Professional Documents
Culture Documents
Tax Planning and Management
Tax Planning and Management
UNIVERSITY OF CALICUT
SCHOOL OF DISTANCE EDUCATION
IV SEMESTER – ELECTIVE IV
1. Concealment of income or false claims to reduce tax liability are cases of ------
a. Tax evasion b. Tax planning
c. Tax avoidance d. Tax management
2. Using the loopholes of law to reduce tax is known as
a. Tax evasion b. Tax planning
c. Tax avoidance d. Tax management
3. ------ is the device which satisfies the requirements of the law but not in accordance with the
intentions of the law
a. Tax evasion b. Tax planning
c. Tax avoidance d. Tax management
4. Reducing tax liability, utilizing the deductions, exemptions or reliefs allowed in the Act and
Rules is called----
a. Tax evasion b. Tax planning
c. Tax avoidance d. Tax management
5. Compliance of the legal requirements in connection with the tax is the essence of -----
a. Tax evasion b. Tax planning
b. Tax avoidance d. Tax management
6. Tax avoidance is ----
a. Illegal b. Immoral c. Lawful b. All of these
7. Availing tax holiday by a new industrial undertakings in backward areas is a case of
a.Tax evasion b. Tax planning
c. Tax avoidance d. Tax management
8. Compliance with legal formalities and availing tax incentives are cases of
a. Tax evasion b. Tax planning
c. Tax avoidance d. Tax management
9. Return of income must be furnished on or beforethe due date as per a part of-----
a. Tax evasion b. Tax planning c. Tax avoidance d. Tax management
10. The total income of a domestic company is taxable at the rate of -------
a. 20% b. 30% c. 40% d. 35%
11. The total income of a non domestic company is taxable at the rate of----
a. 20% b. 30% c. 40% d. 35%
12. Under the Income-tax Act, 1961, which of the following outlays incurred by Sun Ltd. during the
previous year ended 31st March, 2019 will not be admissible as deduction while computing its
business income
a. Contribution to a political party in cash
b. Interest on loan taken for payment of income-tax
c. Capital exnditure on advertisement
d. All of the above
13. Any corporation by or under any Central, State or Provincial Act or a Government Company as
defined in the Companies Act is called -----
a. Public Sector Company b. Joint company
c. Private Sector company d. Provincial Company
14. Any company which has made the prescribed arrangements for the declaration and payment of
dividends within India is called ------
a. Domestic Company b. Non domestic company
c. Public sector company d. Provincial company
15. A company which is neither an Indian company not has made the prescribed arrangements for
the declaration and payment of dividends within India is called -----
a. Domestic Company b. Foreign Company
c. Public sector company d. Provincial company
16. A company in which the public are not substantially interested is closed------
a. Open company b. Closely held company
c. Limited company d. None of these
17. A person carrying not less than----- of the voting power in a company is said to have substantial
interest in the company.
a. 10% b. 20% c. 30% d. 40%
38. In accordance with the provisions of Section 17(1) of Income Tax Act, 1961, the term salary
includes _______________
a. Any annuity or pension b. Any gratuity
c. Any fees, commission, perquisite or profits in lieu of or in addition to any salary orwages
d. All of the above
39. Under the Income-tax Act, 1961, 'notional profit' from speculative business is –
a. Taxable under the head 'income from profits and gains of business and profession
b. Taxable under the head 'income from other ' sources'
c. Taxable either as income from other sources or as income from profits and gains of business
and profession
d. Not taxable.
40. The books of accounts are to be kept and maintained for a period of how many years from the
end of the relevant assessment year.
a. 6 years b. 5 years c. 8 years d. Unlimited period
41. Alternate Minimum Tax shall not be applicable to a non-corporate assessee who has claimed any
deduction under:
a. Sections 80-IA to 80RRB b. section 80P
c. Section 10AA d. Section 35AD
42. Under the Income-tax Act, 1961, interest on capital received by a partner from a partnership firm
is chargeable under the head
a. Profits and gains of business or profession b. Income from other sources
c. Capital gains d. None of the above
43. The employer made a contribution of Rs 25,000 to recognized provident fund for the previous
year 2018-19. Such payment was made on 12th March, 2019. Such expenditure shall be considered
as
a. Revenue expenditure b. Capital expenditure
c. Deferred revenue expenditure d. None of the above
44.Income tax rates are fixed in……………..
a. Income tax Act b. Finance Act c. Income tax rules d. Finance rules
45. Section 2(9) of Income tax deals with…………..
a. Person b. Assessee c. Previous Year d. Assessment Year
57. Which is the charging section of income under the head profits and gains of business or
profession?
a. Section 15 b. Section 24 c. Section 28 d. Section 17
58.Which of the following taxes are allowed as deduction while computing the business income?
a. Wealth-tax b. Income-tax c. Sales tax d. None of the above
59. As per section 30, which expenditure incurred for a building used for the business or profession
shall not be allowed as deduction?
