INCOME TAX RETURN PREPARATION - UNIT 1 MCQS - Study For Buddies

Saturday, May 15, 2021

INCOME TAX RETURN PREPARATION - UNIT 1 MCQS

S.Y B.COM
SEMESTER - 4

INCOME TAX RETURN PREPARATION
(ITRP)
MCQS - UNIT 1

1) Choose the form to be filled in for allotment of PAN card by Mr.Jatayu who is a resident Indian citizen of 65 years.

(A) Form 49A 
(B) Form 49AA 
(C) Form 15G 
(D) Form 15H

2) Choose correct category of assesses with PAN AFZFK7109K

(A) Proprietorship 
(B) Company 
(C) Individual 
(D) Partnership Firm

3) Deduction of Interest on borrowed capital in case of a self occupied house property is Example of

(A) Relief under section 90 
(B) Set off and carry forward of current year losses
(C) Taxation at lower rates 
(D) Deduction under section 80C

4) Same PAN cannot be allotted to more than

(A) 1 person
(B) 5 persons 
(C) 3 persons 
(D) 2 persons

5) Which of the following transactions are linked with the help of permanent account numer ?

(A) Tax payment 
(B) Availing TDS credit 
(C) Filling of return
(D) All of the above

6) Which of the following is not a proof of address ?

(A) Passport 
(B) Electricity bill
(C) Telephone bill 
(D) School leaving certificate

7) The provisions of Section 139A shall not apply to the person who is in receipt of only Agricultural Income, if they furnish declaration in

(A) Form No.61 
(B) Form No.15H 
(C) Form No.15G 
(D) Form No.60

8) For filing online return, person required to upload XML file, which the person can generate by using which of the utility provided by income tax department.

(A) Word utility 
(B) PPT Utility 
(C) Excel Utility 
(D) Access Utility

9) Loss from the lottery ticket and crossword puzzles can be set off against the ......... income.

(A) Salary 
(B) House property 
(C) Capital gain 
(D) None of these

10) PAN is required to be quoted in the documents pertaining to deposit of cash with bank, if the aggregate amount of cash to be deposited in bank is Rs.......... or more.

(A) Rs.10,000 
(B) Rs.15,000 
(C) Rs.50,000 
(D) Rs.60,000

11) A person, who has not been allotted PAN, shall make declaration in Form No....... while opening a bank account.

(A) Form No. 61 
(B) Form No. 15H 
(C) Form No. 15G 
(D) Form No. 60

12) The last character of PAN indicates .......

(A) Surname 
(B) First name 
(C) Middle Name 
(D) Alphabetic Check Digit

13) Mrs. Deepali Patel, Indian citizen, 62 years of age can apply for PAN in form

(A) From 15H 
(B) Form 15G 
(C) Form 49A 
(D) Form 60

14) Which of the following is a proof of Identify for applying PAN ?

(A) Passport 
(B) Voter Card 
(C) Driving License 
(d) All of the above

15) Which of the following is correct PAN of Mr.Sandip Prajapati ?

(A) ABCSP1234K 
(B) ABCPP1234K 
(C) ABCPS1234H 
(D) ABC12P34HK

16) If the recipient does not furnish his PAN to the deduct or, tax will be deducted at the normal rate or at threat of, whichever is higher.

(A) 10% 
(B) 20% 
(C) 30% 
(D) 2%

17) Mr.Arvind has e-file his return and his income is less than five lakhs and he is not claiming any refund, he can e-verify his return by

(A) Net Banking 
(B) Aadhaar Card 
(C) Email ID & Mobile Number 
(D) All of the above

18) Among which of the following is not a benefit of e-filling ?

(A) Accuracy is ensured 
(B) Paper work is required
(C) Procession of return can be monitors 
(D) All of the above

19) From under mentioned PAN, which one constitutes a valid Permanent Account Number ?

(A) ABCHP1234K 
(B) ABC1234PHK 
(C) ABCP1234HK 
(D) ABC12P34HK

20) For Filing online return, person required to upload XML file, the same can generate by using which of the utility provided by income tax department.

(A) JAVA Utility 
(B) PPT Utility 
(C) Excel Utility 
(D) Both A or C

21) Loss from the lottery ticket and crossword puzzles can be set off against the ......... income.

