Practice Test

Q1) If there is transfer of income by a person to another person without the transfer of the asset from which the income arises, such income shall be included in the income of: Show Answer

Q2) If there is revocable transfer of an asset shall be included in the income of: Show Answer

Q3) If there a transfer of asset to the transferee which is not revocable during his life time to the transferee, income arising from such asset shall be included in the income of : Show Answer

Q4) Where an individual has substantial interest in a concern, there shall be included in his Total Income any remuneration paid by such concern to : Show Answer

Q5) Substantial Interest for the purpose of clubbing provision u/s 64(i)(ii) shall be of : Show Answer

Q6) Income arising to a Minor Married Daughter is: Show Answer

Q7) A has sold 2,000 14% Debentures of Rs. 100 each to his wife for Rs.90,000. The Market Value of debentures on the date of transfer was Rs.1,80,000. In this case, Interest Income in the Total Income of A shall be : Show Answer

Q8) Where an individual transfers the HP to his wife without adequate consideration, the income such HP shall be to the provision of: Show Answer

Q9) Clubbing provisions under Sec. 64(1)(vi) are applicable where the asset is transferred by an an individual for inadequate consideration to: Show Answer

Q10) B gifts Rs.5,00,000 to his wife who invested the same in the Partnership business. Mrs B receives Rs. 60,000 as her share of profits from such Firm. In this case amount to be clubbed in the income of B shall be: Show Answer

Q11) As per Sec. 64(1A), income accruing to a minor shall be clubbed in the income of: Show Answer

Q12) If the marriage of the parents does not subsist, the income of the minor child shall be clubbed in the income of: Show Answer

Q13) When income of minor child is clubbed in the income of the parent concerned, such parent will be allowed exemption of: Show Answer

Q14) If any income has to be clubbed under Sec. 64, it will be clubbed under the head: Show Answer

Q15) Where a member of a HUF has converted or transferred his self-acquired property for inadequate consideration into joint family property income arising there from is taxable: Show Answer

Q16) Loss from a speculation business of a particular A.Y. can be set-off in the sane A.y. from: Show Answer

Q17) Loss on account of owning & maintaining the race horses of particular assessment year from: Show Answer

Q18) Mr. B incurred Short Term Capital Loss of Rs. 10,000 on Sale of Shares through the National Stock Exchange. Such Loss can be set-off: Show Answer

Q19) Short-Term Capital Loss of particular assessment year can be set-off in the same assessment year from: Show Answer

Q20) Long-Term Capital Loss of a particular assessment year can be set-off in the same assessment year from: Show Answer

Q21) Loss under the head Capital Gain in a particular assessment year can: Show Answer

Q22) During the previous year an assessee has incurred loss from his business amounting to Rs.1,10,000 whereas his income from House Property is Rs. 1,00,000. Which of the following is correct? Show Answer

Q23) Loss under the head Business or Profession can be set-off in the same assessment year from: Show Answer

Q24) The business loss is allowed to be carried forward only when an assessee has furnished: Show Answer

Q25) Loss under the head Income from House Property can be carried forward: Show Answer

Q26) A Business Loss can be carried forward and set-off in the subsequent assessment year when the business on account of which this loss has arisen: Show Answer

Q27) Loss on account of owning & maintaining the race horses can be carried forward Show Answer

Q28) Loss under the head House Property: Show Answer

Q29) Brought Forward Loss: Show Answer

Q30) In the case of amalgamation, carry forward of business loss and unabsorbed depreciation in the hands of amalgamated Company shall be allowed: Show Answer

Q31) In case of amalgamation if the conditions mentioned u/s 72A are satisfied, the amalgamated Company shall be allowed to carry forward the loss and unabsorbed depreciation of amalgamated Company for: Show Answer

Q32) Loss of closely held Company cannot be carried and set-off unless on the last day of the previous year in which the loss was incurred and as on the last day of the previous year in which such loss is set-off, atleast___________of the Shares are beneficially held by the same persons. Show Answer

Q33) Deduction u/s 80C in respect of LIP, contribution to provident fund, etc., is allowed to: Show Answer

Q34) Deduction under section 80C is allowed from: Show Answer

Q35) For claiming deduction u/s 80C, Life Insurance Premium may be paid by the assessee for: Show Answer

Q36) For claiming Deduction u/s 80C for Life Insurance Premium if the payment is made by the assessee for his child, then the child: Show Answer

