Paper/Subject Code: 46018/Finance: Direct Taxes
TYBMS SEM :5
Finance
Direct Tax
(Most IMP Objective Question with Solution)
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Note:
1. All Questions are compulsory
2. Figure to the right indicate full marks
3. Use of simple calculator is allowed.
November 2018
Q.1 (A) Choose correct alternative and rewrite the statement: (Any 8) (8)
1) The Income Tax Act extends to ________ of India.
a) States
b) Union territories
c) Citizens
d) Whole
2) The Financial year in which the income is earned is called as the _______.
a) Assessment year
b) Present year
c) Previous year
d ) Current year
3) Income deemed to accrue or arise in India is taxable in case of ________.
a) Resident only
b) Both ordinary resident and NOR
c) Non-Resident
d) All the assesses
4) Gratuity received by the Government employee is _______.
a) Fully taxable
b) Fully exempt
c) Partly taxable
d) Partly exempt
5) Medical reimbursement by employer is not taxable upto Rs. ________.
a) 5,000
b) 10,000
c) 15,000
d) 20,000
6) Municipal tax is deducted from _________.
a) Net Annual Value
b) Gross Annual Value
c) Municipal Valuation
d) Fair rent
7) Bonus paid to employee is allowed as deduction on _______
a) Accrual basis
b) Payment basis
c) Declaration
d) None of the above
8) Capital gain arises from the transfer of _________.
a) An asset
b) Any fixed asset
c) A capital asset
d) House property only
9) Gift received by an Individual/ HUF from relatives shall be ________
a) Exempt upto Rs 25,000
b) Exempt upto Rs 50,000
c) Fully Exempt
d) Fully Taxable
10) Deduction u/s 80C is allowed to the maximum limit of _________.
a) Rs. 50,000
b) Rs. 75,000
c) Rs. 1,00,000
d) Rs. 1,50,000
Q.1 (B) State whether given statements are True or False: (Any 7) (7)
1. Income tax in India is governed by the Income Tax Act, 1961.
Ans: True
2. Thane Municipal Corporation is a local authority.
Ans: True
3. There are 5 heads of Income under Income Tax Act, 1961.
Ans: False
4. Employer-Employee relationship is necessary for taxing the remuneration under the head Income from Salary.
Ans: True
5. Reasonable letting down value is higher of fair rent or municipal valuation.
Ans: False
6. Past untaxed profits brought into India is always taxable.
Ans: False
7. Entertainment Allowance deduction is only allowed to Non-government employees.
Ans: False
8. Dividend declared by Indian company is fully taxable in the hands of shareholders.
Ans: True
9. The quantum of deduction allowed under section 80D shall be limited to Rs. 1,00,000.
Ans: False
10. In case of short term capital asset indexation is applicable.
Ans: False
November 2019
Q.1 (A) Choose correct alternative and rewrite the statement: (Any 8) (8)
1. Every assessee is a person and _______.
(a) Every person is also an assessee
(b) Every person need not be an assessee
(c) An individual is always an assessee
2. The Legal status of Ms. Hima Das, Indian sprint runner is _______.
(a) an individual
(b) a body of individuals
(c) a sportman
3. Total income of a person is determined on the basis of ________
(a) Citizenship
(b) Residential Status
(c) Both Citizenship and Residential Status
4. Uncommuted Pension received by a Government employee _________.
(a) Exempt
(b) Taxable
(c) Partly Exempts
5. Mr. Kaustubh, a Chartered Accountant lets out his ownership office to another Chartered Accountant, rent received by him is
(a) Income from Business
(b) Income from House Property
(c) Income from Other Sources.
6 Donation to Chief Minister's Relief Fund is ________.
(a) Allowed as business expenditure
(b) Not allowed as business expenditure
(c) Partly allowed as business expenditure
7. Cost inflation index is applicable when there is _________.
(a) Long term capital gain
(b) Business income
(c) Short term capital gain
8. Dividend received is exempt if it is received from __________.
(a) An Indian Company
(b) A Co-operative Bank
(c) Any Company
9. Gift received from brother Rs 1,00,000 is ________
(a) fully taxable
(b) fully exempt
(c) Exempt up to Rs 50,000
10. Mr. Anil is a person with a physically disability of 50%. He is entitled to a deduction
(a) Rs 75,000
(b) Rs 1,25,000
(c) Nil
Q.1 (B) State whether given statements are True or False: (Any 7) (7)