a. Rent, rates and taxes b. Insurance of building
b. Repairs of building d. Capital expenditure
60 .Group of assets falling within a class of assets comprising of tangible & intangible assets is
known as :
a. Group of assets b. Block of assets
d. Set of assets d. Cluster of assets
61. A short term capital asset means a capital asset held by the assesse for not more than
a. 12 Months immediately preceding the month of its transfer
b. 24 Months immediately preceding the month of its transfer
c. 36 Months immediately preceding the month of its transfer
d. None of these
62. -------- are treated as agricultural income
a. Income from poultry farm b. Income from bee heaving
c. Purchase of standing crops d. All of these
63. Long term capital loss can be set off against -----
a. Long term capital loss b. Short term capital loss
c. Long term capital gain d. All of these
64. Clubbing of income means
a. Adding income of two persons
b. Inclusion of income of other person in assessee’sincome
c. Total income of various heads
d. Collection of income
65. Income from horse race falls under the head
a. Salary b. Other sources c. Profession d. Business
66. Which of the following is not taxable under the head income from other sources?
a. Family pension
b. Sum received under Keyman Insurance Policy
c. Rent received on letting of business
d. Salary to a member of parliament
67. PAN stands for
a. Private bank Number b. Permanent Account Number
c. Personal Account Number d. Passive Account Number
68. Donation is deductible under section
a. 80 C b. 80D c. 80 E d. 80 G
69. Return filed after the due date is called
a. Revised return b. Best return
c. Belated return d. Defective return
70. Tax deduction available to certain industries for the initial few years is called-----
a. Tax Holiday b. Tax c. TDS d. Advance
71. An assessee was engaged in the business of cattle rearing. He incurred a loss in respect of
animals which were used for the purposes of his business (otherwise than as stock-in trade) and
which have died. Such expenditure shall be considered as
a. Revenue expenditure b. Capital expenditure
c. Deferred revenue expenditure d. Illegal expenditure
72. The inclusion of income of other person in the income of assesseeis called -----
a. Aggregation b. Carry forward c. Clubbing d. Set off
73. The loss from speculation business can be set off against
a. Any income b. Not any income
c. Non speculative business d. Speculative business only
74. Minor’s income is clubbed to -----
a. Father’s income b. Mother’s income
c. Father’s income or mother’s income whichever is grater
d. Both mother’s and father’s income
75. ------ deals with PAN
a. Section 140 b. Section 140 (A) c. Section 140 (B) d. Section 140 (C)
M.Com. III Sem. – Tax Planning and Management Page 8
School of Distance Education
94. Flat rate of corporate tax for a domestic company with annual turnover more than Rs250 crore is
a. 15% b. 25% c. 30% d. 35%
95. Flat rate of corporate tax for a foreign company is
a. 15% b. 25% c. 30% d. 40%%
96. Which of the following shall not be regarded as capital asset?
a. Jewellery b. Rural Agricultural land
c. Archaeological Collections d. Paintings
97. Which of the following is not a capital expense?
a. Installation expenditure of plant of a company.
b. Legal expenses for reduction of capital.
c. Commission to employees to achieve sales Targets.
d. Expenses of promoting a company.
98. Which of the following donations is eligible for 100 % deduction?
a. Help to poor b. National DefenceFund
c. Rajive Gandhi Foundation d. Any notified temple
99. Indexation is applicable to.......................
a. Sale of short term capital assets.
b. Sale of long term debentures.
c. Sale of depreciable capital assets.
d. Sale of long term capital assets which are not depreciable assets
100. XYZ & Co. incurred a liability by giving discount on issue of debentures. Such expenditure
shall be considered as
a. Revenue expenditure b. Deferred revenue expenditure
c. Capital expenditure d. Illegal expenditure
ANSWER KEY
1 A 26 C 51 B 76 D
2 C 27 B 52 B 77 A
3 C 28 D 53 D 78 C
4 B 29 B 54 D 79 C
5 D 30 B 55 A 80 B
6 B 31 C 56 C 81 D
7 B 32 D 57 C 82 A
8 D 33 A 58 C 83 B
9 D 34 D 59 D 84 C
10 B 35 A 60 B 85 C
11 C 36 B 61 C 86 C
12 D 37 B 62 D 87 A
13 A 38 D 63 C 88 C
14 A 39 B 64 B 89 D
15 B 40 A 65 B 90 A
16 B 41 B 66 C 91 B
17 B 42 A 67 B 92 D
18 C 43 A 68 D 93 B
19 B 44 B 69 C 94 C
20 D 45 D 70 A 95 D
21 C 46 B 71 A 96 B
22 A 47 C 2 C 97 C
23 C 48 B 73 D 98 B
24 A 49 D 74 C 99 D
25 C 50 A 75 B 100 B
Prepared by : AGHILESH M,
ASSISTANT PROFESSOR OF COMMERCE,
GOVERNMENT COLLEGE, MADAPPALLY.