Q37) In case of HUF, Deduction u/s 80C in respect of Life Insurance Premium shall allowed for: Show Answer

Q38) An assessee has paid Life Insurance Premium of Rs.25,000 during the previous year for a policy of Rs,1,00,000, He shall: Show Answer

Q39) For claiming Deduction u/s 80C in respect of P.P.F. the contribution must be paid the individual in the P.P.F account of: Show Answer

Q40) For claiming Deduction u/s 80C by an individual in respect P.P.F. contribution of any child, the child should be: Show Answer

Q41) For claiming Deduction u/s 80C in respect of ULIP by an individual, the contribution can be paid by the individual for : Show Answer

Q42) For claiming Deduction u/s 80C in respect of Nation Saving Certificates of VIII issue, the NSC should be acquired by the individual in: Show Answer

Q43) For amount subscribed to National Saving Scheme 1992, the individual shall be allowed Deduction u/s 80C for amount deposited: Show Answer

Q44) The Annual Interest accrued on NSC VIII issue shall be: Show Answer

Q45) For claiming deduction u/s 80C, the payment or deposit should be made: Show Answer

Q46) Deduction under section 80C shall be allowed for: Show Answer

Q47) Deduction under section 80C for tuition fee shall be allowed if such fee is paid to: Show Answer

Q48) Deduction under section 80C for tuition fee shall be allowed for the purposes of: Show Answer

Q49) deduction u/s 80C for Tuition Fee is allowed to : Show Answer

Q50) Deduction under section 80C in respect of tuition fee is allowed to an individual for : Show Answer

Q51) Deduction under section 80C in respect of tuition fee is allowed to the maximum extent of: Show Answer

Q52) Deduction in respect of contribution for annuity plan to certain Pension Fund u/s 80CCC is allowed to: Show Answer

Q53) Amount received from the surrender of annuity plan or amount received as pension from the annuity plan by the assessee or his nominee shall be: Show Answer

Q54) Deduction under section 80D in respect of Medical Insurance Premium is allowed of. Show Answer

Q55) Deduction u/s 80D is allowed if the premium is paid to: Show Answer

Q56) The payment for Insurance Premium under section 80D should be paid: Show Answer

Q57) The maximum deduction that can be claimed by the assessee Under section 80D is: Show Answer

Q58) Where the assessee of spouse or parents or any member of the family of HUF is a senior citizen and the medical insurance premium is paid to effect or keep in force an insurance in relation to him or her, the deduction is allowed up to: Show Answer

Q59) Deduction u/s 80G on account of donation is allowed to: Show Answer

Q60) Deduction in respect of rent paid 80GG is allowed to: Show Answer

Q61) Maximum deduction u/s 80GG shall be limited to: Show Answer

Q62) Deduction u/s 80GGA in respect of certain donation for scientific research or rural development is allowed to: Show Answer

Q63) Deduction u/s 80GGA shall be allowed to the extent of: Show Answer

Q64) Deduction u/s 80DD in respect of maintenance including medical treatment of dependent being a person with disability shall be allowed to: Show Answer

Q65) Deduction u/s 80DDB in respect of medical treatment for specified ailment or disease is allowed to: Show Answer

Q66) Deduction u/s 80DDB shall be allowed for medical treatment of specified ailment or disease is allowed to: Show Answer

Q67) Deduction under section 80DDB shall be allowed for a sum of: Show Answer

Q68) Deduction u/s 80E in respect of repayment of loan taken for higher education shall be allowed to: Show Answer

Q69) Deduction under section 80E shall be allowed in respect of payment of loan taken from: Show Answer

Q70) For claiming deduction u/s 80E loan should be taken for doing: Show Answer

Q71) Deduction u/s 80E is allowed for repayment of the extent of: Show Answer

Q72) Deduction under section u/s 80E for repayment of interest on loan is allowed for: Show Answer

Q73) Deduction u/s 80-lA in respect of Profits and Gains from infrastructure facility is allowed to an enterprises which is owned by: Show Answer

Q74) Deduction to undertaking which develops, maintain, etc. any industrial park is allowed if such undertaking is owned by : Show Answer

Q75) Deduction u/s 80-lA in respect of an undertaking which is engaged in providing telecommunication service, etc. is allowed if it is owned by: Show Answer

Q76) Deduction u/s 80-lB in respect of an industrial undertaking established in a backward state or district of category A shall be allowed: Show Answer

Q77) deduction u/s 80-lB in respect of an industrial undertaking established in a district of category B shall be allowed: Show Answer

