Assignment - C
Q.1A domestic company is always a company in which the public
are substantially interested -(a) True (b) False(c) None of the
above(d) True in some cases.
Q.2 A private limited company can never be a company in which
the public are substantially interested (a) True(b) False(c) True
in some cases(d) None of the above
Q.3 A company registered in the UK and makes arrangement for
payment of dividend in India is not a domestic company (a) True (b)
False(c) True in some cases(d) None of the above
Q.4 A company is said to be resident of a particular company if
(a)Control and management of the affairs of a company is situated
wholly in that particular country. (b)Control and management of the
affairs of a company is situated outside that particular country(c)
Control and management of the affairs of a company is situated
partly in that particular country and partly outside that
particular country.(d) All of the above
Q.5 X Ltd. a foreign company manages its affairs partly from
India and partly outside India. X Ltd. is said to be (a) Resident
in India(b) Non-Resident in India.(c) Resident and Ordinary
Resident in India,(d) Resident but not ordinary Resident in
India.
Q.6 A company owning the following hotels can claim deduction
under section 80-ID (a)A 5 star hotel in X ( a place ). (b)A 4 star
hotel in Y ( a place ). (c)A 3 star hotel in Z ( a place ). (d)All
of the above.
Q.7 A company is qualified to claim deduction under section
80-IB. By mistake the deduction was not claimed in the return in
the return of income. However, the company claims the before the
Assessing Officer at the time of assessment under section
143(3)
(a)Deduction will be allowed by the assessing officer.
(b)Deduction will not be allowed by the assessing officer.
(c)Deduction will be allowed by the assessing officer, if the
Commissioner of Income-tax permits. (d)Deduction will be allowed by
the assessing officer, if the it is permitted by the Chief
Commissioner. Q.8 A Government company cannot claim any deduction
under section 10A, 10AA and 10B (a)True(b)False(c)None of the
above(d)True in some cases.
Q.9A limited liability partnership owns an infrastructure
facility. It can claim deduction under section 80-IA
(a)True(b)False(c)True in some cases(d)None of the above
Q.10 Only a company(not a limited liability partnership) can
claim deduction under section 10A, 10AA, and 10B
(a)True(b)False(c)True in some cases(d)None of the above
Q.11 Deduction under section 80JJJA is available in the
following cases (a)Indian Company(b)Foreign Company(c)Limited
Liability Partnership.(d)All of the above
Q.12Tonnage tax scheme is applicable in the following cases
(a)Foreign Shipping Company,(b)Indian Shipping Company,(c)Limited
liability partnership in shipping industry.(d)All of the above
Q.13A company will pay dividend tax if (a)Bonus shares are
allotted to equity shareholder.(b)Bonus shares are allotted to
preference shareholders,(c)Shares are allotted to debenture holders
free of cost.(d)Shares are allotted to employees as ESOP shares
free of cost.
Q.14 Corporate taxation does not play any significance role in
determining the choice between different sources of finance
(a)True(b)False
Q.15 A Company want to purchase a plant (cost: Rs. 80 crore).It
can out rightly purchase it. Alternatively, it can take the plant
on lease. The following factors are taken into consideration to
find out which one is better (a) Corporate tax rate;(b) Corporate
rate and depreciation rate; (c) Corporate tax rate, depreciation
rate, lease rent, cost of capital and useful life of plant;(d) None
of the above.
Q.16 If corporate tax rate is reduced the tax saving on account
of depreciation will increase - (a) True (b) False (c) True in some
cases (d) None of the above
Q.17 If rate of depreciation is reduced the tax saving on
account of depreciation will increase - (a) True (b) False (c)True
in some cases (d)None of the above
Q.18 If borrowed funds are used for purchase of a plant and tax
rates are reduced, the tax saving will increase - (a) True (b)
False (c) True in some cases (d) None of the above
Q.19 Depreciation is not available in the case of machine
acquired under higher purchase (a) True (b) False (c) True in some
cases (d) None of the above
Q.20 X Limited is considering a proposal to manufacture a
component itself or purchase from market. No fresh investment in
plant and machinery will be required if it decides to manufacture
the component within its factory. Total Variable Cost of
manufacturing is $ 74 per unit of component. Net fixed cost of use
of plant and machinery comes to $ 20 per unit of component. The
component is available in market at $ 79 per unit of component. It
is better to purchase the component from market- (a) True (b) False
(c) True in some cases (d) None of the above
Q.21 Y Limited has an option to purchase a machine out of own
funds or alternatively a bank can finance it. At the current rate
of corporate tax, the tax saving in the later option is higher. If
the corporate tax rate is reduced, the second option will become
less attractive- (a) True (b) False (c) True in some cases (d) None
of the above
Q.22In case of demerger, accumulated loss and unabsorbed
depreciation of the demerged company will be-(a) Carried forward in
the hands of demerged companies.(b) Carried forward and set off in
hands of resulting companies.(c) Set off in the hands of demerged
companies.(d) None of these.
Q.23 Amalgamation and demerger are considered as-(a) Same terms
always.(b) Distinct terms always(c) Same terms in certain cases.(d)
Distinct terms in certain cases.
Q.24 Net wealth is calculated as-(a) Assets chargeable to wealth
tax less the exempted assets(b) Assets chargeable to wealth tax
less debt owned(c) Assets less debt owned(d) Assets less exempted
assets
Q.25 Wealth tax is chargeable (a) @ 2% of the net wealth
exceeding Rs. 30 Lakhs(b) @ 1% of the net wealth exceeding Rs. 30
lakhs (c) @ 1% of the entire net wealth provided it exceeds Rs.
30,00,000.(b) @ 2% of the entire net wealth provided it exceeds Rs.
30,00,000.
Q.26 Wealth tax is payable if the net wealth of the assesee(a)
Exceeds Rs. 250,000(b) Is Rs. 30,00,000 or more (c) Exceeds Rs.
30,00,000(d) None of the above
Q.27 A firm is (a) Not liable to wealth tax (b) Liable to wealth
tax(c) Not liable to wealth tax but partners share in the value of
the assests of the firm shall be included in the net wealth of the
partner(d) All of the above
Q.28 Asset held by a minor child is included in the net wealth
of the (a)Father (b)Mother (c)Father or mother whose net wealth
before clubbing is greater. (d)Father or mother whose net wealth
before clubbing is lesser.
Q.29 An assessee is one who pays the wealth tax, an assesse
belongs to which of the following category?(a) A company(b) HUF(c )
A dead persons legal representative, the executor or
administrator(d)All of the above
Q.30 A house is not treated as an asset if(a) it is meant
exclusively for residential purposes(b) house held as
stock-in-trade(c) house used for own business or profession(d) all
of the aboveQ.31 VAT WAS FIRST INTRODUCED AS A TAX IN THE YEAR:-
(A) 1919
(B) 1921
(C ) 1948
(D) 1954
Q.32 VAT WAS FIRST INTRODUCED BY THE:- (A) FRANCE
(B) GERMANY
(C ) USA
(D) UK
Q.33 WHICH IS MOST COMMON VARIANT OF VAT USED WORLD WIDE:- (A)
GROSS PROFIT VARIANT
(B) CONSUMPTION VARIANT
(C ) GROSS PRODUCT VARIANT
(D) GROSS INCOME VARIANT
Q.34 TIN MEANS:- (A) TAX INFORMATION NUMBER
(B) TAX INDIA NUMBER
(C ) TAX IDENTIFICATION NUMBER
(D) TAX INTRODUCTION NUMBER
Q. 35 VAT INTRODUCTION WILL CERTAINLY:-(A) MAKE THE REVENUE
COLLECTION WORST.
(B) MAKE THE REVENUE COLLECTION BETTER.
(C ) THE REVENUE COLLECTION ARE THE SAME.
(D) REVENUE VOLUME HAS NOTHING TO DO WITH INTRODUCTION OF
VAT
Q.36 THE ACCOUNTING UNDER THE VAT WILL BE:- (A) REGULAR AND
CHEAP.
(B) REGULAR AND EXPENSIVE
(C) IRREGULAR AND CHEAP.
(D) IRREGULAR AND EXPENSIVE
Q.37 TO CLAIM THE INPUT CREDIT OF TAX PAID WHAT IS MOST
IMPORTANT DOCUMENT:-(A) PERMISSION OF THE SALES TAX AUTHORITY.
(B) PROPER VAT INVOICE
(C ) CASH BOOK
(D) LEDGER
Q.38 WHICH IS MOST COMMON VARIANT OF VAT USED WORLD WIDE:-(A)
GROSS PROFIT VARIANT
(B) CONSUMPTION VARIANT
(C ) GROSS PRODUCT VARIANT
(D) GROSS INCOME VARIANT
Q.39 DUE TO INTRODUCTION OF VAT:- (A) TAX EVASION IS
RESTRICTED.
(B) TAX EVASION IS INCREASED.
(C ) VAT HAS NOTHING TO DO WITH EVASION OF TAX.
(D) TAX EVASION HAS BECOME EASY.
Q.40 THE ACCOUNTING UNDER THE VAT WILL BE:- (A) REGULAR AND
CHEAP.
(B) REGULAR AND EXPENSIVE
(C) IRREGULAR AND CHEAP.
(D) IRREGULAR AND EXPENSIVE
1. When determining the interaction between the UK and EU on the
regulation of the financial services industry, the UK government
must alwaysA. seek approval from the European Commission before
implementing any new regulations. B. implement new EU Directives by
passing acts of Parliament.C. accommodate all EU Decisions in UK
legislation.D. provide copies of new regulation to the European
Commission within a reasonable period of time for their
approval.
2. A client has previously written to her former adviser opting
out of any marketing activities from the firm or any third parties.
However she continues to receive direct investment offers from the
firm. She should complain based on the firm not complying with
which set of regulations?A. Conduct of Business rules. B. Data
Protection Act 1998.C. Distance Selling Regulations. D. Treating
Customers Fairly.
3. The Financial Services and Markets Act 2000 regulates the
provision of which type(s) of financial advice?A. Advice to
vulnerable individuals only. B. Advice to all individuals.C. Advice
to all individuals and group personal pensions schemes only. D.
