Question 1

Exemption u/s 54 is allowed when a residential house is sold and the investment is made in .............................

Accepted Answer

A)  another residential house.
B)  land.
C)  shares.
D)  jewellery.E) B) and D)
F) B) and C) A

Question 2

. Cost of long term debentures are.....................

Accepted Answer

A)  eligible for indexing.
B)  not eligible for indexing.
C)  none of these.
D)  all the above.E) A) and C)
F) B) and C) B

Question 3

Under section 44AB 'specified date' means, ...............................

Accepted Answer

A)  30th june
B)  30th september
C)  30th november
D)  31st decemberE) A) and B)
F) A) and C)

Question 4

Statutory limit for exemption of compensation received at the time of voluntary retirement (VRS)  is.............................

Accepted Answer

A)  rs. 5,00,000.
B)  rs. 8,00,000.
C)  rs. 10,00,000.
D)  rs. 15,00,000.E) A) and D)
F) None of the above

Question 5

Deduction from gross Total income is allowed under Sec. 80C up to lower of the Qualifying amount or a maximum of.

Accepted Answer

A)  rs. 50,000.
B)  rs. 80,000.
C)  rs. 1,00,000.
D)  rs. 2,00,000.E) All of the above
F) A) and D)

Question 6

Rate of depreciation on furniture is........................

Accepted Answer

A)  5%
B)  15%
C)  10%
D)  20%E) A) and B)
F) C) and D)

Question 7

To be a long term capital asset, a non financial asset should be held more than................

Accepted Answer

A)  12 months.
B)  24 months.
C)  36 months.
D)  60 months.E) B) and C)
F) A) and B)

Question 8

Unabsorbed capital expenditure on scientific research can be carried forward for...............

Accepted Answer

A)  15 years.
B)  14 years.
C)  8 years.
D)  10E) A) and C)
F) A) and B)

Question 9

Tax on short-term gain on sale of listed shares is................

Accepted Answer

A)  20%.
B)  25%.
C)  30%.
D)  15%.E) B) and D)
F) A) and B)

Question 10

FMV on 1.4.81 is applicable to assets.......................

Accepted Answer

A)  acquired prior to 1.4.81.
B)  transferred prior to 1.4.81.
C)  acquired after 1.4.81.
D)  none of the above.E) A) and D)
F) A) and C)

Question 11

Which one of the following is not an admissible expense

Accepted Answer

A)  income tax
B)  excise duty
C)  bad debt
D)  sales taxE) A) and B)
F) None of the above

Question 12

Cost inflation rules for the purpose of long term capital gain has been notified by central government every year starting from the financial year..................

Accepted Answer

A)  1991-92.
B)  1985-86.
C)  1981-82.
D)  1975-76.E) C) and D)
F) A) and B)

Question 13

Short term capital gain on sale of unlisted shares are.................

Accepted Answer

A)  taxable.
B)  exempted.
C)  partially exemptD) A) and C)
E) All of the above

Question 14

What is the date on which Fair Market Value of capital assets acquired is determined?

Accepted Answer

A)  1.4.2001.
B)  1.4.1971.
C)  1.4.1981.
D)  1.4.1971E) B) and C)
F) All of the above

Question 15

Additional depreciation is allowed at half the rate, if the asset is used in the initial year for.................................

Accepted Answer

A)  195 days.
B)  199 days.
C)  360 days.
D)  less than 180 days.E) A) and C)
F) A) and B)

Question 16

Long term capital gain on sale of unlisted shares are........................

Accepted Answer

A)  taxable.
B)  exempted.
C)  partially exemptD) All of the above
E) None of the above A

Question 17

What is the time limit for holding of a Financial Asset, to be called Short Term Capital Asset?

Accepted Answer

A)  not more than 6 months.
B)  not more than 12 months.
C)  not more than 24 months.
D)  not more than 36 months.E) C) and D)
F) B) and C)

Question 18

Cost of improvement incurred prior to 1.4.81 is................

Accepted Answer

A)  indexed separately.
B)  indexed along with cost of acquisition.
C)  ignored fully.
D)  none of these.E) A) and C)
F) C) and D)

Question 19

Income from sale of rural Agricultural land is..................

Accepted Answer

A)  taxable capital gain.
B)  exempted capital gain.
C)  taxable income.
D)  none of these.E) B) and D)
F) A) and D)

Question 20

Contribution made to an approved research association is eligible for deduction up to.................

Accepted Answer

A)  50%.
B)  80%.
C)  100%.
D)  125%.E) C) and D)
F) A) and D)

Exam 5: Taxation and Depreciation Rates

Exemption u/s 54 is allowed when a residential house is sold and the investment is made in .............................

Correct AnswerverifiedA

. Cost of long term debentures are.....................

Correct AnswerverifiedB

Under section 44AB 'specified date' means, ...............................

Correct AnswerverifiedShow Answer

Statutory limit for exemption of compensation received at the time of voluntary retirement (VRS) is.............................

Correct AnswerverifiedShow Answer

Deduction from gross Total income is allowed under Sec. 80C up to lower of the Qualifying amount or a maximum of.

Correct AnswerverifiedShow Answer

Rate of depreciation on furniture is........................

Correct AnswerverifiedShow Answer

To be a long term capital asset, a non financial asset should be held more than................

Correct AnswerverifiedShow Answer

Unabsorbed capital expenditure on scientific research can be carried forward for...............

Correct AnswerverifiedShow Answer

Tax on short-term gain on sale of listed shares is................

Correct AnswerverifiedShow Answer

FMV on 1.4.81 is applicable to assets.......................

Correct AnswerverifiedShow Answer

Which one of the following is not an admissible expense

Correct AnswerverifiedShow Answer

Cost inflation rules for the purpose of long term capital gain has been notified by central government every year starting from the financial year..................

Correct AnswerverifiedShow Answer

Short term capital gain on sale of unlisted shares are.................

Correct AnswerverifiedShow Answer

What is the date on which Fair Market Value of capital assets acquired is determined?

Correct AnswerverifiedShow Answer

Additional depreciation is allowed at half the rate, if the asset is used in the initial year for.................................

Correct AnswerverifiedShow Answer

Long term capital gain on sale of unlisted shares are........................

Correct AnswerverifiedA

What is the time limit for holding of a Financial Asset, to be called Short Term Capital Asset?

Correct AnswerverifiedShow Answer

Cost of improvement incurred prior to 1.4.81 is................

Correct AnswerverifiedShow Answer

Income from sale of rural Agricultural land is..................

Correct AnswerverifiedShow Answer

Contribution made to an approved research association is eligible for deduction up to.................

Correct AnswerverifiedShow Answer

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