Quiz 3 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Direct Taxation Total Number of Question: 40 Time: 41 Minutes All the best... Kind Regards CMA Madhuri Kashyap Profile: Click Here! Name Phone No Email Area Pin Code 1. Which of the following incomes is not taxable in India? Agricultural income in India Business income from abroad of a resident Interest earned on NRE account by a non-resident Capital gain on sale of rural agricultural land None 2. The surcharge for individuals earning above ₹5 crore in the FY 2023-24 is: 10% 15% 25% 37% None 3. A person is considered a resident in India if: They stay in India for 182 days in the current financial year They stay in India for 60 days in the current year and 365 days in the past 4 years Both a and b None of the above None 4. Which of the following is not taxable as perquisites? Rent-free accommodation Reimbursement of medical expenses up to ₹25,000 Use of employer’s car for personal use Employer paying income tax on behalf of the employee None 5. Gratuity received by a Government employee is: Fully taxable Exempt up to ₹20 lakh Exempt fully Taxable at a flat rate of 10% None 6. Deduction under Section 24(b) for interest on housing loan is available up to: ₹1,50,000 ₹2,00,000 ₹3,00,000 No limit None 7. Unrealized rent recovered during the year is: Taxed under "Income from other sources Taxed under "Income from house property" Exempt from tax Taxed under "apital gains None 8. Which of the following expenses is disallowed under Section 40A(3)? Cash payment exceeding ₹10,000 in a day Payment through account payee cheque Payment made to relatives None of the above None 9. Deduction for depreciation is mandatory for: All assets used in the business Tangible fixed assets only Assets held for personal use None of the above None 10. Long-term capital gains (LTCG) on listed equity shares are taxed at: 15% 10% above ₹1 lakh 20% Exempt None 11. Which section provides for exemption on the reinvestment of LTCG into residential property? Section 80C Section 54 Section 54EC Section 54F None 12. Under Section 80C, the maximum allowable deduction is ₹1,00,000 ₹1,50,000 ₹2,00,000 ₹2,50,000 None 13. Contribution to the National Pension Scheme (NPS) is eligible for additional deduction under which section? Section 80CCC Section 80CCD(1B) Section 80D Section 10(10D) None 14. TDS on professional fees under Section 194J is deducted at: 1% 5% 10% 20% None 15. The due date for the first installment of advance tax for companies is: 15th March 15th June 15th September 15th December None 16. Income tax return (ITR) under Section 139(1) for individuals without audit is due by: 31st March 30th September 31st July 30th June None 17. Scrutiny assessments are covered under: Section 139 Section 142(1) Section 143(3) Section 144 None 18. Double Taxation Avoidance Agreement (DTAA) is based on which model? UN Model OECD Model Both a and b None of the above None 19. The concept of "Significant Economic Presence" was introduced in which Finance Act? 2018 2019 2020 2021 None 20. Penalty for failure to furnish PAN is covered under which section? Section 271A Section 271B Section 272B Section 271H None 21. Income from lotteries is taxed at: 10% 20% 30% 40% None 22. The time limit for filing a revised return under Section 139(5) is: 31st March of the next year Before the completion of the assessment Earlier of a or b None of the above None 23. MAT is applicable to which type of taxpayers? Individual Partnership firm Corporate taxpayers LLP None 24. Which of the following deductions is not allowed while computing income under the head "Profits and Gains of Business or Profession"? Depreciation on motor cars Salary paid to a relative at market rate Personal expenses of the proprietor Interest on borrowed capital None 25. Loss under the head "Income from house property" can be carried forward for: 4 years 8 years 10 years Indefinitely None 26. Short-term capital loss can be set off against: Only short-term capital gains Only long-term capital gains Both short-term and long-term capital gains Income under any head None 27. Business losses cannot be set off against which of the following incomes? Salary income Capital gains House property income Income from other sources None 28. The "Equalization Levy" introduced by the Government of India is charged at: 5% 6% 10% 15% None 29. The threshold turnover for mandatory Transfer Pricing documentation for specified domestic transactions is: 5 crore 10 crore 20 crore 50 crore None 30. Gift received from a non-relative is taxable if the aggregate value exceeds: ₹25,000 ₹50,000 ₹1,00,000 ₹2,50,000 None 31. Family pension received is taxable under which head of income? Salaries Income from other sources Capital gains Exempt income None 32. Minimum Alternate Tax (MAT) under Section 115JB is calculated on: Gross Total Income Net Profit as per books of accounts Adjusted book profit Taxable income after deductions None 33. The concessional corporate tax rate of 15% under Section 115BAB is applicable to: Start-ups Newly incorporated domestic manufacturing companies All domestic companies Foreign companies None 34. Deduction under Section 80D for medical insurance premium paid for a senior citizen is: ₹25,000 ₹30,000 ₹50,000 ₹75,000 None 35. Donations eligible for 100% deduction without restriction under Section 80G include: National Defence Fund Prime Minister’s National Relief Fund Both a and b None of the above None 36. TDS under Section 194IA is applicable on the transfer of immovable property if the transaction value exceeds: ₹25 lakh ₹50 lakh ₹1 crore ₹2 crore None 37. The rate of TDS on interest paid to a resident under Section 194A is: 5% 7.5% 10% 15% None 38. Penalty for failure to maintain transfer pricing documentation is: ₹50,000 ₹1,00,000 2% of the transaction value ₹5,00,000 None 39. The maximum penalty for concealment of income under Section 270A is: 50% of tax evaded 100% of tax evaded 200% of tax evaded 300% of tax evaded None 40. Which of the following conditions is NOT required to claim deduction under Section 35 for scientific research? The expenditure must be on in-house research The research must relate to the taxpayer's business Approval from a prescribed authority is mandatory Research must be outsourced to a recognized institution 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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