Commerce · all questions

Income Tax and Corporate Tax
practice.

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Q1

List out from the given statements the important ethical principles that a business should follow:
1. To take the necessary action for the development of the concerned industry or business
2. Pay taxes and discharge other obligations promptly
3. To ensure the best utilisation of the human resources
4. Refrain from secret kickbacks or pay-offs to customers, suppliers, administrators, etc.
5. Ensure payment of fair wages and fair treatment of employees

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Q2

Entertainment allowance for non-government employees are:

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Q3

In tax laws, donation to approved and notified association for scientific research is allowed as:

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Q4

Statement (I): If the tax liability has been reduced within the legal framework, it is tax planning.
Statement (II): If tax liability has been reduced to get benefit of deduction available under the income tax, it is called tax evasion.
In the context of the above two statements, which one of the following is correct?

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Q5

Where a person derives income from a nation with which India does not havea DTAA, such person is given credit in India in which of the following manner?

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Q6

The revenue expenditure on research incurred by the assesses himself is allowed for deduction only if

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Q7

If the agricultural land is used for tea plantation, then the tax liability is:

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Q8

Match List-I with List-II and select the correct answer:

List I	List II
a. Sec 6 (i)	1. Agriculture Income
b. Sec 10AA	2. Leave Travel Concession
c. Sec 10(1)	3. Resident
d. Sec 10(5)	4. Leave Salary

Choose the correct option from those given below:

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Q9

Which of the following is not a capital asset under capital gains head of income?

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Q10

Match List-I with List-II and select the correct answer:

List-I	List-II
a. Tax planning	1. Making suitable arrangement of TDS
b. Tax avoidance	2. Understatement of income
c. Tax evasion	3. Availing deduction under Section 10 (A) of IT Act
d. Tax administration	4. Misinterpreting the provisions of the IT Act

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Q11

Under Section 271 C of the Income Tax Act, 1961 the amount of penalty for failure to deduct tax at source is

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Q12

Which Section of the Income Tax Act relates to claim deduction for the amount of interest received from Bank Saving Account?

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Q13

Which two of the following are correct about TDS Certificates?
1. TDS on non-salary payment - Form 16
2. TDS on salary payment - Form 16 A
3. TDS on sale of property - Form 16 B
4. TDS on rent - Form 16 C
Choose the correct option from those given below:

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Q14

Clubbing of income means:

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Q15

From the following details calculate the taxable income of 'A' assuming that he is a 'Not Ordinarily Resident'
1. Received Rs. 1000 in India, which accrued in England
2. Rs. 6000 was untaxed foreign income of some earlier years which was brought to India during previous year
3. Rs. 2,000 earned in India but received in England
4. Rs. 10,000 earned and received in Africa bur brought to India

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Q16

Return of income is submitted under which Section of Income Tax Act?

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Q17

Expected rent shall be higher of:

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Q18

The term previous year means

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Q19

Following are the information for a house property:
Municipal value : Rs. 4,50,000
Fair rental value : Rs. 5,00,000
Standard rent : Rs. 4,80,000
Actual rent : Rs. 4,20,000
What is the gross annual value of the house property?

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Q20

On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under section 10 AA of the Income Tax Act is allowed for

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