Sr. No.

Questions A B C D Ans Solution

Clubbing of income aims to prevent tax avoidance by
1 irrevocable re–transfer revocable diversion d diversion
_____ of income.
If any person transfers the income derived from any
2 asset without transferring the _____, such income is diversion liabilities accrual asset d asset
added to income of transferor.
For clubbing of income u/s. 60, transfer may be revocable or revocable or
3 irrevocable re–transfer revocable c
_____. irrevocable irrevocable
Any income arising to any person by virtue of _____
4 transfer of asset is to be included in income of diversion accrual revocable re–transfer c revocable
transferor u/s.61.
Transfer is revocable if it contains provision for
5 revocable diversion re–transfer irrevocable c re–transfer
_____.
If a transfer gives right to re–assume power to the substantial revocable
6 higher income revocable transfer diversion b
transferor, then it is _____. interest transfer
Income from transferred asset is not includible in total
7 income of transferor if transfer of asset is _____ re–transfer irrevocable revocable diversion b irrevocable
during the life time of the transferee.
Income arising from transfer of asset before _____,
1st April,
8 which was irrevocable for a period exceeding _____ 1st April, 1961; 6 1st May, 1961; 6 1st April, 1961; 4 1st May, 1961; 2 a
1961; 6
years is not clubbed.
Remuneration from an entity in which one’s spouse substantial substantial
9 higher income revocable transfer higher income a
has a _____ is clubbed. interest interest
For clubbing of income, relationship of husband / wife revocable or
10 accrual re–transfer revocable a accrual
should exist at the time of _____ of income. irrevocable
 Where husband & wife both have substantial interest
higher
11 & remuneration is earned by both, such remuneration accrual higher income adequate revocable transfer b
income
is clubbed in income of spouse having ____.

Income other than in form of remuneration received

12 from entity where spouse has substantial interest can cannot is is not b cannot
_____ be clubbed.
Income of spouse will not be clubbed if the transfer is revocable or
13 higher income adequate re–transfer b adequate
for _____ consideration. irrevocable
Transfer of asset with an agreement to live apart ____
14 is is not can cannot b is not
clubbed.
transfer of
For clubbing of income u/s. 64(i) (iv), husband / wife transfer of asset, transferee, asset,
15 Direct Indirect c
relation should exist at the time of _____ and _____. accrual of income transferor accrual of
income
16 Transfer _____ a lease. higher income revocable transfer includes adequate c includes
_____ transfer of assets means many inter–connected
17 Direct Indirect c Indirect
transfers.
Transfer made out of natural love and affection _____
18 is can is not cannot c is not
transfer for ‘adequate consideration’.

Amount of income received from firm to be clubbed =

Interest from the firm = Capital contributed out of
19 higher income adequate re–transfer total capital d total capital
assets received as on 1st day of P.Y. / Her _____ in
firm as on 1st day of P.Y.

Income arising to the _____ from the accretion of

revocable or excludes, transfer of asset, transferee, transferee,
20 transferred property or from accumulated income of d
irrevocable includes accrual of income transferor transferor
the property is not clubbed in income of _____.
 adequate
Transfer to obtain religious or spiritual benefits is not adequate
21 minor child higher lower a consideratio
a transfer for _____. consideration
n
22 ‘Association of Person’ _____ trust. includes disability lower minor child a includes
All income which arises or accrues to the minor shall
23 parent lower higher total capital a parent
be clubbed in income of his _____.
Mr. Jeevan gifted Rs. 1,00,000 to his grandson Ms.
Akash (minor) this amount was invested and interest Akash’s
24 Jeevan’s parents Akash’s parents minor child total capital b
of Rs. 10,000/– was earned. This amount will be parents
clubbed in income of _____.
Income derived by minor from manual work _____
25 is is not maintaining can b is not
clubbed.
Income derived by _____ by applying his talent or excludes,
26 lower higher minor child c minor child
specialized knowledge or experience is not clubbed. includes
Income of minor child suffering from _____ is not
27 re–transfer total capital disability is not c disability
clubbed.
Income of minor child is included in the income of
28 parent whose total income is _____ if their marriage minor child lower higher total capital c higher
subsists.
In case the marriage of parents does not subsist,
29 income of minor child is clubbed in income of parent maintaining re–transfer total capital losses a maintaining
_____ the child.
Exemption of _____ per child is allowed against
30 Rs. 1,500/- Rs. 1,000/- Rs. 2,500/- Rs. 500/- a Rs. 1,500/-
clubbed income of minor child.
Minor child _____ illegitimate child but _____ step excludes, adequate excludes,
31 lower higher a
child. includes consideration includes
‘Income’ of minor child to be included is _____
32 net lower higher total capital a net
income.
 Mr. B. (adopted child of Mr. A) earns Rs. 10,000 of
FD interest Total Income of Mr. A is Rs. 9,00,000
Rs.
33 which is higher than Mrs. A. Mrs. B also earns Rs. Rs. 8,10,000/- Rs. 9,10,000/- Rs. 1,10,000/- Rs. 9,50,000/- b
9,10,000/-
20,000 from his tennis matches. Total taxable income
(before exemption) of Mr. A will be _____.

The entire income from the property converted to adequate

adequate
34 HUF property without _____ is treated as income of maintaining re–transfer losses c consideratio
consideration
transferor. n
If converted property is partitioned then the share of revocable
transfer of asset, transferor, his excludes, transferor,
35 _____ and _____ is treated as income in the hands of transfer, c
accrual of income spouse includes his spouse
transferor. individuals
36 Clubbing of income also includes clubbing of _____. losses net lower higher a losses
Section 61 applies only to _____ made by any person revocable revocable
transfer of asset, transferor, his excludes,
37 whereas section 64 applies to revocable as well as transfer, a transfer,
accrual of income spouse includes
irrevocable transfers made by _____. individuals individuals
_____ aims to prevent tax avoidance by diversion of Clubbing of Clubbing of
38 Double Taxation DTAA Both (b) and (c) c
income. Income Income
If any person, transfers income from an asset without
(a) or (b), as
39 transferring the asset itself, the said income is transferror transferee (a) and (b) both a transferror
mutually decided
included in the total income of _____.

Mr. A transferred the income arising from a plot to

Mr. A or Mrs. A,
Mrs. A without transferring the plot by revocable Partially in Mr. A
40 Mrs. A Mr. A whoever has b Mr. A
transfer after commencement of the Act the rental & Mrs. A
higher income
income will be included in total income of _____.
 For provisions of section 60 to be applicable, whether
41 important primary condition material immaterial d immaterial
transfer is revocable or irrevocable is _____.