Q78) Deduction under section 80-lB in respect of a hotel located in a hilly area or rural area or place of pilgrimage shall be allowed to the extent of: Show Answer

Q79) Deduction u/s 80-lA for any undertaking or enterprise engaged in the development of infrastructure facility shall be allowed to the extent of : Show Answer

Q80) Deduction from the profits of any hotel other than specified hotel established in any area other than Delhi, Mumbai, Chennai and Calcutta shall be allowed to the extent of : Show Answer

Q81) Deduction under section 80-lB in respect of specified or other hotel shall be allowed to: Show Answer

Q82) Deduction under section 80-lB for enterprises carrying on scientific and industrial research and development is allowed in case of : Show Answer

Q83) The quantum of deduction in case of an enterprises carrying on scientific and industrial research and development it shall be allowed to the extent of: Show Answer

Q84) Deduction u/s 80-lB in case of an undertaking engaged in commercial production of referring or mineral oil in any of India is allowed to the extent of : Show Answer

Q85) Deduction u/s 80-lB in case of an undertaking engaged in developing and building housing project shall be allowed to: Show Answer

Q86) Deduction u/s 80-lB in case of an undertaking engaged in developing and building housing project shall be allowed provided the project is on the size of plot of : Show Answer

Q87) Deduction u/s 80-lB in case of under engaged in housing project shall be allowed provided the resident unit has a built up area of : Show Answer

Q88) Deduction u/s 80JJA in resident of profits and gains from business of collecting and processing of the degradable work is allowed to the extent of : Show Answer

Q89) Deduction u/s 80JJAA in respect of employment of a new workers shall be allowed to : Show Answer

Q90) Deduction u/s 80JJAA shall be allowed to a new industrial undertaking owned by a Company asessee in respect of employment of regular workmen exceeding: Show Answer

Q91) Deduction u/s 80JJAA to an existing Industrial undertaking shall be allowed if there is: Show Answer

Q92) Deduction u/s 80JJAA to existing industrial undertaking shall be allowed for the: Show Answer

Q93) Deduction under section 80JJAA shall be allowed to the extent of __% of additional wages paid to the new regular workmen. Show Answer

Q94) Deduction u/s 80U in case of permanent physical disability (including blindness) allowed to: Show Answer

Q95) The quantum of deduction allowed u/s 80U is: Show Answer

Q96) Deduction u/s 80U shall be allowed only when the assessee is suffering from a permanent disability: Show Answer

Q97) Agriculture Income is exempt provided the: Show Answer

Q98) An Assessee is engaged in the business of growing and manufacturing tea in India, the Agricultural Income in that case shall be. Show Answer

Q99) An assessee is engaged in the business of growing and manufacturing of rubber, the agricultural income in that case shall be. Show Answer

Q100) An Assessee is engaged in the business of growing and curing of coffee, the agricutural Income will be : Show Answer

Q101) An Assessee is employed in the business of growing curing, roasting and grounding of coffee, the Agricultural Income in that case shall be: Show Answer

Q102) An Assesse is engaged in the business of manufacturing some product other tea, rubber or coffee for which he uses his own agricultural produce, then: Show Answer

Q103) In an Assessee uses the agricultural produce grown by him for his consumption then: Show Answer

Q104) The partial integration of Agricultural Income with Non Agricultural Income is done in case of : Show Answer

Q105) Agricultural Income is: Show Answer

Q106) The partial integration of Agricultural Income, is done to compute tax on: Show Answer

Q107) If a Firm earns Agricultural Income. it will be exempt: Show Answer

Q108) If a Company declared divided out of Agricultural Income, such divided declared by the Company shall be: Show Answer

Q109) There will be no partial integration of Agricultural Income with Non-Agricultural Income, if the Non-Agricultural Income does not exceed; Show Answer

Q110) There will be no partial integration, if the Agricultural Income does not exceed. Show Answer

Q111) Income derived from rubber plantation in Singapore but received in India shall be treated as: Show Answer

