Deck 5: Taxation and Depreciation Rates

Question 1

Rate of depreciation on furniture is........................

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

Answer 1

10%

Question 2

Additional depreciation is allowed at half the rate, if the asset is used in the initial year for.................................

A)195 days.
B)199 days.
C)360 days.
D)less than 180 days.

Answer 2

less than 180 days.

Question 3

Under section 44AB 'specified date' means, ...............................

A)30th june
B)30th september
C)30th november
D)31st december

Answer 3

30th september

Question 4

Income from sale of rural Agricultural land is..................

A)taxable capital gain.
B)exempted capital gain.
C)taxable income.
D)none of these.

Question 5

What is the time limit for holding of a Financial Asset, to be called Short Term Capital Asset?

A)not more than 6 months.
B)not more than 12 months.
C)not more than 24 months.
D)not more than 36 months.

Question 6

To be a long term capital asset, a non financial asset should be held more than................

A)12 months.
B)24 months.
C)36 months.
D)60 months.

Question 7

. Cost of long term debentures are.....................

A)eligible for indexing.
B)not eligible for indexing.
C)none of these.
D)all the above.

Question 8

What is the date on which Fair Market Value of capital assets acquired is determined?

A)1.4.2001.
B)1.4.1971.
C)1.4.1981.
D)1.4.1971

Question 9

FMV on 1.4.81 is applicable to assets.......................

A)acquired prior to 1.4.81.
B)transferred prior to 1.4.81.
C)acquired after 1.4.81.
D)none of the above.

Question 10

Cost of improvement incurred prior to 1.4.81 is................

A)indexed separately.
B)indexed along with cost of acquisition.
C)ignored fully.
D)none of these.

Question 11

Cost inflation rules for the purpose of long term capital gain has been notified by central government every year starting from the financial year..................

A)1991-92.
B)1985-86.
C)1981-82.
D)1975-76.

Question 12

Short term capital gain on sale of unlisted shares are.................

A)taxable.
B)exempted.
C)partially exempt

Question 13

Long term capital gain on sale of unlisted shares are........................

A)taxable.
B)exempted.
C)partially exempt

Question 14

Exemption u/s 54 is allowed when a residential house is sold and the investment is made in .............................

A)another residential house.
B)land.
C)shares.
D)jewellery.

Question 15

Which one of the following is not an admissible expense

A)income tax
B)excise duty
C)bad debt
D)sales tax

Question 16

Tax on short-term gain on sale of listed shares is................

A)20%.
B)25%.
C)30%.
D)15%.

Question 17

Statutory limit for exemption of compensation received at the time of voluntary retirement (VRS) is.............................

A)rs. 5,00,000.
B)rs. 8,00,000.
C)rs. 10,00,000.
D)rs. 15,00,000.

Question 18

Deduction from gross Total income is allowed under Sec. 80C up to lower of the Qualifying amount or a maximum of.

A)rs. 50,000.
B)rs. 80,000.
C)rs. 1,00,000.
D)rs. 2,00,000.

Question 19

Contribution made to an approved research association is eligible for deduction up to.................

A)50%.
B)80%.
C)100%.
D)125%.

Question 20

Unabsorbed capital expenditure on scientific research can be carried forward for...............

A)15 years.
B)14 years.
C)8 years.
D)10