CBES Board Class 11 MCQ Quiz Hub

CS Executive Tax Laws MCQs Set-1

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1. As per Section 2(31) of the Income-tax Act, 1961, the following is not included in the definition of ‘person’:




2. Tax exemption limit for a resident senior citizen having age below 80 years is (between 60 to 80 yrs.):




3. AB & Co. received 7 2,00,000 as compensation from CD & Co. for premature termination of the contract of the agency. The amount so received is




4. For a domestic company whose turnover never been above ₹ 400 Crore, the minimum amount of total income liable for a surcharge and the rate of surcharge applicable therein are:




5. According to Section 2(24) definition of ‘income’ is:




6. If Karta is resident and ordinarily resident in India but control and management of HUF are situated partly outside India in the previous year, the HUF is:




7. Abhay earns the following income during the previous year ended 31st March 2021: Interest on UK Development Bonds: ₹ 2,00,000 (1 /4th being received in India) Profits on sale of a building in India: ₹ 2,00,000 (Received in Holland) Income liable to tax for the AY 2021-22 if Abhay is resident and not ordinarily resident in India, is:




8. Following additional conditions are to be satisfied by a person to be resident and ordinarily resident in India:




9. Paresh, a software engineer at ABC Ltd. left India on 10th August 2020 for the treatment of his wife. For income- tax purpose, his residential status for the AY 2021-22 will be:




10. The residential status of an Indian company is resident for the year




11. HUF of Ashwin consisting of himself, his wife and 2 sons are assessed to income-tax. The residential status of HUF would be non-resident, when:




12. Income of non-resident, when attributed from operations in India relating to the following, is taxable in India: (1) Profits of business (2) Fee for technical services (3) Royalty (4) Income from house property in India Select the correct answer from the options given below:




13. Arun, a non-resident of India celebrated his 80th birthday on 10th October 2020. If his total income for the previous year is ₹ 6,00,000 his income-tax liability for the previous year 2020-21 is:




14. Alpha Ltd. is an Indian company. It carries its business in Delhi and London. Total control and management of the company is situated in London. More than 85% of its business income is from the business in England. If so, its residential status will be:




15. A company incorporated outside India having its place of effective management situated in India in the previous year will be treated as:




16. Satish brought into India, in the previous year, past untaxed income which was earned in the UK The income will be taxable if Satish is:




17. Mr Rajiv, born and brought up in India left for employment in Belgium on 15.10.2020 He has never gone out of India, previously. What is his residential status for the Assessment Year 2021-22?




18. Mr Ramji (age 55) is Karta of HUF doing the textile business at Nagpur. Mr Ramji is residing in Dubai for the past 10 years and visited India for 20 days every year for filing the income tax return of HUF. His two major sons take care of the day to day affairs of the business in India. The residential status of HUF for the Assessment Year 2021-22 is:




19. When a capital asset located in India is sold by a non-resident to another non-resident at a place outside India, the capital gain is taxable:




20. Thomas Inc. of Australia borrowed money from various companies in Australia for doing business in India by the name ANS Co. Ltd., Mumbai. Thomas Inc. paid interest of ₹ 500 lakhs (converted) to various lenders. The amount of interest paid:




21. Mr Alok Chatterjee born and brought up in India since 1972, left for Singapore on 10.10.2019 for the purpose of employment. His residential status would be:




22. In the case of an individual who is not ordinarily resident the following income is chargeable to tax:




23. Mr Ajay (age 40) resident of India earned an agricultural income of ₹ 1 lakh from land situated in Sri Lanka. His total income in India amounts to ₹ 7 lakhs. The tax liability would be:




24. John is a foreign citizen born in the USA. His father was born in Delhi in 1961 and his grandfather was born in Lahore in 1936 but his mother was born in the UK in 1964. John came to India for the first time on 1st June 2019 and stayed in India for 183 days and then left for the USA. His residential status for the AY 2020-2021 shall be:




25. The following income of Ms Nargis who is a non-resident shall be included in her total income: (i) Salary for 2 months received in Delhi ₹ 40,000. (ii) Interest in Savings Bank Account in Mumbai ₹ 2,100. (iii) Agricultural income in Bangladesh and Invested in shares in Bangladesh. (iv) Amount brought into India out of past non-taxed profits earned in the USA. Select the correct answer from the options given below:




26. The income earned during the previous year is subject to tax under the Act on the basis of the residential status of an assessee. However, the residential status of an assessee every year.




