Income Tax And Corporate Tax - Practice Test

[#631] Agriculture income is exempted from income tax under the following section of Income Tax Act, 1961

(A) 2 (1A)

(B) 10 (1)

(C) 10 (2)

(D) 10 (4)

Correct Answer

(B) 10 (1)

[#632] Assertion (A): If the interest is payable outside India, tax must be deducted at source. Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income. Select the correct answer:

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)

(C) (A) is correct, but (R) is wrong

(D) (A) is wrong, but (R) is correct

Correct Answer

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

[#633] Which of the following components are true about tax planning? 1. Tax planning is the process of analyzing a financial plan or a situation from a tax perspective. 2. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency. 3. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success. 4. Tax planning comprises various considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures. 5. The chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome.

(A) 1, 2 and 3

(B) 2, 3 and 4

(C) 3, 4 and 5

(D) All of the above

Correct Answer

(D) All of the above

[#634] In own or leasean asset, which of the following point/s is/are important?

(A) The assessee should follow such a method for obtaining an asset which reduces his tax liability and profits after tax are greater

(B) Own funds should not be used in purchase of an asset because interest on owned fund is not deductible in computing total income, whereas interest on borrowed funds is deductible

(C) We can invest the own fund outside the business and the interest earned will offset the interest payment of outside loan

(D) All of the above

Correct Answer

(D) All of the above

[#635] Under Sec. 194 1B of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited u/s 44 AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds:

(A) 50,000 per month

(B) 15,000 per month

(C) 25,000 per month

(D) 40,000 per month

Correct Answer

(A) 50,000 per month

Income Tax And Corporate Tax - Study Mode

[#631] Agriculture income is exempted from income tax under the following section of Income Tax Act, 1961

Correct Answer

[#632] Assertion (A): If the interest is payable outside India, tax must be deducted at source. Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income. Select the correct answer:

Correct Answer

Correct Answer

[#634] In own or leasean asset, which of the following point/s is/are important?

Correct Answer

[#635] Under Sec. 194 1B of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited u/s 44 AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds:

Correct Answer