(A) Salary 
(B) House Property 
(C) Capital Gain 
(D) None of these

22) In which of the following transaction, every person shall quote his PAN specified in rule 114B.

(A) Demate Account 
(B) Opening an account with a bank
(C) Sale of motor vehicle (other than two wheeler) 
(D) All of the above

23) Which loss can’t be carried forward to next subsequent year ?

(A) Capital Loss 
(B) Loss of Other Source 
(C) Business Loss 
(D) None of the above

24) Loss from the activity of owning and maintaining race horses can be carried forward for how many years?

(A) 5 years 
(B) 6 years 
(C) 8 years 
(D) None of the above

25) Long term capital loss can be adjusted only against ........... u/s 70.

(A) Short term capital gain 
(B) Long term capital gain
(C) Salary Income 
(D) None of the above

26) Contract for purchase or sale of any commodity, stocks or shares is periodically settled otherwise than by the actual delivery, it is known as a ..........

(A) Speculative transaction 
(B) Non Speculative transaction
(C) A and B 
(D) None of the above

27) Under rule 114B, when payment made to a hotel or restaurant upto how much amount of cash payment, PAN is not required to be quoted ?

(A) Up to Rs.30,000
(B) Up to Rs.40,000
(C) Up to Rs.50,000
(D) None of the above

28) Which of the following statement is not true ?

(A) Due to e-filing assesses can view the current status of the return.
(B) E-filing return is mandatory for resident individual in India whose income exceeds Rs.5 lacs.
(C) E-filing return is not mandatory for Companies.
(D) To browse and select the XML file is one of the step of e-filing procedure.

29) Which of the following is pre-requisite of e-payment ?

(A) Internet banking account 
(B) Good internet connection
(C) Valid TAN or PAN 
(D) All of the above

30) Which of the following statements is true ?

A) E-Payment facilitates payment of direct taxes online by taxpayers.
B) E-filing of return is mandatory for all assesses.
C) Once return of Income is e-filed assesses cannot view the same.
D) Due to e-filing processing cost of return cannot be reduced.

31) Which of the following is the correct sequence for e-filing of Income Tax Return procedure?

(i) Fill the excel utility or Java utility and validate
(ii) Generate an XML file and save in desired path
(iii) Download the either excel of Java utility of ITR.
(iv) Visit website www.incometaxindiaefiling.gov.in

(A) i, ii, iii, iv 
(B) ii, iii, iv, i 
(C) iv, iii, i, ii 
(D) iv, iii, ii, i

32) Arrange the sequence of e-payment procedure.

(i) Enter its PAN/TAN as applicable
(ii) Select the relevant challn
(iii) Visit www.tin-nsdl.com
(iv) Click on the link for ‘e-payment; Pay Taxes Online

(A) i, ii, iii, iv 
(B) iii, iv, ii, i 
(C) i, ii, iv, iii 
(D) iv, iii, ii, i

33) Which of the following bank is available for e-payment of taxes ?

(A) Oriental bank of commerce 
(B) Punjab National Bank
(C) Union Bank of India 
(D) All of the above

34) Match the following :

(a) Pre-requisite of e-payment

(i) Form may be downloaded from any place

(b) Benefit of e-filing of ITR

(ii) Download the either excel or Java utility of the ITR

(c) Procedure of e-filing of ITR

(iii) Valid TAN or PAN


(A) i, ii, iii 
(B) i, iii, ii 
(C) ii, i, iii 
(D) iii, i, ii

35) Mr.X, having income less than Rs.4,50,000, can file his return of income by way of ......

(A) E-filing using a Digital Signature 
(B) E-filing without a Digital Signature
(C) Filing Physical Form of ITR 
(D) All of the above

36) The last character of PAN indicates ..........

(A) first name 
(B) Check digit 
(C) Surname 
(D) Middle name

37) Amount of unabsorbed depreciation can be carry forward for ..........

(A) 4 years 
(B) 8 years 
(C) zero year 
(D) unlimited number of years

38) Which of the following is true for rebate under Section 87A for the assessment year 2018-19 of the Income Tax Act, 1961.

