corporate tax planning.docx

Assignment - C

Q.1A domestic company is always a company in which the public are substantially interested -(a) True (b) False(c) None of the above(d) True in some cases.

Q.2 A private limited company can never be a company in which the public are substantially interested (a) True(b) False(c) True in some cases(d) None of the above

Q.3 A company registered in the UK and makes arrangement for payment of dividend in India is not a domestic company (a) True (b) False(c) True in some cases(d) None of the above

Q.4 A company is said to be resident of a particular company if (a)Control and management of the affairs of a company is situated wholly in that particular country. (b)Control and management of the affairs of a company is situated outside that particular country(c) Control and management of the affairs of a company is situated partly in that particular country and partly outside that particular country.(d) All of the above

Q.5 X Ltd. a foreign company manages its affairs partly from India and partly outside India. X Ltd. is said to be (a) Resident in India(b) Non-Resident in India.(c) Resident and Ordinary Resident in India,(d) Resident but not ordinary Resident in India.

Q.6 A company owning the following hotels can claim deduction under section 80-ID (a)A 5 star hotel in X ( a place ). (b)A 4 star hotel in Y ( a place ). (c)A 3 star hotel in Z ( a place ). (d)All of the above.

Q.7 A company is qualified to claim deduction under section 80-IB. By mistake the deduction was not claimed in the return in the return of income. However, the company claims the before the Assessing Officer at the time of assessment under section 143(3)

(a)Deduction will be allowed by the assessing officer. (b)Deduction will not be allowed by the assessing officer. (c)Deduction will be allowed by the assessing officer, if the Commissioner of Income-tax permits. (d)Deduction will be allowed by the assessing officer, if the it is permitted by the Chief Commissioner. Q.8 A Government company cannot claim any deduction under section 10A, 10AA and 10B (a)True(b)False(c)None of the above(d)True in some cases.

Q.9A limited liability partnership owns an infrastructure facility. It can claim deduction under section 80-IA (a)True(b)False(c)True in some cases(d)None of the above

Q.10 Only a company(not a limited liability partnership) can claim deduction under section 10A, 10AA, and 10B (a)True(b)False(c)True in some cases(d)None of the above

Q.11 Deduction under section 80JJJA is available in the following cases (a)Indian Company(b)Foreign Company(c)Limited Liability Partnership.(d)All of the above

Q.12Tonnage tax scheme is applicable in the following cases (a)Foreign Shipping Company,(b)Indian Shipping Company,(c)Limited liability partnership in shipping industry.(d)All of the above

Q.13A company will pay dividend tax if (a)Bonus shares are allotted to equity shareholder.(b)Bonus shares are allotted to preference shareholders,(c)Shares are allotted to debenture holders free of cost.(d)Shares are allotted to employees as ESOP shares free of cost.

Q.14 Corporate taxation does not play any significance role in determining the choice between different sources of finance (a)True(b)False

Q.15 A Company want to purchase a plant (cost: Rs. 80 crore).It can out rightly purchase it. Alternatively, it can take the plant on lease. The following factors are taken into consideration to find out which one is better (a) Corporate tax rate;(b) Corporate rate and depreciation rate; (c) Corporate tax rate, depreciation rate, lease rent, cost of capital and useful life of plant;(d) None of the above.

Q.16 If corporate tax rate is reduced the tax saving on account of depreciation will increase - (a) True (b) False (c) True in some cases (d) None of the above

Q.17 If rate of depreciation is reduced the tax saving on account of depreciation will increase - (a) True (b) False (c)True in some cases (d)None of the above

Q.18 If borrowed funds are used for purchase of a plant and tax rates are reduced, the tax saving will increase - (a) True (b) False (c) True in some cases (d) None of the above

Q.19 Depreciation is not available in the case of machine acquired under higher purchase (a) True (b) False (c) True in some cases (d) None of the above

Q.20 X Limited is considering a proposal to manufacture a component itself or purchase from market. No fresh investment in plant and machinery will be required if it decides to manufacture the component within its factory. Total Variable Cost of manufacturing is $ 74 per unit of component. Net fixed cost of use of plant and machinery comes to $ 20 per unit of component. The component is available in market at $ 79 per unit of component. It is better to purchase the component from market- (a) True (b) False (c) True in some cases (d) None of the above

Q.21 Y Limited has an option to purchase a machine out of own funds or alternatively a bank can finance it. At the current rate of corporate tax, the tax saving in the later option is higher. If the corporate tax rate is reduced, the second option will become less attractive- (a) True (b) False (c) True in some cases (d) None of the above

Q.22In case of demerger, accumulated loss and unabsorbed depreciation of the demerged company will be-(a) Carried forward in the hands of demerged companies.(b) Carried forward and set off in hands of resulting companies.(c) Set off in the hands of demerged companies.(d) None of these.

Q.23 Amalgamation and demerger are considered as-(a) Same terms always.(b) Distinct terms always(c) Same terms in certain cases.(d) Distinct terms in certain cases.

Q.24 Net wealth is calculated as-(a) Assets chargeable to wealth tax less the exempted assets(b) Assets chargeable to wealth tax less debt owned(c) Assets less debt owned(d) Assets less exempted assets

Q.25 Wealth tax is chargeable (a) @ 2% of the net wealth exceeding Rs. 30 Lakhs(b) @ 1% of the net wealth exceeding Rs. 30 lakhs (c) @ 1% of the entire net wealth provided it exceeds Rs. 30,00,000.(b) @ 2% of the entire net wealth provided it exceeds Rs. 30,00,000.

Q.26 Wealth tax is payable if the net wealth of the assesee(a) Exceeds Rs. 250,000(b) Is Rs. 30,00,000 or more (c) Exceeds Rs. 30,00,000(d) None of the above

Q.27 A firm is (a) Not liable to wealth tax (b) Liable to wealth tax(c) Not liable to wealth tax but partners share in the value of the assests of the firm shall be included in the net wealth of the partner(d) All of the above

Q.28 Asset held by a minor child is included in the net wealth of the (a)Father (b)Mother (c)Father or mother whose net wealth before clubbing is greater. (d)Father or mother whose net wealth before clubbing is lesser.

Q.29 An assessee is one who pays the wealth tax, an assesse belongs to which of the following category?(a) A company(b) HUF(c ) A dead persons legal representative, the executor or administrator(d)All of the above

Q.30 A house is not treated as an asset if(a) it is meant exclusively for residential purposes(b) house held as stock-in-trade(c) house used for own business or profession(d) all of the aboveQ.31 VAT WAS FIRST INTRODUCED AS A TAX IN THE YEAR:- (A) 1919

(B) 1921

(C ) 1948

(D) 1954

Q.32 VAT WAS FIRST INTRODUCED BY THE:- (A) FRANCE

(B) GERMANY

(C ) USA

(D) UK

Q.33 WHICH IS MOST COMMON VARIANT OF VAT USED WORLD WIDE:- (A) GROSS PROFIT VARIANT

(B) CONSUMPTION VARIANT

(C ) GROSS PRODUCT VARIANT

(D) GROSS INCOME VARIANT

Q.34 TIN MEANS:- (A) TAX INFORMATION NUMBER

(B) TAX INDIA NUMBER

(C ) TAX IDENTIFICATION NUMBER

(D) TAX INTRODUCTION NUMBER

Q. 35 VAT INTRODUCTION WILL CERTAINLY:-(A) MAKE THE REVENUE COLLECTION WORST.

(B) MAKE THE REVENUE COLLECTION BETTER.

(C ) THE REVENUE COLLECTION ARE THE SAME.

(D) REVENUE VOLUME HAS NOTHING TO DO WITH INTRODUCTION OF VAT

Q.36 THE ACCOUNTING UNDER THE VAT WILL BE:- (A) REGULAR AND CHEAP.

(B) REGULAR AND EXPENSIVE

(C) IRREGULAR AND CHEAP.

(D) IRREGULAR AND EXPENSIVE

Q.37 TO CLAIM THE INPUT CREDIT OF TAX PAID WHAT IS MOST IMPORTANT DOCUMENT:-(A) PERMISSION OF THE SALES TAX AUTHORITY.

(B) PROPER VAT INVOICE

(C ) CASH BOOK

(D) LEDGER

Q.38 WHICH IS MOST COMMON VARIANT OF VAT USED WORLD WIDE:-(A) GROSS PROFIT VARIANT

(B) CONSUMPTION VARIANT

(C ) GROSS PRODUCT VARIANT

(D) GROSS INCOME VARIANT

Q.39 DUE TO INTRODUCTION OF VAT:- (A) TAX EVASION IS RESTRICTED.

(B) TAX EVASION IS INCREASED.

(C ) VAT HAS NOTHING TO DO WITH EVASION OF TAX.

(D) TAX EVASION HAS BECOME EASY.

Q.40 THE ACCOUNTING UNDER THE VAT WILL BE:- (A) REGULAR AND CHEAP.

(B) REGULAR AND EXPENSIVE

(C) IRREGULAR AND CHEAP.

(D) IRREGULAR AND EXPENSIVE

1. When determining the interaction between the UK and EU on the regulation of the financial services industry, the UK government must alwaysA. seek approval from the European Commission before implementing any new regulations. B. implement new EU Directives by passing acts of Parliament.C. accommodate all EU Decisions in UK legislation.D. provide copies of new regulation to the European Commission within a reasonable period of time for their approval.

