Correct Answer is: Citizens Bureau of Direct Taxes

Tax Planning and Management MCQ Multiple Choice Questions

Q: 1. ..............is a casual income

Correct Answer is: Person received

Q: 2. ..............is the implementation of the plan of tax

Correct Answer is: None of these

Q: 3. .............is exempted from income tax.

Correct Answer is: Cooperative dividend

Q: 4. ..........refers to hedging of tax?

Correct Answer is: Tax management

Q: 5. .........deals with PAN

Correct Answer is: Section 140 (C)

Q: 6. 80 ID deals with tax holiday for

Correct Answer is: Eligible business

Q: 7. A company carry forward the eligible tax credit under MAT for a maximum of

Correct Answer is: Twelve assessment years

Q: 8. A company in which the public are not substantially interested is closed

Correct Answer is: None of these

Q: 9. A company in which the public is not substantially interested is known as

Correct Answer is: Closely held company

Q: 10. A company which is neither an Indian company not has made the prescribed arrangements for the declaration and payment of dividends within India is called

Correct Answer is: Provincial company

Welcome to our Tax Planning and Management MCQs category! These multiple-choice questions are designed to help students and exam aspirants understand and master the key concepts of tax planning and management.

About Tax Planning and Management MCQ Questions

Tax Planning and Management MCQs cover essential topics such as tax laws, tax evasion, tax credits, deductions, and strategies for effective tax planning. These questions are designed to test your knowledge and ensure you have a solid grasp of the subject matter.

Why Practice Tax Planning and Management Objective Questions?

Practicing these objective questions is crucial for several reasons. They help you prepare for school and college exams, enhance your understanding of complex tax concepts, and improve your performance in competitive exams and job interviews. Regular practice will build your confidence and ensure you are well-prepared for any assessment.

Who Should Use These MCQs?

Tax Planning and Management MCQ Questions for Practice

1. ..............is a casual income

Interest received
Dividend income
Person received
Winning from lotteries

2. ..............is the implementation of the plan of tax

Tax evasion
Tax avoidance
Tax management
None of these

3. .............is exempted from income tax.

Interest from Indian company
Dividend from foreign company
Cooperative dividend
Dividend from Indian company

4. ..........refers to hedging of tax?

Tax planning
Tax evasion
Tax management
Tax avoidance

5. .........deals with PAN

Section 140
Section 140 (A)
Section 140 (B)
Section 140 (C)

6. 80 ID deals with tax holiday for

Hospitals
Hotels
Natural gas
Eligible business

7. A company carry forward the eligible tax credit under MAT for a maximum of

Five assessment years
Eight assessment years
Ten assessment years
Twelve assessment years

8. A company in which the public are not substantially interested is closed

Open company
Closely held company
Limited company
None of these

9. A company in which the public is not substantially interested is known as

Domestic company
Foreign company
Widely held company
Closely held company

10. A company which is neither an Indian company not has made the prescribed arrangements for the declaration and payment of dividends within India is called

Domestic Company
Foreign Company
Public sector company
Provincial company

11. A person carrying not less than............of the voting power in a company is said to have substantial interest in the company.

12. A short term capital asset means a capital asset held by the assesse for not more than

12 Months immediately preceding the month of its transfer
24 Months immediately preceding the month of its transfer
36 Months immediately preceding the month of its transfer
None of these

13. Alternate Minimum Tax shall not be applicable to a non-corporate assessee who has claimed any deduction under:

Sections 80-IA to 80RRB
section 80P
Section 10AA
Section 35AD

14. Amendments by the finance act are made applicable from

First day of next financial year
First day of same financial year
Last day of same Accounting year
None of the above

15. An assessee incurred expense of tax on non monetary perquisites of employees. Such expenditure shall be considered as

Revenue expenditure
Deferred revenue
Capital expenditure
Expressly disallowed

16. An assessee paid insurance premium against risk of damage or destruction of stocks or stores used for the purposes of his business or profession. Such expenditure shall be considered as

Revenue expenditure
Capital expenditure
Deferred revenue expenditure
Illegal expenditure

17. An assessee was engaged in the business of cattle rearing. He incurred a loss in respect of animals which were used for the purposes of his business (otherwise Such expenditure shall be considered as than as stock-in trade) and which have die

Revenue expenditure
Capital expenditure
Deferred revenue expenditure
Illegal expenditure

18. An assessee was engaged in the business of dealing in commodities. He had paid Commodities transaction tax of Rs.15,000 in respect of the taxable commodities transactions. Income arising of Rs 3,00,000 from such taxable commodities transactions was included in the income computed under the head Profits and gains of business or profession. Such expenditure of payment of Commodities transaction tax shall be considered as

Revenue expenditure
Capital expenditure
Speculative transaction expenditure
Illegal expenditure

19. Any company which has made the prescribed arrangements for the declaration and payment of dividends within India is called

Domestic Company
Non domestic company
Public sector company
Provincial company

20. Any corporation by or under any Central, State or Provincial Act or a Government Company as defined in the Companies Act is called

Public Sector Company
Joint company
Private Sector company
Provincial Company

21. As per section 2(31), the following is not included in the definition of person

An individual
A Hindu undivided family
A company
A minor

22. As per section 30, which expenditure incurred for a building used for the business or profession shall not be allowed as deduction?