Advice to all individuals unless they are elective professional
clients.
4. Simon has experience of dealing with retail clients and is
now in training to qualify as a pension transfer specialist. As a
consequence, which of the following statements are true?
A. He must have at least 3 years experience as an adviser before
his training can commence. B. His firm is allowed to impose a time
limit on completion of the qualification.C. His supervisor must
also be suitably qualified.D. Once qualified, CPD requirements are
waived for 12 months.E. Once qualified, records of his training
must be maintained for at least 5 years.
Applied Direct TaxationObjective Questions and Answers
1. Multiple Choice Questions(A) The following is capital
receipt:(a) Dividend from investment;(b) Bonus shares;(c) Sale of
technological know- how;(d) Compensation received for compulsory
evacuation of place of business.Ans. (d) Compensation received for
compulsory evacuation of place of business.
(B) Following is not a capital receipt:(a) Dividend on
investment;(b) Bonus shares;(c) Sale of know-how;(d) Compensation
received for vacating business place.Ans. (a) Dividend on
investment
(C) An individual is said to be resident in India in a previous
year (in which the February month has 29 days) if he is in India in
that year for a period or periods amounting in all to 182 days or
more, [(a) 182, (b) 183, (c) 60, (d) 150]Ans. 182 days
(D) The assessee is charged to income-tax in the assessment year
following the previous year:(a) A non-resident business firm which
shipped goods on 1.5.210 at Visakhapatnam Port in Andhra Pradesh(b)
An employee left India to USA on 1.8.2010 with no intention of
returning(c) ABC firm which discontinued its business on
1.9.2010(d)An employee-assessee of a University who worked during
1.4.09 to 30.03.2010Ans. (d) An employee-assessee of a University
who worked during 1.4.09 to 30.03.2010.
(E) Income received in India in previous year is taxable in the
hands of:(a) Resident;(b) Not-resident;(c) Non ordinarily
resident;(d) All above.Ans. (d) All above.
(F) Expenditure incurred by an employer on medical treatment and
stay abroad of the employee shall not be taxed in the case of
___________.(a) an employee whose gross total income before
including the said expenditure does not exceed Rs. 2 lakhs.(b) an
employee whose income under the head "Salaries" exclusive of all
monetary perquisites does not exceed Rs. 2 lakhs,(c) an employee
whose income under the head "Salaries" exclusive of all
non-monetary perquisites does not exceed Rs. 2 lakhs,(d) all
employees irrespective of their amount of gross total income/the
amount of income under the head "Salaries".Ans. (a) an employee
whose gross total income before including the said expenditure does
not exceed Rs. 2 lakhs.
2. Expand - Expand abbreviations CCIT, CBDT. Ans. CCIT - Chief
Commissioner of Income Tax CBDT - Central Board of Direct Tax
3. Fill in the Blanks(A)The basic exemption limit in case of a
non-resident individual being a senior citizen of Rs.
1.60,000.Income-tax rates are not prescribed by the Income-tax Act,
but by the Finance Act of each year.(B) The term business would
include profession and accordingly the term business used in
Section 9(1)(i) would also include a professional
connection.(C)Compensation received from an insurer on account of
damage to the crops is an agricultural income.(D) Receipts from TV
serial shooting in farm house is non agricultural income.
4. True and False/Correct and IncorrectA. 'Gross Total Income'
means aggregate of income computed under various heads and after
allowing deduction under Chapter Vl-A. Ans. False. 'Gross Total
Income' means aggregate of income computed under various heads
before allowing deduction under Chapter Vl-A. Income after allowing
deduction under Chapter Vl-A is known as Total Income.B. If a
person is resident and ordinarily resident of India, his income
earned outside India is taxable in the country in which he earned
that income. Ans. False. His income shall be taxable in India,
subject to relief available u/s 90, 90A and 91.C. Where a person
does basic operations in lands and later sells the saplings grown
by him in a nursery owned by him, the same will be agricultural
income. If the basic operations are not done by the assessee and
the saplings are sold in his nursery, the same will still be
regarded as agricultural income. Ans. True. Any income derived from
saplings or seedlings grown in a nursery shall be deemed to be
agricultural income.D. Vivitha, a Cost Accountant, is employed in
Hema Plastics Ltd. The company pays the annual Cost accountant
membership fee. The fee so paid by the company is not to be treated
as a perquisite in the hands of Vivitha. Ans. False. As payment of
annual Cost accountant membership fee is obligation of Vivitha.
Since, obligation of the employee is paid by the employer, hence
such payment shall be considered as taxable perquisite u/s
17(2)(iv).E. X is employed in Complex Ltd. as a Chartered
Accountant. The annual membership fee of X paid by Complex Ltd. is
not a perquisite and hence not chargeable to tax.Ans. False.
Payment of annual membership is an obligation of X which is borne
by the employer, hence the same shall be treated as perquisite
u/s17(2).F. Rental income from residential property owned by a
company carrying on business of property rentals is taxable under
the head "Income from House Property". Ans. True. Rental income
from residential property of an assessee is taxable under the head
'Income from House Property', irrespective of the fact that
assessee is engaged in the business of letting of the property.
5. Multiple Choice Questions(A) If an employer transfers second
hand motor car to the employee, the perquisite is valued at -(a)
Actual cost less depreciation @ 30% for every completed year under
straight line method(b) Actual cost less depreciation @ 20% for
every completed year under WDV method(c) Actual cost less
depreciation @ 30% for every completed year under WDV
method(d)Actual cost less depreciation @ 20% for every completed
year under SLM method.Ans. (b) Actual cost less depreciation @ 20%
for every completed year under WDV method.(B)The following is
exempt income :(a) Travel concession to employee(b) Remuneration
received for valuation of answer scripts(c) Encashment of leave
salary whilst in service(d) Perquisites in IndiaAns. (a) Travel
concession to employee.(C) The following is not taxable as income
under the head "Salaries":-(a) Commission received by a full-time
director;(b) Remuneration received by a partner;(c) Allowances
received by an employee;(d) Free accommodation given to an
employee.Ans. (b) Remuneration received by a partner.
6. Fill in the BlanksA. Expenditure on free meals to employee in
excess of Rs. 50 per meal will be treated as perquisite of
employee.B. Gift to employee upto Rs. 5,000 per annum will not be
treated as perquisite taxable in the hands of employee.C.
Death-cum-retirement gratuity received by an employee of Central
Government is wholly exempt (wholly exempt/exempt up to Rs.
3,50,000/exempt up to 10,00,000)D. If loan granted by employer to
employee does not exceeds Rs. 20,000 (10,000, 20,000, 50,000,
1,00,000), it is not treated as perquisite to employee for purpose
of income tax.E. Where an employer gifts a second hand motor car to
an employee, the perquisite value is actual cost less depreciation
at 20 % for every completed year under reducing balance method of
computing depreciation.F. Any commission due or received by a
partner of a firm from the firm shall not be regarded as salary
income under section 15;G. Advance salary is taxable, while advance
against salary is not taxable.
7. Distinguish between foregoing of salary and surrender of
salary. Ans. Once salary has been earned by an employee, its
subsequent waiver does not make it exempt from tax liability. Such
waiver shall be treated as application of the income. Hence, salary
foregone is taxable. However, where an employee opts to surrender
his salary to the Central Government u/s 2 of Voluntary Surrender
of Salaries (Exemption from Taxation) Act, 1961, the salary so
surrendered shall not be taxable.
8. Multiple Choice QuestionsIf an assessee earns rent from a
sub-tenant in respect to tenanted property let out as a residence,
the said rent is:(a) Exempt under Section 10.(b) Taxable under the
head income from house property.(c) Taxable as business income, as
the letting out is a commercial activity.(d) Taxable as income from
other sources, unless the assessee is in the business of subletting
properties on a regular basis.Ans. (d) Taxable as income from other
sources, unless the assessee is in the business of subletting
properties on a regular basis.
9. Fill in the BlanksA. Interest on capital borrowed for
acquisition or construction of property is deductible subject to
limit of Rs. 1,50,000 per year, if capital is borrowed on or after
1-04-1999. This is allowable if acquisition or construction is
completed within 3 years from end of financial year in which loan
was taken.B. For a self-occupied house property occupied on
1.7.2010, for which housing loan was availed, if the interest up to
31.3.2010 is Rs. 90,000 and thereafter the interest payable is Rs.
3,000 per month, the deduction available under section 24 in
respect of interest for the year ended 31.3.2011 is Rs. 54,000.C.
An assessee, after sale of house property, receiving arrears of
rent is (is\is not) chargeable to tax; the same computed in the
stipulated manner, is chargeable to tax as income from house
property (income from other source/income from house property).D.
The basis of chargeability under the head 'income from house
property' is Annual Value.E. Arrear rent is taxable after deducting
30% as per Section 25B of the Income-tax Act, 1961.
10. Multiple Choice Questions:(A)X Ltd. has failed to remit the
tax deducted at source from annual rent of Rs. 6,60,000 paid to Mr.
A for its office building. Said rent is (a)fully allowable as a
business expenditure; (b)not allowable in view of Section
40(a)(i);(c)allowable to the extent of 50%; (d)none of the
above.Ans. (b) not allowable in view of Section 40(a)(i).(B) A
partnership firm's profit as per the profit and loss account is Rs.
10,00,000. Its total income determined according to the provisions
of the Income- tax Act, 1961 is Rs. 9,00,000. A partner who has 20%
share in the firm can claim exemption of amount of
Rs.__________under Section 10(2A).(a) 2,00,000,(b)1,80,000, (c)
20,000 (d) None of the aboveAns. (a) 2,00,000(C) Expenditure
incurred in carrying out illegal business is(a) Not allowed as
deduction in any case.(b) Allowable as deduction, if gross total
income is less than Rs. 5 lakhs.(c) Allowable as deduction in all
cases.(d) Allowable as deduction, if income from illegal business
is offered to tax.Ans. (d) Allowable as deduction, if income from
illegal business is offered to tax.(D) if any expenditure is
incurred by an Indian company wholly and exclusively for purpose of
amalgamation or demerger, the said expenditure is (a) not allowable
as a deduction as a deduction in computing "Profits and gains from
business or profession"(b) Fully deductible as revenue expenditure
in the year in which it is incurred.(c) allowable as a deduction,
spread over eight successive previous years beginning if the
previous year in which the amalgamation or demerger taken place.(d)
allowable as a deduction, spread over five successive years
beginning with the previous year in which the amalgamation or
demerger taken place.Ans. (d) allowable as a deduction, spread over
five successive years beginning with the previous year in which the
amalgamation or demerger taken place.
