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Friday, January 21, 2022

Elements of direct taxes Mcqs

January 21, 2022 0
Elements of direct taxes Mcqs
S.Y B.COM
SEMESTER - 3

ELEMENTS OF DIRECT TAXES
(EDT)
MCQs - 29 NOVEMBER 2021

1. Mr. Pravin Sharma gest Rs. 8,50,000 as leave salary from AQX Pvt Ltd. on 01.10.2020, leave in credit at the time of retirement as per section 10(10AA) is 20 months and average monthly salary is Rs. 10,500. What will be the taxable amount of leave salary for the AY 2021-22? 

A. Rs. 7,25,000 
B. Rs. 7,50,000 
C. Rs. 6,40,000 
D. Rs. 7,30,000 

2. Decide the residential status of HUF wholly controlled from London where, Mr. X the Karta of HUF stays in India for 3 years out of 10 previous years immediately preceding the relevant previous year. 

A. Resident in India 
B. Resident and ordinarily resident in India 
C. Resident and not ordinarily resident in India 
D. Non-resident in India  

3. Mr. P is a partner in partnership firm and he received a profit of Rs. 8,00,000 from the firm, the amount will be - 

A. Partly taxable in the hands of P 
B. Fully taxable in the hands of P 
C. Exempt in the hands of P 
D. It is not considered as income 

4. Salary received by the partner from the partnership firm would be taxable under the head 

A. Profit and Gains from Business and Profession 
B. Salaries 
C. Other sources 
D. House Property  

5. Mr. Ram (Non-Resident ) furnishes following information during previous year 2020-21. Calculate gross total income of Mr. Ram 
a) Business income earned in New York Rs. 20,00,000 and received there, The head office of such business is situated in Kerala. 
b) Income earned in the earlier previous year and received in abroad Rs. 4,50,000 of which he has brought Rs. 1,50,000. 

A. Rs. 20,00,000 
B. Rs. 21,50,000 
C. Rs. 19,50,000 
D. Nil 

6. Mr. Q is a member of HUF and he received a profit of Rs. 5,00,000 from HUF business, the amount will be - 

A. Partly taxable in the hands of Q 
B. Fully taxable in the hands of Q 
C. Exempt In the hands of Q 
D. It is not considered as Income 

7. Pin-money received by wife from Husband is 

A. always considered as an Income 
B. Not treated as Income at all 
C. it is always taxable 
D. it is income or not, it depends on case to case basis 

8. Which is not an exempted income? 

A. Agricultural income 
B. Retrenchment compensation 
C. Educational scholarships 
D. Dearness allowance 

9. Mr. Manish Parmar receive Rs.15,000 p.m. as House Rent Allowance from his company, he also pays Rs. 5,800 p.m. for rented house in Vadodara and his salary is Rs.25,000 per month. What will be the taxable amount of the House Rent Allowance for the AY 2021-22?    

A. Rs. 1,80,000 
B. Rs. 1,20,000 
C. Rs. 1,40,400 
D. Rs. 39,600 

10. Mr. Y was in Indian army, died on August 30, 2020. From September 1, 2020 his Family started receiving family pension of Rs. 20,000 per month. Pension is taxable under the head _______. 

A. Under the head Salary 
B. Under the head House Property 
C. Under the head income from other source 
D. Exempt from tax 

11. Mr. Y has two sons. He is in receipt of children education allowance of Rs. 150 p.m. for his elder son and Rs. 170 p.m. for his younger son. Both his sons are going to school. Compute his taxable children education allowance. 

A. Rs. 3840 
B. Rs. 1200 
C. Rs. 2400 
D. Rs. 1440 

12. Mr. Sagar retired on 01.10.2020 receiving Rs. 5,000 p.m. as pension. On 01.12.2020, he commuted 60% of his pension and received Rs.3,00,000 as commuted pension. You are required to compute his taxable pension if he is a Government Employee. 

A. Rs. 50,000 
B. Rs. 18,000 
C. Rs. 1,33,333 
D. Rs. 2,66,667  

13. Which of the following income is not taxable in the same year in which it is earned- 

A. Income of Non-resident from shipping business 
B. Income from the business situated at Delhi 
C. Income from the discontinued business 
D. Income of the bodies formed for the shorter duration 

14. Mr. Z, a Central Government employee gets Rs. 18,000 p.a. as entertainment allowance out of which he spends Rs. 2,500 for official purpose; Rs. 1,800 for personal purposes & save the balance Rs. 13,700. Basic salary of Z amounts to Rs. 50,000. Compute the taxable entertainment allowance. 

A. Rs. 10,000 
B. Rs. 5,000 
C. Rs. 13,000 
D. Rs. 18,000 

15. Mr. Ravi retired on 15.06.2020 after completion of 26 years 8 months of service and received gratuity of Rs.12,00,000. At the time of retirement his salary was Rs. 15,000 per month (including Rs.2,000 Dearness Allowance). Gratuity is covered by the payment of Gratuity Act,1972. Pls calculate exempted amount of Gratuity for the AY 2021-22. 

A. Rs. 2,30,660 
B. Rs. 2,30,640 
C. Rs. 2,33,653 
D. Rs. 2,33,670  

16. Assessment year is always of ________. 

A. 12 Months 
B. Less than 12 Months 
C. More than 12 Months 
D. 15 Months 

17. A person as per Income Tax Act who is required to deduct tax at source has deducted the tax but he failed to pay tax on due date. The person will be __________. 

