This quiz works best with JavaScript enabled. Home > Economy > Banking > Taxes In India – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxes In India Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Taxes in India are including A) Direct taxes. B) Indirect taxes. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 2. By special order, CBDT declared a foreign association to be a company for the purpose of income tax. Under Income Tax Act, 1961, such association shall be considered as A) Indian Company. B) Foreign Company. C) All of these. D) None of these. Show Answer Correct Answer: A) Indian Company. 3. Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head. A) PGBP. B) Salary. C) Other source. D) None of these. Show Answer Correct Answer: A) PGBP. 4. Direct taxes includes A) Income Tax. B) Property Tax. C) Gift Tax. D) All of these. Show Answer Correct Answer: D) All of these. 5. Preliminary expenses incurred are allowed deduction in A) Full. B) 5 equal annual installments. C) 10 equal annual installments. D) None of these. Show Answer Correct Answer: B) 5 equal annual installments. 6. The deduction u/s 80E is allowed for repayment of interest to the extent of A) Rs. 15,000. B) Rs.35,000. C) Rs.55,000. D) Any amount repaid. Show Answer Correct Answer: D) Any amount repaid. 7. The tax on net income of companies is A) Wealth tax. B) Interest tax. C) Corporation tax. D) Personal income tax. Show Answer Correct Answer: C) Corporation tax. 8. Which of the following taxes is/are withdrawn or abolished? A) Gift tax. B) Interest tax. C) Estate duty. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. If any amount is donate for research, such research should be in nature of A) Scientific research only. B) Social or statistical research only. C) Scientific or social or statistical research. D) None of these. Show Answer Correct Answer: C) Scientific or social or statistical research. 10. A firm business income is nil /negative. It shall still be allowed as deduction on account of remuneration to working partner to the maximum extent of A) Nil. B) Rs.50,000. C) Actual remuneration paid as specified in partnership deed. D) None of these. Show Answer Correct Answer: B) Rs.50,000. 11. Deduction u/s 80D is allowed if the premium is paid to A) Life insurance Corporation. B) Life insurance or General insurance corporation. C) General insurance Corporation or any other insurer approved by IRDA. D) None of these. Show Answer Correct Answer: C) General insurance Corporation or any other insurer approved by IRDA. 12. In case an assessee is engaged in the business of civil construction, presumptive income scheme is applicable if the gross receipts paid or payable to him in the previous year does not exceed A) Rs. 10lakhs. B) Rs. 40lakhs. C) Rs. 70lakhs. D) 1 crore. Show Answer Correct Answer: B) Rs. 40lakhs. 13. Charge of service tax is in relation to service provided or to be provided A) True. B) False. C) May be. D) Not sured. Show Answer Correct Answer: A) True. 14. Loss from a speculation business of a particular A. Yr. can be set off in the same A. Yr. from A) Profit and gains from any business. B) Income of speculation business. C) Profit and gains from any business other than speculation business. D) None of these. Show Answer Correct Answer: B) Income of speculation business. 15. Where service is received from outside India, such service shall be A) Exempt from service tax. B) Taxable in the hands of service provider. C) Taxable in the hands of Service recipient. D) None of these. Show Answer Correct Answer: C) Taxable in the hands of Service recipient. 16. Income deemed to accrue or arise in India is taxable in case of A) Resident only. B) Non-resident. C) Both ordinarily resident and NOR. D) All the assesses. Show Answer Correct Answer: D) All the assesses. 17. Government imposes taxes to? A) Check the accumulation of wealth among the rich. B) Run the machinery of state. C) Uplift weaker sections. D) None of these. Show Answer Correct Answer: B) Run the machinery of state. 18. An assessee has borrowed money for purchase of a house & Interest is payable outside India. Such interest shall A) Not to be allowed on deduction. B) Be allowed as deduction. C) Be allowed as deduction if the tax is deducted at source. D) None of these. Show Answer Correct Answer: C) Be allowed as deduction if the tax is deducted at source. 19. Agricultural income is exempt provided the A) Land is situated in India. B) Land is situated in any rural area India. C) Land is situated whether in India or outside India. D) None of these. Show Answer Correct Answer: A) Land is situated in India. 20. The income tax in India is A) Direct and proportional. B) Direct and progressive. C) Indirect and proportional. D) Indirect and progressive. Show Answer Correct Answer: B) Direct and progressive. ← PreviousNext →Related QuizzesEconomy QuizzesTaxes In India Quiz 1Taxes In India Quiz 2Taxes In India Quiz 3Taxes In India Quiz 4Taxes In India Quiz 6Taxes In India Quiz 7Banking Awareness And Sebi QuizInsurance Awareness Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books