As per Section 61, all incomes arising to any person

42 by virtue of a _____ transfer of assets is to be revocable irrevocable both (a) and (b) primary condition a revocable
included in total income of transferor.
Recovable transfer is generally a transfer in which the
_____ directly or indirectly exercises control / right
43 transferree transferor both (a) and (b) cancelled b transferor
over the asset transferred or over income from the
asset.
re–transfer the right to both (a) and
44 A transfer is recovable if transferor can / has _____. both (a) and (b) transferor c
income or asset re–assume power (b)
Mr. X sold a flat worth Rs. 50,00,000/– to Mr. Y with
Revocable Irrevoable Revocable
45 a clause that after 5 yrs. Mr. X will re–purchase the Violation of law transferree b
transfer transfer transfer
flat. It is a _____.
Provisions of section 61 shall not apply if transfer is
Not
46 _____ during the lifetime of the beneficiary or Revocable Not Revocable cancelled Both (a) and (c) b
Revocable
transferee.
Income arising from transfer of asset _____
01.04.1961 which was not revocable for a period before, 6
47 before, 8 years after, 8 years before, 6 years after, 6 years c
exceeding _____ is not included in income on years
transferror.
Transfer includes any settlement, trust, convenant, and both (a) or
48 agreement arrangement both (a) or (c) cancelled c
_____. (c)

Mr. and Mrs. Y working in AB & Co. Mr. Y has

49 substantial interest in AB & Co. salary paid to Mr. Y Mr. Y Mrs. Y AB & Co. receiving a Mr. Y
shall be included in total income of _____.
 (a) or (b),
For clubbing of income, husband / wife relationship
50 receiving accrual both (a) and (b) whichever is b accrual
should exist at the time of _____ of income.
earlier
Mr. and Mrs. Rajanath work in ABC & Co. Ltd. &
have susbtantial interest in the company. Both earn a Mr. & Mrs.
salary of Rs. 10 lakhs. Total income of Mr. Rajnath is Rajnath
51 Mr. Rajnath Mrs. Rajnath sale c Mrs. Rajnath
7 lakhs and of Mrs. Rajnath is 8 lakhs. The salary respectively for
received by ABC & Co. Ltd will be taxed in hands of their income
_____.
Clubbing provisions of section 64(1) (iv) are not adequate agreement to live inadequate both (a) and
52 both (a) and (b) d
applicable, if transfer of asset is for _____. consideration apart consideration (b)

Income arising to the transferee from _____ of

53 property received or accumulated income of such accretion sale further transfer both (b) and (c) a accretion
property is not clubbed in income of transferror.

Mr. A gifted Mrs. A Rs. 5,00,000 which Mrs. A

invested as capital in a firm. The total capital of Mrs.
54 A before investing was Rs. 9,00,000 and interest of Rs. 40,000 Rs. 50,000 Rs. 90,000 Rs. 18,000 b Rs. 50,000
Rs. 90,000 was received the amount of interest to be
clubbed is _____.

Mrs. B received Rs. 3,00,000 as gift from Mr. B

which she invested in a business. Her total investment
55 in that business summed up to Rs. 10,00,000 after all Rs. 3,00,000 Rs. 6,00,000 Rs. 2,00,000 Rs. 10,00,000 c Rs. 2,00,000
transfer during the year. The income from business
was Rs. 6,00,000. The income to be clubbed is _____.

(a) or (b),
For clubbing of income of son’s wife, relationship of both (a) and
56 transfer of asset accrual of income both (a) and (b) whichever is c
son’s wife should exist at the time of _____. (b)
earlier
 inadequate
Transfer made out of natural love and affection is adequate inadequate
57 no benefits both (b) and (c) c consideratio
transfer for _____. consideration consideration
n
adequate
Transfer to obtain religious or spiritual benefits is not adequate inadequate clubbing
58 both (b) and (c) a consideratio
transfer for _____. consideration consideration provisions
n

Mr. John transferred Rs. 2,00,000 to a trust with a

condition that the trust pays Rs. 10,000 p.m. to Mr. W,
59 Mr. W Mr. John Trust either (a) or (b) b Mr. John
John’s son. Mr. W is professionally qualified. Hence,
Rs. 10,000 will be included in the income of _____.

Mr. Akshay gifted Rs. 3,00,000 to a trust with a

condition that it will pay Mrs. Kavya (his son’s wife) Mr. Hardik
60 Mr. Akshay Mrs. Kavya both (b) and (c) a Mr. Akshay
Rs. 20,000 p.m. The said income will be included in (Akshay’s son)
total income of _____.
All income which arises or accrues to the minor shall
61 father mother parents either (a) or (b) c parents
be clubbed in the income of his _____.
Income derived by minor from _____ will not be application of his both (a) and
62 manual work capital gains both (a) and (b) d
clubbed. talent (b)
having
Income of minor child is included in income of parent having greater as decided by as decided by
63 both (a) and (b) a greater total
_____. total income court parents
income
parent parent
In case where marriage of parents does not subsist, the parent with parent as decided
64 maintaining the either (a) or (b) b maintaining
income of minor child is included in income of _____. greater income by court
child the child
Rs. 1,500
An individual is entitled to an exemption of _____ in Rs. 150 per child Rs. 1,500 per Rs. 1,500 per
65 Rs. 15,000 d per minor
respect of income of minor child. p.m. month minor child
child
 (a) or (b) as as decided by
66 Minor child _____ step child. includes excludes a includes
decided by court court
(a) or (b) as
67 Minor child _____ adopted child. includes excludes Entire Income a includes
decided by cour
(a) or (b) as
68 Minor child _____ illegitimate child. includes excludes Entire Income b excludes
decided by court
The _____ from individual property converted as Proportionate Major portion of Entire
69 Entire Income NIL Income b
HUF property is treated as income of the transferor. Income Income Income

If converted property is subsequently partitioned,

both (a) and
70 share of _____ in income derived from such property transferor transferor’s wife both (a) and (b) transferee c
(b)
is treated as income of transferror.
71 Clubbing of Income _____ clubbing of loss. excludes exempts restricts includes d includes
Clubbing of income aims to prevent tax avoidance by
72 irrevocable re–transfer revocable diversion d diversion
_____ of income.
If any person transfers the income derived from any
73 asset without transferring the _____, such income is diversion liabilities accrual asset d asset
added to income of transferor.
For clubbing of income u/s. 60, transfer may be revocable or revocable or
74 irrevocable re–transfer revocable c
_____. irrevocable irrevocable
Any income arising to any person by virtue of _____
75 transfer of asset is to be included in income of diversion accrual revocable re–transfer c revocable
transferor u/s.61.
Transfer is revocable if it contains provision for
76 revocable diversion re–transfer irrevocable c re–transfer
_____.
If a transfer gives right to re–assume power to the substantial revocable
77 higher income revocable transfer diversion b
transferor, then it is _____. interest transfer
 Income from transferred asset is not includible in total
78 income of transferor if transfer of asset is _____ re–transfer irrevocable revocable diversion b irrevocable
during the life time of the transferee.
Income arising from transfer of asset before _____,
1st April,
79 which was irrevocable for a period exceeding _____ 1st April, 1961; 6 1st May, 1961; 6 1st April, 1961; 4 1st May, 1961; 2 a
1961; 6
years is not clubbed.
Remuneration from an entity in which one’s spouse substantial substantial
80 higher income revocable transfer higher income a
has a _____ is clubbed. interest interest
For clubbing of income, relationship of husband / wife revocable or
81 accrual re–transfer revocable a accrual
should exist at the time of _____ of income. irrevocable

Where husband & wife both have substantial interest

higher
82 & remuneration is earned by both, such remuneration accrual higher income adequate revocable transfer b
income
is clubbed in income of spouse having ____.

