professional)
1.U/s44AB the audit of accounts is compulsory if total sales exceed:
(A)30 lakh
(B)40 lakh
(C)60 lakh
(D)one crore
2.u/s 44AB ‘specified date’ means:
(A)30th June
(B)31st July
(C)30th September
(D)30th November
3.Interest on capital paid by the firm to its partners is allowed:
(A)up to 15%
(B)up to 16%
(C)up to 18%
(D)up to 12%
4.Out of the following, which expense is not an admissible expense:
(A)Bad Debts
(B)GST
(C)Income Tax
(D)Excise Duty
5.Which of the following expense, loss is not admissible as deduction while computing income from business and profession:
(A)Stock in trade lost in fire 20,000
(B)Entertainment expenses 10,000
(C)Commission of ? 2,000 paid in order to receive business
(D)500 paid as fees to a lawyer for drafting the deed of agreement of partnership firm
6.While calculating business income, the disallowed portion of the preliminary expense is:
(A)1/2
(B)1/5
(C)4/5
(D)3/5
7.150% of weighted deduction for in house research in some cases is allowed to:
(A)Any assessee
(B)Company assessee
(C)A Scientific Research Association
(D)Co-operative society
8.Under which the work of a doctor is covered?
(A)Trade
(B)Business
(C)Profession
(D)None of these
9.Pick out the inadmissible expense:
(A)GST
(B)Expenses on the assessment of Income Tax
(C)Income Tax
(D)Depreciation on machine
10.Allowed item when computing business income is :
(A)Doubtful debts reserve
(B)Actual bad debts
(C)Doubtful debts
(D)All of these
11.X Ltd. spent 1,00,000 as preliminary expenses on 31st March, 2019 deduction allowed is:
(A)10,000
(B)25,000
(C)7,143
(D) 20,000
12.30,000 paid in cash for hire charges of goods carriage, the disallowed expense shall be:
(A) 25% of the amount paid
(B) 20,000
(C) 30,000
(D) Nil
13.A company incurred capital expenses 1,00,000 during the previous year on promotion of family planning amongst its employees. During the previous year deduction shall be allowed to the company:
(A)20,000
(B)50,000
(C)1,00,000
(D)Nil
14.A businessman spent 50,000 on advertisement in a souvenir of a political party. He will get a deduction from:
(A)Profits and gains of business
(B)Income from other sources
(C) Gross total income
(D)None of these
CH 9:( MCQ ON Determination Of Income Of Certain Business Or Profession On A Presumptive Basis)
1.U/s 44AD who is not an eligible assessee?
(A)Individual
(B)Hindu undivided family
(C)Partnership firm
(D)Limited liability partnership firm
2.Presumed percentage of the profit of an eligible business is:
(A)4%
(B)8%
(C)12%
(D)15%
3.Presumed income per month from plying of light goods vehicle is:
(A)3,000
(B)4,000
(C)7,500
(D)6,000
4.If during the previous year the amount of insurance commission does not exceed 60,000 the maximum deduction for expenses shall be:
(A)15,000
(B)20,000
(C)25,000
(D)30,000
5.The total turnover limit of an eligible business is:
(A)40 lakh
(B)50 lakh
(C)two crore
(D)80 lakh
6.Sales limit under section 44AD:
(A)20 lakh
(B)60 lakh
(C)80 lakh
(D)2 crore
7.U/s 44AE the provision of presumptive income is applicable if the assessee does not own more goods carriages at any time during the previous year.
(A)10
(B)12
(C)15
(D)20
CH 10( MCQ ON DEPRECIATION AND INVESTMENT ALLOWANCE)
1.Under Income Tax Act depreciation is allowed on:
(A)Purchase price
(B)Market price
(C)Written down value
(D) Face value
2.Depreciation is allowed on:
(A) Animals
(B) Tea bushes
(C) Goodwill of a business
(D) Patent
3.For how many assessment years unabsorbed depreciation can be carried forward for set-off?
(A)5 years
(B)7 years
(C)8 years
(D)Unspecified period
4.The rate of depreciation on intangible assets is:
(A)25%
(B)15%
(C)20%
(D)5%
5.The rate of depreciation on furniture is:
(A)5%
(B) 10%
(C) 15%
(D) 20%
6.The rate of depreciation on the computer is:
(A)30%
(B)40%
(C)60%
(D)70%
7.The rate of additional depreciation on the new plant is:
(A)5%
(B)10%
(C)15%
(D)20%
8.The rate of depreciation on the motor taxi on hire which is acquired before 23-8-2019 is:
(A)10%
(B)20%
(C)30%
(D)40%
9. In Income Tax depreciation is charged on:
(A) Book value
(B) Cost price
(C) Market value.