(A) The amount of rebate is 100 percent of income-tax or Rs.2,000 whichever is higher
(B) The amount of rebate is 100 percent of income-tax or Rs.2,000 whichever is less
(C) The amount of rebate is 100 percent of income-tax or Rs.5,000 whichever is higher
(D) The amount of rebate is 100 percent of income-tax or Rs.5,000 whichever is less

39) What is the full form of CPC ?

(A) Centralized pre-processed center 
(B) Control Procedure Centre
(C) Centralized processing Centre 
(D) Central processing control

40) Which of the following is the correct sequence for e-filling of income tax Return procedure?

(i) Fill the excel utility or java utility and validate
(ii) Generate an XML file and save in desired path
(iii) Download the either excel or Java utility of ITR.
(iv) Login to website www.incometaxindiafilling.gov.in and ML file

(A) ii, iii, i, iv
(B) iii, ii, i, iv 
(c) iii, i, ii, iv 
(D) iii, i, iv, ii

41) PAN is required to be quoted in the documents pertaining to deposit of cash with bank, if the aggregate amount of cash to be deposited in bank is Rs. ....... or more.

(A) Rs.10,000 
(B) Rs.1,00,000 
(C) Rs.50,000 
(D) Rs.30,000

42) Losses from Business cannot be sent off against .........

(A) Long Term Capital gains 
(B) Short term capital Gains
(C) Income from other sources 
(D) Salary income

43) .......... is applicable for foreign citizens for application of allotment of new PAN.

(A) Form 49C 
(B) Form 49D 
(C) Form 49AA 
(D) Form 49A

44) Any person carrying on business or profession whose total Sales, turnover or gross receipts  are or is likely exceeds Rs. ...... in any previous year has to apply for PAN.

(A) 2,50,000 
(B) 5,00,000 
(C) 3,00,000 
(D) 2,00,000

45) The provisions for allotment of PAN are laid down under section .............

(A) Section 139A 
(B) Section 144 
(C) Section 114B 
(D) Section 49A

46) If formation of PAN the fourth alphabet ‘J’ stands for ?

(A) Body of individuals 
(B) Trust 
(C) Association of persons
(D) Artificial Juridical Person

47) From the following information calculate income chargeable to tax : Loss from Business I Rs.70,000, Profit from business II Rs.60,000, Income from house property Rs.1,40,000, Loss from Speculative business Rs.5,000 and Salary of Rs.2,20,000.

(A) Rs.3,45,000 
(B) Rs.3,50,000 
(C) Rs.4,20,000 
(D) None of the above

48) Mr.X (Age 36 years) not suffering from disease/disability etc.) taken insurance policy on 1st April 2017 and make the payment of life insurance premium of Rs.1,80,000 Sum Assured Rs.14,00,000), What will be the amount of Life insurance premium eligible for deduction u/s 80C for the Assessment year 2018-19 ?

(A) Rs.1,80,000 
(B) Rs.1,40,000 
(C) Rs.1,50,000 
(D) None of the above

49) Rebate u/s 87A is available to ........... for assessment year 2018-19 ?

(A) Individual 
(B) HUF 
(C) A & B both 
(D) Company

50) PAN APIHP9999Z belongs to which of the following category ?

(A) Individual 
(B) HUF 
(C) Firm 
(D) Company

51) Among which of the following is not a benefit of e-filling ?

(A) Paper work is increase 
(B) Accuracy is ensured
(C) Processing of return can be monitored 
(D) All of the above

52) Full form of EVC is.............

(A) Electrical Vocal Code 
(B) Electronic Verified Centre
(C) Electronic verification code 
(D) Electrical Verified Code

53) Short-term capital loss can be adjusted against .........

(A) only short-term capital gains 
(B) only Long-term capital gains
(C) Both A and B 
(D) None of the above

54) Deduction of medical insurance premium is available only if the payment is done by ......

(A) cheque 
(B) Net banking 
(C) Both A and B 
(D) Cash

55) In e-filling of income-tax returns, a duly verified ITR-V form should be signed and submitted to CPC within ............. days from the date of e-filling.

(A) 60 
(B) 90 
(C) 30 
(D) 120

56) Mr.Arnab has incurred as short-term capital loss of Rs.50,435, the said loss shall be adjusted against which of the following income/s ?