Income other than in form of remuneration received

83 from entity where spouse has substantial interest can cannot is is not b cannot
_____ be clubbed.
Income of spouse will not be clubbed if the transfer is revocable or
84 higher income adequate re–transfer b adequate
for _____ consideration. irrevocable
Transfer of asset with an agreement to live apart ____
85 is is not can cannot b is not
clubbed.
transfer of
For clubbing of income u/s. 64(i) (iv), husband / wife transfer of asset, transferee, asset,
86 Direct Indirect c
relation should exist at the time of _____ and _____. accrual of income transferor accrual of
income
87 Transfer _____ a lease. higher income revocable transfer includes adequate c includes
_____ transfer of assets means many inter–connected
88 Direct Indirect c Indirect
transfers.
 Transfer made out of natural love and affection _____
89 is can is not cannot c is not
transfer for ‘adequate consideration’.

Amount of income received from firm to be clubbed =

Interest from the firm = Capital contributed out of
90 higher income adequate re–transfer total capital d total capital
assets received as on 1st day of P.Y. / Her _____ in
firm as on 1st day of P.Y.

Income arising to the _____ from the accretion of

revocable or excludes, transfer of asset, transferee, transferee,
91 transferred property or from accumulated income of d
irrevocable includes accrual of income transferor transferor
the property is not clubbed in income of _____.

adequate
Transfer to obtain religious or spiritual benefits is not adequate
92 minor child higher lower a consideratio
a transfer for _____. consideration
n
93 ‘Association of Person’ _____ trust. includes disability lower minor child a includes
All income which arises or accrues to the minor shall
94 parent lower higher total capital a parent
be clubbed in income of his _____.
Mr. Jeevan gifted Rs. 1,00,000 to his grandson Ms.
Akash (minor) this amount was invested and interest Akash’s
95 Jeevan’s parents Akash’s parents minor child total capital b
of Rs. 10,000/– was earned. This amount will be parents
clubbed in income of _____.
Income derived by minor from manual work _____
96 is is not maintaining can b is not
clubbed.
Income derived by _____ by applying his talent or excludes,
97 lower higher minor child c minor child
specialized knowledge or experience is not clubbed. includes
Income of minor child suffering from _____ is not
98 re–transfer total capital disability is not c disability
clubbed.
 Income of minor child is included in the income of
99 parent whose total income is _____ if their marriage minor child lower higher total capital c higher
subsists.
In case the marriage of parents does not subsist,
100 income of minor child is clubbed in income of parent maintaining re–transfer total capital losses a maintaining
_____ the child.
Exemption of _____ per child is allowed against
101 Rs. 1,500/- Rs. 1,000/- Rs. 2,500/- Rs. 500/- a Rs. 1,500/-
clubbed income of minor child.
Minor child _____ illegitimate child but _____ step excludes, adequate excludes,
102 lower higher a
child. includes consideration includes
‘Income’ of minor child to be included is _____
103 net lower higher total capital a net
income.

Mr. B. (adopted child of Mr. A) earns Rs. 10,000 of

FD interest Total Income of Mr. A is Rs. 9,00,000
Rs.
104 which is higher than Mrs. A. Mrs. B also earns Rs. Rs. 8,10,000/- Rs. 9,10,000/- Rs. 1,10,000/- Rs. 9,50,000/- b
9,10,000/-
20,000 from his tennis matches. Total taxable income
(before exemption) of Mr. A will be _____.

The entire income from the property converted to adequate

adequate
105 HUF property without _____ is treated as income of maintaining re–transfer losses c consideratio
consideration
transferor. n
If converted property is partitioned then the share of revocable
transfer of asset, transferor, his excludes, transferor,
106 _____ and _____ is treated as income in the hands of transfer, c
accrual of income spouse includes his spouse
transferor. individuals
107 Clubbing of income also includes clubbing of _____. losses net lower higher a losses
Section 61 applies only to _____ made by any person revocable revocable
transfer of asset, transferor, his excludes,
108 whereas section 64 applies to revocable as well as transfer, a transfer,
accrual of income spouse includes
irrevocable transfers made by _____. individuals individuals
 _____ aims to prevent tax avoidance by diversion of Clubbing of Clubbing of
109 Double Taxation DTAA Both (b) and (c) c
income. Income Income
If any person, transfers income from an asset without
(a) or (b), as
110 transferring the asset itself, the said income is transferror transferee (a) and (b) both a transferror
mutually decided
included in the total income of _____.

Mr. A transferred the income arising from a plot to

Mr. A or Mrs. A,
Mrs. A without transferring the plot by revocable Partially in Mr. A
111 Mrs. A Mr. A whoever has b Mr. A
transfer after commencement of the Act the rental & Mrs. A
higher income
income will be included in total income of _____.

For provisions of section 60 to be applicable, whether

112 important primary condition material immaterial d immaterial
transfer is revocable or irrevocable is _____.

As per Section 61, all incomes arising to any person

113 by virtue of a _____ transfer of assets is to be revocable irrevocable both (a) and (b) primary condition a revocable
included in total income of transferor.
Recovable transfer is generally a transfer in which the
_____ directly or indirectly exercises control / right
114 transferree transferor both (a) and (b) cancelled b transferor
over the asset transferred or over income from the
asset.
re–transfer the right to both (a) and
115 A transfer is recovable if transferor can / has _____. both (a) and (b) transferor c
income or asset re–assume power (b)
Mr. X sold a flat worth Rs. 50,00,000/– to Mr. Y with
Revocable Irrevoable Revocable
116 a clause that after 5 yrs. Mr. X will re–purchase the Violation of law transferree b
transfer transfer transfer
flat. It is a _____.
Provisions of section 61 shall not apply if transfer is
Not
117 _____ during the lifetime of the beneficiary or Revocable Not Revocable cancelled Both (a) and (c) b
Revocable
transferee.
 Income arising from transfer of asset _____
01.04.1961 which was not revocable for a period before, 6
118 before, 8 years after, 8 years before, 6 years after, 6 years c
exceeding _____ is not included in income on years
transferror.
Transfer includes any settlement, trust, convenant, and both (a) or
119 agreement arrangement both (a) or (c) cancelled c
_____. (c)

Mr. and Mrs. Y working in AB & Co. Mr. Y has

120 substantial interest in AB & Co. salary paid to Mr. Y Mr. Y Mrs. Y AB & Co. receiving a Mr. Y
shall be included in total income of _____.

