Income Tax And Corporate Tax - Study Mode

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[#301] Deduction allowed from annual value is:

(A) Interest on loan for constitution

(B) Interest on loan for repair

(C) Statutory deduction

(D) All of the above

Correct Answer

(D) All of the above

[#302] Which of the following statements are true in context of Minimum Alternate Tax (MAT)? (1) MAT is applied when the taxable income calculated according to the I-T Act provisions is found to be less than 15.5% (plus surcharge and cess as applicable) of the book profit under the Companies Act, 2013. (2) MAT was reduced in September 2019, from 18.5% to 15%. (3) MAT is levied on book profit, unlike normal corporation tax, which is levied on taxable profit. (4) No MAT would be imposed on new domestic manufacturing company (incorporated on or after 1 st October 2019).

(A) 1, 2 and 3

(B) 2, 3 and 4

(C) 1, 3 and 4

(D) All of the above

Correct Answer

(D) All of the above

[#303] Consider the following statements. Statement-I: Legal agreements between two countries govern how both the countries tax earnings. Statement-II: International Law may determine how and whether companies can operate in a certain locale.

(A) Both the statements are true

(B) Both the statements are false

(C) Statement-I is true but Staternent-II is false

(D) Statement-I is false but Statement-II is true

Correct Answer

(A) Both the statements are true

[#304] Which of the following incomes is NOT taxable as per Income Tax Act?

(A) Regular and definite source of Income

(B) Income received in kind

(C) Income received from mutual funds activities

(D) Income earned from illegal sources

Correct Answer

(C) Income received from mutual funds activities

[#305] In case of replacement of a part only, the expenditure for such replacement is . . . . . . . . in computing the income.

(A) deductible

(B) not deductible

(C) added back

(D) None of these

Correct Answer

(A) deductible