2. A client has previously written to her former adviser opting out of any marketing activities from the firm or any third parties. However she continues to receive direct investment offers from the firm. She should complain based on the firm not complying with which set of regulations?A. Conduct of Business rules. B. Data Protection Act 1998.C. Distance Selling Regulations. D. Treating Customers Fairly.

3. The Financial Services and Markets Act 2000 regulates the provision of which type(s) of financial advice?A. Advice to vulnerable individuals only. B. Advice to all individuals.C. Advice to all individuals and group personal pensions schemes only. D. Advice to all individuals unless they are elective professional clients.

4. Simon has experience of dealing with retail clients and is now in training to qualify as a pension transfer specialist. As a consequence, which of the following statements are true?

A. He must have at least 3 years experience as an adviser before his training can commence. B. His firm is allowed to impose a time limit on completion of the qualification.C. His supervisor must also be suitably qualified.D. Once qualified, CPD requirements are waived for 12 months.E. Once qualified, records of his training must be maintained for at least 5 years.

Applied Direct TaxationObjective Questions and Answers

1. Multiple Choice Questions(A) The following is capital receipt:(a) Dividend from investment;(b) Bonus shares;(c) Sale of technological know- how;(d) Compensation received for compulsory evacuation of place of business.Ans. (d) Compensation received for compulsory evacuation of place of business.

(B) Following is not a capital receipt:(a) Dividend on investment;(b) Bonus shares;(c) Sale of know-how;(d) Compensation received for vacating business place.Ans. (a) Dividend on investment

(C) An individual is said to be resident in India in a previous year (in which the February month has 29 days) if he is in India in that year for a period or periods amounting in all to 182 days or more, [(a) 182, (b) 183, (c) 60, (d) 150]Ans. 182 days

(D) The assessee is charged to income-tax in the assessment year following the previous year:(a) A non-resident business firm which shipped goods on 1.5.210 at Visakhapatnam Port in Andhra Pradesh(b) An employee left India to USA on 1.8.2010 with no intention of returning(c) ABC firm which discontinued its business on 1.9.2010(d)An employee-assessee of a University who worked during 1.4.09 to 30.03.2010Ans. (d) An employee-assessee of a University who worked during 1.4.09 to 30.03.2010.

(E) Income received in India in previous year is taxable in the hands of:(a) Resident;(b) Not-resident;(c) Non ordinarily resident;(d) All above.Ans. (d) All above.

(F) Expenditure incurred by an employer on medical treatment and stay abroad of the employee shall not be taxed in the case of ___________.(a) an employee whose gross total income before including the said expenditure does not exceed Rs. 2 lakhs.(b) an employee whose income under the head "Salaries" exclusive of all monetary perquisites does not exceed Rs. 2 lakhs,(c) an employee whose income under the head "Salaries" exclusive of all non-monetary perquisites does not exceed Rs. 2 lakhs,(d) all employees irrespective of their amount of gross total income/the amount of income under the head "Salaries".Ans. (a) an employee whose gross total income before including the said expenditure does not exceed Rs. 2 lakhs.

2. Expand - Expand abbreviations CCIT, CBDT. Ans. CCIT - Chief Commissioner of Income Tax CBDT - Central Board of Direct Tax

3. Fill in the Blanks(A)The basic exemption limit in case of a non-resident individual being a senior citizen of Rs. 1.60,000.Income-tax rates are not prescribed by the Income-tax Act, but by the Finance Act of each year.(B) The term business would include profession and accordingly the term business used in Section 9(1)(i) would also include a professional connection.(C)Compensation received from an insurer on account of damage to the crops is an agricultural income.(D) Receipts from TV serial shooting in farm house is non agricultural income.

4. True and False/Correct and IncorrectA. 'Gross Total Income' means aggregate of income computed under various heads and after allowing deduction under Chapter Vl-A. Ans. False. 'Gross Total Income' means aggregate of income computed under various heads before allowing deduction under Chapter Vl-A. Income after allowing deduction under Chapter Vl-A is known as Total Income.B. If a person is resident and ordinarily resident of India, his income earned outside India is taxable in the country in which he earned that income. Ans. False. His income shall be taxable in India, subject to relief available u/s 90, 90A and 91.C. Where a person does basic operations in lands and later sells the saplings grown by him in a nursery owned by him, the same will be agricultural income. If the basic operations are not done by the assessee and the saplings are sold in his nursery, the same will still be regarded as agricultural income. Ans. True. Any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.D. Vivitha, a Cost Accountant, is employed in Hema Plastics Ltd. The company pays the annual Cost accountant membership fee. The fee so paid by the company is not to be treated as a perquisite in the hands of Vivitha. Ans. False. As payment of annual Cost accountant membership fee is obligation of Vivitha. Since, obligation of the employee is paid by the employer, hence such payment shall be considered as taxable perquisite u/s 17(2)(iv).E. X is employed in Complex Ltd. as a Chartered Accountant. The annual membership fee of X paid by Complex Ltd. is not a perquisite and hence not chargeable to tax.Ans. False. Payment of annual membership is an obligation of X which is borne by the employer, hence the same shall be treated as perquisite u/s17(2).F. Rental income from residential property owned by a company carrying on business of property rentals is taxable under the head "Income from House Property". Ans. True. Rental income from residential property of an assessee is taxable under the head 'Income from House Property', irrespective of the fact that assessee is engaged in the business of letting of the property.

5. Multiple Choice Questions(A) If an employer transfers second hand motor car to the employee, the perquisite is valued at -(a) Actual cost less depreciation @ 30% for every completed year under straight line method(b) Actual cost less depreciation @ 20% for every completed year under WDV method(c) Actual cost less depreciation @ 30% for every completed year under WDV method(d)Actual cost less depreciation @ 20% for every completed year under SLM method.Ans. (b) Actual cost less depreciation @ 20% for every completed year under WDV method.(B)The following is exempt income :(a) Travel concession to employee(b) Remuneration received for valuation of answer scripts(c) Encashment of leave salary whilst in service(d) Perquisites in IndiaAns. (a) Travel concession to employee.(C) The following is not taxable as income under the head "Salaries":-(a) Commission received by a full-time director;(b) Remuneration received by a partner;(c) Allowances received by an employee;(d) Free accommodation given to an employee.Ans. (b) Remuneration received by a partner.

6. Fill in the BlanksA. Expenditure on free meals to employee in excess of Rs. 50 per meal will be treated as perquisite of employee.B. Gift to employee upto Rs. 5,000 per annum will not be treated as perquisite taxable in the hands of employee.C. Death-cum-retirement gratuity received by an employee of Central Government is wholly exempt (wholly exempt/exempt up to Rs. 3,50,000/exempt up to 10,00,000)D. If loan granted by employer to employee does not exceeds Rs. 20,000 (10,000, 20,000, 50,000, 1,00,000), it is not treated as perquisite to employee for purpose of income tax.E. Where an employer gifts a second hand motor car to an employee, the perquisite value is actual cost less depreciation at 20 % for every completed year under reducing balance method of computing depreciation.F. Any commission due or received by a partner of a firm from the firm shall not be regarded as salary income under section 15;G. Advance salary is taxable, while advance against salary is not taxable.

7. Distinguish between foregoing of salary and surrender of salary. Ans. Once salary has been earned by an employee, its subsequent waiver does not make it exempt from tax liability. Such waiver shall be treated as application of the income. Hence, salary foregone is taxable. However, where an employee opts to surrender his salary to the Central Government u/s 2 of Voluntary Surrender of Salaries (Exemption from Taxation) Act, 1961, the salary so surrendered shall not be taxable.

8. Multiple Choice QuestionsIf an assessee earns rent from a sub-tenant in respect to tenanted property let out as a residence, the said rent is:(a) Exempt under Section 10.(b) Taxable under the head income from house property.(c) Taxable as business income, as the letting out is a commercial activity.(d) Taxable as income from other sources, unless the assessee is in the business of subletting properties on a regular basis.Ans. (d) Taxable as income from other sources, unless the assessee is in the business of subletting properties on a regular basis.

9. Fill in the BlanksA. Interest on capital borrowed for acquisition or construction of property is deductible subject to limit of Rs. 1,50,000 per year, if capital is borrowed on or after 1-04-1999. This is allowable if acquisition or construction is completed within 3 years from end of financial year in which loan was taken.B. For a self-occupied house property occupied on 1.7.2010, for which housing loan was availed, if the interest up to 31.3.2010 is Rs. 90,000 and thereafter the interest payable is Rs. 3,000 per month, the deduction available under section 24 in respect of interest for the year ended 31.3.2011 is Rs. 54,000.C. An assessee, after sale of house property, receiving arrears of rent is (is\is not) chargeable to tax; the same computed in the stipulated manner, is chargeable to tax as income from house property (income from other source/income from house property).D. The basis of chargeability under the head 'income from house property' is Annual Value.E. Arrear rent is taxable after deducting 30% as per Section 25B of the Income-tax Act, 1961.

