MCQ Portal

1. What is the correct rounding off for total income and tax according to Indian tax regulations?

To the nearest hundred for total income and ten for tax To the nearest ten for both total income and tax To the nearest ten for total income and one for tax To the nearest one for both total income and tax

2. Under which condition is an Indian company considered a resident in India?

It is always a resident regardless of management location. It is a resident if its management is entirely in India. It is a resident if its management is partially in India. It is a resident only if management is outside India.

3. When is income from an asset transferred to a spouse taxable in the hands of the transferor?

If the transfer was made under an agreement to live separately. If the asset was transferred for adequate consideration. If the asset was transferred prior to marriage. If the asset was transferred for inadequate consideration.

4. Which type of expenditure on scientific research is not eligible for deduction?

Capital expenditure on scientific research related to business. Revenue expenses incurred in the previous year. Revenue expenses for salaries of research employees incurred in the last three years. Expenditure on land acquisition for scientific research.

5. What is the taxable value of perquisites from sweat equity shares allotted by an employer?

Fair market value minus a standard deduction of ₹50,000. Fair market value on the date the option is vested, minus the amount paid. Fair market value on the date the option is exercised, minus the amount paid. Not taxable in the hands of the employee.

6. Which of the following is not classified as income from other sources?

Family pension. Director's sitting fee for board meetings. Rent received for house property with separable plant and machinery rent. Rent received for house property with inseparable plant and machinery rent.

7. Which article of the Indian Constitution empowers the government to legislate on goods and services tax?

Article 246A Article 269A Article 270 Article 279A

8. Which of the following supplies is classified as naturally bundled under GST regulations?

A school bag, water bottle, and lunch box pack A rental agreement for two different floors of a building for both residential and commercial purposes A package of canned food items like pizza, ice-cream, pastry, and cake A laptop sold with a laptop bag

9. Under GST law, which liabilities must be prioritized for payment by a taxable person?

All outstanding dues from previous tax periods All outstanding dues from the current tax period Any demands raised under Sections 73 and 74 No specific order is mandated

10. What is the due date for filing the Final Return under GST law?

20th of the following month 18th of the month succeeding the quarter Within three months of cancellation or order of cancellation 31st December of the next financial year

11. Which of the following values is excluded when determining the transaction value for e-way bills under GST?

Packing charges Delivery charges Value of exempt supply if both taxable and exempt goods are on the invoice Central tax, State tax, Union territory tax, Integrated tax, and cess

12. Under the Customs Act, 1962, how are goods, derelict, jetsam, flotsam, and wreck brought into India treated?

Treated as exported Treated as imported No duty applicable Exempt from tax

13. Under the Income Tax Act, what is the maximum amount of interest on a loan for repairs of a building that can be deducted under section 24?

₹30,000 ₹50,000 ₹1,50,000 ₹2,00,000

14. In the context of GST, what is the time limit for a registered person to issue a tax invoice for taxable supply of services?

Within 30 days from the date of supply Within 45 days from the date of supply Within 60 days from the date of supply Within 90 days from the date of supply

15. Which of the following is a condition for a supply to be classified as a composite supply under GST?

The supply must include at least two taxable supplies The supplies must be made in the course of a single transaction The supplies must be provided by the same supplier The supplies must be bundled together in a single invoice

June 23 Tax Paper