CMA Intermediate- Direct Taxation MCQ Questions (Set-0.1)
Author -
Holistic
May 01, 2023
0
1. A partnership firm will become resident in India if
a :
Its control and management is totally in India
b :
Its control and management is totally or partly in India
c :
Its place of effective management is in India
d :
Its partners become resident in India
Correct Answer: d [Its partners become resident in India]
2. The provisions relating to interest on delay in payment of refund are given in section
a :
234A
b :
234B
c :
244A
d :
244B
Correct Answer: c [244A]
3. The threshold exemption limit for Equalization levy is?
a :
Rs. 5 lakh
b :
Rs. 3 lakh
c :
Rs. 2 lakh
d :
Rs. 1 lakh
Correct Answer: a [Rs. 5 lakh]
4. New plant and machinery acquired and put to use by an assessee engaged in transmission of power is eligible for additional depreciation at ____ of actual cost.
a :
10%
b :
12.5%
c :
15%
d :
20%
Correct Answer: d [20%]
5. TDS u/s 194 in respect of dividend, if payee furnish PAN is:
a :
10%
b :
20%
c :
30%
d :
None of above
Correct Answer: a [10%]
6. Cash gifts received by HUF from his members to the extent of Rs. 75,000 will be treated as income of:
a :
The HUF
b :
The members
c :
None, as it is exempt
d :
Both the HUF and the members
Correct Answer: b [The members]
7. Threshold limit for person having income from business u/s 44AD is_______.
a :
80 Lakh
b :
50 Lakh
c :
1 crore
d :
2 crore
Correct Answer: d [2 crore]
8. Quantum of deduction u/s 80EE is______.
a :
5,000
b :
50,000
c :
75,000
d :
None of the above
Correct Answer: b [50,000]
9. The payment under Bhopal Gas Leak Disaster shall be______
a :
Fully taxable
b :
Partially taxable
c :
Exempt
d :
None of the above
Correct Answer: c [Exempt]
10. TDS U/s 193 in respect of interest on securities if payee does not furnish PAN is:
a :
Rate in force
b :
Rate as per Act
c :
Nil
d :
None of above
Correct Answer: d [None of above]
11. Maximum amount of exemption available in respect of amount received under voluntary retirement scheme is:
a :
Rs. 2,00,000
b :
Rs. 3,00,000
c :
Rs. 4,00,000
d :
Rs. 5,00,000
Correct Answer: d [Rs. 5,00,000]
12. An individual can claim deduction from his gross total income in respect of expenditure for the medical treatment of a dependent, being a person with disability upto maximum limit of
a :
Rs. 50,000
b :
Rs. 1,00,000
c :
Rs. 75,000
d :
Rs. 1,25,000
Correct Answer: d [Rs. 1,25,000]
13. The basic exemption limit in case of a non-resident firm is:
a :
Rs. 2,50,000
b :
Rs. 3,00,000
c :
Rs. 5,00,000
d :
None of these
Correct Answer: d [None of these]
14. Notice under section 156 is given for
a :
failure to submit return
b :
tax demand
c :
deferment of tax
d :
None of the above
Correct Answer: b [tax demand]
15. Agricultural land located in rural area is:
a :
Capital asset
b :
Not a capital asset
c :
Exempted capital asset
d :
None of above
Correct Answer: b [Not a capital asset]
16. A winning from lotteries is Rs. 50,000 and expenses incurred to earn such income is Rs. 5,000. Its taxable income is
a :
Rs. 50,000
b :
Rs. 45,000
c :
Nill
d :
None of above
Correct Answer: a [Rs. 50,000]
17. Interest rate on refund as per section 244A (1A)
a :
3%
b :
6%
c :
9%
d :
None of above
Correct Answer: c [9%]
18. Island duty allowance is exempt upto ___
a :
2,500
b :
3,250
c :
1,300
d :
1,800
Correct Answer: b [3,250]
19. An employer has paid medical insurance premium of Rs. 12,000 in respect of a salaried employee drawing annual salary of Rs. 6 lakhs. The amount of perquisite charged in the hands of employee is
a :
Rs. 6,000
b :
Rs.12,000
c :
Nill
d :
None of the above
Correct Answer: c [Nill]
20. Loss from trading in derivates through a recognised stock exchange can be carried forward for:
a :
8 years
b :
4 years
c :
Unlimited years.
d :
None of the above
Correct Answer: a [8 years]
21. The following is taxable under the head “Salaries”:
a :
Gifts received by employee from employer
b :
Salary received by partner from a firm
c :
Fees received by director from a company
d :
Commission received by agent from a principal
Correct Answer: a [Gifts received by employee from employer]
22. Transport allowance in case of a disabled employee is exempt upto:
a :
Rs. 800 p.m.
b :
Rs. 1,600 p.m.
c :
Rs. 3,200 p.m.
d :
No limit
Correct Answer: c [Rs. 3,200 p.m.]
23. Unrealised rent of a property shall be excluded from:
a :
Gross Annual Value
b :
Net Annual Value
c :
Income from property
d :
All the three
Correct Answer: a [Gross Annual Value]
24. In case of a Hindu Undivided Family, where the return of income cannot be signed by the Karta, the same can be signed by
a :
the next senior-most male member.
b :
Karta's wife.
c :
any male member of the family.
d :
any adult member of the family.
Correct Answer: d [any adult member of the family.]
25. Contribution to approved research (not scientific) institution in case of a business man is:
