Income Tax And Corporate Tax - Practice Test

[#266] Factoring and forfeiting have not taken off in the Indian economy due to lack of expertise and experience. One is not included in the factoring services rendered:

(A) Purchase of book debts and receivables

(B) Prepayment of debts partially or fully

(C) Giving advice

(D) Covering the credit risk of the suppliers

Correct Answer

(C) Giving advice

[#267] Which of the following is not a method for determining Arms-Length price?

(A) Comparable controlled price method

(B) Resale price method

(C) Profit split method

(D) Transactional net margin method

Correct Answer

(A) Comparable controlled price method

[#268] Alpha Ltd's total income of A.Y. 2019-20 has increased by Rs. 34 lakh due to application of arm's length price by the assessing officer on transactions of purchase of goods from its foreign holding company in respect of a retail trade business carried on by it, and the same has been accepted by S Ltd, then

(A) business loss of A.Y. 2015-16 cannot be set-off against the enhanced income

(B) deductions under Chapter VI-A cannot be claimed in respect of the enhanced income

(C) unabsorbed depreciation of A.Y. 2010-11 cannot be set-off against the enhanced income

(D) Business loss referred to in A, deductions referred to in B and unabsorbed depreciation referred to in C cannot be set-off against the enhanced income

Correct Answer

(B) deductions under Chapter VI-A cannot be claimed in respect of the enhanced income

[#269] Surcharge of 10% is payable by an individual, where his/her total income exceeds to

(A) Rs. 7,50,000

(B) Rs. 10,00,000

(C) Rs. 50,00,000

(D) Rs. 1,00,00,000

Correct Answer

(C) Rs. 50,00,000

[#270] Which of the following statement is not correct?

(A) X is an individual assessee. He pays a monthly rent of portion of Rs. 10,000 pm. He cannot deduct tax at source

(B) On salaries, tax is deducted at source according to provisions of Section 192

(C) No tax is deducted at source in respect of interest on securities issued by a domestic company

(D) Bank will deduct tax at source @ 10% if bank fixed deposit's interest credit is more than Rs. 10,000 in a year

Correct Answer

(C) No tax is deducted at source in respect of interest on securities issued by a domestic company

Income Tax And Corporate Tax - Study Mode

[#266] Factoring and forfeiting have not taken off in the Indian economy due to lack of expertise and experience. One is not included in the factoring services rendered:

Correct Answer

[#267] Which of the following is not a method for determining Arms-Length price?

Correct Answer

Correct Answer

[#269] Surcharge of 10% is payable by an individual, where his/her total income exceeds to

Correct Answer

[#270] Which of the following statement is not correct?

Correct Answer