Deck 5: Taxation and Capital Gains

Question 1

Which among the following is not an admissible expense:

A)Income tax
B)GST
C)Bad debt
D)Excise duty

Answer 1

Income tax

Question 2

While computing the profit of a firm, interest allowed on partners' capital is allowed:

A)Up to 12%
B)Up to 15%
C)Up to 18%
D)Up to 20%

Answer 2

Up to 12%

Question 3

The deduction allowed in respect of payment made to an approved university for social research is:

A)200%
B)150%
C)125%
D)100%

Answer 3

100%

Question 4

For the purpose of income tax, depreciation is charged on:

A)Market value
B)Cost price
C)WDV
D)Book value

Question 5

Depreciation is not allowed on:

A)Computer
B)Furniture
C)Land
D)Machinery

Question 6

Unabsorbed depreciation can be carried forward for set-off up to:

A)5 years
B)8 years
C)10 years
D)Any number of years

Question 7

The rate of depreciation applicable to intangible asset is:

A)5%
B)15%
C)20%
D)25%

Question 8

The rate of depreciation applicable to furniture is:

A)10%
B)15%
C)20%
D)5%

Question 9

The allowable depreciation on motor car is:

A)5%
B)25%
C)30%
D)40%

Question 10

What is the additional rate depreciation on new plant?

A)5%
B)10%
C)20%
D)25%

Question 11

The allowable rate of depreciation on computer is:

A)30%
B)40%
C)50%
D)60%

Question 12

Which among the following is not a capital asset?

A)Jewellery
B)Stock-in-trade
C)Agricultural land
D)Goodwill of a business

Question 13

Under which section, a firm is eligible for exemption in respect of long term capital gain arising from the sale of a residential house:

A)Sec. 54S
B)Sec. 54EC
C)Sec. 54D
D)Sec. 54F

Question 14

Income from the sale of a house hold furniture is a/an:

A)Exempted income
B)Taxable income
C)Capital gain
D)Income from house property

Question 15

Cost Inflation Index for the Financial Year 2018-19 is:

A)1024
B)272
C)1081
D)280

Question 16

For being long term capital gain, the asset should be retained by the assessee for a period of:

A)36 months
B)More than 36 months
C)24 months
D)12 months

Question 17

Which among the following is not a capital asset?

A)Household furniture
B)Car for personal use
C)Stock-in-trade
D)All of these

Question 18

Capital gain on depreciation assets is always:

A)LTCG
B)STCG
C)Tax free
D)None of these

Question 19

For being a long term capital gain, the assessee should retain the shares for a period of:

A)12 months
B)Less than 12 months
C)More than 12 months
D)None of these

Question 20

Capital gain arises from:

A)Capital
B)Stock
C)Transfer of capital assets
D)None of these

Question 21

Which among the following is not a capital asset?

A)Goodwill of business
B)Jewellery
C)Car used for business purposes
D)Agricultural land situated in a village

Question 22

Which among the following is not chargeable to tax under the head, income from other sources?

A)Winnings from lottery
B)Interest from bank
C)Dividend from co-operative society
D)Profit on sale of the goodwill of a business

Question 23

The deduction allowable in respect of family pension is:

A)Entire amount of family pension
B)33 1/3 % of the family pension
C)33 1/3 % of the family pension or Rs: 15,000 whichever is less
D)30 % of the family pension or Rs: 15,000 whichever is less

Question 24

The inclusion of others' income in the income of an assessee is called:

A)Aggregation
B)Clubbing
C)Set-off
D)None of these

Question 25

If marriage of parents subsists, the income of a minor child:

A)Shall be included in the income of mother
B)Shall be included in the income of father
C)Shall included in the income of that parent whose total income is greater
D)Shall included in the income of that parent whose total income is less