(D) Written down value
10. A Ltd. has unabsorbed depreciation of 6,00,000 for the Previous Year 2019-20. This can be carried forward:
(A)for a maximum period of 8 years and set-off against business income
(B)indefinitely and set-off against business income
(C)Indefinitely and set-off against any head of income
(D)cannot be carried forward
Ch 11(MCQ ON Capital Gain)
1.Capital gain is classified into how many types?
(A)Two
(B)Three
(C)Four
(D) Five
2.Which of the following is not a capital asset?
(A)Goodwill of a business
(B)Jewellery
(C)Stock-in-trade
(D)Agricultural land in Delhi
3.During the previous year ‘D’ earns a profit of 50,000 by selling a piece of land in Lucknow on which vegetables were being grown and which was purchased on 30.12.2008. The profit would be taxable as:
(A)Short-term capital gains
(B)Long-term capital gains
(C)Not taxable, being profit on sale on agricultural land
(D) Business Gains
4.A partnership, firm sold a residential house. Under which section the firm can get exemption on Long-term Capital gains?
(A)Sec. 54
(B)Sec. 54D
(C)Sec. 54EC
(D)Sec. 54F
5.Which of the following would attract capital gains tax?
(A)Special Bearer Bond, 1991
(B) 62% Gold Bond, 1977
(C) Stock in Trade
(D) None of the above
6.The income from the sale of household furniture is:
(A)Taxable Income
(B) Exempted Income
(C) Capital Gain
(D) Revenue Gain
7.The income tax rate on a long-term capital gain for an individual is:
(A)10%
(B)20%
(C)15%
(D)30%
8.For capital gain being a long-term capital gain, an, assessee should retain the asset for a period of:
(A)24 months
(B)36 months
(C)more than 36 months
(D)12 months
9.Cost inflation index number for the Financial Year 2019-20 is :
(A)1081
(B)1024
(C)272
(D)289
10.In the case of shares, long-term capital gain will arise, if the assessee retains the shares with him for a period of:
(A)Less than 12 months
(B)12 Months
(C)More than 12 months
(D)none of the above
11.Sum received from the sale following income:
(A)Capital gain
(B)Agricultural income
(C)Business income
(D)None of these
12.For capital long-term gain being capital gain an assessee should retain the asset for a period
(A)40 months
(B)36 months
(C)More than 36 months
(D)Less than 36 months
13.Capital gain arises on of:
(A)Business capital
(B)Transfer of capital assets
(C)Stock of trade
(D)All of these
14.Which Of The Following category Come Under The Transfer.
(A)Gift
(B)Will
(C)Both (A) and (B)
(D)None of these
15.Capital gain on depreciation assets will always be:
(A)STCG
(B)LTCG
(C)Tax-free
(D)None of these
16. Not a capital asset :
(A)Agricultural land situated
(B)Goodwill of business
(C)Car used for business purposes
(D)Jewellery
17. Not a capital asset:
(A) Stock in trade
(B) Household furniture
(C) Car for personal use
(D) All of these
18. To find out Long-term Capital Gain :
(A) Cost of Acquisition
(B) Total Cost
(C) Index Cost
(D) Cost of Sales
Ch 12:(MCQ ON INCOME FROM OTHER SOURCES)
1.Which of the following is not chargeable to tax under the head Income from other sources’:
(A)Dividend from a Co-operative society
(B)Prize on Crossword puzzles
(C)Profit on the sale of the goodwill of a business
(D)Interest from Bank
2.An individual received family pension 60,000. How much standard deduction shall be allowed to him:
(A)20,000
(B)25,000
(C)40,000
(D)15,000
3.Under which head the pension is taxable:
(A)Salaries
(B)Income from Other Sources
(C) Capital Gains
(D) None of these
4.Income from sub-letting of House Property is:
(A)Income from Other Sources
(B)Property income
(C)Exempted
(D)Capital Gains
5.Salary of a M.P. will be taxable under the head:
(A)Salaries
(B)Profits from Business and Profession
(C)Capital Gains
(D)Income from Other Sources
6.The deduction allowable in respect of family pension taxable under Sources” is:
(A)33% of the pension
(B)30% of the pension or 15,000, whichever is less 1.
(C) 33% of the pension or 15,000, whichever is less
D)Nil