Income Tax And Corporate Tax - Study Mode

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[#706] Calculate the Gross Annual Value from the following details: Municipal Value - Rs. 45,000 Fair Rental Value - Rs. 50,000 Standard Rent - Rs. 48,000
Actual Rent - Rs. 42,000

(A) Rs. 50,000

(B) Rs. 48,000

(C) Rs. 45,000

(D) Rs. 42,000

Correct Answer

(B) Rs. 48,000

[#707] The coffee is grown, cured and further processed, then the tax liability for the agricultural income is:

(A) 60% agricultural and 40% non-agricultural

(B) 50% agricultural and 50% non-agricultural

(C) 40% agricultural and 60% non-agricultural

(D) 65% agricultural and 35% non-agricultural

Correct Answer

(A) 60% agricultural and 40% non-agricultural

[#708] Tax . . . . . . . . takes into account the loopholes of law.

(A) planning

(B) management

(C) evasion

(D) avoidance

Correct Answer

(B) management

[#709] The conversion of preference share into equity share

(A) does not give rise to capital gain

(B) give rise to capital gain

(C) gives rise to capital gain only, if it is LTCG

(D) None of the above

Correct Answer

(B) give rise to capital gain

[#710] In case where profits are insufficient to absorb brought forward losses, current depreciation and current business losses, the same should be deducted in the order 1. Current scientific research expenditure [Section 35(1)]. 2. Current depreciation [Section 32(1)]. 3. Brought forward business losses [Section 72(1)]. 4. Unabsorbed depreciation [Section 32(2)]. 5. Unabsorbed investment allowance [Section 32A(3)(b)]. 6. Unabsorbed development allowance [Section 33A(2)(b)]. 7. Unabsorbed family planning promotion expenditure [Section 36(1)(I)]. 8. Unabsorbed scientific research capital expenditure [Section 35(4)].

(A) 1, 3, 2, 7, 4, 6, 5, 8

(B) 1, 2, 3, 7, 4, 8, 6, 5

(C) 1, 2, 3, 4, 7, 5, 6, 8

(D) 3, 2, 7, 1, 8, 4, 5, 6

Correct Answer

(B) 1, 2, 3, 7, 4, 8, 6, 5