11. Multiple Choice Questions: (A)If any expenditure is incurred
by an Indian company wholly and exclusively for the purpose of
amalgamation or demerger, the said expenditure is (a) Not allowable
as a deduction in computing profits and gains of business or
profession.(b) Fully deductible as revenue expenditure in the year
in which it is incurred.(c) Not deductible but is eligible to be
treated as an intangible asset in respect of which depreciation can
be claimed.(d) Allowed as a deduction spread over five successive
previous year beginning with the previous year in which the
amalgamation or demerger takes place.Ans. (d) Allowed as a
deduction spread over five successive previous year beginning with
the previous year in which the amalgamation or demerger takes
place.(B) Deduction for bad debts is allowed to an assessee
carrying on business (a) In the year in which the debt is written
off as bad.(b) In the year in which the debt first arose.(c) In the
year in which provisions was made in respect of the bad debt.(d) In
the year in which the debt becomes irrecoverable by operation of
law.Ans. (a) In the year in which the debt is written off as
bad.(C) Under Section 41(4) of the Income-tax Act, 1961, where a
bad debt allowed as a deduction under Section 36(1)(vii) in an
earlier year is subsequently recovered (a) It is taxable to the
extent of 50% of recovery, in the year of receipt, as business
income.(b) It is taxable as business income in the year of
recovery.(c) It is added back to the income of the year when it was
written off and taxed as business income.(d)It is taxable as income
from other sources in the year of receipt.Ans. (b) It is taxable as
business income in the year of recovery.(D) Payment of interest to
partners of partnership firm assessed as firm is allowable as
deduction under Section 40(b) of the Income Tax Act, 1961.(a) If
the rate of interest does not exceed 8% p.a.(b) If the interest is
paid on the minimum balance of capital account between 10th and the
end of every month.(c) If it is calculated on quarterly balance.(d)
If it is authorized by and in accordance with the partnership deed,
pertains to a period after the deed and does not exceed 12 percent
simple interest per annum.Ans. (d) If it is authorized by and in
accordance with the partnership deed, pertains to a period after
the deed and does not exceed 12 percent simple interest per
annum.(E) The following is not 'plant' u/s 43(3) of the Income-Tax
Act, 1961 (a) Books(b) Know-how(c) Road in the factory building(d)
Electrical fittingsAns. (c) Road in the factory building.(F) Mr. L
Singh used it in his business. This is the only asset in the block.
20% of the usage is for personal purposes. The WDV of the block as
on 31.3.2011 is (a) Rs. 2,70,000;(b) Rs. 2,55,000;(c) Rs.
2,10,000;(d) None of the above.Ans. (d) None of the above.
12. Fill in the BlanksA. In case of an existing industrial
undertaking, to be eligible for additional depreciation, increase
in installed capacity as compared to the installed capacity as on
31.3.2002 is 10per cent.[Note: As criteria of increment in
installed capacity for allowing additional depreciation is now
omitted]B. The due date for filling return of net wealth by an
individual who is a non-working partner in a firm whose accounts
are audited under Section 44AB of the Income-tax Act. 1961 is 31st
July.C. A person owns 4 heavy goods vehicles. His estimated annual
income U/S. 44AE is 2,40,000. (16,800, 1,51,000, 1,92v000,
2,40,000). D. According to Section 44AB, every person, carrying on
business shall, if his total sales, turnover or gross receipts, as
the case may be, in business exceed or exceeds Rs. 60 lakh in any
previous year, inter alia, get his accounts of such previous year
audited by a Chartered Accountant.E. Additional depreciation of 20%
of the actual cost of any new machinery or plant which has been
acquired or installed 31.03.2005 is available to an assessee
engaged in the business of manufacture or production of an article
of things. F. According to Section 40A(3), where the assessee
incurs any expenditure in respect of which payment is made in a sum
exceeding Rs. 20,000 otherwise than by a crossed cheque or crossed
bank draft. 100 percent of such expenditure shall not be allowed as
a deduction.G. The additional or accelerated depreciation, for an
eligible assessee, for machinery installed and used after
31.03.2005 is 20% of actual cost of the machinery. H. Where an
Indian company incurs any expenditure in connection with
amalgamation or demerger, the same is allowable as deduction,
spread over 5 successive previous years beginning with the in which
amalgamation or demerger taken place.I. 44BBB(i) of the Income-tax
Act, 1961, the presumptive income is taken as 10% of the eligible
receipts in the hands of eligible assessee.J. The deduction for
amortization of preliminary expenses under section 35D is allowable
at 20% of the qualifying expenditure in each of the 5 successive
years beginning with the year in which business commences.K.
Capital Expenses is a non-recurring expenditure whereas revenue
expenses is normally a recurring one.L. Sec 28 defines various
income which are chargeable to tax under the head "Profits and
gains of business or profession".M. Expenditure incurred towards
demerger is deductible in 5 equal annual installments under Section
35DD of the Income-tax Act, 1961.
13. True and False/Correct And IncorrectA. Business expenses are
allowed to be deducted from" business income even if they are in
the nature of personal expenditure of the assessee, as long as they
are reasonable.Ans. False. No personal expenses shall be allowed
u/s 37(1).B.Where business is carried on, on behalf of the
assessee's minor child (whose income is clubbed in assessee's
hands), by the assessee, which is besides assessee's own business ,
the gross receipts of both should be reckoned for judging the
applicability of section 44AB of the Income-tax Act, 1961. Ans.
False. For the purpose of Sec.44AB, gross receipt or turnover from
business of assessee-individual shall be considered.C. No
disallowance under Section 40A(3) of the Income-tax Act, 1961
arises where an assessee makes a cash payment exceedings Rs. 20,000
towards purchase of a capital asset.Ans. True. Sec.40A(3) deals
with expenditure covered u/s 30 to 37. Hence, any cash payment made
for capital expenditure, subject to depreciation, is not covered by
Sec.40A(3).D. Depreciation is allowed when it is claimed.Ans.
False. According to explanation 5 to Sec.32, depreciation is
allowed even if it is not claimed by the assessee.E. In the case of
a dealer in shares, Income by way of dividend is taxable under the
heads "Profits and gains of business or profession". Ans. False.
Dividend on shares is specifically covered under the head 'Income
from Other Sources'.F. An assessee owns 11 trucks. One truck is
always kept as a spare vehicle and is never plied on the road.
Since only 10 vehicles are plied on the road at any given point of
time, the provisions of section 44AE of the Income Tax Act, 1961,
can be availed by the assessee.Ans. False. The benefit u/s 44AE is
available only if the assessee does not own more than 10 trucks.
However, in the instant case, assessee is owning more than 10
trucks, hence Sec.44AE is not applicable.G. Municipal tax in
respect of staff quarters is deductible only if it is paid, in
computing business income.Ans. True. As per Sec. 43B, while
computing business income, deduction in respect of any tax, duty,
cess, etc. is allowable on payment basis.H. Advertisement in any
souvenir, brochure, pamphlet or the like published by a political
party is not deductible under Section 37(2B) of the Income-tax Act,
1961. Ans. True. Expenditure incurred by an assessee on
advertisement in any souvenir, brochure, trade, pamphlet or like,
published by a political party is disallowed u/s 37(2B).
14.Multiple Choice Questions A. Long-term capital gains arising
on compulsory acquisition of agricultural land held by a domestic
company within specified urban limits is (a) not exempt under
Section 10(37);(b) exempt under Section 10(37) in full;(c) 50% of
the receipt is exempt under Section 10(37);(d) 25% of the receipt
is exempt under Section 10(37).Ans. (a) not exempt under Section
10(37).B. In case of an investor in shares, in respect of shares
sold, securities transactions tax paid (at the time of purchase of
the said shares earlier), is (a) to be added to the cost of
acquisition;(b) to be deducted as an expenditure connected with
transfer;(c) not deductible at all while computing capital
gains;(d) none of the above.Ans. (c) not deductible at all while
computing capital gains.C. In respect of listed shares held for 10
months sold on 12.8.2010, the rate of tax in respect of capital
gains is (a) 10%;(b) 20%;(c) 15%;(d) not determinable, as the
capital gains will form part of the total income whose other
components are not known.Ans. (c) 15%D. Capital gains arising to an
individual/HUF is exempt from tax under section 10(37) if the land
was being used for agriculture purposes by such HUF or individual
or parent of his during a period of or more immediately preceding
the date of transfer.(a) 2 years,(c) 12 months,(b) 36 months,(d) 6
monthsAns. (a) 2 yearsE. Long term capital gain arising to an
assessee on the sale of a capital asset is exempt under Section
54EC of the Income-tax Act, 1961 (a) To the extent of investment in
specified bonds up to a limit of X 100 lakhs.(b) To the extent of
50% of investment in certain bonds up to a limit of Rs. 50
lakhs.(c) To the extent of investment of capital gain in specified
bonds not exceeding Rs. 50 lakhs.(d) Proportionate to the extent of
investment of net sale proceeds in specifiedbonds, not exceeding
Rs. 50 lakhs.Ans. (c) To the extent of investment of capital gain
in specified bonds not exceeding Rs. 50 lakhs.
15. Fill in the BlanksA. 2010 - The cost of acquisition of 100
bonus shares, where the original shares (100 nos.) were acquired
for Rs.30,000 is Nil.