(a) or (b),
For clubbing of income, husband / wife relationship
121 receiving accrual both (a) and (b) whichever is b accrual
should exist at the time of _____ of income.
earlier
Mr. and Mrs. Rajanath work in ABC & Co. Ltd. &
have susbtantial interest in the company. Both earn a Mr. & Mrs.
salary of Rs. 10 lakhs. Total income of Mr. Rajnath is Rajnath
122 Mr. Rajnath Mrs. Rajnath sale c Mrs. Rajnath
7 lakhs and of Mrs. Rajnath is 8 lakhs. The salary respectively for
received by ABC & Co. Ltd will be taxed in hands of their income
_____.
Clubbing provisions of section 64(1) (iv) are not adequate agreement to live inadequate both (a) and
123 both (a) and (b) d
applicable, if transfer of asset is for _____. consideration apart consideration (b)

Income arising to the transferee from _____ of

124 property received or accumulated income of such accretion sale further transfer both (b) and (c) a accretion
property is not clubbed in income of transferror.
 Mr. A gifted Mrs. A Rs. 5,00,000 which Mrs. A
invested as capital in a firm. The total capital of Mrs.
125 A before investing was Rs. 9,00,000 and interest of Rs. 40,000 Rs. 50,000 Rs. 90,000 Rs. 18,000 b Rs. 50,000
Rs. 90,000 was received the amount of interest to be
clubbed is _____.

Mrs. B received Rs. 3,00,000 as gift from Mr. B

which she invested in a business. Her total investment
126 in that business summed up to Rs. 10,00,000 after all Rs. 3,00,000 Rs. 6,00,000 Rs. 2,00,000 Rs. 10,00,000 c Rs. 2,00,000
transfer during the year. The income from business
was Rs. 6,00,000. The income to be clubbed is _____.

(a) or (b),
For clubbing of income of son’s wife, relationship of both (a) and
127 transfer of asset accrual of income both (a) and (b) whichever is c
son’s wife should exist at the time of _____. (b)
earlier
inadequate
Transfer made out of natural love and affection is adequate inadequate
128 no benefits both (b) and (c) c consideratio
transfer for _____. consideration consideration
n
adequate
Transfer to obtain religious or spiritual benefits is not adequate inadequate clubbing
129 both (b) and (c) a consideratio
transfer for _____. consideration consideration provisions
n

Mr. John transferred Rs. 2,00,000 to a trust with a

condition that the trust pays Rs. 10,000 p.m. to Mr. W,
130 Mr. W Mr. John Trust either (a) or (b) b Mr. John
John’s son. Mr. W is professionally qualified. Hence,
Rs. 10,000 will be included in the income of _____.

Mr. Akshay gifted Rs. 3,00,000 to a trust with a

condition that it will pay Mrs. Kavya (his son’s wife) Mr. Hardik
131 Mr. Akshay Mrs. Kavya both (b) and (c) a Mr. Akshay
Rs. 20,000 p.m. The said income will be included in (Akshay’s son)
total income of _____.
 All income which arises or accrues to the minor shall
132 father mother parents either (a) or (b) c parents
be clubbed in the income of his _____.
Income derived by minor from _____ will not be application of his both (a) and
133 manual work capital gains both (a) and (b) d
clubbed. talent (b)
having
Income of minor child is included in income of parent having greater as decided by as decided by
134 both (a) and (b) a greater total
_____. total income court parents
income
parent parent
In case where marriage of parents does not subsist, the parent with parent as decided
135 maintaining the either (a) or (b) b maintaining
income of minor child is included in income of _____. greater income by court
child the child
Rs. 1,500
An individual is entitled to an exemption of _____ in Rs. 150 per child Rs. 1,500 per Rs. 1,500 per
136 Rs. 15,000 d per minor
respect of income of minor child. p.m. month minor child
child
(a) or (b) as as decided by
137 Minor child _____ step child. includes excludes a includes
decided by court court
(a) or (b) as
138 Minor child _____ adopted child. includes excludes Entire Income a includes
decided by cour
(a) or (b) as
139 Minor child _____ illegitimate child. includes excludes Entire Income b excludes
decided by court
The _____ from individual property converted as Proportionate Major portion of Entire
140 Entire Income NIL Income b
HUF property is treated as income of the transferor. Income Income Income

If converted property is subsequently partitioned,

both (a) and
141 share of _____ in income derived from such property transferor transferor’s wife both (a) and (b) transferee c
(b)
is treated as income of transferror.
142 Clubbing of Income _____ clubbing of loss. excludes exempts restricts includes d includes
Salary, bonus, commission or remuneration paid to a
143 fully exempt working non-working business c non-working
_____ partner is disallowed.
 If Book profit of a firm is Rs. 4,00,000 maximum
144 Rs. 5,10,000 Rs. 2,20,000 Rs. 3,10,000 Rs. 2,10,000 d Rs. 2,10,000
remuneration allowable as deduction will be _____.
The remuneration paid to working partner of a firm is
145 non-working business fully exempt working b business
_____ expenditure.
146 Interest on capital of partners is allowable upto _____. 10% 5% 12% 15% c 12%
147 Income Tax Rate for firms is _____. 30.90% 50.90% 30.20% 35.90% a 30.90%
Share of the partner in the total income of firm shall
148 working non-working business fully exempt d fully exempt
be _____.
Remuneration paid to _____ partner of firm within the
149 sleeping working any minor b working
limit specified is allowable as business expenditure.

In case a firm has a book profit of 2,00,000, maximum

150 150,000 120,000 180,000 170,000 c 180,000
remuneration allowable as deduction is _____.
Interest paid to partners on their capital cannot exceed
151 10% 18% 100,000 12% d 12%
_____.
152 Income Tax Rate for firms is _____. 30.90% 30% 33% as per slab rate a 30.90%
Interest received by partner is treated as income of
153 firm partner either (a) or (b) both b partner
_____.
exempt upto exempt upto
154 Share of partner in total income of the firm is _____. taxable fully exempt c fully exempt
1,50,000 3,00,000
Due date for filing Income tax return for company or
30th
155 an assessee whose books of accounts are audited is 30th June 30th October 30th September 30th November c
September
_____.
Due date for filing Income tax returns for other
156 assessee (i.e. other than co. & whose books are 31st August 31st December 31st March 31st July d 31st July
audited) is _____.
 For carry forward of loss under any head the return of
File Return of
157 income should be filed before _____ each year else he reduced Due date same years b Due date
loss
cannot carry forward the loss to the succeeding year.

