Basic Concepts – CS Executive Tax Laws MCQs


Chapter 1 Basic Concepts

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The Apex Court in the case of CIT-Gujarat v. Saurashtra Cements Ltd. (2010) 233 CTR 209 has held that liquidated damages received from the supplier on account of delay in the supply of plant and machinery shall be treated in the nature of :

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The Central Board of Direct Taxes (CBDT) provides essential inputs for policy and planning of direct taxes

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The Central Board of Direct Taxes (CBDT) is headed by Chairman and also comprises six members. The Chairman and all the Members of the CBDT are being selected:

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The total income of Mrs. Rose for the financial year 2020-2021 is ₹ 4,40,000. Her tax liability for AY 2020-2021 on the income of ₹ 4,40,000 shall be:

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As per Income-tax Act, 1961 surcharge @ 12% is payable by a domestic company if the total income exceeds:

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Surcharge on the amount of tax is to be levied at a specified percentage when an individual is having income exceeding specified limits:

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A resident individual can avail the benefit of rebate of ₹ 12,500 or 100% of Income Tax whichever is less under section 87A of Income-tax Act, 1961 for the assessment year 2021-2022 on fulfilling the condition that total income does not exceed:

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Income-tax on the income from the transfer of Carbon Credit under section 115BG of Income-tax, Act, 1961 derived /earned during the previous year 2020-2021 shall be taxable:

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Main Qualities in Students for Qualifying Chartered Accountancy (CA)

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The basic exemption limit in case of a non-resident individual being a senior citizen for assessment year 2020-2021 is:

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HSP, an LLP had taken Key Men 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:

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In the case of a cooperative society, the surcharge is levied, where its total income exceeds Crore.

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Income chargeable to tax under the Income-tax Act, 1961 in the Assessment Year has been defined in Section 2(24) to include:

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A Domestic Manufacturing Company claiming exemptions under Section 115BAA earned total income (computed) for the Assessment Year 2021-2022 ₹ 30 Crore.

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The tax rate applicable for a non-resident engaged in the shipping business in India shall be:

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Mr. Ganapathy a resident individual received ₹12 lakh during the financial year 2020-2021 by way of dividends from domestic companies. The applicable rate of tax on such dividend income would be:

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A domestic company has a total income of ₹ 120 lakh. The rate of surcharge is applicable on income-tax would be:

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A municipal committee legally entitled to manage and control a municipal fund is chargeable to income-tax in the status of:

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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:

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

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Normal rates of income tax are prescribed in the:

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

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

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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:

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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:

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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:

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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:

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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:

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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:

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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:

On first 5,00,000 Nil
On next 20,000 @ 20% 4,000
(+) Education cess @ 4% 4,000
Net tax 4,160

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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:

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‘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:

As per Section, 87A rebate is ₹ 12,500 or tax payable if total income does not exceed ₹ 5,00,000. As the income of Atul is ₹ 4,90,000, he can claim a rebate at ₹ 12,000:

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

Income tax slab rates from AY 2020-2021 for domestic manufacturing company which is a New Company u/s 115BAB is 15%.

Tax on total income (10,86,920 × 15%) 1,63,038
(+) Education cess @ 4% 6,522
Net tax payable 1,69,560

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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:

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

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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:

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

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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:

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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

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

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

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