1. An association of persons consists of any person.
Ans: False
2. Family pension received by a widow of a deceased employee is income from other sources.
Ans: True
3. Gratuity received by Government employee on retirement is fully taxable.
Ans: False
4. Capital gain arises on transfer of any asset.
Ans: True
5. Advance salary received by an employee from the employer is not a part of Gross Salary.
Ans: False
6. Past untaxed profits brought into India is always taxable.
Ans: False
7. Provision for Doubtful Debts can be deducted from profits of business.
Ans: False
8. Mediclaim premium paid by cash Rs 15,000 is allowed as deduction u/s 80D.
Ans: False
9. Municipal tax paid by owner is allowed as deduction from deemed to be let out property.
Ans: True
November 2022
Q.1 (A) Choose correct alternative and rewrite the statement: (Any 8) (8)
Q2 State whether the following statement are TRUE or FALSE (ANY 7) (7)
November 2023
Q.1 (A) Match the Columns: (Any 8) (8)
Column A | Column B |
1. Kalyan-Dombivli Municipal Corporation | a. Does not satisfy basic condition |
2. Assessee | b. Always taxable |
3. Thane sports club | c. Finance Act |
4. Non-Resident | d. Association of Persons |
5. Uncommuted Pension | e. Local Authority |
6. Standard Deduction | f. Person liable to pay tax |
7. Pre-construction interest on house | g. Depreciation at 50% of normal rate |
8. Assets used by the assessee for less than h 180 days | h. Rs. 1,25,000 |
9. Rate of Tax | i. Allowed in five equal instalments |
10. Severely handicapped resident individual | j. Rs. 50,000 |
Ans:
Column A | Column B |
1. Kalyan-Dombivli Municipal Corporation | e. Local Authority |
2. Assessee | f. Person liable to pay tax |
3. Thane sports club | d. Association of Persons |
4. Non-Resident | a. Does not satisfy basic condition |
5. Uncommuted Pension | b. Always taxable |
6. Standard Deduction | j. Rs. 50,000 |
7. Pre-construction interest on house | i. Allowed in five equal instalments |
8. Assets used by the assessee for less than 180 days | g. Depreciation at 50% of normal rate |
9. Rate of Tax | c. Finance Act |
10. Severely handicapped resident individual | h. Rs. 1,25,000 |
Q.1 (B) State whether given statements are True or False: (Any 7) (7)
1. The constitution of India empowers Central Government to levy tax on Income.
Ans: True
2. Adani Enterprises Ltd. is a person as per Income tax Act, 1961.
Ans: True
3. Income deemed to accrue or arise in India is taxable in case of all assessee.
Ans: False
4. Gratuity paid to government employees is always fully exempt from tax.
Ans: True
5. Entertainment allowance deduction is only allowed to Non-government employees.
Ans: False
6. Reasonable letting down value is higher of fair rent and municipal valuation.
Ans: False
7. Export incentives received by an assessee are exempt for tax.
Ans: False
8. Income from subletting shall be chargeable to tax under the head income form house property.
Ans: False
9. Total deduction u/s 80C and 80CCC cannot exceed Rs. 1,50,000.
Ans: True
10. Family pension received by a widow of a deceased employee is income from other sources.
Ans: True
November 2024
Q1(A): Choose the correct alternative and rewrite the sentence: (any 8) (08)
1. Mr. Nikhil received a gift of Rs. 52,000 from his friend. The amount of gift is ________.
Rs. 2000
b. Rs. 1,10,000
c. Rs. 52,000
d. Nil
2. Salary received by manager of agricultural farm is ________
a. Fully exempt
b. Fully taxable
c. Partly exempt
d. Partly taxable
3. A new business was set up on 1-10-2023 previous year will end on ________.
a. 31-3-2024
b. 30-9-2024
c. 31-12-2023
d. 31-10-2023
4. Entertainment allowance in case of of Government employee is _______
a. Fully exempt
b. Fully taxable
c. 50% taxable
d. 80% taxable
5. Capital gain arises from the transfer of ________.
a. Any asset
b. Any fixed asset
c. Any capital asset
d. Any investment
6. Share of income received by a member of HUF is _______.
a. Fully exempt
b. Fully taxable
c. 50% taxable
d. 80% taxable
7. Nagpur university is assessable under the Income tax Act as _______.
a. A local authority
b. A company
c. An artificial Juridical person
d. A Cooperative society
8. Mr. Dinesh earns saving bank interest of Rs. 12,000 during the previous year 2023-24. He is entitled to a deduction under section 80TTA of ________.