16. True and False/Correct and IncorrectA. Long-term capital
gains arising from units of debt-oriented equity funds for which
securities transactions tax has been paid in a recognized stock
exchange is exempt.Ans. False. Long-term capital gains arising from
units of equity-oriented equity funds for which securities
transactions tax has been paid in a recognized stock exchange is
exempt u/s 10(38).B. For computation of capital gains, full value
of consideration arising from the transfer of a capital asset,
being land or building or both, shall be the value adopted by the
"Stamp Valuation Authority" for payment of stamp duty or the
consideration accruing or received from the transfer, whichever is
less. Ans. False. As per Sec.50C, in case of transfer of immovable
capital asset being land or building or both, sale consideration
shall be higher of the following:1. Actual consideration received
or accrued on such transfer; or2. The value adopted or assessed or
assessable by any authority of a State Government (i.e. Stamp
Valuation Authority) for the purpose of payment of stamp duty.C.
Surplus on sale of motor car on which depreciation has been allowed
for all year by proprietor of a business will be taxed as long term
capital gain. Ans. False. Surplus on sale of motor car on which
depreciation has been allowed for all year by proprietor of a
business will be taxed as short term capital gain.D. Short-term
capital gains arising from sale of listed shares through a
recognized stock exchange, for which security transaction tax has
been paid, will be charged to tax at a concessional rate of
10%.Ans. False. Short-term capital gains arising from sale of
listed shares through a recognized stock exchange, for which
security transaction tax has been paid, will be charged to tax at a
concessional rate of 15%.
Multiple Choice Questions17. (A)Gift received from one or more
unrelated person(s) during the previous year shall form part of an
individual's income, if the aggregate of gifts exceeds (a) Rs.
50,000(b) Rs. 1,00,000(c) Rs. 1,35,000(d) Rs. 1,65,000Ans. (a) Rs.
50,000B. Cash gift received under Section 56(2)(vii) from non
relatives are not taxable upto (a) Rs. 1,00,000;(b) 175,000;(c) Rs.
50,000;(d) Rs. 25,000Ans. (c) Rs. 50,000.C. Mr. X gifts Rs.60,000
to the HUF of which he is member; said amount will be treated as
income of (a) Mr. X;(b) The HUF;(c) None, as it is exempt;(d) None
of the above.Ans. (b) The HUF.
18. Fill in the BlanksA. Interest on refund on Income-tax paid
in excess is a Taxable receipt.B. Amount received towards
permission for putting up hoarding at the top of the building is
taxable under the head Income from Other Sources.
19. True and False/Correct and IncorrectA. Mr. A has received
gift of Rs. 1,50,000 on 12th December, 2010 from his close friend
who is assessed to income-tax. The same is taxable at the hands of
Mr. A. Ans. True. Said gift is taxable u/s 56(2)(vii).B. Gift
received from assesssee's grandfather in excess of Rs. 50,000 will
be taxed as income from other sources.Ans. False. Gift from related
person is not taxable.C. Gift of a diamond necklace worth I
2,00,000 received from a friend by an individual assessee is not
taxable as income from other sources. Ans. False. Such gift is
taxable u/s 56(2)(vii).D. Mr. Janak has received as gift, gold
buillion bars worth Rs. 70,000 from his friend on his birthday on
15.3.2011. The same is not to be treated as income from other
sources.Ans. False. Gift of bullions is covered under
Sec.56(2)(vii), hence, it is taxable under the head 'Income from
Other Sources'.E. Mr. Saravanan follows mercantile system of
accounting. On 13.3.2011, he has received from the State
Government, in respect of lands acquired, interest on enhanced
compensation of Rs.1,50,000 which includes a sum of 120,000
relatable to this year. The amount assessable is Rs. 20,000. Ans.
False. As per amended provision of Sec. 145A(2), interest on
enhanced compensation is assessable as income from other source in
the year of receipts. Hence, entire Rs.1,50,000 shall be assessable
in the A.Y. 2011-12 subject to standard deduction available u/s
56(2)(viii).G. Mr. A has three minor children deriving interest
from bank deposits to of the tune of Rs.2,000, Rs.1,300 and
Rs.1,600 respectively. Exemption available under Section 10(32) of
the Income-tax Act, 1961 is-(a) Rs. 4,900;(c)Rs. 4,500;(b) Rs.
4,300;(d)None of above(c) Ans. (b) Rs. 4,300H. Miss Femina, aged
17, is married to Mr. Masculine. Her mother alone is alive. Income
by way of interest on loans, of Miss Femina will be -(a) Assessed
to tax in the hands of Mr. Masculine;(b) Assessed to tax in the
hands of her mother;(c) Taxable in own hands;(d) None of the
above.Ans. (b) Assessed to tax in the hands of her mother.
20.Fill in the BlanksA. Exemption u/s. 10(32) of IT Act 1961 in
respect of income of minor child included in the hands of assesses
under Section 64(1A) is restricted to Rs. 1,500 per child.B. Assets
held by minor married daughter will not (will/will not) be clubbed
in the hands of the individual.C. For the applicability of clubbing
provisions of the Wealth Tax Act, 1957, the expression 'child'
includes step child and adopted child.
21. Fill in the BlanksAccumulated losses of amalgamating company
shall be allowed to be set off or carried forward by amalgamates
company, if the amalgamated company holds continuously for a
minimum period of 5 years from date of amalgamation at least
three-fourths of the book value of assets of the amalgamating
company.
22. True and False/Correct and Incorrect1. Benefit of carry
forward and set off of accumulated losses and unabsorbed
depreciation is not available in case of amalgamation of a company
owning hotel, with another company.Ans. False. Benefit of carry
forward and set off of accumulated losses and unabsorbed
depreciation is available in case of amalgamation of a company
owning hotel, with another company u/s 72A.2. Business loss can be
set off against salary income.Ans. False;. As per Sec.71 (2A),
business loss cannot be set off against salary income.3. Section 73
does not permit carry forward of losses from speculation business
for more than four assessment years immediately succeeding the
assessment year for which the loss was first computed.Ans. True. As
per Sec.73, losses from speculation business cannot be carried
forward for more than four assessment years immediately succeeding
the assessment year for which the loss was first computed.
23.Multiple Choice QuestionsA. Government's contribution to the
new pension scheme referred to in Section 80CCD is -(a) an exempt
income;(b) income chargeable to tax as "Salaries" in full;(c) 50%
thereof is income chargeable to tax as "Salaries";(d) Income
chargeable to tax as "Income from other sources" in full.Ans. (b)
income chargeable to tax as "Salaries" in full.B. In case of a
hospital built in specified area after 31.3.2008 fulfilling the
required conditions laid down in Section 80IB-(11C), the profits
and gains derived from running the hospital are(a) deductible in
full;(b) deductible to the extent of 50%;(c) deductible to the
extent of 75%;(d) taxable in full.Ans. (a) deductible in full.
24. Fill in the BlanksA. For a person suffering from server
physical disability, deduction available under Section 80U is Rs.
1,00,000.B. The tax rebate available under Section 80E to a Hindu
Undivided Family resident in India is Rs. Nil.C. The maximum amount
of permissible deduction under Section 80C, subject to overall
ceiling of Rs. 1,00,000, for repayment of principal part of
eligible housing loan in Rs. any amount subject to max of Rs.100000
and that of interest is Rs. Nil.D. From out of his agricultural
income, X has paid interest of Rs.10,000 on education loan taken
from nationalized bank last year. Deduction available u/s 80E of
the Income Tax Act, 1961 is Rs. NILE. Medical insurance premium
paid otherwise than in cash is eligible for deduction under Section
80D of the Income-tax Act, 1961.
25.True and False/Correct And IncorrectA. Every assessee
carrying on a business or profession is entitled to deduction under
section 80JJAA equal to 30% of additional wages paid to new regular
workmen employed by the assessee. Ans. False. Deduction u/s 80JJAA
is available to Indian company only.B. In the case of an individual
resident in India, who is an author, maximum deduction available
from gross total income in respect of eligible royalty income is
Rs. 5,00,000,Ans. False. In the case of an individual resident in
India, who is an author, maximum deduction available from gross
total income in respect of eligible royalty income is Rs.
3,00,000.C. Market value of donation given in kind is also eligible
for deduction under Section 80G of the Income-tax Act, 1961.Ans.
False. Donation in kind is not eligible for deduction u/s 80G.
26. Multiple Choice QuestionsA. The registration of a charitable
trust can be cancelled under Section 12AA of the Income-tax Act,
1961 by '(a) Assessing Office;(b) Commissioner of Income-tax;(c)
Chief Commissioner of Income-tax;(d) Central Board of Direct
Taxes.Ans. (b) Commissioner of Income-tax.
27. Fill in the BlanksWhere a charitable trust is created on
01-04-2010, the application for registration u/s 12A of the
Income-tax Act, 1961 should be submitted within one year from
1-4-2010 (date of creation of trust).[Note Now, a trust is required
to apply for registration in Form 10A with the Commissioner of
Income tax. It is to be noted that exemption will be available from
the assessment year relevant to the financial year in which such
application is made.]
28.True and False /Correct And IncorrectA. Under Section 12A of
the Income-tax Act, 1961, application for registration of
charitable trust can be made within one year form the date of
creation of the trust.Ans. False. A trust is required to apply for
registration in Form 10A with the Commissioner of Income tax. It is
to be noted that exemption will be available from the assessment
year relevant to the financial year in which such application is
made.B. In case of an artificial judicial person, no surcharge is
payable where the total income exceeds Rs.10,00,000.Ans. True.
Surcharge is applicable only in case of corporate assessee.C.
Political parties governed by Section 13A of the Income-tax Act,
1961 have to file their returns of income within the time limit
prescribed under Section 139(1) even if there is no income
chargeable to tax under the Act. Ans. False. As per Sec.139(4B),
the chief executive officer (whether such chief executive officer
is known as Secretary or by any other designation) of any political
party is required to furnish a return in respect of income of such
political party, if the amount of gross total income before
allowing exemption u/s 13A exceeds the maximum amount not
chargeable to tax.
29.Multiple Choice QuestionsA. The income of any university or
other educational institution existing solely for educational
purposes and not for the purposes of profit is exempt under clause
(iiiad) of Section 10(23C) if the aggregate annual receipts'of such
university or educational institution do not exceed Rs. (a)
Rs.100crores,(c) Rs. 10crores,(b) Rs.1 crore,(d) Rs. 10 lakhsAns.
