Paper 7: Direct Taxation (True/False)
1.       In applicable situations of TDS, such TDS is to be deducted on amount including GST component. False
2.       Contribution made to political party by way of cash to the extent of Rs. 10,000 is allowed as business expenditure. False
3.       Unabsorbed depreciation can be carried forward for any number of years. True
4.       Paintings are not considered as personal effects in the context of "capital asset" definition. True
5.       In the hands of a manufacturer, factory building newly constructed is not eligible for additional depreciation. True

6.       Where capital gain arises to an individual from the transfer of a capital asset, being immovable property under a joint development agreement, the capital gain is chargeable to tax in the previous year in which the certificate of completion for whole or part of the project is issued by the competent authority. True
7.       In order to avail carry forward of unabsorbed depreciation, the assessee must furnish the return of income within the due date specified in section 139(1). False
8.       In order to claim exemption under section 54B, the agricultural land, which is transferred, must have been used by the assessee or his parents for at least 3 years prior to the date of transfer. False
9.       Interest on deposit certificates issued under Gold Monetization Scheme, 2015 is exempt from tax. True
10.   The monetary limit of Rs. 5 lakhs in respect of gratuity received by an employee covered by Payment of Gratuity Act, 1972 is exempt from tax. False
11.   Long-term capital gain arising from sale of listed shares (STT paid) is not fully exempted from tax. True
12.   All incomes that accrue to a minor child will be included in the total income of that parent whose total income is greater. False
13.   Caution money forfeited by the assessee is taxable in the year of forfeiture under the head capital gains. False
14.   In order to avail carry forward loss from house property, the return of income must be filed before the due date specified in section 139(3). False
15.   30% of the additional employee cost incurred by the employer is deductible under section 80JJAA. True
16.   An Indian company is always resident in India. True
17.   Salary received by a Member of Parliament is exempt. False
18.   Income of a self-occupied property cannot be negative. False
19.   Preliminary expenditure are allowed deduction in 10 equal installments. False
20.   Capital gain arises from the transfer of any capital asset. True
21.   Medical insurance premium paid by son for parents who are senior citizens is deductible up to a maximum of Rs. 35,000. False
22.   Income from assets acquired by spouse out of pin money or household savings is not subject to clubbing. True
23.   Interest on normal compensation/enhanced compensation is fully chargeable to tax in the year of receipt. False
24.   Cost of self-generated goodwill of business is deemed to be Nil. True
25.   Reimbursement of ordinary medical expenses by the employer is fully exempted. False

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