Elements of direct taxes Mcqs with solutions

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SEMESTER - 3

ELEMENTS OF DIRECT TAXES

(EDT)

MCQs: 2008-09

1. Which of the following Income is not taxable in the immediately following Assessment year. 

a. Income of non-resident from shipping business.

b. Income of Resident Individual from salary. 

c. Income of Resident Individual from House property. 

d. Income of Resident Individual from profession

2. If control and management of affairs of (Hindu undivided family is partially in India during the previous year and Karta satisfied only one of the additional conditions during the previous year then what is the residential status of the family?

a. Resident and Ordinarily Resident in India

b. Non-resident in India

c. Resident but not Ordinarily Resident in India 

d. None of the above

3. Which income is always taxable in India, irrespective of residential status of taxpayer? 

a. Foreign income

b. Indian income 

c. Agriculture income 

d. None of the above

4. If taxpayer's residential status is "Resident but not ordinarily resident" then, Income received in India from the business situated in Canada which is controlled from Delhi is-.

a. Taxable

b. Not taxable

c. Exempt

d. None of a to c

5. Salary income is exempt from tax, if it is received from

a. UNO

b. Indian government

c. Gujarat government

d. American government

6. Mr.B, Indian citizen, received Rs.1,80,000 in Lahore as income from house property situated there. This income is taxable in India, if Mr. B is _________ in India.

a. Resident & ordinarily resident 

b. Resident but not ordinarily resident

c. Non-Resident in India

d. None of above

7. The head of Hindu undivided family is known as _________.

a. Vidhata

b. Harta

c. Karta

d. Annadata

8. ________ is fully exempt in the hands of Government employees. 

a. Commuted pension

b. Non-commuted pension

c. Commuted as well as Non-commuted pension 

d. None of the above

9. Meaning of salary for the purpose of ciaiming deduction for entertainment allowance u/s 16(ii) in case of Government employees is __________.

a. Basic salary +D.A.

b. Basic salary only

c. Basic salary + D.A. + Commission

d. Basic salary + D.A. considered for retirement benefits

10. If Value of unfurnished rent free accommodation is Rs. 55,000 & cost of furniture is Rs. 1,00,000 then value of furnished accommodation = _________.

a. 1,55,000

b. 55,000

c. Rs. 1,00,000

d. none of above

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