Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Direct Tax Laws and International Taxation Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. Which of the following is a characteristic of the Income Tax Act, 1961? It is applicable only to individuals. It is applicable to all residents and non-residents of India. It deals exclusively with international taxation. It applies to all types of taxation in India. None 2. Under Section 2(1A) of the Income Tax Act, "Assessee" refers to: A person who is liable to pay taxes A person who is entitled to receive income A person who files an income tax return All of the above None 3. Which of the following income is not included in the income of a taxpayer under "Income from Other Sources"? None 4. The maximum period of limitation for assessment under Section 153 of the Income Tax Act is: 2 years 3 years 6 years 10 years None 5. In the context of International Taxation, what is the main objective of Double Taxation Avoidance Agreement (DTAA)? To increase taxes To avoid double taxation on the same income To simplify tax filing To promote tax evasion None 6. In which of the following cases can an assessee claim a tax credit for foreign taxes paid? Under Section 90 Under Section 91 Both (a) and (b) d None of the above None 7. Transfer Pricing refers to: Taxation on the transfer of property Tax rates on imports and exports The pricing of goods, services, or intangible assets between related entities None of the above None 8. The maximum allowable deduction for interest on housing loans under Section 24(b) of the Income Tax Act is: ₹1,50,000 ₹2,00,000 ₹3,00,000 ₹4,00,000 None 9. The tax rate for a Domestic Company in India, as per the Finance Act,is 15% 22% 30% 40% None 10. Which of the following is a source of income under "Capital Gains" in the Income Tax Act, 1961? Income from agriculture Income from property rental Profit from the sale of land or property Dividend income None 11. Under which section of the Income Tax Act is the concept of "Income in the hands of the Assessee" defined? Section 2(24) Section 5 Section 10 Section 6 None 12. "Permanent Establishment" (PE) is a concept primarily used in: Goods and Services Tax (GST) Direct Tax Laws International Taxation Indirect Tax Laws None 13. Under Section 44AB of the Income Tax Act, which of the following taxpayers are required to get their accounts audited? Companies only Individuals with gross receipts above a certain limit Both a and b None of the above None 14. Which of the following expenses are deductible under Section 37(1) of the Income Tax Act? Capital expenditure Personal expenses Business expenses Both a and b None 15. Under Section 10(34) of the Income Tax Act, what is the tax exemption limit for dividend income received from domestic companies? ₹10,000 ₹20,000 ₹50,000 Nil None 16. What is the rate of Tax Deducted at Source (TDS) on interest income under Section 194A? 5% 10% 15% 30% None 17. Which of the following is an example of a "Special Economic Zone" (SEZ) under the Income Tax Act? Export Processing Zone Free Trade Zone Software Technology Parks All of the above None 18. The Income Tax Act exempts which of the following from tax? Income from agricultural land Income from the sale of securities Salary income from a government job All of the above None 19. "Advance Rulings" under the Income Tax Act are sought to: Determine the correctness of a tax return Seek clarification on complex tax matters Avoid double taxation File tax returns None 20. Which of the following taxes are dealt with under the Goods and Services Tax (GST) Act, not the Income Tax Act? GST on exports GST on income from business Tax on capital gains Tax on income from agriculture None 21. Under Section 90 of the Income Tax Act, which country's tax treaty benefits can be availed by an Indian resident? Any country with which India has a DTAA Only European Union countries Only Asian countries None of the above None 22. Which of the following taxes is levied on non-resident foreign companies operating in India? Capital gains tax Dividend distribution tax Income tax All of the above None 23. Under Section 10(13A), what deduction is available for rent paid by employees? ₹24,000 per year ₹2,000 per month 50% of basic salary Rent paid minus 10% of salary None 24. In case of non-resident individuals, income from which of the following is taxable in India? Interest on savings account in a foreign bank Income from salary for services rendered outside India c) Income from business outside India All of the above None 25. The tax treatment of "royalties" and "fees for technical services" under a Double Taxation Avoidance Agreement (DTAA) depends on: The specific agreement between India and the foreign country The tax rates of the foreign country Whether the income is capital or revenue None of the above None 26. Which of the following is included in the definition of "international transaction" under transfer pricing regulations? Purchase of goods between related parties Sale of goods between unrelated parties Services rendered to non-residents None of the above None 27. Which of the following tax rates are applicable to a resident individual above 60 years of age but below 80 years? 10% 20% 30% Nil for income up to ₹3,00,000 None 28. The main objective of Section 56(2)(vi) of the Income Tax Act is to: Taxing lottery income b) Taxing gifts received from non-relatives c) Taxing income from agricultural land d) None of the above None 29. A foreign company that sets up a Permanent Establishment (PE) in India will be liable to pay tax in India on: Income earned in India Worldwide income Only business income None of the above None 30. Under which section of the Income Tax Act, can a taxpayer claim deductions for donations made to charitable organizations? Section 80C Section 80G Section 80D Section 80E None 31. The income tax rate for a non-resident individual on income earned in India is: 10% 20% 30% 40% None 32. Under which section of the Income Tax Act is "Taxation of Income of a Hindu Undivided Family" (HUF) specified? Section 2(31) Section 10 Section 60 Section 64 None 33. Under Section 9 of the Income Tax Act, which of the following is considered an income deemed to accrue or arise in India? Income from agricultural activities outside India Income from business in foreign countries Interest income on loans provided to residents of India All of the above None 34. What is the maximum amount of exemption available under Section 10(10D) on life insurance policy proceeds? ₹1,00,000 ₹2,50,000 ₹5,00,000 Exempt if conditions are satisfied None 35. Which of the following is not an example of "Capital Assets" under the Income Tax Act? Land Buildings Stock-in-trade Patents None 36. Under the Income Tax Act, the term "Transfer" includes: Sale of property Exchange of property Gift of property All of the above None 37. Taxpayers who are eligible for presumptive taxation under Section 44AD must have total turnover not exceeding: ₹20 lakhs ₹25 lakhs ₹50 lakhs ₹2 crore None 38. The withholding tax on payments to foreign companies under Section 195 for income other than salary is: 5% 10% 20% 30% None 39. Which of the following types of income is exempt from tax under Section 10(1) of the Income Tax Act? Agricultural income Dividend income Interest income Rent income None 40. Which section of the Income Tax Act deals with "Income from Business and Profession"? 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