_____ return or _____ return can be furnished before

the expiry of one year from the end of the relevant set–off loss, Capital Gain, Belated,
158 Belated, Revised Salaries, income a
assessment year or before the competition of Capital loss Trading Revised
assessment whichever is earlier.
The due date for filing return of Income for an
30th
159 assessee whose accounts are required to be audited is 30th June 31st July 31st August 30th September d
September
_____.
The due date for filing return of Income for an
160 assessee whose accounts are not required to be 30th June 31st July 31st August 30th September b 31st July
audited is _____.
The assessee gets _____ days period u/s 139 (a) to
161 5 10 15 20 c 15
rectify the mistake in a defective return.
To ensure a regular flow of _____ for the government,
Interest paid by
162 the Income Tax Act, 1961 has provided for periodic Interest Advance Tax revenue d revenue
bank
recovery of tax.
Periodic Recovery of tax from Income liable to tax Interest paid by Advance
163 Interest final tax liability Advance Tax d
can be by way of _____, TDS and TCS. bank Tax
_____ refers to payment of tax in instalments during Advance
164 Interest final tax liability revenue Advance Tax d
the financial year in which the income arises. Tax
The person responsible for decuting tax at source is
165 receives transfers pays makes c pays
the one who _____ the amount.
166 The recipient of income gets _____ amount. included excluded net added c net
The amount deducted at source is adjusted against final tax
167 final tax liability revenue final tax liability Advance Tax c
______. liability
 TDS is to be deducted on interest other than interest
168 194D 194A 194O 194C b 194A
on securities U/s.
If the amount paid as interest by an non-banking
169 company exceeds _____, TDS U/s 194A is to be 10,000 5,000 6,000 2,000 b 5,000
deducted.
Interest paid by firm to a partner _____ liable to TDS
170 is not is be can b is
U/s 194A.
171 TDS is to be deducted @ U/s 194A. 10% 20% 50% 25% a 10%
Any payment made to resident contractor for carrying
172 out any work in pursuance of a contract is liable to 194C 194D 194A 194O a 194C
TDS U/s ______.
TDS is applicable on any amount paid by a contractor sub-
173 sub-contractor contractor final tax liability revenue a
to a resident ______ U/s 194C. contractor
If a single sum credited or paid to the account of the
174 contractor/sub-contractor exceeds _____, TDS is to be 6,000 30,000 10,000 5,000 b 30,000
deducted U/s 194C.
If the aggregate amount of different contracts
paid/credited to he contractor/sub-contactor during the
175 2,000 100,000 5,000 6,000 b 100,000
financial year exceeds ______, TDS U/s 194C is to be
deducted.
TDS rates applicable U/s 194C is ______ for
176 individuals/HUF and ______ for firms / society / 2%, 2% 1%, 5% 1%, 2% 1%, 1% c 1%, 2%
company / local authority.
professional, commission, commission,
177 TDS U/s 194H deals with TDS on _____ or _____. gross, gross net, gross c
technical brokerage brokerage
If commission or brokerage paid exceeds ______,
178 10,000 p.a. 18,000 p.a. 15,000 p.a. 1,000 p.a. c 15,000 p.a.
TDS U/s 194H is to be deducted.
 Provisions of section 194H is not applicable on any
179 commission or brokerage payable _____ BSNL or to by with without b by
MTNL or their PCO franchisees.
180 TDS U/s 194H is deducted @ _____. 2% 5% 10% 1% b 5%
181 TDS U/s 194I is deducted on amount paid as ______. pays makes cash rent d rent

182 If rent paid exceeds _____, TDS is to be deducted. 1,15,000 p.a. 15,000 p.a. 1,000 p.a. 1,80,000 pa. d 1,80,000 pa.
TDS @ 2% U/s 194I is to be deducted on rent paid for
183 sub-contractor contractor gross equipment d equipment
plant or machinery or _____.
TDS @ _____ U/s 194I is to be deducted on rent paid
184 50% 10% 2% 5% b 10%
for Land or Building or Furniture.
Section 194J deals with TDS on fees for _____ or professional, commission, professional,
185 net, gross gross, gross b
_____ services. technical brokerage technical
TDS U/s 194J is to be deducted if amount of
186 2,000 30,000 100,000 5,000 b 30,000
professional fees exeeds _____.
187 TDS U/s 194J is deducted @ _____. 10% 2% 5% 50% a 10%
If the payee does not have PAN or PAN No. is
188 20% 50% 25% 30% a 20%
invalid, then TDS is deducted @ ______.
TDS Return in case of TDS deducted on salary is to Form No.
189 Form No. 20Q Form No. 22Q Form No. 24Q Form No. 21Q c
be filed in ______. 24Q
Service tax shall be ______ while deducting tax on
190 Added included excluded Interest c excluded
rent.
Service tax shall be _____ while deducting tax on
191 Interest Added included included c included
professional fees.
over a
over a period of
192 Income is earned _____. during a year at the end anytime c period of
time
time
 To ensure a regular flow of revenue for the
government, the Income Tax Act, 1961 has provided All of the
193 advance Tax TD TCS All of the above d
for periodic recovery of tax from Income liable to tax above
by way of _____.

The Income tax Act has made provision to _____ tax

194 deduct collect both (a) and (b) advance Tax b collect
at source on accrual of Income U/s 192 to 206B.

Person who _____ payment is responsible to deduct

195 tax at source and deposit the same to Government makes receives transfers both (a) and (c) a makes
Treasury.
The recipient of income gets _____ amount and is
196 net, net net, gross gross, gross transfers b net, gross
liable to tax on _____ amount.
tax collected at final tax
197 The amount of tax deducted is adjusted against _____. final tax liability net amount advance tax a
source. liability
Interest
Interest other
Interest paid by other than
198 Section 194A deals with TDS on _____. Interest than interest on Interest on loan c
bank interest on
securities
securities
An individual and HUF whose books of accounts are
199 subject to _____ in the preceding financial year is internal audit statutory audit tax audit revenue audit c tax audit
liable to deduct tax at source.
200 TDS is to be deducted @ _____ U/s 194A. 30% 15% 5% 10% d 10%
TDS U/s 194A is to be deducted if interest paid Co-operative All of the
201 Banking Co. Post office All of the above d
exceeds Rs. 10,000 where payer is _____. society above
TDS is to be deducted on any payment made to a
202 resident contractor for carrying out any work in 194 A. 194O 194C 194D c 194C
pursuance of a contract U/s _____.
 If a single sum paid or credited to the account of the
203 contractor / sub-contractor exceeds _____, TDS U/s Rs. 30,000 Rs. 75,000 Rs. 10,000 Rs. 5,000 a Rs. 30,000
194C is to be deducted.

If the aggregate amount credited or paid to the

204 contractor/sub contractor during the financial year Rs. 30,000 Rs. 1,00,000 Rs. 10,000 Rs. 5,000 b Rs. 1,00,000
exceeds _____, TDS U/s 194C is to be deducted.

