Income Tax and Corporate Tax Objective Questions and Answers

85. When the asset is purchased or acquired under hire-purchase/instalment system, the depreciation is . . . . . . . . in computing income.

86. Mr. A resident of Mumbai gets a salary of Rs. 10,000 per month and house rent allowance of Rs. 3,000 per month. He has paid rent of Rs. 4,000 per month. Taxable house rent allowance (HRA) will be

A. Rupees/36,000

87. Which of the following factors is not considered under the OECD model convention to determine the residence of an individual?

A. Habitual abode

B. Centre of vital interests

C. Own house in Calcutta given on rent for the last ten years

D. Flat taken on rent in Pune, where he is living for the last ten years

Discussion

88. Which of the following deductions will not come under Sec. 80 of the Income Tax Act?

A. Deduction in the case of a person with disability

B. Deduction for interest paid on loan taken for pursuing higher education

C. Deduction for interest on loan taken for the construction / purchase of house property

D. Deduction for repayment of any installment of principal amount borrowed for the purchase / construction of house property

Discussion

89. Which of the following amount of penalty is imposable under section 272BB?

90. The depreciation is allowable expenditure subject to:

A. The asset must be tangible asset

B. The asset is used for the business purposes

C. The assesses is the owner of the assets

D. All of the above

Discussion

91. Which Section of the Income Tax Act relates to claim deduction for the amount of interest received from Bank Saving Account?

Income Tax and Corporate Tax MCQs