Tax Laws MCQ on Agricultural Income and Exempted Incomes | Tax Laws MCQs for CS Executive and Other Competitive Exams | Commerce Classes

Tax Laws MCQ on Agricultural Income and Exempted Incomes: Check the below Tax Laws MCQ on Agricultural Income and Exempted Incomes with Answers Pdf free download. Tax Laws MCQ on Agricultural Income and Exempted Incomes Questions for Tax Laws with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Agricultural Income and Exempted Incomes with Answers to help students understand the concept very well. Students should practice CS Executive Tax Laws MCQ on Agricultural Income and Exempted Incomes with Answers based on the latest syllabus.

Tax Laws MCQ on Agricultural Income and Exempted Incomes


1. Any payment in commutation of pension received from a pension fund set up by the Life Insurance Corporation of India in terms of section 10(23AAB) of the Income-tax Act, 1961, is:
(A) Liable for tax
(B) Fully exempt from tax
(C) Partly liable for tax
(D) Taxable @10%

View Answer

(B) Fully exempt from tax


2. Registered political parties have to maintain a record of the contributions and names and address of the persons who have made such contribution where each contribution exceeds:
(A) ₹ 1,000
(B) ₹ 5,000
(C) ₹ 10,000
(D) ₹ 20,000

View Answer

(D) ₹ 20,000


3. The income of an assessee engaged in the business of growing and manufacturing tea in India is taxable to the extent of
(A) 40% of such income
(B) 60% of such income
(C) 70% of such income
(D) 30% of such income

View Answer

(A) 40% of such income


4. Mr. Ramesh engaged in the business of growing and manufacturing tea in India received ₹ 2 lakhs from the Tea Board towards a replacement of tea bushes destroyed by a forest fire. The amount received from Tea Beard by Mr. Ramesh is:
(A) Liable to tax
(B) Exempt from tax
(C) 50% is exempt from tax
(D) 25% is exempt from the tax 

View Answer

(B) Exempt from tax


5. If non-agricultural income is ₹ 4,52,000 and net agricultural income is ₹ 40,000, the tax liability of an individual assessee will be
(A) Nil
(B) ₹ 200
(C) ₹ 206
(D) ₹ 4,326

View Answer

(A) Nil


6. XYZ Pvt. Ltd. had distributed income of ₹ 6 lakh to Rajesh for the reason of buyback of its shares (Not being listed on a recognized stock exchange) from him on 1st February 2021. The amount of ₹ 6 lakh received by Rajesh in the A.Y. 2021-22 shall be
(A) Taxable in full
(B) Exempt u/s 10(344)
(C) Taxable @ 20%
(D) Taxable at the normal rate of tax

View Answer

(B) Exempt u/s 10(344)


7. Incomes of two minor children are included in the income of their father. Father is entitled to exemption u/s 10(32) up to
(A) ₹ 1,500
(B) ₹ 1,000
(C) ₹ 3,000
(D) ₹ 2,000

View Answer

(C) ₹ 3,000


8. The maximum amount of any death-cwm-retirement gratuity received by an employee not covered under the Payment of Gratuity Act, 1972 on Superannuation from the employer exempt from tax is of
(A) ₹ 20 Lakh
(B) ₹ 10 Lakh
(C) ₹ 5 Lakh
(D) ₹ 15 Lakh

View Answer

(A) ₹ 20 Lakh


9. Tax holiday under Section 10AA in respect of newly established units in SEZ is allowed for a total period of
(A) 5 Years
(B) 10 Years
(C) 15 Years
(D) 20 Years

View Answer

(C) 15 Years


10. XYZ Pvt. Ltd. had distributed an income of ₹ 9,00,000 to Rajesh for the reason of buy-back of its shares from him on 1st March 2021. These shares were purchased by him for ₹ 5,00,000 on 1st March 2014. The income out of the amount received by Rajesh against the buy-back of shares from the company XYZ Pvt. Ltd. shall be subject to tax in AY 2021-22 shall be of
(A) ₹ 4 lakh
(B) ₹ 9 lakh
(C) Nil being exempt u/s 10(34A) of Act
(D) None of the above 

View Answer

(C) Nil being exempt u/s 10(34A) of Act


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