The Central Board of Direct Taxes (CBDT) functions under which department of the Ministry of Finance? MCQ with Answer and Explanation

The Central Board of Direct Taxes (CBDT) functions under which department of the Ministry of Finance?
A. Department of Revenue
B. Department of Financial Services
C. Department of Expenditure
D. Department of Economic Affairs
Answer: Option A
Solution (By JKSSB Mock Tests)
CBDT handles direct tax administration and forms part of the Department of Revenue.

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Practice More Accountancy and Book Keeping Questions

Question #1
A 'Cash Generating Unit' is defined under:
A. AS 2 Inventories
B. AS 14 Amalgamation
C. AS 10 Fixed Assets
D. AS 28 Impairment of Assets

Correct Answer: Option D


Explanation:
CGU is a concept used in impairment testing under AS 28.

Question #2
The 'Securities Transaction Tax' (STT) is levied under:
A. Finance Act (Chapter VII of Finance (No.2) Act, 2004)
B. Income Tax Act
C. Securities Contracts (Regulation) Act
D. GST Act

Correct Answer: Option A


Explanation:
STT is levied through the Finance Act.

Question #3
In the absence of a Partnership Deed, what is the rate of interest on capital provided to partners?
A. No interest is allowed
B. 12% p.a.
C. 6% p.a.
D. 9% p.a.

Correct Answer: Option A


Explanation:
According to the Indian Partnership Act, 1932, if there is no deed, no interest on capital is allowed to any partner.