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 not a source of income under "Income from Salary"? Salary Commission Dividend Pension None 2. The maximum limit of deduction under Section 80C for investments in specified financial instruments is: ₹50,000 ₹1,50,000 ₹2,00,000 ₹3,00,000 None 3. Which of the following deductions can be claimed under Section 80D? Life insurance premiums Medical insurance premiums Contributions to pension funds All of the above None 4. What is the maximum deduction allowed under Section 80E for interest on education loans? ₹50,000 ₹1,00,000 ₹1,50,000 No limit (interest can be deducted in full) None 5. Which of the following is eligible for a tax deduction under Section 80G? Donations to political parties Donations to charities and religious organizations Donations to foreign NGOs None of the above None 6. Which of the following types of income is exempt from tax under Section 10(10A)? Gratuity received from a previous employer Gratuity received from a current employer Both a and b None of the above None 7. A person who is a resident but not ordinarily resident in India is liable to tax on: Income earned in India only Income earned outside India only Income earned both in India and outside India None of the above None 8. The maximum amount of tax-free income from a life insurance policy under Section 10(10D) is: ₹1,00,000 ₹2,50,000 ₹5,00,000 Subject to conditions specified under the section None 9. Under Section 80E, the deduction is available for interest on loans taken for which purpose? Higher education Housing loan Medical treatment All of the above None 10. Which of the following does not qualify for tax deduction under Section 80GGA? Donations to scientific research Donations to political parties Donations to universities or colleges Donations to rural development projects None 11. Section 44AA of the Income Tax Act deals with: Maintenance of books of accounts Deduction for donations Deduction for housing loans Taxation of capital gains None 12. Which of the following is exempt from tax under Section 10(13A)? Rent paid by employees Rent received from tenants Income from rental properties None of the above None 13. What is the due date for filing the income tax return for a company in India? 30th September 31st October 31st December 31st March None 14. The "General Anti-Avoidance Rule" (GAAR) is aimed at: Avoiding tax avoidance schemes Reducing corporate tax rates Increasing the tax base Reducing direct tax rates None 15. Section 10(15) of the Income Tax Act exempts interest on which of the following securities? Tax-free bonds issued by the government Corporate bonds Fixed deposits in banks Government securities issued in foreign countries None 16. What does "Double Taxation Avoidance Agreement" (DTAA) primarily deal with? Prevention of double taxation Tax rate increases Tax fraud prevention Reduction of tax base None 17. A non-resident Indian (NRI) is taxable in India on: Income received or accrued in India Global income Income earned outside India None of the above None 18. Which of the following income is taxable under "Income from House Property"? Rent received from commercial property Income from agricultural land Dividend from house property None of the above None 19. The tax on capital gains is applicable when: There is a sale or transfer of a capital asset There is inheritance of property There is a gift of property All of the above None 20. Which section of the Income Tax Act deals with the taxation of non-resident individuals? Section 5 Section 6 Section 9 Section 10 None 21. The tax liability of a company is based on: Its income from business or profession Its income from house property Its total income Its dividends received None 22. Under Section 43B, which of the following expenses is deductible on actual payment basis? Salaries Depreciation Bonus Taxes and duties None 23. What is the tax treatment of foreign income earned by a resident in India? Taxable in India if it is received or accrued in India Exempt from tax Taxable in the foreign country None of the above None 24. The income earned by a foreign company through its Permanent Establishment (PE) in India is taxed as: Business income Capital gains Dividend income Royalty income None 25. Section 80GG allows a deduction for: Rent paid by the individual for residential accommodation Medical expenses Donations to charity Investments in PPF None 26. What is the tax rate applicable to a partnership firm in India? 30% 25% 22% 15% None 27. Which of the following is exempt from capital gains tax under Section 54? Sale of residential property Sale of agricultural land Sale of stock-in-trade Sale of commercial property None 28. Under Section 90, the Indian government can enter into a Double Taxation Avoidance Agreement (DTAA) with which of the following? Any country Only European countries Only Asian countries None of the above None 29. Which of the following is an example of an "International Transaction" under Transfer Pricing regulations? Sale of goods to a related party Sale of goods to an unrelated party Interest on domestic loans None of the above None 30. The term "Tax Residence Certificate" (TRC) is used in the context of Determining the residential status of a taxpayer Claiming benefits under DTAA Filing tax returns in India All of the above None 31. Tax on income earned from "Capital Gains" is: Deducted at source A flat rate of 10% Dependent on the holding period of the asset Exempt in all cases None 32. The assessment of a taxpayer is made under which section of the Income Tax Act? Section 143 Section 144 Section 145 Section 146 None 33. Which of the following is a valid reason for invoking the provisions of GAAR (General Anti-Avoidance Rules)? Tax avoidance schemes with no economic substance Loss claimed by the taxpayer in the absence of commercial reasons Both a and None of the above None 34. Section 80TTA provides for a deduction on: Income from savings accounts Income from dividends Income from capital gains None of the above None 35. The concept of "Income Accruing or Arising in India" includes: Income from business conducted in India Income from property located in India Both a and b None of the above None 36. Which of the following would be included in the "Income from Other Sources" category? Income from lottery winnings Salary income Profit from business Rent from agricultural land None 37. What is the tax treatment of a non-resident's income from interest received in India? Exempt from tax Taxable at a flat rate Taxable at normal rates Taxable only if remitted to India None 38. Which of the following is true about the "Advance Tax" system in Ind It is applicable only to companies It is applicable to all taxpayers who expect to have a tax liability of over ₹10,000 It applies only to individuals None of the above None 39. Taxable income for a resident is determined based on: Total income received in India Global income Income received from both India and abroad None of the above None 40. What is the rate of tax deduction on interest on fixed deposits under Section 194A? 5% 10% 15% 20% None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. 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