Accountancy MCQs | Chapter-wise Multiple Choice Questions with Answers

Question #1601

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The 'Set-off and Carry Forward' of losses under Income Tax: Speculation loss can be set off against:

A. Only speculation profit

B. Salary income

C. House property income

D. Any business profit

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Correct Answer: Option A

Explanation:
Speculation loss can only be set off against speculation profit.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #1602

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The 'Loss from House Property' can be carried forward for how many years?

A. 8 years

B. Indefinitely

C. 4 years

D. Not allowed

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Correct Answer: Option A

Explanation:
House property loss can be carried forward for 8 assessment years.

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Question #1603

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The 'Capital Gains' from sale of long-term listed equity shares (STT paid) exceeding ₹1 lakh are taxed at:

A. 20% with indexation

B. 15%

C. Exempt

D. 10% without indexation

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Correct Answer: Option D

Explanation:
LTCG on listed equity shares/equity-oriented funds exceeding ₹1 lakh is taxed at 10% without indexation.

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Question #1604

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The 'Short-Term Capital Gains' on equity shares (STT paid) are taxed at:

A. Normal slab rates

B. 20%

C. 10%

D. 15%

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Correct Answer: Option D

Explanation:
STCG on equity shares where STT is paid is taxed at 15%.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #1605

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The 'Gift Tax' in India:

A. Is part of GST

B. Is a separate Act

C. Has been abolished and gifts are now taxed under Income Tax Act as income from other sources (above ₹50,000)

D. Does not exist

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Correct Answer: Option C

Explanation:
Gift tax Act was abolished; gifts are now taxed in the hands of recipient under Section 56(2)(x) of Income Tax Act if exceeding ₹50,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #1606

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The 'Tax on Virtual Digital Assets' (VDAs) allows deduction of:

A. No deduction

B. Only cost of acquisition; no other deduction

C. All expenses

D. Full cost with indexation

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Correct Answer: Option B

Explanation:
Only cost of acquisition is allowed as deduction; no other expenses or indexation. Loss from VDA cannot be set off against other income.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #1607

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The 'GST on Crypto transactions' (transfer of VDA) is:

A. 18% on services, and classification of VDA as goods/services being debated; treated as goods, 18% GST on margin? Presently GST is levied at 18% on the value of supply.

B. Exempt

C. 28%

D. 5%

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Correct Answer: Option A

Explanation:
GST on cryptocurrency transactions is generally 18% on the service/value.

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Question #1608

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The 'Book Profit' for MAT calculation under Section 115JB includes:

A. Net profit as per P&L after certain adjustments (additions/deletions)

B. Only net profit as per P&L

C. Taxable income

D. Cash profit

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Correct Answer: Option A

Explanation:
Book profit under MAT is computed by making specified adjustments to net profit as per financial statements.

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Question #1609

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The 'MAT credit' can be carried forward for:

A. 15 years

B. Indefinite

C. 8 years

D. 5 years

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Correct Answer: Option A

Explanation:
MAT credit can be carried forward for 15 assessment years.

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Question #1610

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The 'Surrender Value' of a keyman insurance policy received by a company is:

A. Treated as loan

B. Capital receipt

C. Exempt

D. Taxable as business income

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Correct Answer: Option D

Explanation:
Keyman insurance policy proceeds/surrender value are taxable as business income.

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Question #1611

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The 'Section 44ADA' presumptive income scheme for professionals applies to gross receipts up to:

A. ₹50 lakh (now ₹75 lakh if cash receipts ≤ 5%)

B. ₹25 lakh

C. ₹10 lakh

D. ₹1 crore

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Correct Answer: Option A

Explanation:
Presumptive income for professionals up to gross receipts ₹50 lakh (or ₹75 lakh if digital).

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Question #1612

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The 'Section 44AE' presumptive scheme is for:

A. Manufacturers

B. Retail traders

C. Professionals

D. Transporters (heavy goods vehicles)

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Correct Answer: Option D

Explanation:
Section 44AE is for plying, hiring or leasing goods carriages.

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Question #1613

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The 'Form 10IE' is to be filed for:

A. Tax audit

B. TDS return

C. GST registration

D. Opting for new income tax regime

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Correct Answer: Option D

Explanation:
Form 10IE is filed by individuals/HUFs to opt for the new tax regime.

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Question #1614

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The 'Equalisation Levy' on e-commerce supply of goods/services is applicable to non-resident e-commerce operators with:

A. Only if they have a PE

B. No threshold

C. Any revenue

D. Annual revenue exceeding ₹2 crore from India

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Correct Answer: Option D

Explanation:
2% equalisation levy applies if the non-resident e-commerce operator's revenue from India exceeds ₹2 crore.

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Question #1615

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The 'Section 115BAC' relates to:

A. Tax on dividends

B. Alternate Minimum Tax

C. New tax regime for individuals and HUFs

D. Minimum Alternate Tax

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Correct Answer: Option C

Explanation:
Section 115BAC provides the concessional tax regime for individuals/HUFs.

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Question #1616

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The 'Form 16' is issued by an employer to an employee for:

A. Professional tax

B. Provident fund

C. TDS on salary

D. GST

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Correct Answer: Option C

Explanation:
Form 16 is the TDS certificate for salary income.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #1617

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The 'Form 26QB' is related to:

A. Advance tax

B. TDS on rent

C. TDS on purchase of immovable property (Section 194-IA)

D. TDS on salary

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Correct Answer: Option C

Explanation:
Form 26QB is the challan-cum-statement for TDS on property purchase.

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Question #1618

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The 'Provision for Bad Debts' in banking companies is governed by:

A. SEBI

B. RBI guidelines and Income Tax Act

C. Income Tax Act alone

D. Companies Act only

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Correct Answer: Option B

Explanation:
Banks must follow RBI's prudential norms for NPA provisioning, while tax deduction is under Section 36(1)(viia).

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Question #1619

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The 'Tax Audit' under Section 44AB is required for a professional if gross receipts exceed:

A. ₹2 crore

B. ₹50 lakh

C. ₹1 crore

D. ₹25 lakh

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Correct Answer: Option B

Explanation:
For professionals, tax audit threshold is gross receipts > ₹50 lakh.

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Question #1620

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The 'Section 269ST' prohibits:

A. Receipt of ₹2 lakh or more in cash from a person in a day or for a single transaction or related transactions

B. Cash payment above ₹10,000

C. All cash transactions

D. All digital payments

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Correct Answer: Option A

Explanation:
Section 269ST restricts cash receipt of ₹2 lakh or more.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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