Question 1

Tax management deals with :&#10;A)filing of return in time&#10;B)getting the accounts audited&#10;C)deducting tax at source&#10;D)all of the above

Accepted Answer

Tax management encompasses a wide range of activities including filing returns on time, ensuring accounts are audited as required, and deducting tax at source, among others.

Question 2

income tax act came into force on &#8230;&#8230;&#8230;&#8230;&#10;A)01.04.1961&#10;B)01.04.1962&#10;C)01.04.1956&#10;D)01.04.1965

Accepted Answer

The Income Tax Act, 1961 came into force on 01.04.1962.

Question 3

How many heads of income are there to compute gross total income?&#10;A)six&#10;B)five&#10;C)four&#10;D)three

Accepted Answer

There are five heads of income under the Income Tax Act to compute gross total income: Salary, House Property, Profits and Gains of Business or Profession, Capital Gains, and Income from Other Sources.

Question 4

Deduction of tax at source made for incomes which can be calculated in advance is called &#8230;&#8230;&#8230;&#8230;&#8230;..?&#10;A)TDS&#10;B)PAS&#10;C)FAS&#10;D)MAS

Accepted Answer

TDS stands for Tax Deducted at Source, which is a means of collecting income tax in India under the Indian Income Tax Act of 1961. It is deducted from certain payments such as salary, commission, rent, interest on securities, etc., which can be calculated in advance.

Question 5

Donation is deductible under section&#10;A)80C&#10;B)80D&#10;C)80E&#10;D)80G

Accepted Answer

Donations are deductible under section 80G of the Income Tax Act, which covers donations to certain funds, charitable institutions, or for certain relief efforts.

Question 6

Education cess on tax payable is at..&#10;A)2%&#10;B)1%&#10;C)3%&#10;D)5%

Accepted Answer

Education cess on tax payable is at 2%.

Question 7

The income tax rate on long term capital gains for an individual is &#8230;&#8230;&#8230;&#8230;..&#10;A)10%&#10;B)15%&#10;C)20%&#10;D)25%

Accepted Answer

The income tax rate on long-term capital gains for an individual is generally 20%. This applies to assets held for more than a certain period (usually more than a year), such as stocks, bonds, or real estate, depending on the jurisdiction's tax laws.

Question 8

When a receipt is determined as capital receipt or revenue receipt .&#10;A)at the time of it is received&#10;B)while preparing final account&#10;C)when the received amount is used&#10;D)none of these

Accepted Answer

When a receipt is received, it is determined as capital receipt or revenue receipt based on its nature and purpose.

Question 9

STT stands for&#10;A)securities transaction tax&#10;B)secure transaction tax&#10;C)securities transmission tax&#10;D)none of these

Accepted Answer

Securities Transaction Tax (STT) is a tax levied on the purchase and sale of securities listed on the stock exchanges in India.

Question 10

Who is tax payer?&#10;A)business man&#10;B)trust&#10;C)assessee&#10;D)govt employee

Accepted Answer

An assessee is a person or entity liable to pay taxes to the government. This term encompasses all types of taxpayers, including individuals, businesses, trusts, and government employees, making it the correct choice.

Question 11

Reciept of amount on maturity of LIC policy is &#8230;&#8230;&#8230;&#8230;&#8230;. .&#10;A)a revenue receipt&#10;B)capital receipt&#10;C)a casual receipt&#10;D)fixed receipt

Accepted Answer

The answer of Reciept of amount on maturity of LIC...

Question 12

Income by way of rent of agricultural land is &#8230;&#8230;&#8230;&#8230;&#8230;. .&#10;A)business income&#10;B)income from other sources&#10;C)agricultural income&#10;D)casual income

Accepted Answer

The answer of Income by way of rent of agricultural...

Question 13

The highest administrative authority for income tax in India &#8230;&#8230;&#8230;&#8230;.?&#10;A)finance minister&#10;B)president of India&#10;C)CBDT&#10;D)director of IT

Accepted Answer

The answer of The highest administrative authority for income tax...

Question 14

Tonnage tax is based on &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;... .&#10;A)net tonnage&#10;B)gross tonnage&#10;C)actual tonnage&#10;D)weighted average

Accepted Answer

The answer of Tonnage tax is based on &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;... .&#10;A)net...

Deck 3: Tax Management and Income Tax Act