Deck 7: Taxation and Deductions

Question 1

If S T T is paid, then LTCG tax on the transfer of listed equity shares is ....................

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

Answer 1

nil

Question 2

Out of income from growing and manufacturing of latex ..................... , is considered as agricultural income.

A)40%
B)45%
C)60%
D)65%

Answer 2

65%

Question 3

For SSIs , a deduction of ..................... % of profit is available to individual assessee.

A)50%
B)40%
C)25%
D)nil

Answer 3

25%

Question 4

Contribution to RPF is deducted u/s ..................

A)80c
B)80d
C)80e
D)80g

Question 5

The maximum amount of deduction under section 80D in the case of a senior citizen is .........................

A)rs: 10,000
B)rs: 15,000
C)rs: 20,000
D)rs: 25,000

Question 6

Which among the following deduction is available only to disabled persons :

A)80 c
B)80 g
C)80 q
D)80 u

Question 7

Section 80C provides for deduction in respect of tuition fee to ....................... children.

A)one
B)two
C)three
D)none

Question 8

The maximum amount deductible u/s 80GG in respect of rent paid is ........................

A)rs: 10,000
B)rs: 12,000
C)rs: 20,000
D)rs: 24,000

Question 9

Tax on long term capital gain is..................

A)10%.
B)20%.
C)30%.
D)25%.

Question 10

Income from other sources is a.................

A)residuary head of income.
B)major head of income.
C)income from a single source.
D)constant and regular income.

Question 11

Which one of the following is not an income from other sources?

A)interest on fixed deposit in bank.
B)winnings from cross word puzzles.
C) gift in excess of rs.50,000 from an unrelated person.
D)profit on sale of building.

Question 12

Which of the following income from other sources is not taxable?

A)dividend from co-operative society.
B)dividend from foreign company.
C)dividend from domestic company.
D)winnings from lottery.

Question 13

Dividends from co-operative society are........................

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

Question 14

Grossing up of interest on securities is required when...................

A)interest is received after t.d.s.
B)they are central govt. securities.
C)the interest on bank deposit is less than rs. 10,000.
D)none of these.

Question 15

Tax is reduced from casual incomes at....................

A)10% + surcharge and cesses.
B)20% + surcharge and cesses.
C)30%.
D)none of these.

Question 16

Interest on Bank Term Deposits is subject to tax deduction at source if the interest amount during the relevant previous year exceeds................

A)rs: 2,000.
B)rs: 5,000.
C)rs: 10,000.
D)rs: 30,000.

Question 17

Rate of T.D.S for unlisted securities, including cesses is.................

A)10.6%.
B)15.6%.
C)10%.
D)30.6%.

Question 18

Speculation Loss can be carried forward for.................

A)8 years
B)10years
C)5years
D)4years

Question 19

Which of the following is not a capital asset.

A)stock in trade
B)goodwill
C)agricultural land in mumbai
D)jewellary

Question 20

A partnership firm sold a residential house. The firm will get exemption under section .................... on capital gains.

A)sec. 54d
B)sec .54e
C) sec. 54c
D)sec. 54ec

Question 21

Income of a minor child is included in the total income of ...........................

A)father
B)mother
C)parent whose income is greater
D)transferor of asset

Question 22

The amount of deduction under section 80DD regarding disability is .....................

A)rs: 30,000
B)rs: 50,000
C)rs: 75,000
D)actual expense.

Question 23

Which of the following is eligible for 100% deduction ?

A)national children fund
B)rajiv gandhi foundation
C)national sports fund
D)nehru memorial fund