Practice Test

Q1) Transaction between 2 enterprises where one is non-resident are: Show Answer

Q2) What is Tax heaven: Show Answer

Q3) Levy of Service tax is on: Show Answer

Q4) Gross amount charged includes payment by: Show Answer

Q5) CENVAT is applicable in respect of: Show Answer

Q6) An exercise undertaken to minimize tax liability through the best use of available allowances deduction exclusions exemptions etc, to reduce income tax liability is known as Show Answer

Q7) All arrangements by which the tax is saved by ways and means which comply with the legal obligations and requirements would constitute___________.

Show Answer

Q8) Tax planning and careful tax evasion are one and the same. Show Answer

Q9) The line of demarcation between tax planning and tax avoidance is very ________. Show Answer

Q10) There is an element of malafide motive involved in tax avoidance. Show Answer

Q11) Tax avoidance includes fraud, concealment or other illegal measures. Show Answer

Q12) Tax planning can neither be equated to tax evasion nor to tax avoidance. Show Answer

Q13) The tax plan has to be __________ in nature and the planner has to comprehend about the future scenario too while devising a plan to save tax.

Show Answer

Q14) ___________ is Illegal and objectionable, both in script and moral. Show Answer

Q15) ___________ is Immoral in nature and bends the law without breaking it. Show Answer

Q16) ___________ is Moral in nature and follow the provisions of law within the moral framework. Show Answer

Q17) To reduce tax liability by applying unfair means is the aim of ____________.

Show Answer

Q18) Companies are subjected to _______ rate of tax. Show Answer

Q19) A company includes – Show Answer

Q20) The decision making on important business matter is quick in case of partnership business as compared to a company. Show Answer

Q21) The firm can pay interest on capital and loan to partners at the maximum rate of _____ % p.a. Show Answer

Q22) The firm is taxable at a flat rate of ____% + education cess @2% + SHEC @1% for assessment year 2017-18 after allowing interest and remuneration to working partners

Show Answer

Q23) Tax planning is illegal Show Answer

Q24) Deductions under Chapter VIA are admissible only for sole proprietors and HUF Show Answer

Q25) _________ is not deductible either for pre-commencement period or in the post-commencement period in India. Show Answer

Q26) Tax planning is Honest and right approach to attain the maximum benefit of taxation laws within its framework only Objectives of tax planning are:

1) Producer investment
2) Un-healthy growth of economy
3) Minimisation of litigation
4) Increase in tax liability
Select the correct answer from the option given below
Show Answer

Q27) _________ refers to a situation where a person tries to reduce his tax liability by deliberately suppressing the income or by inflating the expenditure showing the income lower than the actual income and resorting to various types of deliberate manipulations. Show Answer

Q28) Any planning which, though done strictly according to legal requirements, defeats the basic intention of the Legislature behind the statute could be termed as instance of___________. Show Answer

Q29) __________ is accomplished by shifting the liability for tax to other person not at arm’s length in whose hands the tax payable is reduced or eliminated. Show Answer

Q30) ____________ means arranging the financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws which entitle the assessee to get certain Show Answer

Q31) The practice of tax evasion is called as ___________. Show Answer

Q32) The practice of tax avoidance is called as ___________. Show Answer

Q33) The practice of tax planning is called as ___________. Show Answer

Q34) Tax planning, is honest and rightful approach to the attainment of _________ benefits of the taxation laws within their framework.

Show Answer

Q35) Generally advantages of Tax planning arise in the __________.

Show Answer

Q36) The concealment of material information in any form would attract the penalty often ranging from ___________ % of the amount of tax sought to be evaded.

Show Answer

Q37) Short-range planning refers to _________ planning to achieve some specific or limited objective. Show Answer

Q38) A partnership firm may come to a sudden closure of business on account of – Show Answer

Q39) Limited Liability Partnership (LLP) combines the benefits of – Show Answer

Q40) The sole proprietor gets deduction on account of remuneration payable to him for rendering of services.

Show Answer

Q41) The liability of the sole proprietor is _________ and it can extend even to his personal assets. Show Answer

Q42) Which of the following is not the basic objectives of tax planning? Show Answer

Q43) The tax rates in case of HUF are same as applicable to___________. Show Answer

Q44) Which of the following is true for reverse merger? Show Answer

Q45) Tax avoidance uses___________. Show Answer

Q46) Tax planning uses___________. Show Answer

Q47) Generally advantages of Tax avoidance arise in the __________. Show Answer

Q48) Which of the following is not the basic objectives of tax planning? Show Answer

Q49) an individual assessee whose income is likely to register unusual growth in particular year as compared to the preceding year, plan to subscribe to the PPF/NSC’s within the prescribed limits in order to enjoy substantive tax relief, It is an example of- Show Answer

Q50) When an assessee transfers his equity shares to his minor son he knows that the Income from the shares will be clubbed with his own income. But clubbing would also cease after minor attains majority, it is an example of- Show Answer

Q51) __________ planning is tax planning under the expressed provisions of tax laws. Show Answer

Q52) Tax planning enables a company to bear the burden of __________.

Show Answer

Q53) The rate of tax for domestic company shall be 29% of the total income (plus SC + SHEC) if the total turnover or gross receipts of the company in the previous year 2014-15 does not exceed _________ rupees. Show Answer

Q54) Surcharge to be levied @____% on individuals having income exceeding Rs. 1 crore. Show Answer

Q55) The proprietor can avail of the ceiling of exempt ___________ in case individual who is the age of 80 years or above Show Answer

Q56) A Hindu undivided family will get a basic exemption of __________ for assessment year 2017-18.

Show Answer

Q57) The interest and depreciation may be claimed as _________ expenditure pertaining to the business of the company. Show Answer

Q58) Tax rates on the basis of Slab system are applicable for the following assesses: Show Answer

Q59) Who can Claim deduction under Section 80GG Show Answer

Q60) Tax evasion is a method of evading tax liability by dishonest means like – Show Answer