Q112) A transfer shall be deemed to be revocable if
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Q113) An asset is transferred by a person to other person under a partly recoverable transfer whereby a part of the asset will revert back to the transferor. Who shall be liable to pay tax in respect of income from the asset transferred as per section 61?
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Q114) Transfer of income without transfer of asset would be taxable in the hands of
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Q115) Under which of the following circumstances transfers of income is revocable?
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Q116) A transfer which contains any provision for the re-transfer, directly or indirectly, of the whole or only part of the income or asset to the transferor, regarded as
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Q117) In computing the total income of any individual, there shall be clubbed u/s 64(1)(ii) all such income as arise directly or indirectly to the spouse of such individual by way of
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Q118) Mr. X, a fashion photographer pays salary to his wife, who is a model, Remuneration received by Mrs. x shall be included in the income of:
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Q119) Salary, fees, commission, etc. to spouse from a concern in which the individual has substantial interest shall not be clubbed u/s 64(1)(ii) if the spouse
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Q120) If Mr. P and Mrs. P both have substantial interest in a concern and both are in receipt of remuneration from that concern, then
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Q121) “Substantial Interest” in the context of the clubbing provisions u/s(1)(ii) in the case of a company means.
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Q122) An individual is said to have substantial interest in a concern if he or she, along with is or her relatives, is, at any time during the previous year
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Q123) The term substantial interest in the context of clubbing provisions where the concern is other than a company, means
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Q124) The Shares of J ltd. are held by Mr. J 8%, Mrs. J 10% and Mrs. J’s father-in-law 6%. Who amongst the following have substantial interest in J Ltd. ?
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Q125) Income from asset transferred to spouse will be taxable in the hands of transferor if
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Q126) Income from assets transferred to spouse for inadequate consideration, is clubbed in the total income of
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Q127) Mr. X a transferred a capital asset to Mrs. X out of natural love and affection. She transferred the capital asset to her friend and she earned a capital gains of Rs. 2,50,000. The capital gains income shall be regarded as income of :
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Q128) The total income of Mr. X greater than total income of Mrs. X. The computed income under the head income from house property Rs. 25,000 of master minor son of Mr. X. The house has been gifted to him by his maternal income. In whose hands this computed income shall be taxed.
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Q129) Mr. A gifts debentures to Mrs. B (wife of Mr. B, his brother) and Mr. B gifted a flat worth same amount to Mrs. A. The flat yield a rental income of Rs. 2,40,000 p.a. Interest income will be included in the total income of _____and rental income will be included in the total Income of _____.
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Q130) Mr. X gifts cash of Rs. 1,00,000 to his brother’s wife Mrs. Y. Mrs. Y gifts cash of Rs. 1,00,000 to Mrs. X. From the cash gifted to her. Mrs. X invests in a fixed deposit, income therefrom is Rs. 10,000. Aforesaid Rs. 10,000 will be included in the total income of
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Q131) Income from assets transferred to son’s wife for inadequate consideration, shall be included in the total income of
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Q132) Mr. A transfers an asset to his friend Mr. B for inadequate consideration and Mr. B thereafter transfers the asset to the daughter-in-law of Mr. A for inadequate consideration. The income from the asset arising to daughter in law shall be taxed in the hands of
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Q133) Income of a minor child shall be included in the income of
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Q134) Where the income of minor child is once include in the income of either parent in a year; in subsequent year, under which of the following circumstances, can such income be clubbed in the hands of the other parent?
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Q135) Income of a minor child on account of _________ shall be taxable in his hands.
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Q136) Income arising to minor child from manual work or activity involving which of the following applications is not to be clubbed
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Q137) Minor child includes
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Q138) Income of a minor child suffering from any disability of the nature specified in section 80U is
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Q139) Exemption of ________ will be available u/s 10(32) to the parent in respect of minor’s income clubbed with the partner
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Q140) In case of clubbing of income of four minor children exemption of __________ will be available.
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Q141) Exemption of a certain amount (not exceeding the income clubbed) is available under section 10(32), where a minor’s income is clubbed with the income of the partner. The maximum exemption available is
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Q142) All income which arises to the minor child shall be clubbed in the income of his / her
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Q143) The following income that accrue to a minor child will not be included in total income of his partner


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Q144) Master Monu is minor son of X. the total income of Mr. X is higher than of Mrs. X. Master Monu derives interest form debentures of an Indian company amounting to Rs. 20,000. The debentures have been gifted to him by his mother. In whose hands this income will be taxed.