10. Multiple Choice Questions:(A)X Ltd. has failed to remit the tax deducted at source from annual rent of Rs. 6,60,000 paid to Mr. A for its office building. Said rent is (a)fully allowable as a business expenditure; (b)not allowable in view of Section 40(a)(i);(c)allowable to the extent of 50%; (d)none of the above.Ans. (b) not allowable in view of Section 40(a)(i).(B) A partnership firm's profit as per the profit and loss account is Rs. 10,00,000. Its total income determined according to the provisions of the Income- tax Act, 1961 is Rs. 9,00,000. A partner who has 20% share in the firm can claim exemption of amount of Rs.__________under Section 10(2A).(a) 2,00,000,(b)1,80,000, (c) 20,000 (d) None of the aboveAns. (a) 2,00,000(C) Expenditure incurred in carrying out illegal business is(a) Not allowed as deduction in any case.(b) Allowable as deduction, if gross total income is less than Rs. 5 lakhs.(c) Allowable as deduction in all cases.(d) Allowable as deduction, if income from illegal business is offered to tax.Ans. (d) Allowable as deduction, if income from illegal business is offered to tax.(D) if any expenditure is incurred by an Indian company wholly and exclusively for purpose of amalgamation or demerger, the said expenditure is (a) not allowable as a deduction as a deduction in computing "Profits and gains from business or profession"(b) Fully deductible as revenue expenditure in the year in which it is incurred.(c) allowable as a deduction, spread over eight successive previous years beginning if the previous year in which the amalgamation or demerger taken place.(d) allowable as a deduction, spread over five successive years beginning with the previous year in which the amalgamation or demerger taken place.Ans. (d) allowable as a deduction, spread over five successive years beginning with the previous year in which the amalgamation or demerger taken place.

11. Multiple Choice Questions: (A)If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is (a) Not allowable as a deduction in computing profits and gains of business or profession.(b) Fully deductible as revenue expenditure in the year in which it is incurred.(c) Not deductible but is eligible to be treated as an intangible asset in respect of which depreciation can be claimed.(d) Allowed as a deduction spread over five successive previous year beginning with the previous year in which the amalgamation or demerger takes place.Ans. (d) Allowed as a deduction spread over five successive previous year beginning with the previous year in which the amalgamation or demerger takes place.(B) Deduction for bad debts is allowed to an assessee carrying on business (a) In the year in which the debt is written off as bad.(b) In the year in which the debt first arose.(c) In the year in which provisions was made in respect of the bad debt.(d) In the year in which the debt becomes irrecoverable by operation of law.Ans. (a) In the year in which the debt is written off as bad.(C) Under Section 41(4) of the Income-tax Act, 1961, where a bad debt allowed as a deduction under Section 36(1)(vii) in an earlier year is subsequently recovered (a) It is taxable to the extent of 50% of recovery, in the year of receipt, as business income.(b) It is taxable as business income in the year of recovery.(c) It is added back to the income of the year when it was written off and taxed as business income.(d)It is taxable as income from other sources in the year of receipt.Ans. (b) It is taxable as business income in the year of recovery.(D) Payment of interest to partners of partnership firm assessed as firm is allowable as deduction under Section 40(b) of the Income Tax Act, 1961.(a) If the rate of interest does not exceed 8% p.a.(b) If the interest is paid on the minimum balance of capital account between 10th and the end of every month.(c) If it is calculated on quarterly balance.(d) If it is authorized by and in accordance with the partnership deed, pertains to a period after the deed and does not exceed 12 percent simple interest per annum.Ans. (d) If it is authorized by and in accordance with the partnership deed, pertains to a period after the deed and does not exceed 12 percent simple interest per annum.(E) The following is not 'plant' u/s 43(3) of the Income-Tax Act, 1961 (a) Books(b) Know-how(c) Road in the factory building(d) Electrical fittingsAns. (c) Road in the factory building.(F) Mr. L Singh used it in his business. This is the only asset in the block. 20% of the usage is for personal purposes. The WDV of the block as on 31.3.2011 is (a) Rs. 2,70,000;(b) Rs. 2,55,000;(c) Rs. 2,10,000;(d) None of the above.Ans. (d) None of the above.

12. Fill in the BlanksA. In case of an existing industrial undertaking, to be eligible for additional depreciation, increase in installed capacity as compared to the installed capacity as on 31.3.2002 is 10per cent.[Note: As criteria of increment in installed capacity for allowing additional depreciation is now omitted]B. The due date for filling return of net wealth by an individual who is a non-working partner in a firm whose accounts are audited under Section 44AB of the Income-tax Act. 1961 is 31st July.C. A person owns 4 heavy goods vehicles. His estimated annual income U/S. 44AE is 2,40,000. (16,800, 1,51,000, 1,92v000, 2,40,000). D. According to Section 44AB, every person, carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds Rs. 60 lakh in any previous year, inter alia, get his accounts of such previous year audited by a Chartered Accountant.E. Additional depreciation of 20% of the actual cost of any new machinery or plant which has been acquired or installed 31.03.2005 is available to an assessee engaged in the business of manufacture or production of an article of things. F. According to Section 40A(3), where the assessee incurs any expenditure in respect of which payment is made in a sum exceeding Rs. 20,000 otherwise than by a crossed cheque or crossed bank draft. 100 percent of such expenditure shall not be allowed as a deduction.G. The additional or accelerated depreciation, for an eligible assessee, for machinery installed and used after 31.03.2005 is 20% of actual cost of the machinery. H. Where an Indian company incurs any expenditure in connection with amalgamation or demerger, the same is allowable as deduction, spread over 5 successive previous years beginning with the in which amalgamation or demerger taken place.I. 44BBB(i) of the Income-tax Act, 1961, the presumptive income is taken as 10% of the eligible receipts in the hands of eligible assessee.J. The deduction for amortization of preliminary expenses under section 35D is allowable at 20% of the qualifying expenditure in each of the 5 successive years beginning with the year in which business commences.K. Capital Expenses is a non-recurring expenditure whereas revenue expenses is normally a recurring one.L. Sec 28 defines various income which are chargeable to tax under the head "Profits and gains of business or profession".M. Expenditure incurred towards demerger is deductible in 5 equal annual installments under Section 35DD of the Income-tax Act, 1961.

13. True and False/Correct And IncorrectA. Business expenses are allowed to be deducted from" business income even if they are in the nature of personal expenditure of the assessee, as long as they are reasonable.Ans. False. No personal expenses shall be allowed u/s 37(1).B.Where business is carried on, on behalf of the assessee's minor child (whose income is clubbed in assessee's hands), by the assessee, which is besides assessee's own business , the gross receipts of both should be reckoned for judging the applicability of section 44AB of the Income-tax Act, 1961. Ans. False. For the purpose of Sec.44AB, gross receipt or turnover from business of assessee-individual shall be considered.C. No disallowance under Section 40A(3) of the Income-tax Act, 1961 arises where an assessee makes a cash payment exceedings Rs. 20,000 towards purchase of a capital asset.Ans. True. Sec.40A(3) deals with expenditure covered u/s 30 to 37. Hence, any cash payment made for capital expenditure, subject to depreciation, is not covered by Sec.40A(3).D. Depreciation is allowed when it is claimed.Ans. False. According to explanation 5 to Sec.32, depreciation is allowed even if it is not claimed by the assessee.E. In the case of a dealer in shares, Income by way of dividend is taxable under the heads "Profits and gains of business or profession". Ans. False. Dividend on shares is specifically covered under the head 'Income from Other Sources'.F. An assessee owns 11 trucks. One truck is always kept as a spare vehicle and is never plied on the road. Since only 10 vehicles are plied on the road at any given point of time, the provisions of section 44AE of the Income Tax Act, 1961, can be availed by the assessee.Ans. False. The benefit u/s 44AE is available only if the assessee does not own more than 10 trucks. However, in the instant case, assessee is owning more than 10 trucks, hence Sec.44AE is not applicable.G. Municipal tax in respect of staff quarters is deductible only if it is paid, in computing business income.Ans. True. As per Sec. 43B, while computing business income, deduction in respect of any tax, duty, cess, etc. is allowable on payment basis.H. Advertisement in any souvenir, brochure, pamphlet or the like published by a political party is not deductible under Section 37(2B) of the Income-tax Act, 1961. Ans. True. Expenditure incurred by an assessee on advertisement in any souvenir, brochure, trade, pamphlet or like, published by a political party is disallowed u/s 37(2B).

14.Multiple Choice Questions A. Long-term capital gains arising on compulsory acquisition of agricultural land held by a domestic company within specified urban limits is (a) not exempt under Section 10(37);(b) exempt under Section 10(37) in full;(c) 50% of the receipt is exempt under Section 10(37);(d) 25% of the receipt is exempt under Section 10(37).Ans. (a) not exempt under Section 10(37).B. In case of an investor in shares, in respect of shares sold, securities transactions tax paid (at the time of purchase of the said shares earlier), is (a) to be added to the cost of acquisition;(b) to be deducted as an expenditure connected with transfer;(c) not deductible at all while computing capital gains;(d) none of the above.Ans. (c) not deductible at all while computing capital gains.C. In respect of listed shares held for 10 months sold on 12.8.2010, the rate of tax in respect of capital gains is (a) 10%;(b) 20%;(c) 15%;(d) not determinable, as the capital gains will form part of the total income whose other components are not known.Ans. (c) 15%D. Capital gains arising to an individual/HUF is exempt from tax under section 10(37) if the land was being used for agriculture purposes by such HUF or individual or parent of his during a period of or more immediately preceding the date of transfer.(a) 2 years,(c) 12 months,(b) 36 months,(d) 6 monthsAns. (a) 2 yearsE. Long term capital gain arising to an assessee on the sale of a capital asset is exempt under Section 54EC of the Income-tax Act, 1961 (a) To the extent of investment in specified bonds up to a limit of X 100 lakhs.(b) To the extent of 50% of investment in certain bonds up to a limit of Rs. 50 lakhs.(c) To the extent of investment of capital gain in specified bonds not exceeding Rs. 50 lakhs.(d) Proportionate to the extent of investment of net sale proceeds in specifiedbonds, not exceeding Rs. 50 lakhs.Ans. (c) To the extent of investment of capital gain in specified bonds not exceeding Rs. 50 lakhs.

