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Chapter VI-A Multiple Choice Questions (along with answers)Q.1 : As per Section 80A, the total deductions under the relevant Chapter of I.T. Act for A.Y. 2018-19, in respect of an assessee should not exceed :(a) Rs. 1.5 lakh(b) Rs. 2 lakh(c) 50% of GTI(d) GTIQ.2 : The following amounts paid or deposited are allowable for claiming deduction u/s. 80C:(a) Premium paid for insurance on the life of a person(b) Contribution to PF (c) Principal paid towards a housing loan(d) all of the aboveQ.3 : For A.Y. 2018-19, the amount of maximumdeduction that can be claimed by an assessee in respect of medical insurance premia u/s.80D other than a senior citizen :(a) Rs.10,000/- (b) Rs.25,000/-(c) Rs.20,000/- (d) Rs.30,000/-Q.4 : The maximum deduction allowable u/s.80C is :(a) Rs. 1 lakh(b) Rs.1.5 lakh(c) Rs. 2 lakh (d) Rs. 3 lakhQ.5 : Under which Chapter of the Income tax Act, the deductions to be made from the GTI of the assessee has been dealt with :(a) Chapter-IV(b) Chapter IV-A(c) Chapter VI (d) Chapter VI-AQ.6 : Section 80GG deals with the following :(a) Deduction in respect of Medical Expenses(b) Deduction in respect of certain donation(c) Deduction in respect of Children Education(d) Deduction in respect of rent paidQ.7 : A deduction in respect of interest on loan taken for higher education is allowable under the following sections of I.T. Act :(a) Sec.80D(b) Sec.80DA(c) Sec.80E(d) Sec.80EAQ.8 : Deduction allowable u/s.80HHC is :(a) Total export profit derived by the assessee(b) Total export profit at a proportion that is relatable to the export turnover for which a certificate has been issued by the export house(c) Total export profit as reduced by the profit derived in India(d) No deduction is presently allowedQ.9 : Mrs. C paid Rs. 50,000/- to a scientific research association which is approved by the Government. Determine the amount of deduction and under which section Mrs.C can avail the deduction according to the provisions of Chapter-VIA?(a) Rs.50,000/- Section 80GGA(b) Rs.50,000/- Section 80GGB(c) Nil. Section 80GGA(d) None of the aboveQ.10 : The deductions specified in section 80HH to 80TT (deductions in respect of certain incomes) are calculated with reference to the net income:(a) After deducting expenses u/s.30 to 43B and Sec.57(b) After adjusting losses(c) Before making deduction under sections 80C to 80U(d) All of the above Q.11 : For A.Y. 2018-19, the aggregate amount of deduction u/s.80C, 80CCC & 80CCD should not exceed :(a) Rs. 1 lakh(b) Rs.1.5 lakh (c) Rs.1.2 lakh(d) Rs. 0.7 lakhQ.12 : For claiming deduction u/s.80C in r/o. payment towards cost of purchase / construction of a residential property (including repayment of loan taken from certain specified agencies) the minimum period for which the said property should be held by the assessee is :(a) 3 years(b) 2 years (c) 4 years (d) 5 yearsQ.13 : For claiming deduction u/s.80C, the payment or deposit should be made :(a) Out of any income chargeable to income tax(b) out of any income(c) During the current year out of any source(d) Out of any income from other sourcesQ.14 : Where assessee had bonafide belief that claim u/s. 80 IA is admissible and has filed all particulars along with return and later on claim is found t be not admissible during assessment proceedings then :(a) Penalty u/s.271(1)(c) is legally leviable(b) Penalty u/s.271(1)(c) is not legally leviable(c) None of the above(d) Both (a) and (b)Q.15 : Firm ‘A’ has expended Rs. 1,00,000/- on an advertisement in Magazine’X’ published by a political party. Which statement is correct ?(a) Firm ‘A’ may get deduction of Rs.1,00,000/- u/s. 80GGC(b) Firm ‘A’ may get deduction of Rs.1,00,000/- u/s. 80GGB(c) Firm ‘A’ may get deduction of Rs.1,00,000/- u/s. 37(2B)(d) No deduction would be available to the firmQ.16 : Deduction u/s. 80E is allowed on account of :(a) Repayment of loan from certain specified institutions(b) Repayment of loan and interest on loan taken from certain specified institutions(c) Interest on loan taken from certain specified institutions(d) None of the aboveQ.17 : Deduction u/s.80JJA shall be allowed to the extent of what % additional wages paid to the new regular workmen :(a) 100% (b) 50% (c) 30% (d) none of the aboveQ.18 : Deduction u/s.80JJA is available on the business of :(a) Developing bio-diversity parks(b) Generating power from wind energy(c) Collecting and processing or treating of bio-degradable waste for generating power(d) Poultry farmingQ.19: For the purpose of deduction u/s.80DD, what is the level of disability to call a ‘person with disability’ as a ‘person with severe disability’?