Elements of direct taxes Mcqs - Study For Buddies

Thursday, January 20, 2022

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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