Direct Taxation Quiz Questions And Answers

10 Questions | By Mehtajimmit | Updated: Sep 22, 2022 | Attempts: 1354

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Direct tax is a distinct form of tax imposed on the service, transaction, or property. If you're an accountancy student, then our ' Direct taxation quiz questions and answers ' will delight you! Our super cool quiz can be used as an excellent way to prepare for the exams. Please read the questions carefully before answering. All the questions are designed in such a way that they will make you think and learn new interesting concepts. Get ready to learn and have fun with this quiz! You can even play this quiz with your friends for an excellent learning time. Keep studying and learning! Good Luck!

Questions and Answers

1.

The following is capital receipt:
- A.
  
  Dividend from investment;
- B.
  
  Bonus shares;
- C.
  
  Sale of technological know- how;
- D.
  
  Compensation received for compulsory evacuation of place of business
2.

The assessee is charged to income-tax in the assessment year following the previous year:
- A.
  
  A non-resident business firm which shipped goods on 1.5.210 at Visakhapatnam Port in Andhra Pradesh
- B.
  
  An employee left India to USA on 1.8.2010 with no intention of returning
- C.
  
  ABC firm which discontinued its business on 1.9.2010
- D.
  
  An employee-assessee of a University who worked during 1.4.09 to 30.03.2010
3.

If an employer transfers second hand motor car to the employee, the perquisite is valued at -
- A.
  
  Actual cost less depreciation @ 30% for every completed year under straight line method
- B.
  
  Actual cost less depreciation @ 20% for every completed year under WDV method
- C.
  
  Actual cost less depreciation @ 30% for every completed year under WDV method
- D.
  
  Actual cost less depreciation @ 20% for every completed year under SLM method.
4.

The following is exempt income :—
- A.
  
  Travel concession to employee
- B.
  
  Remuneration received for valuation of answer scripts
- C.
  
  Encashment of leave salary whilst in service
- D.
  
  Perquisites in India
5.

If an assessee earns rent from a sub-tenant in respect to tenanted property let out as a residence, the said rent is:
- A.
  
  Exempt under Section 10.
- B.
  
  Taxable under the head income from house property.
- C.
  
  Taxable as business income, as the letting out is a commercial activity
- D.
  
  Taxable as income from other sources, unless the assessee is in the business of subletting properties on a regular basis.
6.

Aside from an individual, which of the following can have residential status?
- A.
  
  A company
- B.
  
  Government
- C.
  
  A firm
- D.
  
  All of the above
7.

The share of profits from PFAF of the partner is called what?
- A.
  
  Capital income
- B.
  
  Taxable income
- C.
  
  Exempted income
- D.
  
  Capital gain
8.

The salary acquired from the partner of the firm is called what?
- A.
  
  Annual salary
- B.
  
  Other source income
- C.
  
  Business income
- D.
  
  Taxable income
9.

The agricultural income is what?
- A.
  
  Taxable income
- B.
  
  Not taxable
- C.
  
  Semi taxable
- D.
  
  None of the above
10.

Entertainment allowance is fully taxable to
- A.
  
  Foreign employees
- B.
  
  Government employees
- C.
  
  Private employees
- D.
  
  All of the above