TDS is to be deducted @ _____ is case of

205 1% 2% 10% 20% a 1%
individual/HUF U/s 194C.
TDS is to be deducted @ ______ in case of
206 1% 2% 10% 20% b 2%
Firm/society/company/local authority U/s 194C.
Both (a) and
207 Section 194H deals with TDS on _____. Commission Brokerage Both (a) and (b) Incentive c
(b)
TDS U/s 194H is to be deducted if commission or
208 Rs. 15,000 Rs. 2,500 Rs. 7,500 Rs. 10,000 a Rs. 15,000
brokerage paid exceeds _____.
Section 194H is not applicable to commission or PCO franchisees All of the
209 BSNL MTNL All of the above d
brokerage payable by _____. of MTNL/BSNL above
210 TDS is to be deducted @ ______ U/s 194H. 1% 2% 5% 20% c 5%
211 Section _____ deals with TDS on Rent 194A 194C 194H 194I d 194I
TDS is to be deducted on Rent if the amount paid
212 Rs. 1,80,000 Rs. 1,20,000 Rs. 1,00,000 Rs. 2,00,000 a Rs. 1,80,000
exceeds ______ p.a.
Service Tax shall be _____ while deducting tax on
213 included excluded added Interest b excluded
rent
TDS is to be deducted @ _____ if rent is paid for
214 2% 10% 20% 40% a 2%
plant or machinery or equipment.
If rent is paid for land and building or furniture TDS
215 2% 20% 10% 40% c 10%
is to be deducted @ _____.
TDS is to be deducted on fees for profession services
216 194H 194I 194P 194J d 194J
or technical services U/s _____.
 If amount of professional fees paid exceeds _____ Rs.
217 Rs. 30,000.30% Rs. 75,000.10% Rs. 30,000.10% Rs. 75,000.30% c
TDS is to be deducted @ _____. 30,000.10%
TDS is to be deducted @ 20% if payee does not have
218 TAN No. PAN No. Mobile No. Both (a) and (b) b PAN No.
_____.
Filling of TDS returns electronically is mandatory for neither (a) nor both (a) and
219 corporate government both (a) and (b) c
_____ deductors. (b). (b)

Deductors having number of deductee records in a

quarterly return for any quarter of the immediately
220 50 100 150 120 a 50
precending financial year more than or equal to _____
are required to file TDS Returns electronically.

It is obligatory to pay advance tax, where the amount

221 1,000 50,000 20,000 10,000 d 10,000
of tax payable is ` _____ or more.
Advance tax is paid in _____ installment in case the
222 1 2 4 5 c 4
assessee is a company.
Advance tax is paid _____ installment in case the
223 2 3 5 6 b 3
assessee is other than a company.
15%, 45%,
The installment of advance tax for company is _____ , 5%, 45%, 25%, 15%, 65%, 25%, 25%, 55%, 75%, 15%, 45%, 75% 75% &
224 d
_____ , _____ & _____ of tax. & whole amount & whole amount & whole amount & whole amount whole
amount
15%, 45%,
The installment of advance tax for other (other than 5%, 75%,25% & 25%, 55%, 75%, 5%, 45%, 25%, 15%, 45%, 75%, 75%, &
225 d
Co.) is _____ , _____ & _____. whole amount & whole amount & whole amount & whole amount whole
amount
 15th June,
15th
15th June, 15th 15th June, 15th 15th June, 15th 25th June, 15th
September,
The due date for advance tax installments for September, 15th October, 15th April, 25th May, 25th
226 a 15th
companies is _____ , _____ , _____ & _____. December and November and December and December and
December
15th March 15th March 15th March 15th March
and 15th
March
15th June,
15th July, 15th 15th June, 15th 15th June, 15th 15th
15th June, 15th
The due dates for advance tax installment for other September, 25th September, 15th November, 15th September,
227 October, 15th c
assessee is _____ , _____ , _____ & _____. December & 15th December & 15th December & 25th 15th
July & 5th March
March March March December &
15th March
The first due date for payment of Advance Tax for
228 15th June 15th September 15th December 15th March a 15th June
company is _____.
The first due date for Payment of Advance tax for
229 15th June 15th September 15th December 15th March a 15th June
Asseessee other than companies is _____.
Advance tax is payable in cases where tax payable for
230 Rs. 50,000 Rs. 10,000 Rs. 25,000 Rs.35,000 b Rs. 10,000
an assessee is Rs. _____ or more
senior
citizen,
senior citizen, Resident, profits non resident,
senior citizen, profits and
Provisions of advance tax is not applicable to a _____ profits and gains and gains from profits and gains
231 income from a gains from
who does not have income from _____. from Business business and from business
other sources Business
and profession profession and profession
and
profession
Tax payable on estimated income shall be reduced by
Exemption and Exemption and Deduction and TDS and
232 _____ and _____ to arrive at advance tax payable for TDS and TCS b
Deduction TDS TCS TCS
the year.
 The assessee is required to pay _____ in respect of interest u/s
233 interest u/s 234D interest u/s 234B interest u/s 234C interest u/s 234A d
delay in furnishing of return of income. 234A
date
Interest u/s 234A is payable from _____ till the date date of date immediately
date of furnishing date of regular immediately
234 of furnishing of return of income or date of completion of following the due c
the return assessment following
completion of assessment u/s 144. assessment date
the due date
payment of
installments of self-assessment assessed
235 Interest u/s 234A is applicable on the tax on _____. advance tax assessed income b
advance tax tax income
installments
The final interest payable u/s 243A shall be _____ be
236 any interest paid u/s 140A towards interest chargeable Income reduced Advance Tax TDS b reduced
under this section.
simple
u/s 243A, the assessee shall be liable to pay _____ for simple interest @ simple interest @ simple interest @ simple interest @
237 b interest @
every month or part of the month. 5% 1% 3% 2%
1%
Where the entire amount of _____ was paid before the
self-
due date for filing the return of income, interest u/s self-assessment installments of
238 Advance Tax capital gains a assessment
234A for delay of default in filing of return of income tax advance tax
tax
shall not be levied.
Interest u/s 234B is applicable on _____ income assessed , returned tax, assessed ,
239 Profit, Loss assessed, income a
instead of _____ income. returned advance tax returned
_____, being compensatory in nature, shall be levied
interest u/s
240 only where the tax has not been deposited prior to the interest u/s 234D interest u/s 234B interest u/s 234A interest u/s 234C c
234A
due date of filing of the return.
Where advance tax paid by assesse is _____ of the less than
241 More than 90% less than 80% less than 90% less than 50% c
assessed tax, interest u/s 234B is levied. 90%
date of date immediately installments
Interest u/s 234C is payable if there is any shortfall in date of furnishing installments of
242 completion of following the due d of advance
payment of _____ during the relevant previous year. the return advance tax
assessment date tax
 Interest u/s _____ is required to be calculated only till
243 234B 234A 234D 234C d 234C
the end of the relevant previous year.
Interest u/s _____ is required to be calculated starting
244 234A 234D 234C 234B d 234B
from the 1st April of the relevant assessment year.

A company shall be liable for interest u/s 234C where

the advance tax paid by the company on its current
245 15th May 15th June 15th July 15th December b 15th June
income on or before _____ is less than 15% of total
tax on its returned income.

A company shall be liable for interest u/s 234C where

the advance tax paid by the company on its current
246 45% 35% 75% 95% a 45%
income on or before 15th September is less than
_____ of total tax on its returned income.

A company shall be liable for interest u/s 234C where

the advance tax paid by the company on its current
247 75% 25% 55% 70% a 75%
income on or before 15th December is less than _____
of total tax on its returned income.

A company shall be liable for interest u/s 234C where

the advance tax paid by the company on its current
248 15th June 15th July 15th March 15th May c 15th March
income on or before _____ is less than 100% of the
total tax on its returned income.

