Going through the Incomes Which Do Not Form Part of Total Income – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.
Incomes Which Do Not Form Part of Total Income – Tax Laws CS Executive MCQs
Question 1.
The following incomes derived, received and earned during the previous year are not subject to tax being exempt under the Act:
(i) Money received by an individual as a member of HUF
(ii) Share of profit received by partner from LLP
(iii) Interest on Savings bank account
(iv) Income of SAARC Fund
(a) (i) and (ii)
(b) (i), (ii) and (iv)
(c) None of the above
(d) All of the above
Answer:
(b) (i), (ii) and (iv)
Question 2.
HSP, a LLP had taken Key Men insurance policy on the life of its Managing Partner. The policy got matured on 13th September, 2017 and amount of ₹ 75 lakh was paid by the insurers to the Managing Partner. The amount so received on maturity of the policy by the managing partner:
(a) Is exempt in full u/s 10(10D)
(b) 50% of ₹ 75 lakh is exempt
(c) ₹ 75 lakh is taxable
(d) ₹ 25 lakh is exempt and balance is taxable
Answer:
(c) ₹ 75 lakh is taxable
Question 3.
The Income of Mr. A includes ₹ 40,000 income of his minor child. The amount exempt u/s 10(32) will be X
(a) 6000
(b) 1500
(c) 40,000
(d) Nil
Answer:
(b) 1500
The income of a minor which is clubbed in the hands of the parents is exempt u/s 10(32) to the extent of ₹ 1500 per child.
Question 4.
Saksham received educational scholarship from his employer, of ₹ 14,000. Saksh-am spend only ₹ 9,000 for cost of education and saved ₹ 5,000. The amount exempt u/s 10( 16) of the Income-tax Act, 1961 will be:
(a) ₹ 9,000
(b) ₹ 14,000
(c) ₹ 5,000
(d) Fully-taxable
Answer:
(b) ₹ 14,000
The amount exempt u/s 10(16) does not depend upon the expenditure for the said purposes.
Question 5.
Mr. Sankar received ₹ 50,000 as educational scholarship from Nehru memorial Trust (a charitable trust). The scholarship is to assist Mr. Sankar for pursuing M.A. (History) at Jawaharlal Nehru University, New Delhi. The amount of scholarship liable to tax is:
(a) ₹ 50,000
(b) ₹ 10,000
(c) ₹ 25,000
(d) Nil
Answer:
(d) Nil
Question 6.
Exemption to Member of parliament and state legislature is available u/s 10(17), in respect of the following allowances;
(i) Daily Allowance
(ii) Any other allowance received under Member of Parliament (Constituency Allowance) Rules, 1986.
(iii) Constituency allowance received by reason of his membership of any state legislature.
(a) Only (i)
(b) (i) & (ii)
(c) (i), (ii) & (iii)
(d) (ii),(iii)
Answer:
(c) (i), (ii) & (iii)
Question 7.
A professional institution satisfying the required conditions is exempt u/s 10(23A) from any income except:
(i) Income from house property
(ii) Income by way of interest on investment or
(iii) Income by way of dividend on investment.
(a) only (i)
(b) Only (ii)
(c) (i), (ii) & (iii)
(d) None of these
Answer:
(c) (i), (ii) & (iii)
Question 8.
X Ltd. an Indian company made an agreement with Sophie Ltd. a Swedish company with the approval of Central Government for lease of aircraft. The agreement was made on 28.3.2007. During the previous year 2020-21, X paid ₹ 7,00,000 as rent and also paid ₹ 60,000 for providing spares. The amount exempt in the hands of Sophie Ltd. u/s 10(15A) will be:
(a) ₹ 7,60,000
(b) ₹ 7,00,000
(c) ₹ 60,000
(d) Nil
Answer:
(b) ₹ 7,00,000
If payment made to a foreign enterprise, exemption u/s 10( 15A) is available only if payment is made to acquire an aircraft or an aircraft engine, not for payment made towards providing spares, facilities or services in connection with operation of leased aircraft. Hence (b)
Question 9.
Amount received under keyman insurance policy is:
(a) Exempt u/s 10(10D)
(b) Not exempt
(c) 60% Exempt u/s 10(10D)
(d) None of this
Answer:
(b) Not exempt
Amount received under Keyman Insurance policy is fully taxable. It is not exempt u/s [10(10D)].
