Consider the following statements.Assertion (A): If the interest is payable outside India, tax must be deducted at source.Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.
A. Both (A) and (R) are correct and (R) is the correct explanation of (A)
B. Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
C. (A) is correct, but (R) is wrong
D. (A) is wrong, but (R) is correct
Select an option to see the answer and solution.
What is the process by which subsidiaries transfer goods and assign prices?
A. Transfer pricing
B. Cost plus transfer pricing
C. There is no name for this
D. Trading resources
Select an option to see the answer and solution.
Exemption under section 10(37) is available to:
A. An individual or a HUF
B. An individual
C. HUF
D. None of the above
Select an option to see the answer and solution.
Unabsorbed speculation business loss can be carried forward only for a period of
A. 4 assessment years
B. 6 assessment years
C. 7 assessment years
D. 8 assessment years
Select an option to see the answer and solution.
Under Sec. 194 IB of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited u/s 44 AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds
A. 50,000 per month
B. 40,000 per month
C. 25,000 per month
D. 15,000 per month
Select an option to see the answer and solution.
Form for filing the returns of income for individuals having income from salary/pension/income from house property is
A. ITR-1 SAHAJ
B. ITR-2
C. ITR-3
D. ITR-4S SUGAM
Select an option to see the answer and solution.
Losses can be set-off and carry forward only if
A. return of loss is filed under Section 139(1)
B. a person has informed to income tax department on phone
C. a person has huge loss
D. None of the above
Select an option to see the answer and solution.
Match the following.
List-I (Sections)List-II (Maximum Deduction)
a. Section 80C of IT Act
1. Rs. 10,000
b. Section 80D of IT Act
2. Rs. 40,000
c. Section 80DDB of IT Act
3. Rs. 1,50,000
d. Section 80TTA of IT Act
4. Rs. 25,000
A. a-3, b-1, c-4, d-2
B. a-3, b-4, c-2, d-1
C. a-4, b-3, c-2, d-1
D. a-2, b-3, c-1, d-4
Select an option to see the answer and solution.
Which of the following is the largest source of income of the government of India?
A. Direct tax
B. Indirect tax
C. Progressive tax
D. Specific tax
Select an option to see the answer and solution.
Under the Income Tax Act, 1961 unabsorbed depreciation can be carried forward for set-off purpose:
A. For 4 years
B. For 5 years
C. For 8 years
D. For unspecified period
Select an option to see the answer and solution.
Which of the following is a limitation of cost-based transfer pricing?
A. Determining which cost to use
B. Lack of incentive for selling division to control cost
C. inefficiencies in one unit may be transferred to another unit
D. All of the above
Select an option to see the answer and solution.
Tax planning brings reduction in tax liability of the following
A. a company
B. an individual
C. a Hindu Undivided Family
D. an assessee
Select an option to see the answer and solution.
As per the provisions of the Income Tax Act, 1961, which of the following is not an objective of the Central Government to enter into tax treaty with another country?
A. For granting relief in respect of income tax chargeable to tax in India and other country
B. For enabling round tripping of unaccounted money in India
C. For recovery of income tax
D. For exchange or information for prevention of evasion or avoidance of income tax
Select an option to see the answer and solution.
Gross total income includes
A. 3 heads of income
B. 4 heads of income
C. 5 heads of income
D. 6 heads of income
Select an option to see the answer and solution.
Income from business in England which is controlled from India is taxable
A. Resident
B. Extraordinary resident
C. Non-resident
D. Both A and B
Select an option to see the answer and solution.
Resident status of the taxpayer every year-
A. can be change
B. will definitely change
C. will not change
D. None of these
Select an option to see the answer and solution.
Getting permanent account number is compulsory for
A. income tax assessee
B. importer
C. assessee under section tax
D. All of these
Select an option to see the answer and solution.
The family pension received by the family members of armed forces after death of employee is:
A. Exempt fully
B. Exempted after fulfilling of certain conditions
C. Not exempted
D. None of the above
Select an option to see the answer and solution.
Match the items of the
List-I with
List-II and indicate the correct answer:
List-I List-II
a. House rent allowance
1. A deduction from income
b. Casual income
2. A step taken by tax authorities
c. Collection charges of interest on securities
3. Taxable income
d. Best judgement assessment
4. Partly taxable allowance
A. a-4, b-3, c-2, d-1
B. a-4, b-3, c-1, d-2
C. a-3, b-4, c-1, d-2
D. a-2, b-4, c-1, d-3
Select an option to see the answer and solution.
According to the Income tax act, which of the following is agricultural income
A. Income from animal husbandry
B. Income from poultry farming
C. Income from pasture
D. Rent received from agricultural land
Select an option to see the answer and solution.