15. Fill in the BlanksA. 2010 - The cost of acquisition of 100 bonus shares, where the original shares (100 nos.) were acquired for Rs.30,000 is Nil.

16. True and False/Correct and IncorrectA. Long-term capital gains arising from units of debt-oriented equity funds for which securities transactions tax has been paid in a recognized stock exchange is exempt.Ans. False. Long-term capital gains arising from units of equity-oriented equity funds for which securities transactions tax has been paid in a recognized stock exchange is exempt u/s 10(38).B. For computation of capital gains, full value of consideration arising from the transfer of a capital asset, being land or building or both, shall be the value adopted by the "Stamp Valuation Authority" for payment of stamp duty or the consideration accruing or received from the transfer, whichever is less. Ans. False. As per Sec.50C, in case of transfer of immovable capital asset being land or building or both, sale consideration shall be higher of the following:1. Actual consideration received or accrued on such transfer; or2. The value adopted or assessed or assessable by any authority of a State Government (i.e. Stamp Valuation Authority) for the purpose of payment of stamp duty.C. Surplus on sale of motor car on which depreciation has been allowed for all year by proprietor of a business will be taxed as long term capital gain. Ans. False. Surplus on sale of motor car on which depreciation has been allowed for all year by proprietor of a business will be taxed as short term capital gain.D. Short-term capital gains arising from sale of listed shares through a recognized stock exchange, for which security transaction tax has been paid, will be charged to tax at a concessional rate of 10%.Ans. False. Short-term capital gains arising from sale of listed shares through a recognized stock exchange, for which security transaction tax has been paid, will be charged to tax at a concessional rate of 15%.

Multiple Choice Questions17. (A)Gift received from one or more unrelated person(s) during the previous year shall form part of an individual's income, if the aggregate of gifts exceeds (a) Rs. 50,000(b) Rs. 1,00,000(c) Rs. 1,35,000(d) Rs. 1,65,000Ans. (a) Rs. 50,000B. Cash gift received under Section 56(2)(vii) from non relatives are not taxable upto (a) Rs. 1,00,000;(b) 175,000;(c) Rs. 50,000;(d) Rs. 25,000Ans. (c) Rs. 50,000.C. Mr. X gifts Rs.60,000 to the HUF of which he is member; said amount will be treated as income of (a) Mr. X;(b) The HUF;(c) None, as it is exempt;(d) None of the above.Ans. (b) The HUF.

18. Fill in the BlanksA. Interest on refund on Income-tax paid in excess is a Taxable receipt.B. Amount received towards permission for putting up hoarding at the top of the building is taxable under the head Income from Other Sources.

19. True and False/Correct and IncorrectA. Mr. A has received gift of Rs. 1,50,000 on 12th December, 2010 from his close friend who is assessed to income-tax. The same is taxable at the hands of Mr. A. Ans. True. Said gift is taxable u/s 56(2)(vii).B. Gift received from assesssee's grandfather in excess of Rs. 50,000 will be taxed as income from other sources.Ans. False. Gift from related person is not taxable.C. Gift of a diamond necklace worth I 2,00,000 received from a friend by an individual assessee is not taxable as income from other sources. Ans. False. Such gift is taxable u/s 56(2)(vii).D. Mr. Janak has received as gift, gold buillion bars worth Rs. 70,000 from his friend on his birthday on 15.3.2011. The same is not to be treated as income from other sources.Ans. False. Gift of bullions is covered under Sec.56(2)(vii), hence, it is taxable under the head 'Income from Other Sources'.E. Mr. Saravanan follows mercantile system of accounting. On 13.3.2011, he has received from the State Government, in respect of lands acquired, interest on enhanced compensation of Rs.1,50,000 which includes a sum of 120,000 relatable to this year. The amount assessable is Rs. 20,000. Ans. False. As per amended provision of Sec. 145A(2), interest on enhanced compensation is assessable as income from other source in the year of receipts. Hence, entire Rs.1,50,000 shall be assessable in the A.Y. 2011-12 subject to standard deduction available u/s 56(2)(viii).G. Mr. A has three minor children deriving interest from bank deposits to of the tune of Rs.2,000, Rs.1,300 and Rs.1,600 respectively. Exemption available under Section 10(32) of the Income-tax Act, 1961 is-(a) Rs. 4,900;(c)Rs. 4,500;(b) Rs. 4,300;(d)None of above(c) Ans. (b) Rs. 4,300H. Miss Femina, aged 17, is married to Mr. Masculine. Her mother alone is alive. Income by way of interest on loans, of Miss Femina will be -(a) Assessed to tax in the hands of Mr. Masculine;(b) Assessed to tax in the hands of her mother;(c) Taxable in own hands;(d) None of the above.Ans. (b) Assessed to tax in the hands of her mother.

20.Fill in the BlanksA. Exemption u/s. 10(32) of IT Act 1961 in respect of income of minor child included in the hands of assesses under Section 64(1A) is restricted to Rs. 1,500 per child.B. Assets held by minor married daughter will not (will/will not) be clubbed in the hands of the individual.C. For the applicability of clubbing provisions of the Wealth Tax Act, 1957, the expression 'child' includes step child and adopted child.

21. Fill in the BlanksAccumulated losses of amalgamating company shall be allowed to be set off or carried forward by amalgamates company, if the amalgamated company holds continuously for a minimum period of 5 years from date of amalgamation at least three-fourths of the book value of assets of the amalgamating company.

22. True and False/Correct and Incorrect1. Benefit of carry forward and set off of accumulated losses and unabsorbed depreciation is not available in case of amalgamation of a company owning hotel, with another company.Ans. False. Benefit of carry forward and set off of accumulated losses and unabsorbed depreciation is available in case of amalgamation of a company owning hotel, with another company u/s 72A.2. Business loss can be set off against salary income.Ans. False;. As per Sec.71 (2A), business loss cannot be set off against salary income.3. Section 73 does not permit carry forward of losses from speculation business for more than four assessment years immediately succeeding the assessment year for which the loss was first computed.Ans. True. As per Sec.73, losses from speculation business cannot be carried forward for more than four assessment years immediately succeeding the assessment year for which the loss was first computed.

23.Multiple Choice QuestionsA. Government's contribution to the new pension scheme referred to in Section 80CCD is -(a) an exempt income;(b) income chargeable to tax as "Salaries" in full;(c) 50% thereof is income chargeable to tax as "Salaries";(d) Income chargeable to tax as "Income from other sources" in full.Ans. (b) income chargeable to tax as "Salaries" in full.B. In case of a hospital built in specified area after 31.3.2008 fulfilling the required conditions laid down in Section 80IB-(11C), the profits and gains derived from running the hospital are(a) deductible in full;(b) deductible to the extent of 50%;(c) deductible to the extent of 75%;(d) taxable in full.Ans. (a) deductible in full.

24. Fill in the BlanksA. For a person suffering from server physical disability, deduction available under Section 80U is Rs. 1,00,000.B. The tax rebate available under Section 80E to a Hindu Undivided Family resident in India is Rs. Nil.C. The maximum amount of permissible deduction under Section 80C, subject to overall ceiling of Rs. 1,00,000, for repayment of principal part of eligible housing loan in Rs. any amount subject to max of Rs.100000 and that of interest is Rs. Nil.D. From out of his agricultural income, X has paid interest of Rs.10,000 on education loan taken from nationalized bank last year. Deduction available u/s 80E of the Income Tax Act, 1961 is Rs. NILE. Medical insurance premium paid otherwise than in cash is eligible for deduction under Section 80D of the Income-tax Act, 1961.

25.True and False/Correct And IncorrectA. Every assessee carrying on a business or profession is entitled to deduction under section 80JJAA equal to 30% of additional wages paid to new regular workmen employed by the assessee. Ans. False. Deduction u/s 80JJAA is available to Indian company only.B. In the case of an individual resident in India, who is an author, maximum deduction available from gross total income in respect of eligible royalty income is Rs. 5,00,000,Ans. False. In the case of an individual resident in India, who is an author, maximum deduction available from gross total income in respect of eligible royalty income is Rs. 3,00,000.C. Market value of donation given in kind is also eligible for deduction under Section 80G of the Income-tax Act, 1961.Ans. False. Donation in kind is not eligible for deduction u/s 80G.

26. Multiple Choice QuestionsA. The registration of a charitable trust can be cancelled under Section 12AA of the Income-tax Act, 1961 by '(a) Assessing Office;(b) Commissioner of Income-tax;(c) Chief Commissioner of Income-tax;(d) Central Board of Direct Taxes.Ans. (b) Commissioner of Income-tax.

27. Fill in the BlanksWhere a charitable trust is created on 01-04-2010, the application for registration u/s 12A of the Income-tax Act, 1961 should be submitted within one year from 1-4-2010 (date of creation of trust).[Note Now, a trust is required to apply for registration in Form 10A with the Commissioner of Income tax. It is to be noted that exemption will be available from the assessment year relevant to the financial year in which such application is made.]