(a) 70%(b) 50% (c) 40%(d) 80%Q.20 : For the purpose of claiming deduction u/s.80-I AB, a SEZ is to be approved by :(a) CBDT(b) Development Commissioner(c) Director, STPI(d) Central Govt.Q.21 : For the purpose of Section 80E, the “initial asst. year” means, the year in which:(a) The first instalment of the loan for higher education is disbursed(b) The repayment of principal amount of loan starts(c) The repayment of interest starts(d) The first year of higher education courseQ.22 : The maximum amount of deduction available u/s. 80TTA on the income by way of interest on deposits in the savings bank account is :(a) Rs.16,000/-(b) Rs.10,000/-(c) whole of such income(d) Rs. 13,000/-(now amendment has come)Q.23 : Is tax is to be deducted by the person responsible for paying to any heir of an assessee any amount referred to in clause (a) of sub-section (2) of section 80CCA :(a) Yes (c) Only if the aggregate amount of such payment during a F.Y. is more than Rs.2500/-(b) No(d) Only if the aggregate amount of such payment during a F.Y. is more than Rs.10,000/-Q.24 : 100% deduction respect of donations made under section 80G is available for which of the following ?(a) The National Children’s fund(b) The Indira Gandhi Memorial Trust(c) An University or any educational institution of national eminence(d) The Rajiv Gandhi FoundationQ.25 : Deduction u/s.80GGA shall be permissible to the extent of ________ of the donation so made : (to check for amendment)(a) 100%(b) 75%(c) 150%(d) 125%Q.26 : Person with disability for the purpose of Sec.80U of the Act means a person suffering from not less than _______% of any disability as certified by a medical authority :(a) 30(b) 40(c) 50(d) 60Q.27 : Scholarship granted to meet the cost of education is exempted under the Income tax Act, 1961 under :(a) Section 10(b) Chapter VIA(c) The head –salaries(d) Section 10AQ.28 : Donation made for scientific research or rural development is covered under section:(a) 80G(b) 80GGA(c) 80IA(d) 80IBQ.29 : Scholarship granted to meet the cost of education is exempted under the Income tax Act, 1961 under :(a) Section 10(b) Chapter VIA(c) The head –salaries(d) Section 10AQ.30 : Which of the following statement is true with regard to deduction u/s.80G is available :(a) only to an individual or HUF(b) to any tax payer i.e. indl., company, firm or any other person(c) only to company(d) only to a firm, AOPQ.31 : The maximum period of deduction u/s. 80-IC that provides for special provisions in respect of certain undertakings or enterprises in certain special category states :(a) 6 years(b) 8 years(c) 10 years (d) 4 yearsQ.32 : The assessee is deriving his income from the head “profits and gains from business or profession”. For the A.Y. 2018-19, the turnover was Rs.1,25,60,000/- gross profit was Rs.42,00,000/-; net profit from the business was Rs.8,26,000/- and the gross total income was Rs.7,25,000/-. How much maximum deduction he can claim under Chapter VIA ?(a) Rs. 7,25,000/-(b) Rs.8,26,000/-(c) Rs.1,25,60,000/-(d) Rs.42,00,000/-(note: Section 80A specifies that deduction under Chapter VIA cannot exceed GTI)Q.33 : Which of the following deduction not claimed in the return of income can be claimed separately under Chapter VIA ?(a)10A(b) 10AA(c) 10B(d) None of the aboveQ.34 : Which of the following sum cannot be claimed u/s.80C ?(a) Subscription to PF(b) Tuition fee including donation(c) Subscription to any unit of Mutual Fund referred u/s.10(23(D))(d) Insurance premiumQ.35 : Aggregate amount of deduction u/s.80C and 80CCC cannot exceed :(a) Rs. 2 lakhs(b) Rs.1.1 lakh(c) Rs. 1 lakh(d) Rs.1.5 lakhQ.36 : No deduction is allowable u/s.80G when the donation paid in cash exceeds :(a) Rs.10,000/- (b) Rs.20,000/- (c) Rs.40,000/-(d) Rs.25,000/-Q.37 : Contribution to political parties is not allowable as a deduction as per IT Act for :(a) Individual(b) Firm(c) Indian Company(D) Foreign CompanyQ.38: Which of the following fact is incorrect ?(a) Industrial undertakings engaged in infrastructure development can claim deduction u/s.80, 80IA of the IT Act(b) Deduction u/s.80ID is allowable to undertakings engaged in business of hotel and convention centres in specified areas(c) Undertakings engaged in business of North Eastern states can clam deduction u/s.80IE of the IT Act(d) Undertakings engaged in developing SEZ are entitled for deduction u/s. 80IBQ.39 : Deduction u/s.80IC is not applicable to the undertaking located in the state of :(a) Himachal Pradesh(b) Sikkim(c) North Eastern states(d) J&KQ.40 :To claim benefit u/s.80IB(10) several conditions needs to be fulfilled. However, one of the following condition is incorrect and identify the same :(a) project size of the plot of land should be maximum one acre(b) Residential unit situated within the city of Delhi or Mumbai or within 25 kms. of its municipal limits should have maximum built up area of 1000 sq.ft.(c) In other cities, the residential unit should have maximum built up area of 1500 sq.ft.