The 'Gift Tax' in India: MCQ with Answer and Explanation

Question
The 'Gift Tax' in India:
A. Is a separate Act
B. Is part of GST
C. Does not exist
D. Has been abolished and gifts are now taxed under Income Tax Act as income from other sources (above ₹50,000)
Answer: Option D
Solution (By JKSSB Mock Tests)
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
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Practice More Accountancy and Book Keeping Questions

Question #1
A Cash Book with Cash, Bank, and Discount columns is called a:
A. Two-column Cash Book
B. Three-column Cash Book
C. Simple Cash Book
D. Petty Cash Book
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Correct Answer: Option B

Explanation:
A three-column cash book tracks cash transactions, bank transactions, and discounts allowed/received simultaneously.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In the financial statements of a sole trader, drawings are deducted from:
A. Sales
B. Net profit
C. Gross profit
D. Capital
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Correct Answer: Option D

Explanation:
Drawings are not an expense; they reduce the owner's capital directly in the balance sheet.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The accounting standard AS-9 primarily deals with:
A. Accounting for Fixed Assets
B. Inventory Valuation
C. Revenue Recognition
D. Depreciation Accounting
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Correct Answer: Option C

Explanation:
AS-9 issued by ICAI lays down the conditions and guidelines for recognizing revenue arising from ordinary business activities.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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