28.True and False /Correct And IncorrectA. Under Section 12A of the Income-tax Act, 1961, application for registration of charitable trust can be made within one year form the date of creation of the trust.Ans. False. A trust is required to apply for registration in Form 10A with the Commissioner of Income tax. It is to be noted that exemption will be available from the assessment year relevant to the financial year in which such application is made.B. In case of an artificial judicial person, no surcharge is payable where the total income exceeds Rs.10,00,000.Ans. True. Surcharge is applicable only in case of corporate assessee.C. Political parties governed by Section 13A of the Income-tax Act, 1961 have to file their returns of income within the time limit prescribed under Section 139(1) even if there is no income chargeable to tax under the Act. Ans. False. As per Sec.139(4B), the chief executive officer (whether such chief executive officer is known as Secretary or by any other designation) of any political party is required to furnish a return in respect of income of such political party, if the amount of gross total income before allowing exemption u/s 13A exceeds the maximum amount not chargeable to tax.

29.Multiple Choice QuestionsA. The income of any university or other educational institution existing solely for educational purposes and not for the purposes of profit is exempt under clause (iiiad) of Section 10(23C) if the aggregate annual receipts'of such university or educational institution do not exceed Rs. (a) Rs.100crores,(c) Rs. 10crores,(b) Rs.1 crore,(d) Rs. 10 lakhsAns. (b) Rs. 1 croreB. Any income chargeable under the based "Salaries" is exempt from tax under Section 10(6)(viii), if it is received by any non resident individual as remuneration for services rendered in connection with his employment in a foreign ship where his total stay in India does not exceed a period days in that previous year.(a) 90(b) 182(c) 60(d) 120Ans. (a) 90 daysC. The following is not a venture capital undertaking for the purposes of Sec.10(23F), if engaged in business of-(a) Generation of power(b) Telecommunications(c) Providing infrastructural facility(d) Dairy farming whose shares are not listed in a recognized stock exchangeAns. (d) Dairy farming whose shares are not listed in a recognized stock exchange.

30. Fill in the BlanksA. To claim the benefit under Section 10A, SEZ undertaking having a turnover of rupees two crores, should file the return of income on or before 31st Oct 2011.B. Exemption under Section 10B of the Income-tax Act, 1961 is available till assessment year A.Y. 2012-13.

31. True and False /Correct and IncorrectA. Amount received under Keyman insurance policy is not exempt under Section 10(10D) of the Income-tax Act, 1961.Ans. True. Amount received under Keyman insurance policy is specifically excluded from exemption u/s 10(10D).B. Amount received under Reverse Mortgage Scheme is taxable as income under the head 'income form other sources'.Ans. False. Amount received under Reverse Mortgage Scheme is exempted u/s 10(43).C. In case of assesses other than companies, the following is advance tax rate to be payable on or before of 15lh September:(a) 15 per cent(c) 45 per cent(b) 30 per cent(d) 60 per centAns. (b) 30 per cent.

32. Fill in the BlanksWhile effecting the tax deduction at source, education cess and special higher education cess totalling 3% need not (should/need not) be also deducted from the amount due or payable to the deductee.

33.True and False/Correct and IncorrectA. As per Section 194-C of the Income-tax Act, 1961, all Association of Persons and Body of Individuals are liable to deduct tax at source from specified payments made to resident contractors.Ans. False. An association of persons or a body of individuals, whose books of account are required to audited u/s 44AB (due to turnover or gross receipt criteria) during the financial year immediately preceding the financial year is liable to deduct tax at source.B. The rate of TDS applicable for payment made on 28.2.2011 to non-individual sub-contractor, as per section 194C, is 2%.Ans. True. As per Sec. 194C, where payee is a other than individual and HUF, tax shall be deducted @ 2%.C. Only in the TDS certificate furnished by the deductor, quoting the PAN of deductor is compulsory and not in the other correspondences between the deductor and the deductee.Ans. False. As per Sec. 206AA, PAN of deductor is required to be quoted on TDS Statement and other correspondence.

34. Multiple Choice QuestionsA. In case of companies deriving loss for any assessment year, filling of return of income within the due date laid down in Section 139(1) is compulsory(a) only where the Department issues notice to the assessee-company;(b) for domestic companies only;(c) for foreign companies only;(d) for all companies.Ans. (d) for all companies.B. Where assessment has not been completed, belated income-tax return for assessment year 2011-12 can be filed upto(a) 31-03-2013(b) 31-12-2012(c) 31-03-2012(d) 31-12-2013Ans. (a) 31-03-2013C. The due date for filing return of net wealth of an individual, who is a partner in a firm, whose turnover for the year ended 31-03-2011 exceeds Rs. 60 lacs, is(a) 30th June, 2011(b) 31st July, 2011(c) 31st October, 2011(d) None of the aboveAns. (d) None of the above.D. Where the karta is not available, the return of wealth of a HUF can be signed by:(a) Any adult member of the family;(b) Any adult coparcener of the family:(c) The male member who is next in seniority to the karta;(d) None of the above.Ans. (a) Any adult member of the family.E. Following Form Number is to be used for filing the return of income by an individual having business income:(a) Form No. 1;(b) Form No. 2;(c) Form No. 4;(d) Form No. 4A.Ans. (c) Form No. 4.

35. Fill in the Blanks:A. Belated return of income for the assessment year 2011-12 can be filed on or before 31st March. 2013. where no assessment has been made. B. The due date for filling wealth-tax return by a closely held company, whose turnover is below Rs. 40 lakhs, is 30th September.C. Electronic furnishing of income-tax return in approved computer readable media can be furnished under sub-section (1B) of section 139 of the Income-tax Act, 1961.D. 2009 - Time limit for filling revised return when assessment has not been completed is one year from the end of the relevant assessment year.E. Sec. 139(1) applies to all persons whether they are resident or non-resident.

36.True and False/Correct And IncorrectPartnership firm deriving loss need not file return of income.Ans. False. A firm is required to furnish return of income mandatorily.

37. Multiple Choice QuestionsA. Surcharge of 2.5% is payable in the case of companies, by(a) domestic companies only;(b) companies other than domestic companies;(c) all companies;(d) None of the above.Ans. (d) None of the above.[Note; Surcharge of 2.5% is payable by non-domestic company if total income exceeds Rs.1 crore.]B. Expand - MAT. Ans. Minimum Alternate Tax

38.Fill in the BlanksA. For the assessment year 2011-12, tax on distributed profits (dividend distribution tax) is payable at 15% plus surcharge of 7.5% (+ Education Cess & SHEC 3%).B. The rate of Minimum Alternate Tax has been increased from 15% to 18% of book profits with effect from assessment year 2011 -12.C. Long term capital gain which are exempt u/s. 10(38) credited to profit and loss account are subject to (subject to/not subject to) Minimum Alternate Tax, from assessment year 2011-12.D. A foreign company means a Company which is not a domestic company.E. The rate of tax in case of Minimum Alternate Tax has been increased to 18% % with effect from Assessment year 2011 -12.

39. True and False/Correct and IncorrectA. For the purposes of computing minimum alternate tax (MAT) under Section 115JB(2) of the Income-tax Act, 1961 the book profit need not to be increased, by inter alia, the amount of deferred tax debited to the profit and loss account. Ans. False. For the purposes of computing minimum alternate tax (MAT) under Section 115JB(2) of the Income-tax Act, 1961 the book profit required to be increased, by inter alia, the amount of deferred tax debited to the profit and loss account.B. The period for setting off the MAT credit under Section 115JB is seven years.

40. Multiple Choice QuestionsA. Which one of the following is an "asset" as per Section 2(ea) of the Wealth-tax Act?(a) Any residential property forming part of stock-in-trade(b) Any residential house that has been let out for a minimum period of 180 days during the previous year(c) Commercial complex(d) House occupied for the purpose of assessee's business.Ans. (b) Any residential house that has been let out for a minimum period of 180 days during the previous year.B. Under the Wealth Tax Act, 1957 the time limit for completion of regular assessment is months from the end of relevant assessment year.(a) 21(b) 12(c) 24(d) None of the above.Ans. (a) 21C. In valuation of immovable property in Bangalore, the specified area means of the aggregate area, for wealth-tax purpose.(a) 60%(b) 65%(c) 70%(d) 75%Ans. (b) 65%D.The following is not an asset as envisaged by Sec.2(ea) of the Wealth-tax Act.(a) Bullion(b) Urban Land(c) Jeep used in business of manufacture of medicines(d) Motor boats of fishing businessAns. (d) Motor boats of fishing business.

41. Fill in the BlanksA. A plot of land not exceeding 500 sq. meters of area, belonging to an individual is exempt from wealth tax.B. Partial partition of HUF is not recognized (recognized/not recognized) for purpose of Wealth-tax Act, 1957.C.Where L whose cash and bank balance on 14.01.2011 is Rs. 50,000 gifts Rs. 2,50,000 to M, without any actual delivery of the money, Rs. 2,00,000 will be clubbed in the hands of L for wealth-tax purposes.D. Under the Wealth-tax Act, 'assessment year' means the period of 12 months commencing on 1st day of April every year, falling immediately after the valuation date.E. The term 'net wealth' is defined in Section 2(m) of the Wealth Tax Act.F. As per Section 2(ea)(i) Wealth-tax Act, 1957,"asset" means, inter alia, farm house situated within 25 Kilometers of any municipality.G. Deemed individual is not liable to (liable to tax/not liable to tax) under Section 2(22)(e) of the Income-tax Act, 1961.H. The term "asset" is defined in clause (ea) of Section 2 of the Wealth-Tax Act, 1957.I. In the case of an individual or a HUF, a plot of land not exceeding 500 sq. metres in area is exempt under Section 5(vi) of the Wealth-tax Act, 1957.J. In computing the net wealth of an individual, the value of assets, which on the valuation date, are held by a minor child who is a married daughter of such individual, shall not (shall/shall not) be included.