A. Deemed to be an Assessee 
B. Deemed to be an Assessee at default 
C. Representative Assessee 
D. Criminal 

18. Mr. Sagar Mehta gets Rs. 4,00,000 as leave salary from ABC Ltd in the year 2014 and gets exemption u/s 10(10AA) of Rs.60,000. He retires from PQR Ltd in the year 2020 now What is the maximum limit in case of Leave Salary at the time of calculation of Leave Salary? 

A. Rs. 3,00,000 
B. Rs. 20,00,000 
C. Rs.19,40,000 
D. Rs. 2,40,000 

19. Illegal Income is 

A. Not taxable under the Income Tax Act 
B. Not treated as income under Income Tax Act 
C. It is always treated as Income under Income Tax Act and it is taxable 
D. if it become legal then it is taxable 

20. Nachiket, who resides in Surat, gets Rs. 1,50,000 per annum as basic salary and commission @2% (on turnover Rs. 5,00,000). He receives Rs. 28,000 per annum as house rent allowance. Rent paid by him is Rs. 25,000 per annum. Find out the amount of exempt house rent allowance for the assessment year 2020-21. 

A. Rs. 25,000 
B. Rs. 9,000 
C. Rs. 16,000 
D. Rs. 28,000 

21. The maximum amount of Gratuity exempt from tax can not exceeds Rs. _________.

A. Rs. 10,00,000 
B. Rs. 12,00,000 
C. Rs. 20,00,000 
D. Rs. 22,00,000 

22. Mr. Y is said to be a resident but not ordinarily resident if he satisfies - 

A. At least one of the basic conditions and both of the two additional conditions.  
B. None of the two basic conditions and both of the two additional conditions. 
C. At least one of the basic conditions and one of the additional conditions. 
D. Neither of the basic nor the additional conditions. 

23. salary received by the partner from the partnership firm would be taxable under the head 

A. Profit and Gains from Business and Profession 
B. Salaries 
C. Other sources 
D. House Property 

24. Mr. A has three children. is getting hostel allowance of Rs. 550 p.m. per child. What will be the taxable amount for hostel allowance? 

A. Rs. 10,200 
B. Rs. 7,400 
C. Rs. 12,600 
D. Rs. 21,800 

25. When company is not said as Resident in India 

A. If it is an Indian Company 
B. If its place of effective control and management is in India in the relevant Previous year 
C. It is a foreign company and its place of effective control and management is not in India in the relevant previous year 
D. If it is a foreign company 

26. Any payment received by the person would be taxable under the head salaries only if the relationship between payer and payee is: 

A. Employer-Employee relationship 
B. Seller-Customer relationship 
C. Father-son Relationship 
D. client-consultant relationship 

27. Helper allowance received of helper for official purposes Rs. 65,000 but actual amount spent is Rs. 60,000, the taxable amount of helper allowance will be ________. 

A. Rs. 5,000 
B. Rs. 6,000 
C. Rs. 500 
D. Rs. 6,500 

28. As per the definition of "person" The Institute of Chartered Accountants of India is 

A. An Individual 
B. Company 
C. Firm 
D. Artificial Juridical Person 

29. Income of a non-resident from shipping business is ________. 

A. Taxable in the same Previous year in which it is earned 
B. Taxable in next financial year 
C. Taxable in preceding Financial Year 
D. Taxable after two years 

30. Income earned in _________ is taxable in __________. 

A. Previous year, Assessment Year 
B. Assessment year, Previous year 
C. Calendar Year, Assessment Year 
D. Calendar Year, Financial Year 

31. Which of the following conditions is required to be satisfied by an Indian Citizen to be a resident in India, who leaves India during the previous year as a member of the crew of an Indian ship or for the purpose of employment outside India? 

A. He has been in India during the previous year for a period of 182 days or more 
B. He has been in India during the 4 years immediately preceding the previous year for a total period of 365 days or more and has been in India for at least 60 days in the relevant previous year. 
C. If fulfills both the condition given as above 
D. If fulfills any of the two above condition 

32. Income of a non-resident from shipping business is ________. 

A. Taxable in the same Previous year in which it is earned 
B. Taxable in next financial year 
C. Taxable in preceding Financial Year 
D. Taxable after two years 

33. A Resident Individual is treated as 'Resident and ordinarily resident in India' if- 

A. He has been resident in India at least 2 years out of 10 previous years immediately preceding the relevant previous year along with 630 days during 7 years immediately preceding the relevant previous year.
B. He has been resident in India at least 1 year out of 10 previous years Immediately preceding the relevant previous year In India along with for a period of 630 days or more during 7 years immediately preceding the relevant previous year. 
C. He has been in India in 3 years out of 10 previous years along with period of less than 729 days during 7 years immediately preceding the relevant previous year. 
D. He has been resident in India for at least 2 years out of 10 previous years Immediately preceding the relevant previous year in India as well as he has been present in India for the period of 730 days or more during 7 years immediately preceding the relevant previous year.  

34. Decide the residential status of HUF wholly controlled from London where, Mr.X the Karta of HUF stays in India for 3 years out of 10 previous years immediately preceding the relevant previous year. 

