Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Direct Tax Laws and International TaxationTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. What is the maximum amount of deduction under section 80C available for contribution to the National Pension Scheme (NPS)? ₹1,50,000 ₹50,000 ₹2,00,000 ₹2,50,000 None 2. Which section of the Income-tax Act provides for tax exemption on income from agriculture? Section 10(1) Section 10(2) Section 10(3) Section 10(5) None 3. What is the rate of tax on short-term capital gains on equity shares and equity mutual funds under section 111A? 5% 10% 15% 20% None 4. Which of the following is true regarding the taxation of dividend income in India? Dividend income is taxed in the hands of the company Dividend income is taxable in the hands of the recipient Dividend income is exempt from tax in India Dividend income is taxed at a special rate of 10% None 5. Under section 54F, the benefit of exemption from capital gains tax on the sale of a longterm capital asset is available for investment in: Residential house property Agricultural land Bonds issued by the government Shares in a listed company None 6. Which of the following is exempt from tax under section 10(13A)? ) Salary received by a resident individual Rent received from tenants House rent allowance (HRA) received by an employee Rent on agricultural land None 7. Under section 10(10D), the maturity proceeds from a life insurance policy are exempt from tax, provided: The premium does not exceed 10% of the sum assured The premium does not exceed 20% of the sum assured The premium is less than ₹50,000 The sum assured is more than ₹1,00,000 None 8. Which section deals with the taxation of capital gains on the sale of agricultural land in India? Section 10(1) Section 45 Section 54F Section 56 None 9. Under section 80E, deduction is available for interest on loans taken for: Higher education Housing loans Starting a business Medical treatment None 10. What is the maximum deduction available under section 80C for investment in public provident fund (PPF)? ₹1,50,0000 ₹2,00,000 ₹1,00,000 ₹2,50,000 None 11. Which section of the Income-tax Act deals with the taxation of income from other sources? Section 10 Section 56 Section 92 Section 80E None 12. A tax treaty between India and a foreign country ensures: Tax exemption on all income earned abroad Non-residents are taxed at a higher rate Relief from double taxation on income Non-residents are taxed only in the foreign country None 13. The provisions for the taxation of royalties under the Income-tax Act are covered in: Section 9(1)(vi) Section 10(10D) Section 80RRB Section 115B None 14. The taxation of income of a non-resident is governed by which section of the Income-tax Act? Section 9 Section 10 Section 92 Section 115B None 15. Under section 10(14), the following is eligible for exemption from tax: Special allowances granted to an employee for travel Income from agriculture Income from capital gains Income from foreign sources None 16. What is the time limit for carrying forward and set-off of short-term capital losses? 1 year 2 years 3 years 8 years None 17. Which section provides a deduction for medical treatment of a person with a disability? Section 80D Section 80U Section 80E Section 80G None 18. The income of a foreign company is taxed at: 25% 30% 40% 20% None 19. Which of the following qualifies for a tax deduction under section 80GGA? Donation to a charitable institution Income from rural development bonds Income from intellectual property rights Income from business profits None 20. Under the provisions of the Income-tax Act, an individual can claim a deduction of up to ₹50,000 under section 80CCD for investment in: National Pension Scheme (NPS) Public Provident Fund (PPF) Life insurance premiums Employee Provident Fund (EPF) None 21. Which of the following is NOT included under "Income from Other Sources"? Income from renting out property Interest on savings bank accounts Dividend from shares Income from capital gains None 22. A foreign company is considered a resident of India under which of the following conditions? If the company is incorporated in India If the majority of the company's business activities are conducted in India If its place of effective management is in India If its directors are residents of India None 23. Which of the following is true about the provisions of the Double Taxation Avoidance Agreement (DTAA)? The agreement provides for tax credits or exemptions on foreign income It applies only to corporate taxpayers It applies only to individual taxpayers It is applicable only to residents of India None 24. Under section 10(5), an employee can claim exemption on the following: Gratuity received Leave travel allowance Bonus received Severance pay None 25. Under section 115B, the tax rate for a non-resident company engaged in the business of specified activities is: 25% 30% 40% 35% None 26. What is the penalty under section 271A for failure to maintain books of accounts? ₹25,000 ₹50,000 ₹1,00,000 ₹2,00,000 None 27. Under section 44ADA, a taxpayer engaged in a profession can opt for a presumptive taxation scheme. What is the prescribed rate of income for this scheme? 25% of gross receipts 30% of gross receipts 50% of gross receipts 75% of gross receipts None 28. Which of the following is exempt from tax under section 10(10B)? Gratuity received by a government employee Gratuity received by a private employee Pension received from an employer Provident fund balance received None 29. Under the provisions of section 10(5), the following is exempt from tax: Salary paid by a foreign employer Leave travel concession received by an employee Professional fees received Salary received in foreign currency None 30. Under section 56(2)(vii), gifts received in excess of ₹50,000 from non-relatives are taxable in the hands of the recipient if: It is in the form of cash or property The donor is a relative The donor is a company It is from a foreign source None 31. In case of a non-resident, which income is taxable in India? Income received or deemed to be received in India Income accrued or deemed to accrue in India Income from foreign sources Both A and B None 32. Section 10A deals with the tax exemption for: Startups in the information technology sector Startups in the manufacturing sector Companies operating in a special economic zone Educational institutions None 33. The rate of tax on royalty income paid to a non-resident is: 10% 15% 20% 30% None 34. In case of international taxation, what is the purpose of a "tax credit"? To reduce the tax payable on foreign income To increase tax on foreign income To provide exemptions for foreign businesses To apply tax rates on foreign companies None 35. Under section 9, the income of a non-resident arising from the transfer of capital assets situated in India is subject to: Double taxation Capital gains tax Exemption from tax Tax only on income from property in India None 36. Section 44AD provides for presumptive taxation for small businesses with a turnover of less than: ₹1 crore ₹2 crore ₹5 crore ₹10 crore None 37. Taxpayers can claim a deduction for interest on housing loans under section 80EEA if The loan is sanctioned for the purchase of a residential property The loan is for commercial property The property is purchased by a non-resident The loan is less than ₹25 lakh None 38. Under section 80TTA, which of the following is eligible for deduction? Interest on savings accounts Interest on fixed deposits Capital gains on bonds Interest on PPF None 39. Under section 80C, which of the following is not eligible for deduction? National Savings Certificate (NSC) Public Provident Fund (PPF) Term life insurance premium Fixed deposits with a bank None 40. Under the provisions of section 80G, which of the following donations qualifies for 100% deduction without any qualifying limit? Donation to a university Donation to the Prime Minister's National Relief Fund Donation to a religious institution Donation to a political party None 1 out of 4 Great job on taking the INCOC Test! 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