(d) The built up area are of commercial establishments and shops included in the housing project does not exceed 30% of aggregate built up areaQ.41 :Which of the following have been correctly matched ?A. Section 80 DD- Health Insurance PremiumB. Section 80 D – Medical treatment of dependants(a) Only A(b) Only B(c) Both A&B(d) None of the aboveQ.42 : In respect of deduction u/s.80E of the Income tax Act, which of the following statement(s) is / are TRUE?A. The deduction is allowed for the initial asst. year and the following 7 asst. yearsB. The deduction is available in respect of repayment of principal amount of loan taken for pursuing higher studies(a) only A(b) only B(c) Both A&B (d) None of the aboveQ.43 : With reference to the deduction under section 80 IA of the Act, which of the following statement(s) is / are TRUE?A. Widening of an existing road by constructing additional lanes as part of a highway project would qualify as ‘new infrastructure facility’B. Relaying of an existing road qualifies as ‘new infrastructure facility’ for claim of the Deduction(a) only A(b) only B(c) Both A&B(d) None of the aboveQ.44: Which of the following option(s) is /are TRUE?For the purpose of deduction under section 80IA of the Income tax Act, transfer of old plant and machinery previously used for any purpose, to the new business undertakings is permissible provided the value of such old plant and machinery does not exceed ______________ of the total value of P&M used in the business :(a) 10%(b) 20%(c) 25%(d)Trfr. Old P&M is not permissibleQ.45 : Match the following options :A. Deduction in r/o. certain undertakings in NE States - Section 80JJAB. Deduction in the case of Hotels and Convention Centre in specified areas-Sec.80ID C. Deduction in r/o. profits and gains from business of collecting and processing of bio-degradable waste-Section 80 IE(a) A-(ii), B-(i), C-(iii)(b)A-(iii), B-(ii), C-(i)(c) A-(i), B-(iii), C-(Ii)(d) None of the aboveQ.46 : An assessee ‘ABC’ company gives a donation of Rs. 1 lakh by way of cheque and wheat worth Rs.50,000/- to a charitable trust having recognition, u/s. 80G of Act. Which of the following is correct in so far as claim of deduction u/s. 80G is concerned ?(a) Rs.1,50,000/- is eligible for 80G deduction(b) Rs.1,00,000/- is eligible for 80G deduction(c) Rs.50,000/- is eligible for 80G deduction(d) Rs.2,00,000/- is eligible for 80G deductionQ.47 : Where an assessee incurs an expenditure on the medical treatment of a dependant with disability, the deduction allowable u/s. 80 DD is :(a) Rs.75,000/-(b) Rs.1,00,000/-(c) Rs.1,25,000/-(d) Rs.1,50,000/-Q.48 :Deduction of interest on education loan u/s.80E for pursuing higher education cannot be availed by the individual assessee for :(a) Self(b) Spouse(c) Children(d) ParentsQ.49 : Under section 80EE, w.e.f. 01.04.2017, deduction in respect of interest on loan taken for residential property is subject to the condition that the loan has been sanctioned between :(a) 01.04.2015 to 01.04.2016(b) 01.04.2016 to 01.04.2017(c) 01.04.2017 to 01.04.2018(d) Any of the aboveQ.50 : Section 80 TTA for deduction of interest income on deposits is not applicable to interest income from :(a) Savings account from a banking company(b) Savings account with Post Office(c) Savings account with a Co-operative society engaged in the business of banking(d) Time deposits with a banking companyQ.51 : Deduction in respect of Profits and Gains from business of collecting and processing of bio-degradable waste is provided in :(a) Section 80J(b) Section 80JJ(c) Section 80JJA(d) Section 80 JJAAQ.52 : Section 80 QQB deals with deduction in r/o :(a) Royalty income of authors(b) Professional income of authors(c) Royalties from Patents(d) Royalties from export of softwareQ.53 : Deduction u/s.80 GGA is available for donation made to :(a) Educational Institutions(b) Religious Trust(c) Charitable Institutions(d) Research AssociationsQ.54 : Under Section 80U, amount of deduction available in case of person with severe disability is :(a) Rs. 1 lakh(b) Rs. 1.25 lakh(c) Rs. 1.5 lakh(d) Rs. 2 lakhQ.55 : Maximum insurance premium for policy should be :(a) 10% of sum assured(b) 20% of sum assured(c) 30% of sum assured(d) 40% of sum assuredQ.56 : Term deposits eligible for deduction under section 80C are those which are for a period not less than :(a) 2 years(b) 3 years(c) 4 years(d) 5 yearsQ.57 : Contribution made to an approved research association is eligible for deduction up to :(a) 50%(b) 80%(c) 100%(d) 125%Q.58 : For the purpose of deduction u/s.80-IE, the term “eligible business” includes –(a) Running an orphanage(b) Running a primary school(c) Running a women’s hostel(d) Running an old age home ................
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