A. Resident in India 
B. Resident and ordinarlly resident in India 
C. Resident and not ordinarily resident In India 
D. Non-resident in India 

35. The period of previous year ________. 

A. is always of 12 Months  
B. May be less than 12 Months 
C. may be of 15 months 
D. may be of more than 12 Months 

36. As per the definition of "person" The Institute of Chartered Accountants of India is

A. An Individual 
B. Company 
C. Firm 
D. Artificial Juridical Person 

37. The head office of ABC Hindu Undivided Family is situated in Dubai which is partly controlled from Delhi. The family is managed by Mr. A who is resident in India in 3 out of 10 immediate preceding the previous years and present in India for 630 days during last 7 immediate preceding the previous year. Determine the residential status of Hindu Undivided Family for the Assessment year 2021-22. 

A. Non-Resident in India 
B. Resident and ordinary resident in India 
C. Resident but not ordinary resident in India 
D. Not-ordinarily Non-resident 

38. Mr. Haresh is a Resident but not ordinary resident. find out his income chargeable to tax from the following particulars for the assessment year 2021-22 
i. Rs. 1,00,000 were received from agricultural land situated in Delhi. 
ii. Rent of Rs. 20,000 from house property situated in the U.S.A but received in India. 
iii. Profit of Rs. 50,000 from the sale of machinery in India but received in japan. 
iv. Profit Rs.2,00,000 from business in the U.S.A controlled and managed from India but being received in the U.S.A.  

A. Rs. 3,70,000 
B. Rs. 2,50,000 
C. Rs. 2,70,000 
D. Rs. 70,000

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Thursday, January 20, 2022

Elements of direct taxes Mcqs

January 20, 2022 0
Elements of direct taxes Mcqs
S.Y B.COM
SEMESTER - 3

ELEMENTS OF DIRECT TAXES
(EDT)
MCQs - UNIT 4

PROFITS & GAINS OF BUSINESS OR PROFESSION & INCOME UNDER HEAD 'CAPITAL GAIN' & COMPUTATION OF GROSS TOTAL INCOME & DEDUCTIONS FROM THE SAME
 
1. The aggregate amount of deduction under section 80C, 80CCC and 80CCD(1) shall not exceed: 

A. 1,50,000  
B. 60,000  
C. 1,00,000 
D. 40,000 

2. Atul Kulkarni pays (through any mode other then cash) during the previous year medical Insurance premia as under: 

(i) 28,000 to keep in force an insurance policy on his health and on the health of his wife and dependent children;
(ii) 28,000 to keep in force an insurance policy on the health of his parents where his father is a senior citizen.

Calculate deduction under section 80D.

A. 56,000  
B. 50,000  
C. 53,000 
D. 25,000  

3. The maximum amount of deduction under section 80C is:  

A. 70,000 
B. 1,50,000  
C. 50,000 
D. 2,00,000

4. Under whose name can the amount be deposited under Sukanya Samriddhi Account Scheme to claim deduction under section 80C:  

A. Individual himself or herself   
B. Any girl child of the individual  
C. Any girl child for whom such individual is the legar guardian 
D. Any of the above 

5. Gross total income means the total income computed in accordance with the provisions of the Income-tax Act, 1961 before making:  

A. Any rebate and relief  
B. Surcharge 
C. Any deductions under chapter VI-A  
D. Health & Education Cess 

6. As per section 56(2), which of the following income are not chargeable to tax under the head “income from other sources"? 

A. Occasional one time gains derived from sale of capital asset  
B. Winning from lotteries, crossword puzzles and races including horse races  
C. Interest on securities which is not chargeable to tax under the head PGBP 
D. Sum received under keyman insurance policy not taxable under salaries or PGBP 


7. Which is the charging section of income under the head profits and gains from business & profession?  
 
A. section 27 
B. section 28 
C. section 25  
D. all of the above 

8. Deduction under section 80C can be claimed for fixed deposit made in any schedule of bank, if the minimum period of deposit is

A. 5 Years 
B. 8 Years 
C. 10 Years 
D. 12 Years

9. The deduction in respect of contribution to certain pension funds under section 80CCC is allowed to 

A. Individual  
B. HUF 
C. Partnership firm 
D. None of these  

10. Deduction under 80D is allowed for payment of 

A. Medical insurance premium 
B. Life insurance premium
C. Medical treatment of diseases 
D. Tuition fees 

11. The maximum amount of deduction provided under 80C  

A. Rs. 100000  
B. Rs. 200000  
C. Rs. 150000  
D. Rs. 250000 

12. Business has been defined under section ________. 
 
A. 2(14)  
B. 2(13) 
C. 2(10)  
D. none of the above 

13. Deduction available to an individual in respect of interest on saving bank account is: 

A. Such Interest income  
B. 10,000 
C. Such interest income or 10,000 whichever is less 
D. Such interest income or 10,000 whichever is more 

14. Eligible Assessee under section 80CCD means: 

A. An individual employed by Central Government on or after 1-01-2004 
B. Individual employed by any other employer 
C. Any individual assessee other than (a) and (c)  
D. All of the above 

15. Which of the following cannot claim deduction for the loan taken to purchase a house property: 

A. Karta, in respect of property purchased by HUF
B. An individual, in respect of property purchased by him
C. Partner, in respect of property purchased by the firm  
D. Spouse of an individual, in respect of property purchased jointly by the individual and his/her spouse 