(b) Rs. 1 croreB. Any income chargeable under the based "Salaries"
is exempt from tax under Section 10(6)(viii), if it is received by
any non resident individual as remuneration for services rendered
in connection with his employment in a foreign ship where his total
stay in India does not exceed a period days in that previous
year.(a) 90(b) 182(c) 60(d) 120Ans. (a) 90 daysC. The following is
not a venture capital undertaking for the purposes of Sec.10(23F),
if engaged in business of-(a) Generation of power(b)
Telecommunications(c) Providing infrastructural facility(d) Dairy
farming whose shares are not listed in a recognized stock
exchangeAns. (d) Dairy farming whose shares are not listed in a
recognized stock exchange.
30. Fill in the BlanksA. To claim the benefit under Section 10A,
SEZ undertaking having a turnover of rupees two crores, should file
the return of income on or before 31st Oct 2011.B. Exemption under
Section 10B of the Income-tax Act, 1961 is available till
assessment year A.Y. 2012-13.
31. True and False /Correct and IncorrectA. Amount received
under Keyman insurance policy is not exempt under Section 10(10D)
of the Income-tax Act, 1961.Ans. True. Amount received under Keyman
insurance policy is specifically excluded from exemption u/s
10(10D).B. Amount received under Reverse Mortgage Scheme is taxable
as income under the head 'income form other sources'.Ans. False.
Amount received under Reverse Mortgage Scheme is exempted u/s
10(43).C. In case of assesses other than companies, the following
is advance tax rate to be payable on or before of 15lh
September:(a) 15 per cent(c) 45 per cent(b) 30 per cent(d) 60 per
centAns. (b) 30 per cent.
32. Fill in the BlanksWhile effecting the tax deduction at
source, education cess and special higher education cess totalling
3% need not (should/need not) be also deducted from the amount due
or payable to the deductee.
33.True and False/Correct and IncorrectA. As per Section 194-C
of the Income-tax Act, 1961, all Association of Persons and Body of
Individuals are liable to deduct tax at source from specified
payments made to resident contractors.Ans. False. An association of
persons or a body of individuals, whose books of account are
required to audited u/s 44AB (due to turnover or gross receipt
criteria) during the financial year immediately preceding the
financial year is liable to deduct tax at source.B. The rate of TDS
applicable for payment made on 28.2.2011 to non-individual
sub-contractor, as per section 194C, is 2%.Ans. True. As per Sec.
194C, where payee is a other than individual and HUF, tax shall be
deducted @ 2%.C. Only in the TDS certificate furnished by the
deductor, quoting the PAN of deductor is compulsory and not in the
other correspondences between the deductor and the deductee.Ans.
False. As per Sec. 206AA, PAN of deductor is required to be quoted
on TDS Statement and other correspondence.
34. Multiple Choice QuestionsA. In case of companies deriving
loss for any assessment year, filling of return of income within
the due date laid down in Section 139(1) is compulsory(a) only
where the Department issues notice to the assessee-company;(b) for
domestic companies only;(c) for foreign companies only;(d) for all
companies.Ans. (d) for all companies.B. Where assessment has not
been completed, belated income-tax return for assessment year
2011-12 can be filed upto(a) 31-03-2013(b) 31-12-2012(c)
31-03-2012(d) 31-12-2013Ans. (a) 31-03-2013C. The due date for
filing return of net wealth of an individual, who is a partner in a
firm, whose turnover for the year ended 31-03-2011 exceeds Rs. 60
lacs, is(a) 30th June, 2011(b) 31st July, 2011(c) 31st October,
2011(d) None of the aboveAns. (d) None of the above.D. Where the
karta is not available, the return of wealth of a HUF can be signed
by:(a) Any adult member of the family;(b) Any adult coparcener of
the family:(c) The male member who is next in seniority to the
karta;(d) None of the above.Ans. (a) Any adult member of the
family.E. Following Form Number is to be used for filing the return
of income by an individual having business income:(a) Form No.
1;(b) Form No. 2;(c) Form No. 4;(d) Form No. 4A.Ans. (c) Form No.
4.
35. Fill in the Blanks:A. Belated return of income for the
assessment year 2011-12 can be filed on or before 31st March. 2013.
where no assessment has been made. B. The due date for filling
wealth-tax return by a closely held company, whose turnover is
below Rs. 40 lakhs, is 30th September.C. Electronic furnishing of
income-tax return in approved computer readable media can be
furnished under sub-section (1B) of section 139 of the Income-tax
Act, 1961.D. 2009 - Time limit for filling revised return when
assessment has not been completed is one year from the end of the
relevant assessment year.E. Sec. 139(1) applies to all persons
whether they are resident or non-resident.
36.True and False/Correct And IncorrectPartnership firm deriving
loss need not file return of income.Ans. False. A firm is required
to furnish return of income mandatorily.
37. Multiple Choice QuestionsA. Surcharge of 2.5% is payable in
the case of companies, by(a) domestic companies only;(b) companies
other than domestic companies;(c) all companies;(d) None of the
above.Ans. (d) None of the above.[Note; Surcharge of 2.5% is
payable by non-domestic company if total income exceeds Rs.1
crore.]B. Expand - MAT. Ans. Minimum Alternate Tax
38.Fill in the BlanksA. For the assessment year 2011-12, tax on
distributed profits (dividend distribution tax) is payable at 15%
plus surcharge of 7.5% (+ Education Cess & SHEC 3%).B. The rate
of Minimum Alternate Tax has been increased from 15% to 18% of book
profits with effect from assessment year 2011 -12.C. Long term
capital gain which are exempt u/s. 10(38) credited to profit and
loss account are subject to (subject to/not subject to) Minimum
Alternate Tax, from assessment year 2011-12.D. A foreign company
means a Company which is not a domestic company.E. The rate of tax
in case of Minimum Alternate Tax has been increased to 18% % with
effect from Assessment year 2011 -12.
39. True and False/Correct and IncorrectA. For the purposes of
computing minimum alternate tax (MAT) under Section 115JB(2) of the
Income-tax Act, 1961 the book profit need not to be increased, by
inter alia, the amount of deferred tax debited to the profit and
loss account. Ans. False. For the purposes of computing minimum
alternate tax (MAT) under Section 115JB(2) of the Income-tax Act,
1961 the book profit required to be increased, by inter alia, the
amount of deferred tax debited to the profit and loss account.B.
The period for setting off the MAT credit under Section 115JB is
seven years.
40. Multiple Choice QuestionsA. Which one of the following is an
"asset" as per Section 2(ea) of the Wealth-tax Act?(a) Any
residential property forming part of stock-in-trade(b) Any
residential house that has been let out for a minimum period of 180
days during the previous year(c) Commercial complex(d) House
occupied for the purpose of assessee's business.Ans. (b) Any
residential house that has been let out for a minimum period of 180
days during the previous year.B. Under the Wealth Tax Act, 1957 the
time limit for completion of regular assessment is months from the
end of relevant assessment year.(a) 21(b) 12(c) 24(d) None of the
above.Ans. (a) 21C. In valuation of immovable property in
Bangalore, the specified area means of the aggregate area, for
wealth-tax purpose.(a) 60%(b) 65%(c) 70%(d) 75%Ans. (b) 65%D.The
following is not an asset as envisaged by Sec.2(ea) of the
Wealth-tax Act.(a) Bullion(b) Urban Land(c) Jeep used in business
of manufacture of medicines(d) Motor boats of fishing businessAns.
(d) Motor boats of fishing business.
41. Fill in the BlanksA. A plot of land not exceeding 500 sq.
meters of area, belonging to an individual is exempt from wealth
tax.B. Partial partition of HUF is not recognized (recognized/not
recognized) for purpose of Wealth-tax Act, 1957.C.Where L whose
cash and bank balance on 14.01.2011 is Rs. 50,000 gifts Rs.
2,50,000 to M, without any actual delivery of the money, Rs.
2,00,000 will be clubbed in the hands of L for wealth-tax
purposes.D. Under the Wealth-tax Act, 'assessment year' means the
period of 12 months commencing on 1st day of April every year,
falling immediately after the valuation date.E. The term 'net
wealth' is defined in Section 2(m) of the Wealth Tax Act.F. As per
Section 2(ea)(i) Wealth-tax Act, 1957,"asset" means, inter alia,
farm house situated within 25 Kilometers of any municipality.G.
Deemed individual is not liable to (liable to tax/not liable to
tax) under Section 2(22)(e) of the Income-tax Act, 1961.H. The term
"asset" is defined in clause (ea) of Section 2 of the Wealth-Tax
Act, 1957.I. In the case of an individual or a HUF, a plot of land
not exceeding 500 sq. metres in area is exempt under Section 5(vi)
of the Wealth-tax Act, 1957.J. In computing the net wealth of an
individual, the value of assets, which on the valuation date, are
held by a minor child who is a married daughter of such individual,
shall not (shall/shall not) be included.
42.True and False/Correct and IncorrectA. Property held by an
assessee under trust for any private purposes of charitable nature
in India is not an exempt asset under Section 5 of the Wealth-tax
Act.Ans. True. Property held by an assessee under trust for any
private purposes of charitable nature in India is not an exempt
asset under Section 5 of the Wealth-tax Act.B. A charitable trust
whose income is not exempt under any clause of Section 10 of the
Income-tax Act, 1960 will be chargeable to wealth-tax in all cases,
where the trust forfeits exemption.Ans. False. A trust forfeits
exemption only in circumstances given in Section 21A of the
Wealth-tax Act.C. The term 'individual', as a defied in the
Wealth-tax, 1957 means only a single human being.D. The term
'Individual' as defined in Wealth tax Act, 1957 means only a single
human being.Ans. False. As per various court decisions, individual
includes group of individuals forming one unit.E. Under the Wealth
Act, 1957 a person who is once treated as a citizen of India,
continues to be treated as a citizen of India for ever. Ans. False.