A non-corporate assessee is liable to pay interest u/s

15th
234C where the advance tax paid by him on current
15th June , 15th 15th September , 15th September , 15th December , September ,
249 income on or before _____, 15th December and c
March, 60% 15th March, 80% 15th March, 60% 15th June, 20% 15th March,
_____ is less than 30%, _____ and 100% respectively
60%
of the total tax on its returned income.
 The tax due on _____ is not relevant for levy of assessed
250 Profit Loss Income assessed income d
interest u/s 234C. income
assessee is liable
Entire amount of tax payable on _____ or _____ aggregate capital
to pay advance capital gains, capital gains,
should be paid in remaining installments of advance advance tax, gains, casual
251 tax u/s 208 and casual income, casual income, d
tax which are due or by _____ of relevant of financial installment of income, 31st
has failed to do 31st July 31st March
year. advance tax March
so

Any payment made after 15th March but on or before

252 31st March of the previous year avoids levy of interest 234B, 234A 234A, 234D 234D, 234A 234B, 234C d 234B, 234C
u/s _____ but not interest u/s _____.

For calculating interest u/s 234A/234B/234C, any

253 Rs. 300/- Rs. 100/- Rs. 200/- Rs. 500/- b Rs. 100/-
fraction is to be rounded off to nearest _____.
If assessee has paid advance tax on capital gains or
casual income, then liability of interest on any
254 shortfall of the advance tax due to under estimation or is not will not cannot can be b will not
non-estimation of the said income _____ arise.
(will/will not).
Where advance tax paid by the company on or before
15th June or 15th September _____ less than 12% and
255 36% respectively of the total tax on its returned will not is not cannot can be b is not
income then interest u/s 234C is not leviable. (is/is
not)

If the advance tax paid by the company on or before

15th June or 15th September is less than 12% or 36%
256 of the total tax on its returned income the interest u/s Income assessed income entire sum Advance Tax c entire sum
234C shall be levied on _____ of advance tax payable
based on 15% and 45% of respective installments.
 assessee is liable aggregate
advance tax paid aggregate
Interest u/s 234B is payable on shortfall in _____ to pay advance payment of advance tax,
by assesse is less advance tax,
257 whereas interest u/s 234C is payable on shortfall in tax u/s 208 and advance tax c installment
than 90% of the installment of
_____. has failed to do installments of advance
assessed tax advance tax
so tax
furnishing
depositing furnishing return payment of return of
The assessee is required to pay interest u/s 234A in tax on assessed
258 insufficient of income within advance tax b income
respect of his default in _____. income
advance tax given time installments within given
time
simple
The assessee is liable to pay _____ for every month simple interest @ compound
259 penalty either (a) or (c) a interest @
u/s 234A. 1% interest @ 1%
1%
tax on
tax on assessed tax on returned
260 The interest u/s 234A is applicable on _____. assessed income returned income c assessed
income income
income

When assesse pays interest u/s 234A as a part of self

tax on assessed tax on returned returned
261 assessment tax while furnishing his return of income, assessed income returned income b
income income income
this interest shall be calculated on _____.

Where entire _____ was paid before due date for Self
Self Assessment
262 filing return of income, interest u/s 234A for delay or Advance Tax TDS Interest d Assessment
Tax
default in filing of return shall not be levied. Tax

The assessee is liable to pay interest _____ if he has

263 not deposit sufficient advance tax before end of u/s 234 u/s 234A u/s 234B u/s 234C c u/s 234B
relevant previous year.
 assessee is liable
advance tax paid
to pay advance
by assesse is less both (a) and (b) either (a) or
264 Interest u/s 234B is liable if _____. tax u/s 208 and either (a) or (b) d
than 90% of the together (b)
has failed to do
assessed tax
so
Period for which interest u/s 234A is payable is the date of either (a) or (b), either (a) or
date of furnishing date of regular
265 period commencing on date immediately following completion of as the case may c (b), as the
the return assessment
the due date and ending on ______. assessment be case may be
Period for which interest u/s 234B is payable is the date of date of
date of regular date of filing of
266 period commencing from 1st April of assessment year determining of either (a) or (b) b regular
assessment return
to the ______. total income assessment
An assessment made for the first time u/s 147 or u/s regular best judgement income-tax regular
267 self assessment a
153A is regarded as ______. assessment assessment assessment assessment
installment
In respect of shortfall in payment of ______ , interest installment of self assessment regular
268 advance tax b of advance
is required to be calculated u/s 234C. advance tax tax assessment tax
tax
Calculation of interest u/s 234C in case of non-
corporate assesse for the last installment will be {
269 3 months 6 months 9 months 1 month d 1 month
100% [Returned Tax – TDS/TCS] (–) Advance tax
paid till 15th March} × 1% × ______ .
The interest u/s 234C is payable on shortfall of
Higher of (a) and Lower of (a) and returned
270 various installments of advance tax calculated with assessed income returned income b
(b) (b) income
reference to the tax due on ______ .
Entire amount of tax payable on ______ should be
both (a) or
271 paid in the remaining installments of advance tax capital gains casual income both (a) or (b) returned income c
(b)
which are due after the said income arises.
If no installment of advance is due, entire tax on
272 capital gains or casual income paid by ______ of the 15th March 21st March 25th March 31st March d 31st March
relevant financial year.
 Any amount paid by way of advance tax on or before
______ of the relevant previous year shall be treated
273 15th March 25th March 31st March Last Friday c 31st March
as advance tax for all the purposes of the Income Tax
Act.
Any payment made after 15th March but on or before
interest u/s
274 31st March of the previous year avoids levy of interest u/s 234A interest u/s 234B interest u/s 234C penalty b
234B
______.
For calculating interest u/s 234A/234B/234C, all
275 Rs. 10/- Rs. 1,000/- Rs. 50/- Rs. 100/- d ` 100/-
calculations are rounded off to nearest ______.
Tax due on ______ income is not relevant for interest
276 assessed returned provisional either (a) or (b) a assessed
u/s 234C.
Interest u/s 234B is calculated on the amount by self-assessment
277 returned tax advance tax assessed tax d assessed tax
which advance tax paid falls short of ______. tax
_____ means taxing the same income twice in the Double
278 Unilateral Relief Residence Rule Global Income Double Taxation d
hands of an assessee. Taxation
Global
279 In India, a resident is taxed on his _____. Double Taxation Residence Rule Unilateral Relief Global Income d
Income
_____ arises when tax payer is resident in one country Double
280 Unilateral Relief Global Income Double Taxation Residence Rule c
but has source of income in another country. Taxation
The _____ holds that income is to be taxed in the Exemption
281 Multilateral relief Source Rule Residence Rule c Source Rule
country in which it originates. Method
The _____ states that the power to tax should rest Exemption Residence
282 Multilateral relief Residence Rule Source Rule b
with the country in which taxpayer resides. Method Rule
_____ provides for relief of some kind by the home
Exemption Unilateral
283 country even where there is no mutual agreement Unilateral Relief Bilateral Relief Multilateral relief b
Method Relief
between 2 countries.
 Under _____ the Governments of two countries enter
into an agreement to provide relief against double Exemption Bilateral
284 Bilateral Relief Unilateral Relief Multilateral relief a
taxation by mutually working out the basis on which Method Relief
the relief is to be granted.
Double
Double Taxation
To overcome the ill effects of double taxation, Taxation
285 Avoidance Residence Rule Source Rule Exemption a
countries enter into _____. Avoidance
Agreement
Agreement
Double
Double Taxation
_____ lay down the rules for taxation of the income Taxation
286 Taxable Exemption Residence Rule Avoidance d
by source country and residence country. Avoidance
Agreements
Agreements
Under _____ method of bilateral relief, income is
287 Global income Foreign income Total income Exemption d Exemption
taxed in only one of the two countries.
Under Tax Relief method of bilateral relief income is
288 Source Rule Exemption Taxable Residence Rule c Taxable
_____ in both countries.
The country of _____ of tax payer allows him credit Exemption, increases, residence,
289 tax, source residence, source c
for tax charged thereon in country of _____. income globalization source

