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Taxation Law

38 questions from 12 papers

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AIBE XIII Q.40 Walkthrough

Adam Smith has enumerated cannons of taxation which are accepted universally they are:

a. Equality and Certainty
b. Equality, Convenience and Economy
c. Equality and Economy
d. Equality, Certainty, Convenience and Economy
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AIBE XIII Q.89 Walkthrough

Under which section of Income Tax Act, 1961 ‘Income of other persons included in Assessee’s Total Income’

a. 56-58
b. 60-65
c. 45-54
d. All of the Above
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AIBE XIV Q.96 Walkthrough

The principle of Law of Taxation that “No tax shall be levied or collected except by authority of law”. It is contained under:

a. Article 265 of the Constitution
b. Article 300 of the Constitution
c. Article 19(1)(g) of the Constitution
d. Article 285 of the Constitution
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AIBE XIV Q.97 Walkthrough

Under which section of Income Tax Act “Income of other persons are included in assessee’s total income”

a. Sections 56-58
b. Sections 139-147
c. Sections 246-262
d. Sections 60-65
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AIBE XV Q.26 Walkthrough

According to Income Tax Act “zero coupon bond” means a bond:

a. issued by any infrastructure capital company or infrastructure capital fund or public sector company or scheduled bank on or after the 1st day of June, 2005
b. in respect of which no payment and benefit is received or receivable before maturity or redemption from infrastructure capital Company or infrastructure capital fund or public sector company or scheduled bank
c. which the Central Government may, by notification in the Official Gazette, specify in this behalf
d. All of the above
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AIBE XV Q.49 Walkthrough

R. v. Dudley & Stephen stands for the principle that:

a. Killing an innocent life to save his own is not a defence and necessity cannot be pleaded as a defence against murder
b. Necessity can be pleaded as a defence against murder, killing an innocent life to save his own may become inevitable
c. Killing out of mercy is a defence and necessity cannot be pleaded as a defence against murder.
d. None of the above
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AIBE XV Q.84 Walkthrough

The definition of ‘money’ under GST law does not include:

a. Letter of Credit
b. Currency held for numismatic value
c. Pay Order
d. Traveller cheque
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AIBE XV Q.85 Walkthrough

Under Article 279A GST Council is constituted by:

a. Prime Minister and his Council of Ministers
b. Respective Governors of the State
c. The President
d. A collective body of Union and States
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AIBE XVI Q.64 Walkthrough

Rate of additional Depreciation will be under section 32- Indian Income Tax Act-

a. 10 %
b. 20 %
c. 15 %
d. 30 %
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AIBE XVI Q.65 Walkthrough

Amount of deduction under section 24 of The Income Tax Act from annual value is-

a. 1/2 of Annual Value
b. 1/3 of Annual Value
c. 3/10 of Annual Value
d. 17/10 of Annual Value
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AIBE XVII Q.85 Walkthrough

For an individual to be deemed to be resident in India in any previous year one of the condition is:

a. If he is in India for a period of 182 days or more during the previous year.
b. If he is in India for a period of 180 days or more during the previous year.
c. If he is in India for a period of 181 days or more during the previous year.
d. If he is in India for a period of 360 days or more during the previous year.
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AIBE XVII Q.86 Walkthrough

Mr. Kapoor purchased a residential house in January, 2021 for 80,00,000. He sold the house in April, 2022 for 94,00,000. In this case the gain of 14,00,000 arising on account of sale of residential house will be charged to tax under which of the following head?

a. Income from capital gains
b. Income from house property
c. Income from profits and gains from business or profession
d. Income from other sources.
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AIBE XVII Q.88 Walkthrough

The primary GST slabs for any regular taxpayers are presently pegged at

a. 0%, 5%, 12%, 18%, 26%
b. 0%, 6%, 12%, 18%, 28%
c. 0%, 5%, 12%, 18%, 28%
d. 0%, 5%, 12%, 16%, 28%
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AIBE XVIII Q.9 Walkthrough

Which of the following provision of the Constitution of India states that no tax can be levied or collected except by authority of law?

a. Article 246
b. Article 256
c. Article 260
d. Article 265
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AIBE XVIII Q.10 Walkthrough

Which of the following would be the first previous year in case of a business or profession newly set up on 31st March, 2020 as per the Income Tax Act, 1961?

a. Start from 1st April 2019, end 31 March 2020
b. Start from 31st March 2020, end 31st March 2020
c. Start from 1st April 2020, end 31st December 2020
d. Start from 1st January 2020, end 31st March 2020
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AIBE XVIII Q.11 Walkthrough

As per the Income Tax Act, 1961 a person is said to be resident of India in any previous year if he had been in India for a period of the following number of days in the previous year:

a. 180 days
b. 182 days
c. 184 days
d. 186 days
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AIBE XVIII Q.12 Walkthrough

Income is defined under which of the following provision of the Income Tax Act, 1961?

a. Section 2(31)
b. Section 2(24)
c. Section 2(9)
d. Section 3
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AIBE XIX Q.85 Walkthrough

The term "Income" is described in the Income Tax Act, 1961 under ______.

