Income Tax And Corporate Tax - Study Mode

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[#411] What can the worst-case scenario be for a firm that has subsidiaries that use cost-based transfer pricing?

(A) Failure of those businesses

(B) Prison for managers

(C) Nothing

(D) Failure of one business

Correct Answer

(D) Failure of one business

[#412] Which of the following acts has provision for 'compensation' received on voluntary retirement under Income Tax Act, 1961?

(A) Section 10(10D)

(B) Section 10(10C)

(C) Section 10(10E)

(D) Section 11(10D)

Correct Answer

(B) Section 10(10C)

[#413] X is an individual. For the assessment year 2012-13 his gross total income is Rs. 3,40,000. Tax on it is Rs. 16,480. To reduce his tax liability, he deposits Rs. 50,000 in public provident fund account. Consequently, his taxable income and tax liability will be reduced to Rs. 1,10,000 and Rs. 11,330 respectively.

(A) Tax evasion

(B) Tax planning

(C) Tax avoidance

(D) Tax management

Correct Answer

(B) Tax planning

[#414] The basis of tax for 'Income from house property' is

(A) Rent received

(B) Annual value

(C) Standard rent

(D) Municipal value

Correct Answer

(B) Annual value

[#415] Match the following. List-I (Concepts) List-II (Sections) a. Assessee 1. Section 2(31) b. Person 2. Section 2(24) c. Income 3. Section 3 d. Previous year 4. Section 2(7)

(A) a-2, b-3, c-4, d-1

(B) a-4, b-1, c-2, d-3

(C) a-3, b-4, c-1, d-2

(D) a-4, b-3, c-2, d-1

Correct Answer

(B) a-4, b-1, c-2, d-3