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. Salary income is taxable on a: Receipt basis Due basis Either due or receipt basis, whichever is earlier Accrual basis only None 2. Which of the following is a fully taxable perquisite? Free food provided during office hours Use of a car for official purposes Rent-free accommodation Free health check-up None 3. The maximum loss from house property that can be set off against other income in a financial year is: ₹1,50,000 ₹2,00,000 ₹2,50,000 ₹3,00,000 None 4. The Net Annual Value (NAV) of a self-occupied property is: Zero Gross annual value minus standard deductions 30% of gross annual value Equal to municipal taxes paid None 5. Long-term capital gains on sale of a house property are eligible for exemption under: Section 54 Section 54F Section 54EC All of the above None 6. A short-term capital gain arises when an asset is held for less than: 24 months for all assets 12 months for listed securities 36 months for real estate Both B and C None 7. Which of the following is not a capital asset under the Income Tax Act? Jewelry Stock-in-trade Urban land Equity shares None 8. Deduction under Section 80C is available for: Payment of LIC premium Contribution to PPF Repayment of housing loan principal All of the above None 9. Deduction under Section 80CCD(1B) is available for contributions to: National Pension Scheme (NPS) Life Insurance Policy Health Insurance Premium Repayment of education loan None 10. The maximum deduction under Section 80E for interest on education loan is: ₹1,50,000 ₹2,00,000 ₹50,000 No limit None 11. Presumptive taxation under Section 44AD applies to businesses with turnover up to: ₹50 lakh ₹1 crore ₹2 crore ₹5 crore None 12. Depreciation on plant and machinery under the Income Tax Act is calculated on: Fair market value Written down value Historical cost None of the above None 13. Which section allows deduction for bad debts written off? Section 36(1)(iii) Section 36(1)(vii) Section 35 Section 37 None 14. TDS on professional fees under Section 194J is deducted at the rate of: 1% 2% 5% 10% None 15. Which section provides for TDS on winnings from lotteries and crossword puzzles? Section 194B Section 194C Section 195 Section 194N None 16. An individual who stays in India for 60 days in a financial year and 365 days in 4 preceding years is considered a: Resident Non-resident Not ordinarily resident None of the above None 17. Transfer pricing provisions apply when international transactions occur between: Independent parties Related parties Domestic unrelated parties None of the above None 18. Which of the following is a valid method for determining Arm’s Length Price (ALP)? Profit Split Method Fair Market Value Method Residual Income Method Mark-up Method None 19. Unilateral relief from double taxation is provided under: Section 90 Section 91 Section 92 Section 94A None 20. DTAA provides relief by: Tax credit Tax exemption Both A and B None of the above None 21. The Equalization Levy on e-commerce operators is applied at: 1% 2% 5% 6% None 22. The purpose of GAAR is to address: Tax compliance Tax evasion Tax avoidance Tax refunds None 23. GAAR provisions apply only to arrangements exceeding a value of: ₹50 lakh ₹1 crore ₹5 crore ₹10 crore None 24. Advance Pricing Agreements (APAs) are valid for a maximum period of: 2 years 5 years 10 years Indefinitely None 25. Thin capitalization rules under Section 94B limit the interest deduction if: Debt exceeds equity by 5 times Debt-to-equity ratio exceeds 3:1 Debt exceeds income by 20% Interest exceeds 30% of EBITDA None 26. The Income Tax Act, 1961 came into force on: 1st April 1961 1st April 1962 1st April 1963 1st April 1970 None 27. Which of the following incomes is taxable under the head “Income from Other Sources”? Agricultural income Winnings from lotteries Interest on securities held for trading Salary received as arrears None 28. A person is considered an "ordinarily resident" if they satisfy the conditions of: Being resident for at least 2 years out of 10 preceding years and 730 days stay in India in the last 7 years Being resident for 4 years in the preceding 10 years Being resident for the last 5 consecutive years None of the above None 29. Non-residents are taxed in India on income: Earned outside India Accruing or deemed to accrue in India From investments in foreign assets None of the above None 30. Gratuity received by an employee covered under the Payment of Gratuity Act is exempt up to: ₹5,00,000 ₹10,00,000 ₹20,00,000 ₹5,00,0 ₹15,00,000 None 31. Agricultural income in India is: Fully exempt from tax Taxable at a flat rate Exempt but considered for rate purposes Partially taxable None 32. Income from house property is taxable if the property is: Vacant throughout the year Used for business purposes Let out during the year Self-occupied by the owner None 33. Municipal taxes are allowed as a deduction if: Paid by the owner Paid by the tenant Not paid at all Reimbursed by the tenant None 34. Leave encashment at the time of retirement is exempt for: Government employees Private sector employees All employees None of the above None 35. Entertainment allowance deduction for government employees is restricted to the lower of: ₹5,000 or 20% of salary ₹12,000 or 10% of salary ₹5,000 or 10% of salary ₹10,000 or 20% of salary None 36. The presumptive taxation scheme under Section 44AE is applicable for: Doctors Transport operators Freelancers None 37. Depreciation under Section 32 is allowed on: Land Buildings, machinery, plant, and furniture Stock-in-trade Intangible assets like goodwill None 38. Expenditure on scientific research is deductible under: Section 37 Section 35 Section 80C Section 24 None 39. Income from the transfer of assets without adequate consideration is taxable in the hands of the: Transferor Transferee Beneficiary Trustee None 40. Income of a spouse from investment in a business where the other spouse has a substantial interest is: Taxed in the hands of the earning spouse Taxed in the hands of the investing spouse Fully exempt Tax-free if below ₹1,00,000 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. 1 2 3 4 Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!