a. Section 2(24)
b. Section 2(20)
c. Section 3
d. Section 10E
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AIBE XIX Q.86 Walkthrough

Mr X deposits 65,000 in a 5-year term deposit with the Post Office to avail deduction under Section 80C. Assuming Mr X does not opt for the concessional regime u/s 115BAC, what is correct?

a. Mr X is guilty of tax evasion/tax avoidance
b. Mr X is not guilty of either tax evasion/tax avoidance
c. No tax deduction can be availed under Section 80C
d. It is unlawful to treat a deposit as personal expenditure
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AIBE XIX Q.87 Walkthrough

Read the statements: 1. Agricultural income is exempt from tax under Section 10(1) of Income Tax Act, 1961. 2. Non-agricultural income above exemption + agricultural income above 5000 is taxable via partial integration.

a. Both statements are incorrect
b. Only Statement 1 is true
c. Only Statement 2 is true
d. Both statements are correct
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AIBE XIX Q.88 Walkthrough

Rent-free accommodation provided by employer to employee is ______.

a. Perquisite under Section 17(2) of IT Act
b. Perquisite under Section 16(2)
c. Allowance under Section 10(13A)
d. Allowance under Section 10(1)
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AIBE IX Q.92 Walkthrough

Necessity rule as to admissibility of evidence is applicable when the maker of a statement:

a. is dead or has become incapable of giving evidence
b. is a person who can be found but his attendance cannot be procured without unreasonable delay or expenses
c. is a person who cannot be found
d. all of the above
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AIBE X Q.28 Walkthrough

Income which accrue or arise outside India but are directly received into India are taxable in case of:

a. Residents only
b. Both ordinarily residents and non-residents
c. Non-resident
d. All the assesses
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AIBE X Q.90 Walkthrough

Which of the following belong to the category of direct tax?

a. Goods and Services Tax
b. Excise duty and customs duty
c. Income tax and gift tax
d. All of the above
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AIBE XI Q.1 Walkthrough

Section 154 under IT Act is:

a. For filing return of Income
b. For filing return with late fee
c. Rectification of mistakes
d. Appeal against the order passed by the ITO
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AIBE XI Q.2 Walkthrough

Which of the following is not included in the Capital Asset under Section 2(14) of Income Tax Act:

a. Any stock in Trade
b. Special Bearer Bonds 1991 issued by Central Government
c. (a) and (b)
d. None of the above
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AIBE XI Q.5 Walkthrough

Every Award of a Lok Adalat is deemed to be a:

a. Order of District Collector
b. Order of Income Tax Commissioner
c. Decree of a civil court
d. (a) and (b)
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AIBE XI Q.39 Walkthrough

Section 24 of Advocates Act deals with

a. Qualification of advocates who should be enrolled in the Bar
b. Qualification to become the Advocate General
c. Qualification to become the Solicitor General of India
d. (b) and (c)
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AIBE XI Q.69 Walkthrough

A person who gives the guarantee is called:

a. Bailee
b. Creditor
c. Debtor
d. Surety
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AIBE XI Q.99 Walkthrough

Income Tax Act was enacted in

a. 1951
b. 1961
c. 1971
d. None of the above
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AIBE XI Q.100 Walkthrough

‘Income’ is defined under Section 24* of the Income Tax Act, as:

a. Profits and gains
b. Dividend
c. V oluntary contribution received by a Trust for charitable Purpose
d. All of the above
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AIBE XII Q.3 Walkthrough

Articles of a company can be altered by:

a. The directors of the company
b. The officials of the company
c. Shareholders by passing an ordinary resolution
d. Shareholders by passing a special resolution
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AIBE XII Q.17 Walkthrough

Under the Companies Act, every person subscribing to the Memorandum of a company must take at least:

a. 100 shares
b. 20 shares
c. 10 shares
d. 1 share
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AIBE XII Q.18 Walkthrough

GST came into force from

a. 1st January, 2017
b. 1st April, 2017
c. 1st July, 2017
d. 1st August, 2017
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AIBE XII Q.21 Walkthrough

Permanent Account Number (PAN) is defined under:

a. Wealth Tax Act, 1957
b. GST
c. Income Tax Act, 1961
d. Finance Act, 1992
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AIBE XII Q.58 Walkthrough

Section 29 of the Wealth Tax Act, 1957 deals with:

a. Revision petition in division bench of High Court
b. Appeal in Supreme Court
c. Return of Wealth Tax
d. None of the above
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AIBE XX Q.38 Walkthrough

Under Section 24(a) of the Income-tax Act, 1961, what percentage of the an- nual value of an income from house property is allowed as a standard deduction?

a. 20
b. 40
c. 30
d. 50
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AIBE XX Q.51 Walkthrough

Read the given statements and choose the correct option. Statement 1 :Under the Income-tax Act, 1961, a deduction equal to 30% of the annual value is allowed while computing income from house property. Statement 2 :Where the property has been acquired or constructed with borrowed capital, the maximum deduction for interest payable on such capital is capped at 2,00,000, subject to conditions.

a. Both Statements 1 and 2 are false
b. Only Statement 1 is true
c. Only Statement 2 is true
d. Both the Statements are true
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