42.True and False/Correct and IncorrectA. Property held by an assessee under trust for any private purposes of charitable nature in India is not an exempt asset under Section 5 of the Wealth-tax Act.Ans. True. Property held by an assessee under trust for any private purposes of charitable nature in India is not an exempt asset under Section 5 of the Wealth-tax Act.B. A charitable trust whose income is not exempt under any clause of Section 10 of the Income-tax Act, 1960 will be chargeable to wealth-tax in all cases, where the trust forfeits exemption.Ans. False. A trust forfeits exemption only in circumstances given in Section 21A of the Wealth-tax Act.C. The term 'individual', as a defied in the Wealth-tax, 1957 means only a single human being.D. The term 'Individual' as defined in Wealth tax Act, 1957 means only a single human being.Ans. False. As per various court decisions, individual includes group of individuals forming one unit.E. Under the Wealth Act, 1957 a person who is once treated as a citizen of India, continues to be treated as a citizen of India for ever. Ans. False. If a person voluntarily acquired citizenship of another country, he would cease to be a citizen of India.F. Is it correct to state that every member of AOP is an assessee for the purpose of wealth tax?Ans. Correct. As per Sec. 2(c) read with Sec. 21AA of the Wealth-tax Act, assessee includes every member of the AOP.G. A political party is exempt from paying wealth tax.Ans. True. As per Sec. 45, a political party is exempt from paying wealth tax.H. The maximum amount of penalty leviable under Section 18(1)(c) of the Wealth-tax Act, 1957 for concealing the particulars of any asset chargeable-tax is five times the amount of tax sought to be evaded.Ans. True. The maximum amount of penalty leviable u/s 18(1)(c) of the Wealth-Tax Act, 1957 for concealing the particulars of any asset chargeable-tax is five times the amount of tax sought to be evaded.I. An individual himself has to sign the return of wealth and whatever be the contingency, cannot authorize another persons to sign on his behalf. Ans. False. As per Sec.15A, where for any reason, if an individual is not in a position to sign his return, he can authorize another person.J. A company owns a plot of urban land comprising of area of 500 square metres. Exemption is not available in respect of this asset under the provision to Section 5(vi) of the Wealth Tax Act, 1957. Ans. False. Exemption u/s 5(vi) is not available to a company-assessee.K. Vacant side held as stock-in-trade is not liable for wealth tax for 12 years from the end of the year in which it was acquired.Ans. False. Vacant side held as stock-in-trade is not liable for wealth tax for 10 years from the end of the year in which it was acquired.

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Multiple AnswerQuestion The entertainment allowance received by the Government employees is included in their salaries and the deduction is allowed to the extent of least of the following amounts :- CorrectAnswer Actual amount of Entertainment Allowance received. ,Rs. 5,000 , 1/5th of Salary Your Answer Actual amount of Entertainment Allowance received. , Rs. 5,000 , 1/5th of Salary True/FalseQuestion Income Tax Act, 1961 recognizes Written Down Value (WDV) method as well as straight line method for the computation of depreciation u/s 32 this act. CorrectAnswer False Your Answer False

Multiple Choice Multiple AnswerQuestion Profits earned by an Industrial Undertaking engaged in other than infrastructure development is available under Section 80IB for :- CorrectAnswer Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage , Company engaged in scientific and industrial research Your Answer Operation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage Multiple Choice Single AnswerQuestion Which of the following expenditure is in the nature of revenue expenditure? CorrectAnswer Expenditure incurred as discount on issue ofdebentures Your Answer Expenditure incurred as discount on issue of debentures Select The BlankQuestion If sum received is net of TDS then it is to include in income from other sources. CorrectAnswer Grossed up Your Answer Grossed up

True/FalseQuestion Interest paid on the loan for acquiring a capital asset will be considered to be a part of cost of acquisition. CorrectAnswer True Your Answer True

Multiple Choice Single AnswerQuestion Mr. A whose Gross Total Income, before allowing deductions under Chapter VI-A is Rs. 1,45,000, wants to make the investments in the following alternative forms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The amount of rebate available to him u/s 88 is :- CorrectAnswer Rs. 18,000 Your Answer Rs. 18,000

Multiple Choice Single AnswerQuestion Interest on specified securities or premium on redemption is exempt for :- CorrectAnswer Non resident Indian Your Answer Non resident Indian

True/FalseQuestion As per section 2(11) of the Income Tax Act, Block of Assets includes both tangible as well as intangible assets. CorrectAnswer True Your Answer True

Multiple Choice Multiple AnswerQuestion Deductions in respect of Certain Incomes received under Section 80L is available in respect of CorrectAnswer Interest on Central or State Government Securities , Interest on National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) , Bank Interest Your Answer Interest on Central or State Government Securities , Interest on National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) , Bank Interest

Multiple Choice Single AnswerQuestion Tax liability of a person is based on :-

CorrectAnswer Residential status Your Answer Residential status

Multiple Choice Multiple AnswerQuestion For the purpose of income tax, the perquisites can beclassified into :- CorrectAnswer Perquisites which are taxable in case of all types of employees , Perquisites which are taxable only in the hands of specified employee Your Answer Perquisites which are taxable in case of all types ofemployees , Perquisites which are taxable only in the hands of specified employee

Select The BlankQuestion For an individual as a citizen of India who leaves Indiain the relevant previous year for the purpose of employment has to be in India for days or more during previous year. CorrectAnswer 182 Your Answer 182

Multiple Choice Single AnswerQuestion Income earned in previous year is subjected to tax in:- CorrectAnswer Assessment year Your Answer Assessment year

Multiple Choice Multiple AnswerQuestion Following professional institutions have their incomes exempt from tax :- CorrectAnswer Town planning , Company secretary , Accounting Your Answer Town planning , Company secretary , Accounting

Select The BlankQuestion

of the Tax Audit Report refers to the details

CorrectAnswer of various payments which are allowed as deduction only if they are actually paid for.Section 43B Clause No-21 Your Answer Section 43B Clause No-21

Multiple Choice Multiple AnswerQuestion Short Term Capital Loss can be adjusted against :-

CorrectAnswer Short Term Capital Gains. , Long term Capital Gains Your Answer Short Term Capital Gains. , Long term Capital Gains

Select The BlankQuestion To claim sec 10A deduction unit must be establishedin . CorrectAnswer Free Trade Zone Your Answer Free Trade Zone

Multiple Choice Single AnswerQuestion Assessment year is the period of 12 months starting from :- CorrectAnswer 1st April to 31st March Your Answer 1st April to 31st March

Multiple Choice Single AnswerQuestion Combined total of five heads of income equals :-

CorrectAnswer Gross total income Your Answer Gross total income

Multiple Choice Single AnswerQuestion If an employee does not avail of this leave travel concession or assistance during a block of four

CorrectAnswer calendar years :-Only one journey can be carried forward to the next block. Your Answer Only one journey can be carried forward to the next block.

Select The BlankQuestion To acquire PAN, a person shall apply in to the assessing officer. CorrectAnswer Form No. 49A Your Answer Form No. 49A

Multiple Choice Single AnswerQuestion Deduction from Capital Gains under Section 54F is forCapital Gains arising from transfer of :- CorrectAnswer Any Long Term Capital Asset Your Answer House Property

Select The BlankQuestion Where an assessee files or submits the returns as per provisions of section 139 or in response to the notice under section 142, the assessment officer undertakesas per section 143(2) and section 143(3). CorrectAnswer Scrutiny Assessment Your Answer Scrutiny Assessment

Multiple Choice Multiple AnswerQuestion Income of a professional association is exempt if its objectives are :- CorrectAnswer Supervision , Control , Encouragement Your Answer Supervision , Control , Encouragement

True/FalseQuestion While computing the profits from Business and profession, the business or profession must be carried out during the previous year. CorrectAnswer True Your Answer True

Multiple Choice Single AnswerQuestion In respect of leave travel concession If Mr. A has availed the exemption only once or has not availed any exemption at all, in the block of four years i.e.1998-2001 then :- CorrectAnswer He can carry over the exemption to the next block of four years i.e. 2002-2005 provided that he avails the exemption of LTC in the first calendar year of the next block i.e. 2002. Your Answer He can carry over the exemption to the next block offour years i.e. 2002-2005 provided that he avails the exemption of LTC in the first calendar year of the next block i.e. 2002.

Multiple Choice Multiple AnswerQuestion The amount accumulated to the credit of the employee's provident fund account is paid at the time of :- CorrectAnswer Retirement , Resignation Your Answer Retirement , Resignation

Multiple Choice Multiple AnswerQuestion From annual value, following deductions are allowed :-

CorrectAnswer Standard deduction , Interest on borrowed capital , Municipal taxes Your Answer Interest on borrowed capital , Municipal taxes

Multiple Choice Single AnswerQuestion As a general principle, the Basic Salary or Wages, Dearness Allowance and Bonus / Commission is :- CorrectAnswer Fully taxable. Your Answer Fully taxable.

Multiple Choice Multiple AnswerQuestion From GTI of a company following deductions under chapter VI A are allowed CorrectAnswer 80 G Donations , 80 HHB profits and gains fromprojects outside India , 80 IA profits and gains of infrastructure companiesYour Answer 80 G Donations , 80 IA profits and gains of infrastructure companies

Multiple Choice Single AnswerQuestion Annual value of any one palace in possession of aformer ruler is :- CorrectAnswer Exempt Your Answer Taxable

Select The BlankQuestion If the Salary is more than Rs. 5,00,000, Standard

CorrectAnswer Deduction will be Rs. .20000 Your Answer 20000

Multiple Choice Single AnswerQuestion The amount of accumulated interest on NSCs purchased in the earlier years is assumed to be reinvested :- CorrectAnswer And qualifies for tax rebate under section 88. Your Answer And qualifies for tax rebate under section 88.