16. Mr. Ketan has taken a life insurance policy on his own life on 01-04-2019. The capital sum assured is 1,00,000. He has paid insurance premium of 30,000 during the previous year. He is eligible for deduction under Section 80C amounting 

A. 30,000  
B. 10,000  
C. 15,000  
D. 20,000  

17. Which of the following does not qualify for deduction under 80C 

A. Repayment of House loan  
B. Subscriptions to NSC 
C. Contribution to ULIP 
D. Interest on House loan 

18. Mr. Anil Vishwas has taken a life insurance policy on life on his minor son suffering from severe disability on 01-04-2019. The capital sum assured is 1,00,000. He has paid insurance premium of 30,000 during the previous year. He is eligible for deduction under section 80C amounting 

A. 30,000 
B. 10,000  
C. 15,000 
D. 20,000 

19. The Additional amount of deduction available in respect of contribution to NPS of central Government under Section 80CCD(IB) is:

A. 1,50,000 
B. 50,000 
C. 60,000 
D. 40,000   

20. Payment made in cash exceeding amounting to Rs. _________ is fully disallowed.  

A. 30,000  
B. 20,000 
C. 10,000 
D. none of the above 

21. Contribution to which Provident Fund does not qualify under 80C

A. Statutory Provident Fund 
B. Recognised Provident Fund 
C. Unrecognized Provident Fund
D. Public Provident Fund

22. As per section 30, which expenditure incurred for building shall not be allowed as deduction under business and profession?  

A. repairs of building 
B. revenue expenditure 
C. capital expenditure  
D. none of this 

23. Income from illegal business are ________? 

A. exempted  
B. fully taxable 
C. partly taxable  
D. all of the above 

24. Rs. 1.5 lakh is the maximum qualifying limit for deduction under 
 
A. section 80CCC alone 
B. sections 80C and 80CCC 
C. sections 80C, 80CCC and 80CCD(1) 

25. Deduction are specified under which chapter of Income Tax Act? 

A. Chapter IV A 
B. Chapter VA
C. Chapter VI A 
D. Chapter VII A 

26. Deductions U/s 80C to 80U are given from   

A. Net Total Income  
B  Gross Total Income 
C. Net salary  
D. None of the above 

27. Which of the following is eligible for deduction under 80C 

A. Private Tuition fees 
B. Development fees
C. Donation 
D. Admission fees

28. The maximum amount of deduction under section 80CCC is:  

A. 70,000  
B. 1,50,000 
C. 50,000  
D. 1,00,000 

29. Life Insurance Premium paid towards insurance policy for ________ does not qualifies 80C 

A. Self  
B. Spouse  
C. Mother 
D. Child 

30. Mr. srivastav, aged 72 years, paid medical insurance premium of Rs. 52,000 by cheque and Rs. 4,000 by cash during may, 2020 under a medical insurance scheme of the general insurance corporation. The above sum was paid for insurance of his own health. he would be entitled to a deduction under section 80D of a sum of 

A. Rs.25,000
B. Rs.50,000 
C. Rs.20,000 
D. Nil

31. Deduction under section 80C is allowed for  

A. Individuals  
B. HUF  
C. Companies  
D. Both A and B 

32. Deduction under section 80C is allowed to: 

A. Individual 
B. Individual / HUF 
C. HUF   
D. Resident individual / HUF  

33. Mr. Dureja has taken a life insurance policy on life of spouse on 01-04-2011. The capital sum assured is 1,00,000. During the previous year he has paid insurance premium of 30,000. He is eligible for deduction under Section 80C amounting 

A. 30,000 
B. 10,000  
C. 15,000 
D. 20,000 

34. Under Section 80C the life Insurance Premium paid by a person to effect or to keep in force a life insurance policy on the life of the following person shall not qualify for deduction:  

A. Himself/Herself 
B. Father of the individual 
C. Spouse of the individual 
D. Any child of the individual 

35. Any payment by way of tuition fees to any university, college, school or other educational institution situated within India for the purpose of full-time education for of the individual shall qualify for deduction under Section 80C. 

A. One child 
B. Spouse 
C. Two children 
D. Brother

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Elements of direct taxes Mcqs

January 20, 2022 0
Elements of direct taxes Mcqs
S.Y B.COM
SEMESTER - 3

ELEMENTS OF DIRECT TAXES 
(EDT) 
MCQs - UNIT 3 

INCOME UNDER HEAD HOUSE PROPERTY & INCOME FROM OTHER SOURCES 

1. What is the maximum amount of deduction from family pension is 

A. Rs. 20,000  
B. Rs. 15,000 
C. Rs. 25,000 
D. None of the above 

2. The aggregate value of monetary gift received during the previous year is exempted if it  

A. Doesn't exceed 50,000  
B. Exceed 50,000  
C. Exceed 45,000  
D. None of the above 

3. If win from crossword puzzles, horse races, card games and lotteries. then rate of TDS 

A. 25% 
B. 15% 
C. 30% 
D. None of the above 

4. Aman earned certain interest income, which he wants to offer to tax under the head "Income from other sources" on cash basis. However, he wants to claim deduction for certain expenditure on accrual basis. He can claim deduction _____________. 