If a person voluntarily acquired citizenship of another country, he
would cease to be a citizen of India.F. Is it correct to state that
every member of AOP is an assessee for the purpose of wealth
tax?Ans. Correct. As per Sec. 2(c) read with Sec. 21AA of the
Wealth-tax Act, assessee includes every member of the AOP.G. A
political party is exempt from paying wealth tax.Ans. True. As per
Sec. 45, a political party is exempt from paying wealth tax.H. The
maximum amount of penalty leviable under Section 18(1)(c) of the
Wealth-tax Act, 1957 for concealing the particulars of any asset
chargeable-tax is five times the amount of tax sought to be
evaded.Ans. True. The maximum amount of penalty leviable u/s
18(1)(c) of the Wealth-Tax Act, 1957 for concealing the particulars
of any asset chargeable-tax is five times the amount of tax sought
to be evaded.I. An individual himself has to sign the return of
wealth and whatever be the contingency, cannot authorize another
persons to sign on his behalf. Ans. False. As per Sec.15A, where
for any reason, if an individual is not in a position to sign his
return, he can authorize another person.J. A company owns a plot of
urban land comprising of area of 500 square metres. Exemption is
not available in respect of this asset under the provision to
Section 5(vi) of the Wealth Tax Act, 1957. Ans. False. Exemption
u/s 5(vi) is not available to a company-assessee.K. Vacant side
held as stock-in-trade is not liable for wealth tax for 12 years
from the end of the year in which it was acquired.Ans. False.
Vacant side held as stock-in-trade is not liable for wealth tax for
10 years from the end of the year in which it was acquired.
LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple
AnswerQuestion The entertainment allowance received by the
Government employees is included in their salaries and the
deduction is allowed to the extent of least of the following
amounts :- CorrectAnswer Actual amount of Entertainment Allowance
received. ,Rs. 5,000 , 1/5th of Salary Your Answer Actual amount of
Entertainment Allowance received. , Rs. 5,000 , 1/5th of Salary
True/FalseQuestion Income Tax Act, 1961 recognizes Written Down
Value (WDV) method as well as straight line method for the
computation of depreciation u/s 32 this act. CorrectAnswer False
Your Answer False
Multiple Choice Multiple AnswerQuestion Profits earned by an
Industrial Undertaking engaged in other than infrastructure
development is available under Section 80IB for :- CorrectAnswer
Operation of Ship , Hotels situated in hilly area, rural area or
place of pilgrimage , Company engaged in scientific and industrial
research Your Answer Operation of Ship , Hotels situated in hilly
area, rural area or place of pilgrimage Multiple Choice Single
AnswerQuestion Which of the following expenditure is in the nature
of revenue expenditure? CorrectAnswer Expenditure incurred as
discount on issue ofdebentures Your Answer Expenditure incurred as
discount on issue of debentures Select The BlankQuestion If sum
received is net of TDS then it is to include in income from other
sources. CorrectAnswer Grossed up Your Answer Grossed up
True/FalseQuestion Interest paid on the loan for acquiring a
capital asset will be considered to be a part of cost of
acquisition. CorrectAnswer True Your Answer True
Multiple Choice Single AnswerQuestion Mr. A whose Gross Total
Income, before allowing deductions under Chapter VI-A is Rs.
1,45,000, wants to make the investments in the following
alternative forms Rs. 80,000 in PPF and Rs. 20,000 in
Infrastructure Bonds. The amount of rebate available to him u/s 88
is :- CorrectAnswer Rs. 18,000 Your Answer Rs. 18,000
Multiple Choice Single AnswerQuestion Interest on specified
securities or premium on redemption is exempt for :- CorrectAnswer
Non resident Indian Your Answer Non resident Indian
True/FalseQuestion As per section 2(11) of the Income Tax Act,
Block of Assets includes both tangible as well as intangible
assets. CorrectAnswer True Your Answer True
Multiple Choice Multiple AnswerQuestion Deductions in respect of
Certain Incomes received under Section 80L is available in respect
of CorrectAnswer Interest on Central or State Government Securities
, Interest on National Saving Certificates (NSCs) Interest on
National Saving Scheme, 1992 (NSS) , Bank Interest Your Answer
Interest on Central or State Government Securities , Interest on
National Saving Certificates (NSCs) Interest on National Saving
Scheme, 1992 (NSS) , Bank Interest
Multiple Choice Single AnswerQuestion Tax liability of a person
is based on :-
CorrectAnswer Residential status Your Answer Residential
status
Multiple Choice Multiple AnswerQuestion For the purpose of
income tax, the perquisites can beclassified into :- CorrectAnswer
Perquisites which are taxable in case of all types of employees ,
Perquisites which are taxable only in the hands of specified
employee Your Answer Perquisites which are taxable in case of all
types ofemployees , Perquisites which are taxable only in the hands
of specified employee
Select The BlankQuestion For an individual as a citizen of India
who leaves Indiain the relevant previous year for the purpose of
employment has to be in India for days or more during previous
year. CorrectAnswer 182 Your Answer 182
Multiple Choice Single AnswerQuestion Income earned in previous
year is subjected to tax in:- CorrectAnswer Assessment year Your
Answer Assessment year
Multiple Choice Multiple AnswerQuestion Following professional
institutions have their incomes exempt from tax :- CorrectAnswer
Town planning , Company secretary , Accounting Your Answer Town
planning , Company secretary , Accounting
Select The BlankQuestion
of the Tax Audit Report refers to the details
CorrectAnswer of various payments which are allowed as deduction
only if they are actually paid for.Section 43B Clause No-21 Your
Answer Section 43B Clause No-21
Multiple Choice Multiple AnswerQuestion Short Term Capital Loss
can be adjusted against :-
CorrectAnswer Short Term Capital Gains. , Long term Capital
Gains Your Answer Short Term Capital Gains. , Long term Capital
Gains
Select The BlankQuestion To claim sec 10A deduction unit must be
establishedin . CorrectAnswer Free Trade Zone Your Answer Free
Trade Zone
Multiple Choice Single AnswerQuestion Assessment year is the
period of 12 months starting from :- CorrectAnswer 1st April to
31st March Your Answer 1st April to 31st March
Multiple Choice Single AnswerQuestion Combined total of five
heads of income equals :-
CorrectAnswer Gross total income Your Answer Gross total
income
Multiple Choice Single AnswerQuestion If an employee does not
avail of this leave travel concession or assistance during a block
of four
CorrectAnswer calendar years :-Only one journey can be carried
forward to the next block. Your Answer Only one journey can be
carried forward to the next block.
Select The BlankQuestion To acquire PAN, a person shall apply in
to the assessing officer. CorrectAnswer Form No. 49A Your Answer
Form No. 49A
Multiple Choice Single AnswerQuestion Deduction from Capital
Gains under Section 54F is forCapital Gains arising from transfer
of :- CorrectAnswer Any Long Term Capital Asset Your Answer House
Property
Select The BlankQuestion Where an assessee files or submits the
returns as per provisions of section 139 or in response to the
notice under section 142, the assessment officer undertakesas per
section 143(2) and section 143(3). CorrectAnswer Scrutiny
Assessment Your Answer Scrutiny Assessment
Multiple Choice Multiple AnswerQuestion Income of a professional
association is exempt if its objectives are :- CorrectAnswer
Supervision , Control , Encouragement Your Answer Supervision ,
Control , Encouragement
True/FalseQuestion While computing the profits from Business and
profession, the business or profession must be carried out during
the previous year. CorrectAnswer True Your Answer True
Multiple Choice Single AnswerQuestion In respect of leave travel
concession If Mr. A has availed the exemption only once or has not
availed any exemption at all, in the block of four years
i.e.1998-2001 then :- CorrectAnswer He can carry over the exemption
to the next block of four years i.e. 2002-2005 provided that he
avails the exemption of LTC in the first calendar year of the next
block i.e. 2002. Your Answer He can carry over the exemption to the
next block offour years i.e. 2002-2005 provided that he avails the
exemption of LTC in the first calendar year of the next block i.e.
2002.
Multiple Choice Multiple AnswerQuestion The amount accumulated
to the credit of the employee's provident fund account is paid at
the time of :- CorrectAnswer Retirement , Resignation Your Answer
Retirement , Resignation
Multiple Choice Multiple AnswerQuestion From annual value,
following deductions are allowed :-
CorrectAnswer Standard deduction , Interest on borrowed capital
, Municipal taxes Your Answer Interest on borrowed capital ,
Municipal taxes
Multiple Choice Single AnswerQuestion As a general principle,
the Basic Salary or Wages, Dearness Allowance and Bonus /
Commission is :- CorrectAnswer Fully taxable. Your Answer Fully
taxable.
Multiple Choice Multiple AnswerQuestion From GTI of a company
following deductions under chapter VI A are allowed CorrectAnswer
80 G Donations , 80 HHB profits and gains fromprojects outside
India , 80 IA profits and gains of infrastructure companiesYour
Answer 80 G Donations , 80 IA profits and gains of infrastructure
companies
Multiple Choice Single AnswerQuestion Annual value of any one
palace in possession of aformer ruler is :- CorrectAnswer Exempt
Your Answer Taxable
Select The BlankQuestion If the Salary is more than Rs.
5,00,000, Standard
CorrectAnswer Deduction will be Rs. .20000 Your Answer 20000
Multiple Choice Single AnswerQuestion The amount of accumulated
interest on NSCs purchased in the earlier years is assumed to be
reinvested :- CorrectAnswer And qualifies for tax rebate under
section 88. Your Answer And qualifies for tax rebate under section
88.