27. Which out of the following criteria determines the Place of Effective Management (POEM) in order to treat a foreign company as a resident in India (resident company) during the previous year as per guidelines issued by CBDT and the provisions contained under the Income-tax Act, 1961




28. In the case of an individual who is not an ordinarily resident in India, the income chargeable to tax in India out of the following shall be:




29. Agriculture income from agricultural land located in a foreign country is taxable in the case of:




30. In the case of a non-resident, which of the following income is not taxable in his hand:




31. A person is deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in




32. Central Board of Direct Taxes (CBDT) vide Circular No. 8 of 2017, dated 23rd February 2017 has clarified that the Place of Effective Management (POEM) provisions shall not apply to a company having turnover or gross receipts in a financial year of




33. Rajendra a non-resident Indian in the previous year 2020-21 was in receipt of rent of house property located in Dubai of ₹ 27,50,000. The amount of rent was transferred and credited in the bank account of Rajendra maintained with SBI, Vadodara by the tenant quarterly. The Annual Letting Value (ALV) of the house located in Dubai subject to tax under the head Income from house property in A.Y. 2021 -22 shall be




34. An assessee, being an individual resident in India, is entitled to a deduction, from the amount of income tax on his total income which is chargeable for an assessment year, of an amount equal to 100% of such income tax or a lesser amount. The maximum amount of total income qualifying for such deduction and the maximum amount of deduction so available is:




35. The year in which the income is earned is known as:




36. For the AY2021 -2022, taxable income of A Ltd., a Domestic Manufacturing Company claiming benefit of Section 115BAB is ₹ 10,86,920. Its tax liability would be:




37. The total income of Atul, a resident individual, is ₹ 4,90,000. The rebate allowable u/s 87A would be:




38. ‘Income’ u/s 2(24) includes: (i) The profits and gains of a banking business carried on by a cooperative society with its members. (ii) Any advance money forfeited in the course of negotiations for the transfer of capital asset. Choose the correct option with reference to the above statements:




39. alit, a resident individual of 81 years works as a consultant. If his taxable income is ? 5,20,000, the tax payable by him would be:




40. A new business was set up on 1st July 2020 and trading activity was commenced from 1st September 2020, the previous year would be the period commencing from:




41. X Marine Lines Inc., a Singapore company engaged in shipping business collected ₹ 150 lakhs towards carrying goods from Chennai Port. Its presumptive income chargeable to tax in India would be:




42. HSK, an LLP had taken keyman insurance policy on the life of its managing partner. The policy got matured on 13th September 2020 and an amount of ₹ 75 lakh was paid by the insurers to the managing partner. The amount so received on maturity of the policy by the managing partner is:




43. Raghu traced a missing girl by spending ₹ 20,000. For this, he was awarded a sum of ₹ 1,20,000; In this case, the award is taxable to the extent of:




44. Raman & Co., a partnership firm, received ₹ 5,00,000 from an insurance company under the keyman insurance policy consequent to the demise of partner Pramod. The amount of premium ₹ 2,30,000 paid earlier was claimed as a deduction under Section 37 by the firm. The amount received from the insurance company is:




45. Metro Ltd., a domestic company, is assessed with a total income of ₹ 11.25 Crore. The surcharge payable by the company shall be at the rate of:




46. Dr. Ashok commenced medical practice on 1st September 2020. The previous year for the profession for the assessment year 2021-2022 would be




47. Under the Income-tax Act, 1961 the term ‘assessee’ means a person:




48. Normal rates of income tax are prescribed in the:




49. Arul Industries got a waiver of Goods & Services Tax (GST) of ₹ 2,20,000 for the current financial year. The amount of waiver is




50. Maruti & Co. is an AOP consisting of 4 members with equal share. None of the members has income exceeding the taxable limit. The total income of the AOP is ₹ 5 lakh. The income-tax liability of the AOP would be: