Tax Planning and Management MCQ Questions and Answers for Practice

1. ..............is a casual income

1. Interest received
2. Dividend income
3. Person received
4. Winning from lotteries

2. ..............is the implementation of the plan of tax

1. Tax evasion
2. Tax avoidance
3. Tax management
4. None of these

3. .............is exempted from income tax.

1. Interest from Indian company
2. Dividend from foreign company
3. Cooperative dividend
4. Dividend from Indian company

4. ..........refers to hedging of tax?

1. Tax planning
2. Tax evasion
3. Tax management
4. Tax avoidance

5. .........deals with PAN

1. Section 140
2. Section 140 (A)
3. Section 140 (B)
4. Section 140 (C)

6. 80 ID deals with tax holiday for

1. Hospitals
2. Hotels
3. Natural gas
4. Eligible business

7. A company carry forward the eligible tax credit under MAT for a maximum of

1. Five assessment years
2. Eight assessment years
3. Ten assessment years
4. Twelve assessment years

8. A company in which the public are not substantially interested is closed

1. Open company
2. Closely held company
3. Limited company
4. None of these

9. A company in which the public is not substantially interested is known as

1. Domestic company
2. Foreign company
3. Widely held company
4. Closely held company

10. A company which is neither an Indian company not has made the prescribed arrangements for the declaration and payment of dividends within India is called

1. Domestic Company
2. Foreign Company
3. Public sector company
4. Provincial company

11. A person carrying not less than............of the voting power in a company is said to have substantial interest in the company.

1. 10%
2. 20%
3. 30%
4. 40%

12. A short term capital asset means a capital asset held by the assesse for not more than

1. 12 Months immediately preceding the month of its transfer
2. 24 Months immediately preceding the month of its transfer
3. 36 Months immediately preceding the month of its transfer
4. None of these

13. Alternate Minimum Tax shall not be applicable to a non-corporate assessee who has claimed any deduction under:

1. Sections 80-IA to 80RRB
2. section 80P
3. Section 10AA
4. Section 35AD

14. Amendments by the finance act are made applicable from

1. First day of next financial year
2. First day of same financial year
3. Last day of same Accounting year
4. None of the above

15. An assessee incurred expense of tax on non monetary perquisites of employees. Such expenditure shall be considered as

1. Revenue expenditure
2. Deferred revenue
3. Capital expenditure
4. Expressly disallowed