1) Long term capital Gain 
2) Short term capital Gain
3) Other source Incomes
4) Speculative Gain

(A) 2, 4 
(B) 2, 3 
(C) 1, 2, 3 
(D) 1, 2

57) Having or using ......... PAN is ...........

(A) One, Legal 
(B) More than one, illegal 
(C) Both A & B
(D) Only A

58) Information of PAN the forth alphabet ‘J’ stands for ?

(A) Jurisdiction 
(B) Company 
(C) Trust 
(D) Artificial Juridicial Person

59) Full form of ITR is ....

(A) Income Tax Refund 
(B) Income Tax Return
(C) Income Tax Remuneration 
(D) Indian Tax Return

60) PAN card application form for a PAN of a company can be signed by

(A) Trustee 
(B) Karta 
(C) Director 
(D) Partner

61) Provisions of quoting Aadhar number are laid down under section .......

(A) 139A 
(B) 49A 
(C) 139AA 
(D) 49AA

62) Any resident person who enters into a financial transaction of an amount aggregating to ...... during a financial year is required to obtain PAN w.e.f. 01-04-2018.

(A) Rs.2,00,000 or less 
(B) Rs.2,00,000 or more
(C) Rs.2,50,000 or less 
(D) Rs.2,50,000 or more

63) Online PAN application can be done on website of

(A) NSDL 
(B) UTI 
(C) Both A and B 
(D) State Government

64) If a person lost his PAN Card, then in which form he/she will apply ?

(A) Form 49A 
(B) Form 49AA
(C) Request for New PAN Card/changes or correction in PAN DATA
(D) None of these

65) Rebate u/s 87A is available to ......

(A) Individual 
(B) HUF 
(C) Both A and B 
(D) Company

66) In which case provisions of quoting of Aadhar number is not applicable as per income Tax Act, 1961.

(A) If person residing in Assam, Jammu and Kashmir and Meghalaya
(B) a non resident as per income tax act 
(C) Both A & B 
(D) None of the above

67) Clubbing of Income in respect of income of minor child is not attracted if

(A) Income of minor child is on account of manual work
(B) Income of minor child (from all sources) suffering from disability of the nature specified under section 80U 
(C) Both A and B 
(D) None of the above

68) Permanent Account Number (PAN) is a ____ digit unique alphanumeric number issued by the Income TAx Department.

(A) Twenty 
(B) Fifteen 
(C) Ten 
(D) Five

69) Out of the first _____ characters, teh first three characters represent the alphanumeric series running from AAA to ZZZ.

(A) Ten 
(B) Seven 
(C) Five 
(D) Four

70) The fifth character of PAN represents the status of the PAN holder.

(A) True 
(B) False

71) Last character, i.e., the tenth character is an ________.

(A) Identification 
(B) Symbol
(C) Alphabetic check digit 
(D) Numeric check digit

72) Every person who is required to file the return of income or is required to file the return of income on behalf of any other person has to obtain PAN. Apart from such person, no pther person has to obtain PAN.

(A) True 
(B) False

73) There is no bar on obtaining more than one PAN i.e. a person can hold more than one PAN.

(A) True 
(B) False

74) If a person failed to comply with the provisions relating to PAN (i.e. obtaining PAN, quoting PAN, etc.), then penalty can be levied under section_____.

(A) 272 
(B) 272A 
(C) 272B 
(D) 271

75) Application for obtaining PAN is to be made in Form_______ (in case of a resident).

(A) 49 
(B) 49A 
(C) 49B 
(D) ITR - 1

76) One can apply for PAN by submitting the PAN application form (Form 49A/ 49AA) along with the related documents and prescribed fees at the PAN application center of UTIITSL or NSDL. Online application for PAN is not allowed.

(A) True 
(B) False

77) There are certain specified financial transactions in which quoting of PAN is mandatory, if a person intending to enter into the transaction does not hold PAN then he may furnish Aadhar in link of PAN.

(A) True 
(B) False

78) An individual residing in the State of Jammu and Kashmir is required to quote his Aadhar Number in PAN application form.

(A) True 
(B) False

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