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. Under Section 10(38), long-term capital gains arising from the sale of equity shares are: Fully taxable Exempt, subject to conditions Partially exempt Not taxable None 2. A capital asset includes: Immovable property Movable property Both a and b Neither a nor b None 3. Which of the following is a valid deduction under Section 80D? Premium paid for a health insurance policy Premium paid for a life insurance policy Donations to charities All of the above None 4. A taxpayer is eligible to claim a deduction of up to ₹1.5 lakh under which section for investments in specified instruments? Section 80C Section 80D Section 80E Section 80G None 5. Which of the following qualifies for the deduction under Section 80G of the Income Tax Act? Donations to a political party Donations to charitable institutions Income from business All of the above None 6. Under which section of the Income Tax Act is an NRI exempt from tax on income earned outside India? Section 5 Section 6 Section 9 Section 10 None 7. The taxability of "Income from Business and Profession" depends on: Nature of income earned Total income Place of income accrual All of the above None 8. Which of the following is considered a "capital asset" under the Income Tax Act? Stocks and bonds Agricultural land Gold and jewelry All of the above None 9. Under Section 44ADA, which of the following taxpayers is eligible for the presumptive taxation scheme? A lawyer A doctor An architect All of the above None 10. Under Section 10(34), income by way of dividend is exempt if it is received from: A foreign company An Indian company A government corporation A cooperative society None 11. Which section of the Income Tax Act deals with the "Tax on Profits and Gains of Business or Profession"? Section 28 Section 29 Section 30 Section 31 None 12. In the context of transfer pricing, "International Transactions" refers to: Transactions between Indian residents only Transactions between a resident and a non-resident Domestic transactions None of the above None 13. What is the purpose of Section 92 of the Income Tax Act? To levy tax on transfer of property To govern the taxation of international transactions To provide for tax exemption for NRIs None of the above None 14. Which of the following is not an "Income from Other Sources" under Section 56? Income from salary Income from lottery winnings Dividend income Income from gifts None 15. What is the limit of tax-free income under Section 10(10C) on the retrenchment compensation received by an employee? ₹1 lakh ₹2 lakh ₹5 lakh ₹10 lakh None 16. Under Section 80TTB, the maximum deduction allowed on interest income for senior citizens is: ₹10,000 ₹50,000 ₹1,00,000 ₹1,50,000 None 17. For which of the following incomes, the tax treatment under DTAA would apply? Income from business in India Income from interest in a foreign country Income from salary earned in India All of the above None 18. Under the Income Tax Act, "Salary" includes: Only basic salary Basic salary and allowances Salary and perquisites Only allowances None 19. Which of the following is considered "capital gains"? Profit on sale of property Profit on sale of shares Profit on sale of gold All of the above None 20. The tax rate for long-term capital gains on listed securities under Section 112 is: 10% 15% 20% 30% None 21. Section 80U provides a deduction to individuals with: Physical disability Mental illness Both a and b None of the above None 22. Under Section 139, which of the following taxpayers is required to file a return of income? Every resident taxpayer Every taxpayer with a total income exceeding the basic exemption limit c) Every company or firm All of the above None 23. Which of the following is a tax benefit under Section 24(b) for home loan interest payment? Deduction of up to ₹1.5 lakh Deduction of up to ₹2 lakh Deduction of up to ₹5 lakh Deduction of actual home loan interest paid None 24. In case of a private company, the shareholder is taxed on: Only dividends received Dividends and capital gains from sale of shares Only capital gains None of the above None 25. Which of the following is included in the definition of "income" under Section 2(24)? Salary Rent Capital gains All of the above None 26. Under Section 80E, the deduction for interest paid on an education loan is allowed for a maximum period of: 1 year 3 years 5 years 8 years None 27. The tax rate for a domestic company under the new tax regime without exemptions is: 22% 25% 30% 15% None 28. In the case of a Hindu Undivided Family (HUF), the income is assessed in the hands of: The Karta of the HUF The members of the HUF The HUF as a separate entity None of the above None 29. In case of a tax audit, the due date for filing the income tax return is: 30th September 31st October 31st December 31st March None 30. The concept of "permanent establishment" (PE) in international taxation refers to: A fixed place of business A business operating from a rented office Any temporary establishment None of the above None 31. Which of the following expenses are not allowed as a deduction under the head "Income from Business"? Depreciation on assets Salary paid to employees Personal expenses Rent paid for office premises None 32. The benefit of exemption under Section 10(10A) is available for: Gratuity received by an employee during service Gratuity received at the time of retirement Gratuity received after death of the employee None of the above None 33. Which of the following is taxable under "Income from Other Sources"? Income from house property Income from business Dividend income None of the above None 34. Section 80DDB allows a deduction for medical treatment expenses related Physical illness Mental illness Both a and b None of the above None 35. Under which section can a taxpayer claim a deduction for interest on a loan taken to buy a house property? Section 80G Section 24(b) Section 80C Section 80E None 36. The tax rate for capital gains on the sale of listed securities, if held for more than 1 year, is: 10% 15% 20% 30% None 37. Income received by way of interest on deposits in foreign banks is taxable under the head: Salary Business income Income from other sources Capital gains None 38. Under the provisions of Section 9, "income deemed to accrue or arise in India" includes: Income from a business connection in India Income from a property located in India Income from transfer of capital assets situated in India All of the above None 39. Which of the following is an international taxation issue that may arise due to transfer pricing? Double taxation Under-taxation in one jurisdiction Allocation of profits between jurisdictions All of the above None 40. The income of a non-resident earned in India is taxable under: The Income Tax Act of India The law of the foreign country The agreement between India and the foreign country None of the above 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!! CMA Madhuri Kashyap (7838600010) Your quiz time is about to finish. Few seconds left. 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