a. Rs. 12,000
b. Rs. 10,000
c. Rs. 5,000
d. NIL
9. Income earned in India by a Non-Resident is _______.
a. Tax free in India
b. Taxable in India
c. Not an income
d. None of the above
10. Mr. Anil is a person with a physical disability of 70%. He is entitled to a deduction under section 80U of _______.
a. Rs. 75,000
b. Rs. 50,000
c. Rs. 1,25,000
d. NIL
b) State whether the following statements are True or False: (any 07) (07)
1. Deduction for family pension is 33.1/3% or Rs. 5,000 whichever is lower.
Ans: True
2. Municipal taxes paid by the tenant is allowed as deduction from let out property.
Ans: False
3. In case of short term capital asset indexation is applicable.
Ans: False
4. There will be long term capital gain, if shares listed on recognized stock exchange are transferred after being held for more than 12 months.
Ans: True
5. Deduction for entertainment allowance is available to all employees.
Ans: False
6. Income from sub letting of house property is taxable under the head of Income from other sources
Ans: True
7. Commuted pension is taxable in the hands of all individual assesses
Ans: False
8. Income means any receipt in cash.
Ans: False
9. Residential status depends only on nationality
Ans: False
10. Assessment includes reassessments
Ans: True
April 2025
QI (A): Choose the correct alternative and rewrite the sentence: 08
1. Mr. Sumit received a gift of Rs. 60000 from his friend. amount of gift is ________
a. Rs. 200000
b. Rs. 100000
c. Rs. 60000
d. Nil
2. Advance Salary received by manager of Hindu Undivided family is _________
a. Fully Exempt
b. Fully Taxable
c. Partly Exempt
d. Partly Taxable
3. Winning from lottery under the head of Income from Business is _________
a. Disallowable Expense
b. Allowable Expense
c. Disallowable Income
d. Allowable Income
4. Entertainment allowance in case of Non-Government employee is ________
a. Fully Exempt
b. Partly Taxable
c. Deductible up to certain limits mentioned in Sec 16
d. Not allowed for deduction
5. Capital gain arises from the transfer of _________.
a) Any Assets
b) Any Fixed Asset
c) Any Capital Asset
d. Any Investment
6. Maximum Qualifying deduction allowed u/s 80 C and u/s 80 CCC will be ________
a. 100000
b. 150000
c. 200000
d. 300000
7. Mumbai University is assessable under the Income Tax Act as ________.
a. A Local Authority
b. A Company
c. An Artificial Juridical Person
d. A Cooperative Society
8. Mrs. Dineshwary earns saving bank interest of Rs. 15000 during the previous year 2023-24. She is entitled to a deduction under section 80 TTA of _________.
a. Rs. 12000
b. Rs. 10000
c. Rs. 15000
d. NIL
9. Mr. Ram earned and received income in India Taxable in _________.
a. Resident and Ordinary Resident
b. Resident but not an Ordinary Resident
c. Non Resident
d. None of the above
10. Mr. Anirudha is a person with a physical disability under section 80 U of 10%. He is entitled to a deduction ____________.
a. Rs. 75000
b. Rs. 50000
c. Rs. 125000
d. NIL
b) State whether the following statements are True or False: (any 07)
1. Assessment includes reassessments.
An: True
2. In case of Long term capital asset indexation is applicable.
An: True
3. Uncommuted pension is taxable in the hands of all individual assesses
An: True
4. All person will not be an assessee but all assessee will be a person.
An: True
5. An Individual will be a Non-Resident if he or she fulfils the first condition given u/s 6(1) i.e.182 days or more during the previous year.
An: False
6. Deduction for family pension is 33 1/3% or Rs. 15,000 whichever is lower
An: True
7. Municipal taxes paid by the owner is allowed as deduction from let out property.
An: True
8. It will be treated as a short term capital gain, if shares listed on recognized stock exchange are transferred after being held for more than 12 months.
An: False
9. Only government employees will be allowed to take deduction benefits of entertainment allowance.
An: True
10. Assessee will be eligible to take benefits of medical insurance premium payment u/s 80DD.
An: False
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