MCQ On Direct Taxation

5 Questions | Total Attempts: 753

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MCQ Quizzes & Trivia

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.

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