Select The BlankQuestion Deduction u/s

B is available for 10

CorrectAnswer consequent assessment years from the year of commencement of production.10 Your Answer 10

True/FalseQuestion Income from subletting is treated as income from house property. CorrectAnswer False Your Answer False Select The BlankQuestion Section 80U allows the deduction in respect of the. CorrectAnswer Permanent physical disability Your Answer Permanent physical disability

Match The FollowingQuestion Correct Answer Your Answer

DisallowableExpenditure Litigation Expenses in connection with recovery of a debt which is not a trading debt Litigation Expenses in connection with recovery of a debt which is not a trading debt Business Includes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture Includes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture Profession Includes vocation Includes vocation

Capital Expenditure Expenditure incurred by a company with the issue of rights shares Premium on redemption of Debentures

True/FalseQuestion Any recreational facility provided by the employer to a group of employees (not being restricted to a select few employees) is not exempt from tax. CorrectAnswer False Your Answer False

True/FalseQuestion In case of deductions for medical treatment under Section 80DDB the amount of deduction will be reduced by the amount received under an insurance policy or the amount reimbursed by the employer. CorrectAnswer True Your Answer True

True/FalseQuestion Any advance tax paid before 31st March is treated as advance tax paid during the previous year. CorrectAnswer True Your Answer True

Multiple Choice Single AnswerQuestion Municipal taxes paid is allowed as deduction from :-

CorrectAnswer Gross annual value Your Answer Gross annual value

True/FalseQuestion Entertainment Allowance received by the employees from the private sector is taxable in the hands of the employee. CorrectAnswer True Your Answer True


Any subscription made to National Saving Scheme By an individual or a HUF is eligible for rebate u/s 88 By an individual or a HUF is eligible for rebate u/s 88 Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs. 2,50,000 during the Assessment Year2005-2006. Heinvested Rs. 50,000 in the tax saving bonds of ICICI on 10th June2004. His tax liabilityfor the A Y 2005-2006. RS.12,500 RS.12,500 During the Assessment Rs. 1,000 Rs. 1,000Year 2005-2006, Mrs. A, age 58 years, hasthe Gross Total Income of Rs. 1,45,000 including the dividend from Indian companies amounting to Rs.10,000. She invests Rs. 50,000 in PPF during the said Assessment Year. her tax liabilit isAny contribution made

Is eligible for rebate u/s Is eligible for rebate u/s to a Public Provident 88 88Fund

Multiple Choice Multiple AnswerQuestion Following incomes of local authorities are exempt :-

CorrectAnswer Capital gains , Other income , House property Your Answer Capital gains , Other income , House property

Multiple Choice Multiple AnswerQuestion For Deduction u/s 54EC from Capital Gains the assessee should invest the whole or part of the capital gains in the specified assets :- CorrectAnswer Within six months from the date of transfer of the long-term capital asset Your Answer Within six months from the date of transfer of the long-term capital asset

True/False

RegistrationNumber: 200425352Name: Sarada J.H Subject: Taxation Assignment Status As On: 12/02/2006

Result for this Assignment

Assignment Date11/02/2006Number of Correct Questions39Number of Skipped Questions3Number of Wrong Questions8Total Questions attempted50Total Marks obtained85 Out of 100.ResultPass

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer

QuestionThe entertainment allowance received by the Government employees is included in their salaries and the deduction is allowed to the extent of least of the following amounts :-

Correct AnswerActual amount of Entertainment Allowance received. , Rs. 5,000 , 1/5th of Salary

Your AnswerActual amount of Entertainment Allowance received. , Rs. 5,000 , 1/5thof Salary

True/False

QuestionIncome Tax Act, 1961 recognizes Written Down Value (WDV) method aswell as straight line method for the computation of depreciation u/s 32 this act.

Correct AnswerFalse

Your AnswerFalse


QuestionProfits earned by an Industrial Undertaking engaged in other than infrastructure development is available under Section 80IB for :-

Correct AnswerOperation of Ship , Hotels situated in hilly area, rural area or place of pilgrimage , Company engaged in scientific and industrial research

Your AnswerOperation of Ship , Hotels situated in hilly area, rural area or place ofpilgrimage

Multiple Choice Single Answer

QuestionWhich of the following expenditure is in the nature of revenue expenditure?

Correct AnswerExpenditure incurred as discount on issue of debentures

Your AnswerExpenditure incurred as discount on issue of debentures

Select The Blank

QuestionIf sum received is net of TDS then it is to include in incomefrom other sources.

Correct AnswerGrossed up

Your AnswerGrossed up

True/False

QuestionInterest paid on the loan for acquiring a capital asset will be considered to be a part of cost of acquisition.

Correct AnswerTrue

Your AnswerTrue


QuestionMr. A whose Gross Total Income, before allowing deductions under Chapter VI-A is Rs. 1,45,000, wants to make the investments in the following alternative forms Rs. 80,000 in PPF and Rs. 20,000 in Infrastructure Bonds. The amount of rebate available to him u/s 88 is :-

Correct AnswerRs. 18,000

Your AnswerRs. 18,000


QuestionInterest on specified securities or premium on redemption is exempt for:-

Correct AnswerNon resident Indian

Your AnswerNon resident Indian

True/False

QuestionAs per section 2(11) of the Income Tax Act, Block of Assets includes both tangible as well as intangible assets.

Correct AnswerTrue

Your AnswerTrue


QuestionDeductions in respect of Certain Incomes received under Section 80L isavailable in respect of

Correct AnswerInterest on Central or State Government Securities , Interest on National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) , Bank Interest

Your AnswerInterest on Central or State Government Securities , Interest on National Saving Certificates (NSCs) Interest on National Saving Scheme, 1992 (NSS) , Bank Interest


QuestionTax liability of a person is based on :-

Correct AnswerResidential status

Your AnswerResidential status

Multiple Choice Multiple Answer QuestionFor the purpose of income tax, the perquisites can be classified into :-

Correct AnswerPerquisites which are taxable in case of all types of employees , Perquisites which are taxable only in the hands of specified employee

Your AnswerPerquisites which are taxable in case of all types of employees , Perquisites which are taxable only in the hands of specified employee

Select The Blank

QuestionFor an individual as a citizen of India who leaves India in the relevantprevious year for the purpose of employment has to be in India for days or more during previous year.

Correct Answer182

Your Answer182


QuestionIncome earned in previous year is subjected to tax in :-

Correct AnswerAssessment year

Your AnswerAssessment year


QuestionFollowing professional institutions have their incomes exempt from tax :- Correct AnswerTown planning , Company secretary , Accounting

Your AnswerTown planning , Company secretary , Accounting

Select The Blank

Question of the Tax Audit Report refers to the details of variouspayments which are allowed as deduction only if they are actually paid for.

Correct AnswerSection 43B Clause No-21

Your AnswerSection 43B Clause No-21


QuestionShort Term Capital Loss can be adjusted against :-

Correct AnswerShort Term Capital Gains. , Long term Capital Gains

Your AnswerShort Term Capital Gains. , Long term Capital Gains

Select The Blank

QuestionTo claim sec 10A deduction unit must be established in .

Correct AnswerFree Trade Zone

Your AnswerFree Trade Zone


QuestionAssessment year is the period of 12 months starting from :-

Correct Answer1st April to 31st March

Your Answer1st April to 31st March


QuestionCombined total of five heads of income equals :-

Correct AnswerGross total income

Your AnswerGross total income


QuestionIf an employee does not avail of this leave travel concession or assistance during a block of four calendar years :-

Correct AnswerOnly one journey can be carried forward to the next block.

Your AnswerOnly one journey can be carried forward to the next block.

Select The Blank QuestionTo acquire PAN, a person shall apply in to the assessing officer.

Correct AnswerForm No. 49A

Your AnswerForm No. 49A


QuestionDeduction from Capital Gains under Section 54F is for Capital Gains arising from transfer of :-

Correct AnswerAny Long Term Capital Asset

Your AnswerHouse Property

Select The Blank

QuestionWhere an assessee files or submits the returns as per provisions of section 139 or in response to the notice under section 142, the assessment officer undertakes as per section 143(2) and section 143(3).

Correct AnswerScrutiny Assessment

Your AnswerScrutiny Assessment


QuestionIncome of a professional association is exempt if its objectives are :-

Correct AnswerSupervision , Control , Encouragement

Your AnswerSupervision , Control , Encouragement

True/False

QuestionWhile computing the profits from Business and profession, the business or profession must be carried out during the previous year.

Correct AnswerTrue

Your AnswerTrue


QuestionIn respect of leave travel concession If Mr. A has availed the exemption only once or has not availed any exemption at all, in the block of four years i.e. 1998-2001 then :-

Correct AnswerHe can carry over the exemption to the next block of four years i.e.2002-2005 provided that he avails the exemption of LTC in the firstcalendar year of the next block i.e. 2002.

Your AnswerHe can carry over the exemption to the next block of four years i.e.2002-2005 provided that he avails the exemption of LTC in the firstcalendar year of the next block i.e. 2002.