Select The BlankQuestion Deduction u/s
B is available for 10
CorrectAnswer consequent assessment years from the year of
commencement of production.10 Your Answer 10
True/FalseQuestion Income from subletting is treated as income
from house property. CorrectAnswer False Your Answer False Select
The BlankQuestion Section 80U allows the deduction in respect of
the. CorrectAnswer Permanent physical disability Your Answer
Permanent physical disability
Match The FollowingQuestion Correct Answer Your Answer
DisallowableExpenditure Litigation Expenses in connection with
recovery of a debt which is not a trading debt Litigation Expenses
in connection with recovery of a debt which is not a trading debt
Business Includes trade, commerce, or manufacture or any adventure
or concern in the nature of trade, commerce or manufacture Includes
trade, commerce, or manufacture or any adventure or concern in the
nature of trade, commerce or manufacture Profession Includes
vocation Includes vocation
Capital Expenditure Expenditure incurred by a company with the
issue of rights shares Premium on redemption of Debentures
True/FalseQuestion Any recreational facility provided by the
employer to a group of employees (not being restricted to a select
few employees) is not exempt from tax. CorrectAnswer False Your
Answer False
True/FalseQuestion In case of deductions for medical treatment
under Section 80DDB the amount of deduction will be reduced by the
amount received under an insurance policy or the amount reimbursed
by the employer. CorrectAnswer True Your Answer True
True/FalseQuestion Any advance tax paid before 31st March is
treated as advance tax paid during the previous year. CorrectAnswer
True Your Answer True
Multiple Choice Single AnswerQuestion Municipal taxes paid is
allowed as deduction from :-
CorrectAnswer Gross annual value Your Answer Gross annual
value
True/FalseQuestion Entertainment Allowance received by the
employees from the private sector is taxable in the hands of the
employee. CorrectAnswer True Your Answer True
Match The FollowingQuestion Correct Answer Your Answer
Any subscription made to National Saving Scheme By an individual
or a HUF is eligible for rebate u/s 88 By an individual or a HUF is
eligible for rebate u/s 88 Mr. A, a 70 years old Senior Citizen,
has the Gross Total Income of Rs. 2,50,000 during the Assessment
Year2005-2006. Heinvested Rs. 50,000 in the tax saving bonds of
ICICI on 10th June2004. His tax liabilityfor the A Y 2005-2006.
RS.12,500 RS.12,500 During the Assessment Rs. 1,000 Rs. 1,000Year
2005-2006, Mrs. A, age 58 years, hasthe Gross Total Income of Rs.
1,45,000 including the dividend from Indian companies amounting to
Rs.10,000. She invests Rs. 50,000 in PPF during the said Assessment
Year. her tax liabilit isAny contribution made
Is eligible for rebate u/s Is eligible for rebate u/s to a
Public Provident 88 88Fund
Multiple Choice Multiple AnswerQuestion Following incomes of
local authorities are exempt :-
CorrectAnswer Capital gains , Other income , House property Your
Answer Capital gains , Other income , House property
Multiple Choice Multiple AnswerQuestion For Deduction u/s 54EC
from Capital Gains the assessee should invest the whole or part of
the capital gains in the specified assets :- CorrectAnswer Within
six months from the date of transfer of the long-term capital asset
Your Answer Within six months from the date of transfer of the
long-term capital asset
True/False
RegistrationNumber: 200425352Name: Sarada J.H Subject: Taxation
Assignment Status As On: 12/02/2006
Result for this Assignment
Assignment Date11/02/2006Number of Correct Questions39Number of
Skipped Questions3Number of Wrong Questions8Total Questions
attempted50Total Marks obtained85 Out of 100.ResultPass
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer
QuestionThe entertainment allowance received by the Government
employees is included in their salaries and the deduction is
allowed to the extent of least of the following amounts :-
Correct AnswerActual amount of Entertainment Allowance received.
, Rs. 5,000 , 1/5th of Salary
Your AnswerActual amount of Entertainment Allowance received. ,
Rs. 5,000 , 1/5thof Salary
True/False
QuestionIncome Tax Act, 1961 recognizes Written Down Value (WDV)
method aswell as straight line method for the computation of
depreciation u/s 32 this act.
Correct AnswerFalse
Your AnswerFalse
Multiple Choice Multiple Answer
QuestionProfits earned by an Industrial Undertaking engaged in
other than infrastructure development is available under Section
80IB for :-
Correct AnswerOperation of Ship , Hotels situated in hilly area,
rural area or place of pilgrimage , Company engaged in scientific
and industrial research
Your AnswerOperation of Ship , Hotels situated in hilly area,
rural area or place ofpilgrimage
Multiple Choice Single Answer
QuestionWhich of the following expenditure is in the nature of
revenue expenditure?
Correct AnswerExpenditure incurred as discount on issue of
debentures
Your AnswerExpenditure incurred as discount on issue of
debentures
Select The Blank
QuestionIf sum received is net of TDS then it is to include in
incomefrom other sources.
Correct AnswerGrossed up
Your AnswerGrossed up
True/False
QuestionInterest paid on the loan for acquiring a capital asset
will be considered to be a part of cost of acquisition.
Correct AnswerTrue
Your AnswerTrue
Multiple Choice Single Answer
QuestionMr. A whose Gross Total Income, before allowing
deductions under Chapter VI-A is Rs. 1,45,000, wants to make the
investments in the following alternative forms Rs. 80,000 in PPF
and Rs. 20,000 in Infrastructure Bonds. The amount of rebate
available to him u/s 88 is :-
Correct AnswerRs. 18,000
Your AnswerRs. 18,000
Multiple Choice Single Answer
QuestionInterest on specified securities or premium on
redemption is exempt for:-
Correct AnswerNon resident Indian
Your AnswerNon resident Indian
True/False
QuestionAs per section 2(11) of the Income Tax Act, Block of
Assets includes both tangible as well as intangible assets.
Correct AnswerTrue
Your AnswerTrue
Multiple Choice Multiple Answer
QuestionDeductions in respect of Certain Incomes received under
Section 80L isavailable in respect of
Correct AnswerInterest on Central or State Government Securities
, Interest on National Saving Certificates (NSCs) Interest on
National Saving Scheme, 1992 (NSS) , Bank Interest
Your AnswerInterest on Central or State Government Securities ,
Interest on National Saving Certificates (NSCs) Interest on
National Saving Scheme, 1992 (NSS) , Bank Interest
Multiple Choice Single Answer
QuestionTax liability of a person is based on :-
Correct AnswerResidential status
Your AnswerResidential status
Multiple Choice Multiple Answer QuestionFor the purpose of
income tax, the perquisites can be classified into :-
Correct AnswerPerquisites which are taxable in case of all types
of employees , Perquisites which are taxable only in the hands of
specified employee
Your AnswerPerquisites which are taxable in case of all types of
employees , Perquisites which are taxable only in the hands of
specified employee
Select The Blank
QuestionFor an individual as a citizen of India who leaves India
in the relevantprevious year for the purpose of employment has to
be in India for days or more during previous year.
Correct Answer182
Your Answer182
Multiple Choice Single Answer
QuestionIncome earned in previous year is subjected to tax in
:-
Correct AnswerAssessment year
Your AnswerAssessment year
Multiple Choice Multiple Answer
QuestionFollowing professional institutions have their incomes
exempt from tax :- Correct AnswerTown planning , Company secretary
, Accounting
Your AnswerTown planning , Company secretary , Accounting
Select The Blank
Question of the Tax Audit Report refers to the details of
variouspayments which are allowed as deduction only if they are
actually paid for.
Correct AnswerSection 43B Clause No-21
Your AnswerSection 43B Clause No-21
Multiple Choice Multiple Answer
QuestionShort Term Capital Loss can be adjusted against :-
Correct AnswerShort Term Capital Gains. , Long term Capital
Gains
Your AnswerShort Term Capital Gains. , Long term Capital
Gains
Select The Blank
QuestionTo claim sec 10A deduction unit must be established in
.
Correct AnswerFree Trade Zone
Your AnswerFree Trade Zone
Multiple Choice Single Answer
QuestionAssessment year is the period of 12 months starting from
:-
Correct Answer1st April to 31st March
Your Answer1st April to 31st March
Multiple Choice Single Answer
QuestionCombined total of five heads of income equals :-
Correct AnswerGross total income
Your AnswerGross total income
Multiple Choice Single Answer
QuestionIf an employee does not avail of this leave travel
concession or assistance during a block of four calendar years
:-
Correct AnswerOnly one journey can be carried forward to the
next block.
Your AnswerOnly one journey can be carried forward to the next
block.
Select The Blank QuestionTo acquire PAN, a person shall apply in
to the assessing officer.
Correct AnswerForm No. 49A
Your AnswerForm No. 49A
Multiple Choice Single Answer
QuestionDeduction from Capital Gains under Section 54F is for
Capital Gains arising from transfer of :-
Correct AnswerAny Long Term Capital Asset
Your AnswerHouse Property
Select The Blank
QuestionWhere an assessee files or submits the returns as per
provisions of section 139 or in response to the notice under
section 142, the assessment officer undertakes as per section
143(2) and section 143(3).
Correct AnswerScrutiny Assessment
Your AnswerScrutiny Assessment
Multiple Choice Multiple Answer
QuestionIncome of a professional association is exempt if its
objectives are :-
Correct AnswerSupervision , Control , Encouragement
Your AnswerSupervision , Control , Encouragement
True/False
QuestionWhile computing the profits from Business and
profession, the business or profession must be carried out during
the previous year.
Correct AnswerTrue
Your AnswerTrue
Multiple Choice Single Answer
QuestionIn respect of leave travel concession If Mr. A has
availed the exemption only once or has not availed any exemption at
all, in the block of four years i.e. 1998-2001 then :-
Correct AnswerHe can carry over the exemption to the next block
of four years i.e.2002-2005 provided that he avails the exemption
of LTC in the firstcalendar year of the next block i.e. 2002.
Your AnswerHe can carry over the exemption to the next block of
four years i.e.2002-2005 provided that he avails the exemption of
LTC in the firstcalendar year of the next block i.e. 2002.
Multiple Choice Multiple Answer
QuestionThe amount accumulated to the credit of the employee's
provident fund account is paid at the time of :-
Correct AnswerRetirement , Resignation
Your AnswerRetirement , Resignation
Multiple Choice Multiple Answer
QuestionFrom annual value, following deductions are allowed
:-
Correct AnswerStandard deduction , Interest on borrowed capital
, Municipal taxes
Your AnswerInterest on borrowed capital , Municipal taxes
Multiple Choice Single Answer
QuestionAs a general principle, the Basic Salary or Wages,
Dearness Allowance and Bonus / Commission is :-
Correct AnswerFully taxable.