A. Only on accrual basis   
B. Only on cash basis  
C. Both 
D. None

5. Where an assessee has two house properties for self-occupation, the benefit of nil annual value will be available in respect of- 

A. Both the properties
B. The property which has been acquired/ constuctured first 
C. Any one of the properties at the option of the assessee 
D. Any one of the properties and once option is exercised cannot be change in subsequent years

6. Deduction under section 24(a) is 

A. 1/3 rd of NAV 
B. repairs actually incurred by the owner  
C. 30% of NAV  
D. Interest on borrowed capital 

7. Treatment of unrealized rent for determining income from house property 

A. To be deducted from actual rent  
B. To be deducted under section 24 from annual value 
C. To be deducted from expected rent 
D. To be deducted from both expected rent and actual rent 

8. The income from house property is taxable on individual even if property is not registered in his name

A. When the property has been transferred to spouse for inadequate consideration 
B. Where the individual holds on importable estate 
C. Where the property is transferred to a minor child for inadequate consideration 
D. All of the above 

9. SunSun India Private Limited, an Indian company, declared dividend amounting to Rs.5,00,000 out of which 50% were received by Sumit. He wants to claim deduction of Rs.50,000 against dividend income. The taxable income in the hands of Sumit would be Rs. __________.  

A. 2,50,000 
B. 2,00,000  
C. Nil 
D. 5,00,000 

10. For claiming the deduction for unrealised rent, the assessee must satisfy which of the following rules. 

A. Rule 4A  
B. Rule 4  
C. Section 4A 
D. None of this  

11. Arun owned certain securities as on 31.3.2020 on which interest of Rs.1,00,000 was received. The deductions which shall be allowed to Arun against such interest income would be _________. 

A. Collection charges paid to banker  
B. Interest on money borrowed to make such Investments 
C. Both A and B  
D. Either A or B 

12. What % is allowed as deduction from the annual value, 

A. 20%  
B. 25% 
C. 30% 
D. None of the above 

13. Interest on borrowed capital accured up to the end of the previous year of completion of construction is 

A. allowed as deduction in the year of completion of constuction
B. allowed is 5 equal installment from the year of completion of constuction 
C. allowed in the respective year in which the interest accrues 
D. not allowed 

14. Interest on saving bank account is exempted up to ________. 

A. 15,000 
B. 20,000 
C. 10,000  
D. None of the Above 

15. T.D.S. is not deducted on lottery income up to __________ Amount  

A. 10,000 
B. 15,000  
C. 5,600  
D. None of the above 

16. If the house remains vacant for the whole year, Then annual value will be 

A. Equal to Fair rent 
B. Equal to Municipal Value 
C. Nil  
D. None of the above 

17. The basis of charge Under the head income from house property under income tax act, 1961. 

A. Rent Received  
B. Gross Annual Value 
C. Annual Value  
D. None of the above 

18. Which of the following is not deductible from annual value? 

A. Interest on loan taken for repairs 
B. interest on loan taken for reconstruction   
C. Interest on unpaid interest  
D. 3%  

19. Income from others sources is u/s __________.  

A. 56  
B. 98 
C. 57 
D. None of the above 

20. Which of the following conditions must be satisfied to charge the rental income under the head Income of House Property: 

A. The asssessee should be one of the property 
B. The property should consist of any buildings or lands 
C. The property should not be used by the owner for the purpose of business or professional purpose 
D. All of the above

21. The tax paid by the tenant is?  

A. Added to rent received 
B. No adjustment  
C. Added to Annual value  
D. All of the above 

22. Gift received from my wife is _________.

A. Exempted 
B. Partly taxable 
C. Taxable 
D. All of the above

23. Municipal taxes to be deducted from GAV should be 

A. Paid by the tenant during the previous year 
B.  Paid by the owner during the previous year 
C. Accured during the previous year 
D. Paid during the previous year either by tenant or owner 

24. Income from others sources is known as __________. 

A. films head of income 
B. Residuary head of income  
C. marriage heads of income 
D. None of the above 

25. Which of the following is deductible from the annual value of House Property 

A. Municipal taxes paid by the owner during the previous year 
B. Municipal taxes paid by the owner for the previous year 
C. Municipal taxes paid by the owner 
D. None of the above 

26. Let out or deemed to be let out house property comes under section 

A. Sec 24b  
B. Sec 25b 
C. Sec 26b  
D. None of the above 

27. Foreign house property's income is taxable in the case of  

A. Non Resident  
B. Not Ordinarily Resident  
C. Ordinarily Resident  
D  None of the above  

28. If actual rent received or receivable exceeds expected rent, the gross annual value equals to or taken as________.

A. actual rent received 
B. Expected rent
C. Surplus rent 
D. None of the above

29. Which purposes are deductible from annual value for interest on loan taken?  

A. Construction  
B. Purchase 
C. Repair 
D. All of the above 

30. In income House Property, A sum equal to 30% is allowed as deduction from the annual value as 

A. Basic Deduction 
B. Standard Deduction 
C. Deduction  
D. All of the above  

31. Interest on borrowed money which is payable outside Indian shall not be allowed as deduction U/S 

A. 26A   
B. 25B  
C. 24B   
D. None of the above  

32. Ruchi received Rs.90,000 in May, 2019 onwards recovery of unrealised rent, which was deducted from actual rent during the P.Y.2019-20 for determining annual value. Legal expense incurred in relation to unrealised rent is Rs. 20,000. The amount taxable under section 25A for A.Y 2020-21 would be- 

A. Rs. 70,000  
B. Rs. 63,000  
C. Rs. 60,000  
D. Rs. 49,000 

33. Deductions from annual value is comes under section ________. 

A. 24  
B. 24A 
C. 24AA 
D. All of the above 

34. Which of the following conditions need to be satisfied, so that an income can be taxed under the head "Income from Other Sources"?  