QuestionThe amount accumulated to the credit of the employee's provident fund account is paid at the time of :-

Correct AnswerRetirement , Resignation

Your AnswerRetirement , Resignation


QuestionFrom annual value, following deductions are allowed :-

Correct AnswerStandard deduction , Interest on borrowed capital , Municipal taxes

Your AnswerInterest on borrowed capital , Municipal taxes


QuestionAs a general principle, the Basic Salary or Wages, Dearness Allowance and Bonus / Commission is :-

Correct AnswerFully taxable.

Your AnswerFully taxable.


QuestionFrom GTI of a company following deductions under chapter VI A are allowed

Correct Answer80 G Donations , 80 HHB profits and gains from projects outside India ,80 IA profits and gains of infrastructure companies

Your Answer80 G Donations , 80 IA profits and gains of infrastructure companies


QuestionAnnual value of any one palace in possession of a former ruler is :-

Correct AnswerExempt

Your AnswerTaxable

Select The Blank

QuestionIf the Salary is more than Rs. 5,00,000, Standard Deduction will beRs. .

Correct Answer20000

Your Answer20000


QuestionThe amount of accumulated interest on NSCs purchased in the earlier years is assumed to be reinvested :-

Correct AnswerAnd qualifies for tax rebate under section 88.

Your AnswerAnd qualifies for tax rebate under section 88.

Select The Blank

QuestionDeduction u/s B is available for 10 consequent assessmentyears from the year of commencement of production.

Correct Answer10

Your Answer10

True/False

QuestionIncome from subletting is treated as income from house property.

Correct AnswerFalse

Your AnswerFalse

Select The Blank

QuestionSection 80U allows the deduction in respect of the .

Correct AnswerPermanent physical disability

Your AnswerPermanent physical disability

Match The Following

QuestionCorrect Answer Your Answer

Disallowable ExpenditureLitigation Expenses in connection with recovery of a debt which is not atrading debtLitigation Expenses in connection with recovery of a debt which is not a trading debt

BusinessIncludes trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufactureIncludes trade, commerce, or manufacture or any adventure or concernin the nature of trade, commerce or manufacture

Profession Includes vocation Includes vocation

Capital ExpenditureExpenditure incurred by a company with the issue of rights sharesPremium on redemption of Debentures

True/False

QuestionAny recreational facility provided by the employer to a group of employees (not being restricted to a select few employees) is not exempt from tax.

Correct AnswerFalse

Your AnswerFalse

True/False

QuestionIn case of deductions for medical treatment under Section 80DDB theamount of deduction will be reduced by the amount received under an insurance policy or the amount reimbursed by the employer.

Correct AnswerTrue

Your AnswerTrue

True/False

QuestionAny advance tax paid before 31st March is treated as advance tax paid during the previous year.

Correct AnswerTrue

Your AnswerTrue


QuestionMunicipal taxes paid is allowed as deduction from :-

Correct AnswerGross annual value

Your AnswerGross annual value

True/False QuestionEntertainment Allowance received by the employees from the private sector is taxable in the hands of the employee.

Correct AnswerTrue

Your AnswerTrue

Match The Following

Question Correct Answer Your Answer

Any subscription made to National Saving SchemeBy an individual or a HUF is eligible for rebate u/s 88By an individual or a HUF is eligible for rebate u/s 88

Mr. A, a 70 years old Senior Citizen, has the Gross Total Income of Rs.2,50,000 during the Assessment Year 2005-2006. He invested Rs.50,000 in the tax saving bonds of ICICI on 10th June 2004. His tax liability for the A Y 2005-2006.RS.12,500RS.12,500

During the Assessment Year 2005-2006, Mrs. A, age 58 years, has the Gross Total Income of Rs. 1,45,000 including the dividend from Indian companies amounting to Rs. 10,000. She invests Rs. 50,000 in PPF during the said Assessment Year. her tax liabilit isRs. 1,000Rs. 1,000

Any contribution made to a Public Provident FundIs eligible for rebate u/s 88Is eligible for rebate u/s 88


QuestionFollowing incomes of local authorities are exempt :-

Correct AnswerCapital gains , Other income , House property

Your AnswerCapital gains , Other income , House property


QuestionFor Deduction u/s 54EC from Capital Gains the assessee should invest the whole or part of the capital gains in the specified assets :-

Correct AnswerWithin six months from the date of transfer of the long-term capital asset

Your AnswerWithin six months from the date of transfer of the long-term capital asset

True/False

QuestionIncome from partnership firms is exempt from taxation for the partners

Correct AnswerTrue

Your AnswerFalse

RegistrationNumber: 200425352Name: Sarada J.H Subject: Taxation Assignment StatusAs On: 12/02/2006

Result for this Assignment

Assignment Date11/02/2006

Number of Correct Questions39

Number of Skipped Questions3

Number of Wrong Questions8

Total Questions attempted50

Total Marks obtained85 Out of 100.

ResultPass

Taxation-------------LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The BlankQuestion The basic advantage of having an agent in the export market is . Correct Answer He is knowledgeable of the marketing condition Your Answer He is knowledgeable of the marketing condition

Multiple Choice Multiple AnswerQuestion How does the customer know about the product & is influenced to buy it?Correct Answer Publicity , Advertising , Sales promotionYour Answer Publicity , Advertising , Sales promotion

Multiple Choice Single AnswerQuestion Which of the following is not included in foreign environment? Correct Answer Local dimensionYour Answer Local dimension

Multiple Choice Single AnswerQuestion Why should a market researcher check a country's import tariffs when he isinvestigating it as an export market?Correct Answer It can affect the competitiveness of product against products made within the marketYour Answer It can affect the competitiveness of product against products made within the market

Multiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". What are the distribution channels used for imports of silk products into USA market?Correct Answer Merchant intermediaries , Departmental storesYour Answer Merchant intermediaries , Departmental stores

True/FalseQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental entered theUS market in 1970 with a moderate export of Rs.20 million. Correct Answer FalseYour Answer False


Indirect exporting Home-based merchant Copyright Business dimensions Channel network Channel network Legal dimensions Copyright Use of patentLicensing arrangement Use of patent Home-based merchant

Multiple Choice Single AnswerQuestion What is important to take pricing decision? Correct Answer CompetitionYour Answer Competition

Select The BlankQuestion In , the firm faces only one set of customers.Correct Answer Domestic marketingYour Answer Domestic marketing

Multiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Oriental was an active member of some councils, which are those? Correct Answer Apparel Export Promotion Council , Woolen Export Promotion CouncilYour Answer Apparel Export Promotion Council , Woolen Export Promotion Council

Multiple Choice Single AnswerQuestion This question is based on the case study 'AB Enterprises'. What is the problem in adapting AB Enterprises product in the market?Correct Answer Novelty is lost due to ethnic character in AB EnterprisesYour Answer Novelty is lost due to ethnic character in AB Enterprises

Multiple Choice Multiple AnswerQuestion What are the important infrastructure factors in evaluating production site?Correct Answer Industrial site , Transportation & communicationYour Answer Industrial site , Transportation & communication

Multiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Which are the two years the imports of silk fabrics from Japan by USA was almost same?Correct Answer 1982 , 1983Your Answer 1982 , 1983

Select The BlankQuestion dimensions include customs and practicesCorrect Answer BusinessYour Answer Business

Multiple Choice Multiple AnswerQuestion What is the nature of direct export market?Correct Answer Concentrated , Large potential saleYour Answer Concentrated , Large potential sale

Multiple Choice Single AnswerQuestion What does product-mix decision include? Correct Answer PackagingYour Answer Packaging

Multiple Choice Multiple AnswerQuestion What are the internal sources of information?Correct Answer Sales record , Correspondence from salesmenYour Answer Sales record , Correspondence from salesmen

True/FalseQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". Mr.Patnaik felt that it was high time that he appraises his agents' performance relating to the vast & expanding US market.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion This question is based on the case study "Oriental Silk Pvt. Ltd.". What were the optionsMr.Patnaik had to operate in the US market?Correct Answer Opening a branch office , A subsidiary companyYour Answer Opening a branch office , A subsidiary company

Select The BlankQuestion In indirect export channel, the market is . Correct Answer DispersedYour Answer Dispersed

True/FalseQuestion Strategies suggested in the Medium Term Export Plan include product-market penetration strategy for existing products, product-market, diversification for new products & new markets.Correct Answer TrueYour Answer True

Multiple Choice Multiple AnswerQuestion Why is packaging so important for product planning?Correct Answer As it enhances protection , As it gives shelf life for a productYour Answer As it enhances protection , As it gives shelf life for a product

True/FalseQuestion If foreign retailers are used, the products in question are industrial products rather than consumer products.Correct Answer FalseYour Answer True

Multiple Choice Multiple AnswerQuestion How is the nature of international strategy?Correct Answer Depends on company's objectives , Varies from country to countryYour Answer Depends on company's objectives , Varies from country to country

Select The BlankQuestion "make site booking" is a point of checklist of _ Correct Answer Before the fairYour Answer Before the fair

Multiple Choice Single AnswerQuestion What marketing technique is used to know international marketing need?Correct Answer Marketing information & researchYour Answer Marketing information & research

Multiple Choice Multiple AnswerQuestion What are the benefits of participation in trade fair?Correct Answer To get to know about competition , To know about the extent of product adaptionYour Answer To get to know about competition , To know about the extent of product adaption

Select The BlankQuestion Experience survey, which is also called as .Correct Answer Key informant surveyYour Answer Key informant survey

Multiple Choice S

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