Rent, rates and taxes
Insurance of building
Repairs of building
Capital expenditure

23. Assessee is having stock existing in the business. Valuation of stock will be at

Cost price
Market price
Cost or market price, whichever is less
Cost or market price, whichever is more

24. Availing tax holiday by a new industrial undertakings in backward areas is a case of

Tax evasion
Tax planning
Tax avoidance
Tax management

25. CBDT stands for

Central Bureau of Direct Taxes
Central Board of Direct Taxes
Citizens Board of Direct Taxes
Citizens Bureau of Direct Taxes

26. Clubbing of income means

Adding income of two persons
Inclusion of income of other person in assessees income
Total income of various heads
Collection of income

27. Company is defined under

Section 2 (17)of the Income Tax Act
Section 2 (32)of the Income Tax Act
Section 2 (14)of the Income Tax Act
Section 2 (12)of the Income Tax Act

28. Compliance of the legal requirements in connection with the tax is the essence of

Tax evasion
Tax planning
Tax avoidance
Tax management

29. Compliance with legal formalities and availing tax incentives are cases of

Tax evasion
Tax planning
Tax avoidance
Tax management

30. Concealment of income or false claims to reduce tax liability are cases of

Tax evasion
Tax planning
Tax avoidance
Tax management

Tax Planning and Management MCQ Multiple Choice Questions for Practice

About Tax Planning and Management MCQ Questions

Why Practice Tax Planning and Management Objective Questions?

Who Should Use These MCQs?

Tax Planning and Management MCQ Questions for Practice

1. ..............is a casual income

2. ..............is the implementation of the plan of tax

3. .............is exempted from income tax.

4. ..........refers to hedging of tax?

5. .........deals with PAN

6. 80 ID deals with tax holiday for

7. A company carry forward the eligible tax credit under MAT for a maximum of

8. A company in which the public are not substantially interested is closed

9. A company in which the public is not substantially interested is known as

10. A company which is neither an Indian company not has made the prescribed arrangements for the declaration and payment of dividends within India is called

11. A person carrying not less than............of the voting power in a company is said to have substantial interest in the company.

12. A short term capital asset means a capital asset held by the assesse for not more than

13. Alternate Minimum Tax shall not be applicable to a non-corporate assessee who has claimed any deduction under:

14. Amendments by the finance act are made applicable from

15. An assessee incurred expense of tax on non monetary perquisites of employees. Such expenditure shall be considered as

16. An assessee paid insurance premium against risk of damage or destruction of stocks or stores used for the purposes of his business or profession. Such expenditure shall be considered as

17. An assessee was engaged in the business of cattle rearing. He incurred a loss in respect of animals which were used for the purposes of his business (otherwise Such expenditure shall be considered as than as stock-in trade) and which have die

19. Any company which has made the prescribed arrangements for the declaration and payment of dividends within India is called

20. Any corporation by or under any Central, State or Provincial Act or a Government Company as defined in the Companies Act is called

21. As per section 2(31), the following is not included in the definition of person

22. As per section 30, which expenditure incurred for a building used for the business or profession shall not be allowed as deduction?

23. Assessee is having stock existing in the business. Valuation of stock will be at

24. Availing tax holiday by a new industrial undertakings in backward areas is a case of

25. CBDT stands for

26. Clubbing of income means

27. Company is defined under

28. Compliance of the legal requirements in connection with the tax is the essence of

29. Compliance with legal formalities and availing tax incentives are cases of

30. Concealment of income or false claims to reduce tax liability are cases of

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Tax Planning and Management MCQ Multiple Choice Questions for Practice

About Tax Planning and Management MCQ Questions

Why Practice Tax Planning and Management Objective Questions?

Who Should Use These MCQs?

Tax Planning and Management MCQ Questions for Practice

1. ..............is a casual income

2. ..............is the implementation of the plan of tax

3. .............is exempted from income tax.

4. ..........refers to hedging of tax?

5. .........deals with PAN

6. 80 ID deals with tax holiday for

7. A company carry forward the eligible tax credit under MAT for a maximum of

8. A company in which the public are not substantially interested is closed

9. A company in which the public is not substantially interested is known as

10. A company which is neither an Indian company not has made the prescribed arrangements for the declaration and payment of dividends within India is called

11. A person carrying not less than............of the voting power in a company is said to have substantial interest in the company.

12. A short term capital asset means a capital asset held by the assesse for not more than

13. Alternate Minimum Tax shall not be applicable to a non-corporate assessee who has claimed any deduction under:

14. Amendments by the finance act are made applicable from

15. An assessee incurred expense of tax on non monetary perquisites of employees. Such expenditure shall be considered as

16. An assessee paid insurance premium against risk of damage or destruction of stocks or stores used for the purposes of his business or profession. Such expenditure shall be considered as

17. An assessee was engaged in the business of cattle rearing. He incurred a loss in respect of animals which were used for the purposes of his business (otherwise Such expenditure shall be considered as than as stock-in trade) and which have die

19. Any company which has made the prescribed arrangements for the declaration and payment of dividends within India is called

20. Any corporation by or under any Central, State or Provincial Act or a Government Company as defined in the Companies Act is called

21. As per section 2(31), the following is not included in the definition of person

22. As per section 30, which expenditure incurred for a building used for the business or profession shall not be allowed as deduction?

23. Assessee is having stock existing in the business. Valuation of stock will be at

24. Availing tax holiday by a new industrial undertakings in backward areas is a case of

25. CBDT stands for

26. Clubbing of income means

27. Company is defined under

28. Compliance of the legal requirements in connection with the tax is the essence of

29. Compliance with legal formalities and availing tax incentives are cases of

30. Concealment of income or false claims to reduce tax liability are cases of

Your Score

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