A. Assessee has an income 
B. Income should not be tax exempt 
C. Income should not be taxable under any of the other heads 
D. All of the above 

35. Pre-construction interest means 

A. interest paid after the completion of the house 
B  interest paid prior to the completion of the house 
C.  Same Period  
D. None of the above 

36. Income from sub-letting of house property is Taxable as under ________ head in income tax 

A. Income from house property  
B. Income from other sources  
C. Income from capital gain  
D. None of the above  

37. Interest for pre-acquisition period is deductible in _________ installments.

A. 7
B. 6  
C. 5  
D. 4 

38. The ceiling limit of deduction under section 24(b) in respect of interest on lone taken on 1.4.2020 for repairs of self occupied house is

A. Rs. 30,000 p.a  
B. Rs. 1,50,000 P.a 
C. Rs. 2,00,000 p.a 
D. No limit 

39. Maximum deduction allowable on purchase, acquisition or construction of the house before 01.04.1999

A. 30,000  
B. 40,000  
C  50,000  
D. None of the above 

40. Mr. A owns a house property. He lent it to Mr. B at 10,000 p.m. Mr. B sublet it to Mr. C on monthly rent of Rs. 20,000 p.m. Rental income of Mr. B is taxable under the head  

A. Income from Other Sources  
B. Income from House Property 
C. Income from Salary 
D. None of the above 

41. Which is the charging section under income from house property section?

A. sec 20  
B  sec 21 
C. sec 22 
D. None of the above  

42. Ram and Raj are co-owners of a self-occupied property, They own 50% share each the interest paid by each co-owner during the previous year on loan taken for acquisition of property of allowable deduction in respect of each co-owner is- 

A. Rs. 2,05,000  
B. Rs. 1,02,500 
C. Rs. 2,00,000  
D. Rs. 1,00,000 

43. Vacant site lease rent is taxable as 

A. Income from house property 
B. Business income or income from house property, as the case may be 
C. Income from other sources or business income, as the case may be  
D. Income from other sources or income from house property, as the case may be 

44. From the amount of arrears of rent received, __________ % is allowed as deduction 

A. 30% 
B. 20%   
C. 40% 
D. 10% 

45. Rule 4 includes 

A. The defaulting tenant has vacated or steps have been taken to vacate the house  
B. Tenancy must be bonafide 
C. All of the above 

46. Standard deduction is allowed 30% of the 

A. Net profit   
B. gross profit  
C  Net Annual Value  
D. None of the above 

47. Annual value of self-occupied house

A. Nil 
B. Equal to Municipal Value 
C. Equal to Fair rent  
D. None of the above 

48. Mr. A owns a house property. He lent it to Mr. B at 20,000 p.m. Mr. B sublet it to Mr. C on monthly rent of Rs. 30,000 p.m. Rental income of A is taxable under the head ___________. 

A. Income from other Sources 
B. Income from house property 
C. Income from Salary 
D. None of this 

49. Beena received Rs.30,000 as arrears of rent during the P.Y.2020-21. The amount taxable under section 25A would be- 

A. Rs. 30,000  
B. Rs. 21,000  
C. Rs. 20,000 
D. Rs. 15,000 

50. Income from others sources may be includes  

A. Indian company dividend  
B. Dividend from units  
C. Foreign company dividend  
D. All of the above 

51. The amount of dividend received from Co-operative society is 

A. Partly taxable 
B. Exempted 
C. Taxable 
D. All of the above 

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Wednesday, January 19, 2022

Cost Accounting Mcqs

January 19, 2022 0
Cost Accounting Mcqs
S.Y B.COM
SEMESTER - 3

COST ACCOUNTING
(CA)
MCQS - 27 NOVEMBER 2021

1. Which of the following is wider term? 

A. Expenses 
B. Losses 
C. Cost 
D. Assets 

2. This process of charging the whole amount of an item of overhead directly to a department or cost centre is called, __________.  

A. Apportionment 
B. Absorption 
C. Overhead charged 
D. Allocation 

3.  From the following information calculate value of X: X= 4000+20%Y and Y=2600+10%X 

A. 4612 
B. 3061  
C. 2600 
D. 4160 

4. Compute Maximum level of stock based on following information: Re-order level: 300 Units, Economic order quantity: 200 Units, Supply Period: 5 to 15 days, Avg. Consumption: 15 Units per day and Maximum Consumption: 20 Units per day 

A. 425 Units 
B. 450 Units 
C. 400 Units 
D. 500 Units 

5. Under __________items of materials are controlled according to their 'value' or 'financial importance' 

A. ABC Analysis 
B. V.E.D Analysis 
C. EOQ 
D. Fixation of Stock Level  

6. This process of charging the whole amount of an item of overhead directly to a department or cost centre is called __________. 