Section 90(1) provides that Central Government may

enter into an agreement with the Government of any
Exemption exchange of exchange of
290 country outside India or specified territory outside Bilateral relief Unilateral relief c
Method information information
India for granting of relief, avoidance of double
taxation, _____ and recovery of Income tax.

Where the Central Government has entered into a

Mutual
291 DTAA, provisions of Act shall apply to the extent less more Treaties b more
Agreements
they are _____ beneficial to assessee.
 The DTAA u/s. 90 are intended to provide relief to the
Exemption Mutual
292 tax payer, who is _____ of one of the contracting resident Bilateral relief b resident
Method Agreements
country to the Agreement.
Tax
In order to get benefit u/s. 90, a non–resident needs to Exemption Tax Residence
293 Unilateral relief Bilateral relief d Residence
obtain _____. Method Certificate
Certificate

_____ rate of tax to foreign companies as compared to

Mutual
294 domestic companies is not regarded as less favourable Treaties resident Higher d Higher
Agreements
to foreign companies.

Relief u/s. 91 is available in case of income arising in

295 a country with which India _____ have a double does is can does not d does not
taxation agreement.
To claim relief u/s. 91, the assessee should be a _____
Mutual Double Taxation
296 in India in previous year in respect of which income is resident Treaties a resident
Agreements provision
taxable.
For claiming relief u/s. 91, income should arise or Double Taxation
297 outside inside Foreign a outside
accrue _____ India. provision
The deduction u/s. 91 is calculated at Indian rate of Double Taxation
298 less more Treaties a less
tax or rate of tax of other country, whichever is _____. provision

The deduction u/s. 91 is calculated at _____ rate of

299 tax if rate of tax in India and that other country is Indian Foreign outside inside a Indian
equal.
Relief of tax paid on _____ income of Indian Resident Double Taxation
300 Higher Agricultural Treaties b Agricultural
in Pakistan can be claimed. provision
Relief that can be claimed on agricultural income
Double Taxation Indian Rate
301 from Pakistan is restricted to tax paid or tax payable at Indian Rate of tax foreign country Higher b
provision of tax
the rate of _____ whichever is less.
 Relief u/s. 91 is available only if assessee has paid tax Clubbing of foreign
302 Double Taxation foreign country Agricultural c
in _____. Income country
If income _____ deemed to accrue or arise in India
303 is can is not cannot c is not
during the previous year, relief u/s. 91 is available.
increases,
Double Taxation _____ cost of operating on an Exemption, increases,
304 tax, source residence, source c globalizatio
international scale and slows down _____. income globalization
n
_____ means taxing the same income twice in the Clubbing of Double
305 Double Taxation Either (a) or (b) Both (a) and (b) b
hands of an assessee. Income Taxation
Global
306 In India, a resident is taxed on his _____. Global income Foreign income Total income Indian income a
income
The _____ holds that income is to be taxed in the Double Taxation
307 Residence Rule Source Rule Bilateral relief c Source Rule
country in which it originates. provision
The _____ states that the power to tax should rest Double Taxation Residence
308 Residence Rule Source Rule Bilateral relief b
with the country in which the tax payer resides. provision Rule

increases cost of
operating on an slows down reduces burden of Both (a) and
309 Double Taxation _____. Both (a) and (b) d
international globalization tax (b)
scale

_____ is a relief given by home country when there is Unilateral

310 Unilateral relief Bilateral relief Multilateral relief Source Rule a
no mutual agreement with another country. relief

_____ is a relief given by a country when Government

Bilateral
311 of that country enters into a mutual agreement with Unilateral relief Bilateral relief Multilateral relief Source Rule b
relief
Government of some other country.

Exemption method and tax relief method are two Bilateral

312 Unilateral relief Bilateral relief Both (a) and (b) Multilateral relief b
types of _____. relief
 In _____, a particular income is taxed only in one of Exemption Tax Relief Exemption
313 Unilateral relief Bilateral relief c
the two countries. Method Method Method
In _____ a particular income is taxed in both countries Exemption Tax Relief Tax Relief
314 Unilateral relief Bilateral relief d
and then credit of tax is given. Method Method Method
Under Tax Relief Method, the country of _____ of tax
residence,
315 payer allows him credit of tax charged thereon in source, residence residence, source Either (a) or (b) Both (a) and (b) b
source
country of _____.
Section 90(1) provides that the _____ may enter into
an agreement with the Government of any other Central Central
316 State government Any government Anyone c
country outside India or specified territory outside government government
India.

The Central Government may enter into an agreement

with Government of any country outside India or Exchange of Recovery of Improving global Both (a) and
317 Both (a) and (b) d
specified territory outside India for granting of relief, information Income Tax relations (b)
avoidance of double taxation and _____.

Relief u/s 90 is allowed to a non–resident only on Tax

Residence Tax residence
318 obtaining _____ from Government of the country / Citizenship status Residential status d residence
certificate certificate
specified territory in which he resides. certificate
Relief u/s. 91 is allowed if assessee is a _____ during
Non–Resident of Resident of
319 the previous year in respect of which the income is Citizen of India Resident of India Either (b) or (c) c
India India
taxable.
Relief u/s. 91 is allowed to assessee if income accrues
320 in outside Either (a) or (b) Both (a) and (b) b outside
or arises to him _____ India.
Relief u/s. 91 is allowed to assessee if income is not
321 in outside Either (a) or (b) Both (a) and (b) a in
deemed to accrue or arise _____ India.
(a) or (b), (a) or (b) (a) or (b)
Rate of tax in
322 The deduction is allowed at _____. Indian Rate of tax whichever is whichever is d whichever is
other country
higher lower lower
 Tax paid on agricultural income from Pakistan can be Tax payable at Higher of (a) or Lower of (a) and Lower of (a)
323 Actual tax paid d
deducted from final liability to the extent of _____. Indian Rate of tax (b) (b) and (b)

Double
Double Taxation
To overcome ill effects of double taxation countries Mutual Taxation
324 Treaties Avoidance outside c
enter into _____. Agreements Avoidance
Agreements
Agreements
DTAA lays down rules of taxation of income by both (a) and
325 Source country residence country both (a) and (b) India c
_____. (b)