This quiz works best with JavaScript enabled. Home > Economy > Banking > Taxes In India – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxes In India Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The provisions relating to service tax are given in A) The Service tax Act, 1994. B) Chapter V of the Finance Act, 1994. C) Chapter V and VA of the Finance Act, 1994. D) Chapter VII and VIII of the Finance Act, 2004. Show Answer Correct Answer: C) Chapter V and VA of the Finance Act, 1994. 2. Definition of 'person' under Income Tax Act, 1961 is A) Inclusive. B) Exhaustive. C) Both of these. D) None of these. Show Answer Correct Answer: A) Inclusive. 3. Tax audit is compulsory in case a person is carrying on business whose gross turnover/sales/receipts, as the case may be, exceeds A) Rs. 10 lakhs. B) Rs. 20 lakhs. C) Rs. 30 lakhs. D) Rs. 40 lakhs. Show Answer Correct Answer: D) Rs. 40 lakhs. 4. Deduction U/s 80G on account of donation is allowed to A) Any assessee. B) A business assessee only. C) Individual or HUF only. D) None of these. Show Answer Correct Answer: A) Any assessee. 5. In the case of compulsory acquisition, the indexation of cost of acquisition or improvement shall be done till the A) In which the full compensation received. B) In which part or full consideration is received. C) Previous year of compulsory acquisition. D) None of these. Show Answer Correct Answer: C) Previous year of compulsory acquisition. 6. Remuneration paid to working partner shall be allowed as deduction to a firm A) Subject to limits specified in section 40(b). B) In full. C) All of these. D) None of these. Show Answer Correct Answer: A) Subject to limits specified in section 40(b). 7. Which commission distributes the taxes between centre and states? A) NITI Ayog. B) Finance Commission. C) Board of Direct Taxes. D) National Development Counsel. Show Answer Correct Answer: B) Finance Commission. 8. In case an assessee is engaged in the business of retail trade, presumptive income scheme is applicable if the total turnover of such retail trade of goods does not exceed A) Rs. 10lakhs. B) Rs. 20lakhs. C) Rs. 30lakhs. D) Rs. 40lakhs. Show Answer Correct Answer: D) Rs. 40lakhs. 9. The quantum of deduction allowed u/s 80U is A) Rs. 20,000. B) Rs. 40,000. C) Rs. 50,000. D) Rs. 70,000. Show Answer Correct Answer: C) Rs. 50,000. 10. The maximum amount of the total Revenue earned by the government of India comes from A) Income Tax. B) Excise Duty. C) Customs Duty. D) Value Added Tax. Show Answer Correct Answer: B) Excise Duty. 11. Expenditure incurred on family planning amongst the employees is allowed to A) An assessee which is a company or cooperative society. B) Any assessee. C) A company assessee. D) None of these. Show Answer Correct Answer: C) A company assessee. 12. The tax levied on the interstate trade of goods is A) Sales tax. B) Excise tax. C) Service tax. D) Central sales tax. Show Answer Correct Answer: D) Central sales tax. 13. Additional surcharge (education cess) of 3 % per cent is payable on A) Income tax. B) Income tax plus surcharge. C) Surcharge. D) None of these. Show Answer Correct Answer: B) Income tax plus surcharge. 14. Due date of payment of service tax for the month/quarter ending 31st March is A) 1 st March. B) 31 st March. C) 5th day of the month immediately following March. D) None of the above. Show Answer Correct Answer: B) 31 st March. 15. For a person suffering from severe physical disability, deduction available under section 80U is Rs..... A) Rs. 25,000. B) Rs.50,000. C) Rs.75,000. D) Rs.1,00,000. Show Answer Correct Answer: C) Rs.75,000. 16. Indirect taxes includes A) Sales Tax. B) VAT. C) GST. D) All of these. Show Answer Correct Answer: D) All of these. 17. Service tax was initially levied in India by the Constitution vide entry No. A) 54 of the State list. B) 92C of the Union list. C) 92C of the concurrent list. D) 97 of the Union list. Show Answer Correct Answer: B) 92C of the Union list. 18. Assessment year means A) Year in which income is earned. B) Year in which tax is paid by assessee. C) Period of 12 months commencing on the 1st day of April every year. D) Period of 12 months commencing on the 1st day of January every year. Show Answer Correct Answer: C) Period of 12 months commencing on the 1st day of April every year. 19. Of the gross tax revenue of the Union Government the indirect taxes account for nearly A) 55 percent. B) 65 percent. C) 75 percent. D) 85 percent. Show Answer Correct Answer: B) 65 percent. 20. Any person who has made default in complying with the provisions of Income Tax Act, 1961 is known as A) Custom Assessee. B) Assessee in default. C) Deemed Assessee. D) None of the above. Show Answer Correct Answer: B) Assessee in default. ← PreviousNext →Related QuizzesEconomy QuizzesTaxes In India Quiz 1Taxes In India Quiz 2Taxes In India Quiz 3Taxes In India Quiz 5Taxes In India Quiz 6Taxes In India Quiz 7Banking Awareness And Sebi QuizInsurance Awareness Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books