A. Apportionment 
B. Absorption 
C. Overhead charged 
D. Allocation 

7. Under applied overheads will always result when a predetermined overhead rate is applied and..... 

A. Production is less than defined capacity 
B. Actual overhead costs are more than budgeted overhead cost 
C. Actual overhead incurred is less than applied overhead 
D. Actual overhead incurred is more than applied overhead. 

8. Which of the following is correct way of classifying costs based on behavior? 

A. Material, Labour & Expenses 
B. Direct & Indirect 
C. Production, Administration, Selling, Distribution And Research & Development 
D. Fixed, Variable & Semi- Variable 

9. if absorption rate is Rs. 130 per hour, the production hours are 300 and the under absorption being Rs. 3,000, actual expenses would be: 

A. Rs. 36,000  
B. Rs. 39,000 
C. Rs. 42,000 
D. Rs. 30,000 

10. The time gap between placing an order and receiving the material is known as 

A. Purchase time 
B. Reordering time 
C. Lead time 
D. Emergency delivery time 

11. Assertion (A): Overheads are recovered in costing based on predetermined rates. 
Reason (R): This solves the problem of treatment of underrecovery or over recovery of overheads. Select the correct answers from the options given below - 

A. Both A and R are true 
B. Both A and R are false 
C. A is true, but R is false 
D. A is false, but R is true 

12. About 2025 units are required monthly for a machine. A fixed cost of Rs. 40 per order is incurred for placing an order. The carrying cost of material per unit amounts to Rs. 2.4 per annum. Compute EOQ. 

A. 2025 Units 
B. 900 Units 
C. 500 Units 
D. 1200 Units 

13. Calculate Conversion Cost: Direct material : Rs. 85,000 Direct labour : Rs.80,000 Direct Expenses: Rs. 50,000 Production overhead: Rs. 35,000 Office overhead: Rs. 10,000 Selling overhead : Rs. 5,000  

A. Rs. 2,15,000  
B. Rs. 1,65,000  
C. Rs. 2,50,000  
D. Rs. 2,65,000 

14. Match the followings in respect of reasons of overtime and its accounting treatment 

Reason

Accounting Treatment

(i) Under Staffing

(a) To Costing Profit & loss A/c

(ii) On request of customer

(b) To Normal Wage rate

(iii) Abnormal circumstances

(c) To the Particular Job


A. (i - a), (ii - b), (iii - c) 
B. (i - b), (ii - a), (iii - c) 
C. (i - c), (ii - b), (iii - a) 
D. (i - b), (ii - c), (iii - a) 

15. Calculate Minimum Level. Maximum usage of component: 450 units per week Minimum usage of component: 150 units per week Normal reorder 5 weeks Minimum reorder period: 4 weeks 

A. 2700 units 
B. 1200 units 
C. 1500 units 
D. 900 units 

16. Materials purchased during the month of July-2021 were: 4th July-800 units @ Rs. 20 per unit, 12th July - 1,000 units @ Rs. 30 per unit, 25th July-600 Units @ Rs. 40 per unit. Calculate issue price of material by 'periodic simple average price method' 

A. Rs. 20 per unit 
B. Rs. 40 per unit 
C. Rs. 30 per unit 
D. Rs. 50 per unit 

17. Type of material that classifies as type 'A' material in ABC analysis- 

A. High value, less quantity 
B. High value, more quantity 
C. Low value, more quantity 
D. Low value, less quantity 

18. ________ contains both quantitative and money values of stores items. 

A. Bin Card 
B. Store Card 
C. Stores Ledger 
D. Stock Card 

19. For worker A if Standard Time: 10 Hours, Time Taken: 8 Hours, Wage Rate : Rs. 25. Total Earning Under Halsey Bonus Plan will be Rs. _________. 

A. Rs. 250 
B. Rs. 225 
C. Rs. 200  
D. Rs. 300 

20. On 30.09.2021 Stock as per Stores ledger account was 125 units while stock taking shows Actual Stock of 120 units only. How would you record this transaction in stores ledger on the above date.? 

A. It is shortage so should be recorded as issue of 5 units 
B. It is surplus so should be recorded as receipt of 5 units 
C. It is shortage so should be recorded as receipt of 5 units 
D. It is surplus so should be recorded as issue of 5 units 

21. Factory expenses actually paid Rs. 10,000. Rate of recovery is 30% of direct labour. Direct labour is Rs. 25,000. It shall be _________. 

A. Over absorption Rs. 2,500 
B. Under absorption Rs. 2,500 
C. Actual absorption Rs. 10,000 
D. Under absorption Rs. 5,000 

22. Calculate issue price for 750 units on 07.07.2021 under weighted Average Price: Opening stock as on 01.07.2021, 500 units @ Rs. 20 per unit and Purchases on 05.07.2021, 400 units @ Rs. 21 per unit.

A. Rs. 21
B. Rs. 20.44
C. Rs. 20.50
D. Rs. 20

23. Calculate issue price per 1000 bricks.: Total bricks ordered:5,00,000 Breakage in transit the bricks -1% of the bricks purchased Bricks broke during Loading & Unloading: 2000 Total cost incurred for purchasing 50,000 bricks: 2,25,000 

A. Rs. 450 
B. Rs. 454.55 
C. Rs. 456.39 
D. Rs. 451.81 

24. Actual production on particular day is 120 units, time allowed for 10 units is 1 hour and hourly rate is Rs.4. Calculate Earning under piece rate system. 

