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 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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