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Q145) When the income of an individual included Rs. 20,000 as the income of his minor child in terms of section 64(1A), taxable income in this respect will be

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Q146) Mr. ram makes a gift to Rs. 25,000 to his wife Mrs. Sita on 25-3-2014. Mrs. Sita started a business on 26-3-2014 by investing Rs. 75,000 (25,000 out of gift and 50,000 of her 50,000 of her own). During the year ended 31-3-2015 she earns an income of 1,80,000 from the said business. Computer the amount of income to be clubbed with the income of Mr. Ram.
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Q147) Mr. M’s minor son S, earned interest Rs. 17,500 on fixed deposit with ABC Ltd. which was gifted to him by his grandfather. M’s income is higher than that of Mrs. M. what will be the tax consequences?
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Q148) Mr. A, who is physically handicapped minor (suffering from a disability of the nature specified in sections 80U); earns bank interest of Rs. 90,000 and Rs. 70,000 form making bags manually be himself. The total income of Mr. A shall be computed in his hands separately
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Q149) The rates of income tax are mentioned in
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Q150) The surcharge applicable in the case of an individual is
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Q151) In respect of a resident assesses, who is of the age of 60 years or more at any time during the previous year 2014-15
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Q152) The rate of tax applicable to a domestic company for A.Y. 2015- 16 is
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Q153) The surcharge applicable to a domestic company for A.Y. 2015-16 is
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Q154) The surcharge applicable to a foreign company for A.Y. 2015-16 is
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Q155) The rate of tax applicable to a firm for A.Y. 2015-16 is
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Q156) Education cess @ 2% and secondary and higher education cess @ 1% payable on
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Q157) As per section 70, the loss in respect of any source of income under any head of income shall be set off against rule is
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Q158) Loss arising under the head capital gain cannot be set-off against
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Q159) B/f unabsorbed business loss can be set off against
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Q160) Loss from house property can be carried forward and set off in the subsequent 8 assessment years
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Q161) Loss under the head ‘Profits and Gains of Business or Profession’ (except speculation business loss) and loss under the head capital gains can be carried forward respectively for
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Q162) Brought forward losses (except speculation business loss) under Profits and Gains of Business or Profession can be set-off against
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Q163) As per section 72, business loss other then ___________ to the extent not set-off under section 71 shall be carried forward to the next assessment year and set-off against the income under the head profits and gains of business and profession of the next assessment.
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Q164) As per section 72, business loss to the extent not set-off can be carried forward for set off for
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Q165) If ITR (Return of loss) is furnished on or before the due date as per section 139(1)
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Q166) Which of the following is correct ?
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Q167) Loss from house property and losses in speculation business can be carried forward respectively for
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Q168) A company engaged in business or purchase and sales of shares of other companies shall not be deemed to be speculation business if
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Q169) The sequence applicable for set off of losses shall be
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Q170) If an assessee carries on the purchases/sales of shares settled otherwise than actual delivery in such a way as to constitute a business, such business will be called a
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Q171) The time limit of c/f of short term capital losses for set off is
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Q172) The time limit for c/f of long-term capital losses for set off is
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Q173) Mr. A has earned salary income of Rs. 5,00,000 and he has suffered loss from house property amounting Rs. 1,50,000. Speculation business loss – 2,00,000. Find out the gross total income.
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Q174) Mr. A has earned salary income of Rs. 5,00,000 and he has suffered loss from house property amounting Rs. 1,50,000. General business loss- Rs. 50,000. Find out the gross total income.
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Q175) Mr. A has earned long term capital gains on sale of equity shares listed in recognized stock exchange on which STT – Rs. 9,20,000, short-term capital loss Rs. 2,00,000. General business income of Rs. 5,00,000. Find out the gross total income.
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Q176) Mr. Mehul has income from cloth business Rs. 2,00,000; Loss from agriculture Rs. 30,000; Long-term capital gain Rs. 40,000 and short term capital loss Rs. 60,000 find out his gross total income for assessment year 2015-16.
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Q177) Mr. N has profit form speculation business Rs. 50,000; Profit form business A Rs. 1,30,000; Loss from business B Rs. 1,50,000. Find out his gross total income for assessment year 2015-16
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Q178) Mr. A has received the following income :
(i) Salary received as a partner form a partnership firm Rs. 8,50,000;
(ii) Loss on sale of shares listed BSE Rs. 5 lahks. Shares were held for 15 months and STT paid on sale.
(iii) Long- term capital gain on sale of land Rs. 6 lakhs. His gross total income will be
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Q179) Father has speculative loss of 1 lakhs and minor has business income of 2 lakhs. Whether the above speculative loss of 1 lakh can be set off against business income of 2 lakhs of minor child whose income is to be clubbed with the income of father. The computed income of father shall be
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