A. Rs. 32
B. Rs. 40 
C. Rs. 48 
D. Rs. 45 

25. Weighted Average of 100 units is Rs. 280. Out of it total cost of 40 units is Rs. 10,000. what would be per unit cost of remaining units? 

A. Rs. 300 
B. Rs. 250 
C. Rs. 280 
D. Rs. 480 

26. ________ is a location/person/an item of equipment/group of these for which costs are ascertained and used for the purpose of cost control. 

A. Cost 
B. Cost Centre 
C. Costing 
D. Cost Accounting 

27. Choose the correct sequencing of purchase procedure 
i preparation of purchase order 
ii selection of supplier 
iii receipt of purchase requisition 
iv return of rejected material 

A. 1, 3, 4, 2 
B. 3, 2, 1, 4 
C. 2, 4, 3, 1 
D. 3, 2, 4, 1 

28. The following information is collected from the personnel department of ACC Ltd for the year ending 31st March 2021. Number of workers at the beginning of the year 8,000 and at the end of the year 9,600, number of workers left the company during the year 500, number of workers discharged during the year 100, number of workers replaced due to leaving and discharges 700, and additional workers employed for expansion during the year 1500. You are required to calculate labour turnover rate by using flux method.  

A. Flux method 23.86% 
B. Flux method 14.77% 
C. Flux method 6.82% 
D. Flux method 15.89% 

29. XYZ company is engaging in executing job and its factory overhead costs of three months are as follows: July- Rs. 3000, August - Rs.4200, September Rs. 3,800. Overheads are absorbed based on production. Production units in the month of July - 1000, August - 1500, and September- 3000. Overhead absorption rate is fixed Rs. 2 per unit every month. Find out the amount of overheads under or over absorbed after the end of three months. 

A. Nil 
B. 2200 Over absorbed 
C. 1200 Under absorbed 
D. 1000 under absorbed 

30. Which of the following analysis is used generally for Spare-parts? 

A. ABC Analysis 
B. VED Analysis 
C. Inventory Analysis 
D. PQR Analysis  

31. Standard output for 1 hour is 24 units; actual output produced by Ram for 10 hours is 264 units. Wages rate Rs. 10 per hour. Calculate the amount of bonus and total wages under Emerson's Efficiency Plan. 

A. Total bonus Rs.30, Total wages Rs. 130 
B. Total bonus Rs.20, Total wages Rs. 110 
C. Total bonus Rs.25, Total wages Rs. 130 
D. Total bonus Rs.30, Total wages Rs. 120 

32. Calculate the earnings of Mr. A under Taylor's Differential Piece Rate Plan: Standard output and wages for a month of 25 days is 1,000 units and Rs. 12,500. Mr. A produced 1,100 units during 25 days. 
 
A. Rs. 11000 
B. Rs. 16500  
C. Rs. 12,500 
D. Rs. 13750 

33. For worker A if Standard Time: 10 Hours, Time Taken: 8 Hours, Wage Rate : Rs. 25. Total Earning Under Rowan Bonus Plan will be Rs. _________.

A. Rs. 250 
B. Rs. 200 
C. Rs. 240 
D. Rs. 300 

34. Calculate the EOQ from the following information: Monthly requirement= 1000 units, ordering cost= Rs. 60 per order, Price per unit = Rs. 100 and Inventory carrying cost=15% on average inventory per unit per annum. 

A. 309.84 units 
B. 500 units 
C. 89.44 units 
D. 250.84 units 

35. Perpetual Inventory System is Supplemented by a System of _________ to ensure that Physical Stock Agrees With The Book Record. 

A. VED Analysis  
B. Continuous Stock taking 
C. EOQ Analysis 
D. ABC Analysis 

36. As per the analysis of time card the Gross Earnings of a worker is Rs. 25,000 and deductions are Contribution to PF and ESI Rs. 1,500 and Rs. 600 respectively advance against wages Rs. 800 Co-operatives dues Rs. 2300 and Income tax Rs. 500. It is the practice in the industry to contribute 80% of amount to PF and ESI by the employer. find Total wage cost.  

A. 27100 
B. 22100 
C. 26680 
D. None 

37. From the following information distribute cost of Time Keeping department among various other departments: Total cost of Time keeping department as per primary Distribution: Rs. 10000, Ratio of Stores Requisition: 4:3:2:1, Ratio of Machine Hours: 3:3:2:2, Ratio of No of Employee: 3:4:2:1 and Ratio of Floor area: 5:3:1:1 

A. Rs. 4000, Rs. 3000, Rs. 2000 and Rs. 1000 
B. Rs. 3000, Rs. 3000, Rs. 2000 and Rs. 2000 
C. Rs. 3000, Rs. 4000, Rs. 2000 and Rs. 1000 
D. Rs. 5000, Rs. 3000, Rs. 1000 and Rs. 1000 

38. An analysis of the Time Card of a worker on a machine shows that of the total 24 hours, he worked 22 hours (including 2 hours overtime due to abnormal circumstances) on production and 2 hours was normal Idle Time due to setting up of machine. The wage rate of the worker is Rs. 100 per hour; but overtime is 120 % extra. What is the overtime premium and its treatment? 

A. 240 & Costing profit & loss account 
B. 240 & Factory overheads 
C. 2640 & Direct Wages 
D. 2400 & costing profit & loss account

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