Question 10.
HSK, an LLP had taken keyman insurance policy on the life of its managing partner. The policy got matured on 13th September, 2020 and an amount of ₹ 75 lakh was paid by the insurers to the managing partner. The amount so received on maturity of the policy by the managing partner is
(a) Is exempt in full u/s 10(10D)
(b) 50% of ₹ 75 lakh is exempt
(c) ₹ 75 lakh is taxable
(d) ₹ 25 lakh is exempt and balance is taxable
Answer:
(c) ₹ 75 lakh is taxable
Question 11.
Raman & Co., a partnership firm, received ₹ 5,00,000 from an insurance company under keyman insurance policy consequent to demise of partner ‘Pramod’. The amount of premium ₹ 2,30,000 paid earlier was claimed as deduction under Section 37 by the firm. The amount received from the insurance company is-
(a) Tax-free under section 10(10D)
(b) Fully taxable as income
(c) ₹ 2,70,000 is taxable
(d) ₹ 2,30,000 is taxable
Answer:
(b) Fully taxable as income
Amount received under Keyman Insurance policy is fully taxable. It is not exempt u/s [10(10D)].
Question 12.
Any income of a pension fund setup by the Life Insurance Corporation of India in terms of section 10(23AAB) of the Income-tax Act, 1961, is:
(a) Liable for tax
(b) Fully exempt from tax
(c) Partly liable for tax
(d) Taxable @10%
Answer:
(b) Fully exempt from tax
Question 13.
Which of the following amount received on life insurance policy is exempt u/s 10(10D)
(a) Amount received under section 80DD(3)
(b) Keyman insurance policy
(c) Any sum received on the death of a person from any other policy.
(d) Received from policy issued on 15.9.2012, on maturity, and premium paid was 18% of the sum assured.
Answer:
(c) Any sum received on the death of a person from any other policy
Question 14.
The income received on behalf of following funds except is exempt u/s 10(23C) from tax.
(a) Prime Minister’s National Relief Fund
(b) Clean Ganga fund setup by Central Government
(c) Swachh Bharat Kosh setup by Central Government
(d) Sampoorna Siksha Fund
Answer:
(d) Sampoorna Siksha Fund
Question 15.
The income of following education institution which exist solely for educational purposes and not for profit making is exempt from tax under section 10(23C) except:
(a) If it is wholly or substantially financed by the Government
(b) If the aggregate annual receipt does not exceed ₹ 1 crore
(c) If the institution is approved by prescribed authority under conditions
(d) If the annual receipts do not exceed ₹ 50 lakh
Answer:
(d) If the annual receipts do not exceed ₹ 50 lakh
Question 16.
A trust eligible for exemption u/s 10(23C)(v) will lose the benefit of exemption in respect of
(a) Anonymous donations u/s 115BBC
(b) If its activities are not genuine.
(c) If the institution applies or accumulates income for objects other than for which it is established
(d) All of the above
Answer:
(d) All of the above
Question 17.
A registered trade union earned income by way of interest on fixed deposit held with State Bank of India of ₹ 5,60,000. The interest income chargeable to tax in the hands of trade union would be:
(a) ₹ 5,60,000
(b) Nil
(c) ₹ 2,60,000
(d) ₹ 3,10,000
Answer:
(b) Nil
Any income of a registered Trade Union from “Income from House Property” and “Income from other sources” is fully exempt under section 10(24)
Question 18.
Any Income of a venture capital company or venture capital fund from investment in venture capital undertaking is exempt u/s from A.Y. 2001-2002
(a) 10(23FA)
(b) 10(2 3 FB)
(c) 10(23FC)
(d) Both (a) and (b)
Answer:
(b) 10(2 3 FB)
Question 19.
Dividend received u/s 2(22)(e) is:
(a) Taxable
(b) Exempt u/s 10(35)
(c) Exempt from A.Y. 2018-2019 u/s 10(34).
(d) Exempt from A.Y 2021-22 u/s 10(34).
Answer:
(a) Taxable
Question 20.