Your AnswerFully taxable.
Multiple Choice Multiple Answer
QuestionFrom GTI of a company following deductions under chapter
VI A are allowed
Correct Answer80 G Donations , 80 HHB profits and gains from
projects outside India ,80 IA profits and gains of infrastructure
companies
Your Answer80 G Donations , 80 IA profits and gains of
infrastructure companies
Multiple Choice Single Answer
QuestionAnnual value of any one palace in possession of a former
ruler is :-
Correct AnswerExempt
Your AnswerTaxable
Select The Blank
QuestionIf the Salary is more than Rs. 5,00,000, Standard
Deduction will beRs. .
Correct Answer20000
Your Answer20000
Multiple Choice Single Answer
QuestionThe amount of accumulated interest on NSCs purchased in
the earlier years is assumed to be reinvested :-
Correct AnswerAnd qualifies for tax rebate under section 88.
Your AnswerAnd qualifies for tax rebate under section 88.
Select The Blank
QuestionDeduction u/s B is available for 10 consequent
assessmentyears from the year of commencement of production.
Correct Answer10
Your Answer10
True/False
QuestionIncome from subletting is treated as income from house
property.
Correct AnswerFalse
Your AnswerFalse
Select The Blank
QuestionSection 80U allows the deduction in respect of the .
Correct AnswerPermanent physical disability
Your AnswerPermanent physical disability
Match The Following
QuestionCorrect Answer Your Answer
Disallowable ExpenditureLitigation Expenses in connection with
recovery of a debt which is not atrading debtLitigation Expenses in
connection with recovery of a debt which is not a trading debt
BusinessIncludes trade, commerce, or manufacture or any
adventure or concern in the nature of trade, commerce or
manufactureIncludes trade, commerce, or manufacture or any
adventure or concernin the nature of trade, commerce or
manufacture
Profession Includes vocation Includes vocation
Capital ExpenditureExpenditure incurred by a company with the
issue of rights sharesPremium on redemption of Debentures
True/False
QuestionAny recreational facility provided by the employer to a
group of employees (not being restricted to a select few employees)
is not exempt from tax.
Correct AnswerFalse
Your AnswerFalse
True/False
QuestionIn case of deductions for medical treatment under
Section 80DDB theamount of deduction will be reduced by the amount
received under an insurance policy or the amount reimbursed by the
employer.
Correct AnswerTrue
Your AnswerTrue
True/False
QuestionAny advance tax paid before 31st March is treated as
advance tax paid during the previous year.
Correct AnswerTrue
Your AnswerTrue
Multiple Choice Single Answer
QuestionMunicipal taxes paid is allowed as deduction from :-
Correct AnswerGross annual value
Your AnswerGross annual value
True/False QuestionEntertainment Allowance received by the
employees from the private sector is taxable in the hands of the
employee.
Correct AnswerTrue
Your AnswerTrue
Match The Following
Question Correct Answer Your Answer
Any subscription made to National Saving SchemeBy an individual
or a HUF is eligible for rebate u/s 88By an individual or a HUF is
eligible for rebate u/s 88
Mr. A, a 70 years old Senior Citizen, has the Gross Total Income
of Rs.2,50,000 during the Assessment Year 2005-2006. He invested
Rs.50,000 in the tax saving bonds of ICICI on 10th June 2004. His
tax liability for the A Y 2005-2006.RS.12,500RS.12,500
During the Assessment Year 2005-2006, Mrs. A, age 58 years, has
the Gross Total Income of Rs. 1,45,000 including the dividend from
Indian companies amounting to Rs. 10,000. She invests Rs. 50,000 in
PPF during the said Assessment Year. her tax liabilit isRs.
1,000Rs. 1,000
Any contribution made to a Public Provident FundIs eligible for
rebate u/s 88Is eligible for rebate u/s 88
Multiple Choice Multiple Answer
QuestionFollowing incomes of local authorities are exempt :-
Correct AnswerCapital gains , Other income , House property
Your AnswerCapital gains , Other income , House property
Multiple Choice Multiple Answer
QuestionFor Deduction u/s 54EC from Capital Gains the assessee
should invest the whole or part of the capital gains in the
specified assets :-
Correct AnswerWithin six months from the date of transfer of the
long-term capital asset
Your AnswerWithin six months from the date of transfer of the
long-term capital asset
True/False
QuestionIncome from partnership firms is exempt from taxation
for the partners
Correct AnswerTrue
Your AnswerFalse
RegistrationNumber: 200425352Name: Sarada J.H Subject: Taxation
Assignment StatusAs On: 12/02/2006
Result for this Assignment
Assignment Date11/02/2006
Number of Correct Questions39
Number of Skipped Questions3
Number of Wrong Questions8
Total Questions attempted50
Total Marks obtained85 Out of 100.
ResultPass
Taxation-------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The BlankQuestion The basic advantage of having an agent
in the export market is . Correct Answer He is knowledgeable of the
marketing condition Your Answer He is knowledgeable of the
marketing condition
Multiple Choice Multiple AnswerQuestion How does the customer
know about the product & is influenced to buy it?Correct Answer
Publicity , Advertising , Sales promotionYour Answer Publicity ,
Advertising , Sales promotion
Multiple Choice Single AnswerQuestion Which of the following is
not included in foreign environment? Correct Answer Local
dimensionYour Answer Local dimension
Multiple Choice Single AnswerQuestion Why should a market
researcher check a country's import tariffs when he isinvestigating
it as an export market?Correct Answer It can affect the
competitiveness of product against products made within the
marketYour Answer It can affect the competitiveness of product
against products made within the market
Multiple Choice Multiple AnswerQuestion This question is based
on the case study "Oriental Silk Pvt. Ltd.". What are the
distribution channels used for imports of silk products into USA
market?Correct Answer Merchant intermediaries , Departmental
storesYour Answer Merchant intermediaries , Departmental stores
True/FalseQuestion This question is based on the case study
"Oriental Silk Pvt. Ltd.". Oriental entered theUS market in 1970
with a moderate export of Rs.20 million. Correct Answer FalseYour
Answer False
Match The FollowingQuestion Correct Answer Your Answer
Indirect exporting Home-based merchant Copyright Business
dimensions Channel network Channel network Legal dimensions
Copyright Use of patentLicensing arrangement Use of patent
Home-based merchant
Multiple Choice Single AnswerQuestion What is important to take
pricing decision? Correct Answer CompetitionYour Answer
Competition
Select The BlankQuestion In , the firm faces only one set of
customers.Correct Answer Domestic marketingYour Answer Domestic
marketing
Multiple Choice Multiple AnswerQuestion This question is based
on the case study "Oriental Silk Pvt. Ltd.". Oriental was an active
member of some councils, which are those? Correct Answer Apparel
Export Promotion Council , Woolen Export Promotion CouncilYour
Answer Apparel Export Promotion Council , Woolen Export Promotion
Council
Multiple Choice Single AnswerQuestion This question is based on
the case study 'AB Enterprises'. What is the problem in adapting AB
Enterprises product in the market?Correct Answer Novelty is lost
due to ethnic character in AB EnterprisesYour Answer Novelty is
lost due to ethnic character in AB Enterprises
Multiple Choice Multiple AnswerQuestion What are the important
infrastructure factors in evaluating production site?Correct Answer
Industrial site , Transportation & communicationYour Answer
Industrial site , Transportation & communication
Multiple Choice Multiple AnswerQuestion This question is based
on the case study "Oriental Silk Pvt. Ltd.". Which are the two
years the imports of silk fabrics from Japan by USA was almost
same?Correct Answer 1982 , 1983Your Answer 1982 , 1983
Select The BlankQuestion dimensions include customs and
practicesCorrect Answer BusinessYour Answer Business
Multiple Choice Multiple AnswerQuestion What is the nature of
direct export market?Correct Answer Concentrated , Large potential
saleYour Answer Concentrated , Large potential sale
Multiple Choice Single AnswerQuestion What does product-mix
decision include? Correct Answer PackagingYour Answer Packaging
Multiple Choice Multiple AnswerQuestion What are the internal
sources of information?Correct Answer Sales record , Correspondence
from salesmenYour Answer Sales record , Correspondence from
salesmen
True/FalseQuestion This question is based on the case study
"Oriental Silk Pvt. Ltd.". Mr.Patnaik felt that it was high time
that he appraises his agents' performance relating to the vast
& expanding US market.Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion This question is based
on the case study "Oriental Silk Pvt. Ltd.". What were the
optionsMr.Patnaik had to operate in the US market?Correct Answer
Opening a branch office , A subsidiary companyYour Answer Opening a
branch office , A subsidiary company
Select The BlankQuestion In indirect export channel, the market
is . Correct Answer DispersedYour Answer Dispersed
True/FalseQuestion Strategies suggested in the Medium Term
Export Plan include product-market penetration strategy for
existing products, product-market, diversification for new products
& new markets.Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion Why is packaging so
important for product planning?Correct Answer As it enhances
protection , As it gives shelf life for a productYour Answer As it
enhances protection , As it gives shelf life for a product
True/FalseQuestion If foreign retailers are used, the products
in question are industrial products rather than consumer
products.Correct Answer FalseYour Answer True
Multiple Choice Multiple AnswerQuestion How is the nature of
international strategy?Correct Answer Depends on company's
objectives , Varies from country to countryYour Answer Depends on
company's objectives , Varies from country to country
Select The BlankQuestion "make site booking" is a point of
checklist of _ Correct Answer Before the fairYour Answer Before the
fair
Multiple Choice Single AnswerQuestion What marketing technique
is used to know international marketing need?Correct Answer
Marketing information & researchYour Answer Marketing
information & research
Multiple Choice Multiple AnswerQuestion What are the benefits of
participation in trade fair?Correct Answer To get to know about
competition , To know about the extent of product adaptionYour
Answer To get to know about competition , To know about the extent
of product adaption
Select The BlankQuestion Experience survey, which is also called
as .Correct Answer Key informant surveyYour Answer Key informant
survey
Multiple Choice S