Sarthak, aged 72 years mortgages his property with housing finance company under a reverse mortgage scheme. The company paid, Sarthak, ₹ 25,000 p.m during the P.Y 20-21. The amount
(a) Of ₹ 3,00,000 will be taxable
(b) Of ₹ 3,00,000 will be exempt
(c) 50% of the receipt will be taxable
(d) None of the above.
Answer:
(b) Of ₹ 3,00,000 will be exempt
Monthly instalments or lump sum payment received under reverse mortgage are exempt u/s 10(43). Hence ₹ 25,000 X 12 = ₹ 3,00,000 will be exempt
Question 21.
Nair, a retired person of 68 years of age obtained 110,000 per month from 1 st April 2020 on reverse mortgage of his self-occupied residential property from a bank. The fair rent of the property is ₹ 15,000 per month. The income chargeable to tax in respect of amount received on reverse mortgage for his self-occupied house property for the F.Y. 2020-21 would be:
(a) ₹ 1,20,000
(b) ₹ 1,26,000
(c) Nil
(d) (15,000 -10,000) X 12 = 60,000
Answer:
(c) Nil
Monthly installments or lump sum payment received under reverse mortgage are exempt u/s 10(43). Hence the taxable amount will be Nil.
Question 22.
In case of retired chairman and members of UPSC a sum of maximum per month, received for defraying the services of an orderly and for meeting expenses incurred towards secretarial assistance on contractual basis is exempt in the A.Y. 2021-22 to the extent of:
(a) ₹ 14,000
(b) ₹ 12,000
(c) ₹ 10,000
(d) None of the above
Answer:
(d) None of the above
Question 23.
The donations received by an electoral trust will be exempt under section 13B if
(a) The trust is approved by the CBDT
(b) The electoral trust distributes to the political parties 95% of the aggregate donations received by it during P.Y along with any brought forward surplus
(c) The trust functions in accordance with the rules made in this regard by the Central Government
(d) All of the above
Answer:
(d) All of the above
Question 24.
An electoral trust receiving voluntary contributions for the purpose of distributing to political parties registered under Section 29A of the Representation of the People Act, 1951 must distribute of such contributions.
(a) 10096
(b) 9596
(c) 7596
(d) 5096
Answer:
(b) 9596
Question 25.
Which of the following income derived by a political party is exempt u/s 13A
(a) Income from house property
(b) Income from other sources
(c) Capital gains & voluntary contributions
(d) All of the above
Answer:
(d) All of the above
Question 26.
A political party shall be allowed exemption u/s 13A of any income by way of voluntary contributions provided donation exceeding ₹ to be received by account payee cheque/draft
(a) ₹ 10,000
(b) t 5,000
(c) ₹ 2,000
(d) ₹ 8,000
Answer:
(c) ₹ 2,000
Question 27.
Mr. Sridhar employed in K L Ltd, took voluntary retirement in December 2020 and received ₹ 2,00,000 from National Pension System Trust. The amount so received chargeable to income-tax is:
(a) Nil as 10096 is exempt
(b) ₹ 1,20,000 as 4096 is exempt
(c) ₹ 1,00,000 as 5096 is exempt
(d) ₹ 80,000 as 60% is exempt
Answer:
(d) ₹ 80,000 as 60% is exempt
Amended by the Finance (No. 2) Act, 2019, now 60% is exempt instead of 40%.
Question 28.
Section 115BBC taxes anonymous donations at a special rate of
(a) 20%
(b) 15%
(c) 30%
(d) 10%
Answer:
(c) 30%
Question 29.
Section 115BBC is not applicable
(a) If aggregate anonymous donation is 1 lakh or less
(b) If aggregate anonymous donation is not more than 5% of total donation received by the assessee.
(c) It is received by wholly religious entities
(d) All of the above
Answer:
(d) All of the above
Under section 115BBC anonymous donations are taxable at a special rate of 30%, but the section is not applicable if
(i) institution receiving donation is wholly religious entities;
(ii) If aggregate donation is ₹ 1,00,000 or less;
(iii) If donation is more than ₹ 1,00,000 but not more than 5% of the total donation received is anonymous.
Hence, (d).
Question 30.
Deduction u/s 10AA is available to an entrepreneur who set up a unit in special economic Zone on or after 1.4.2006 but before 1.4.2021 the deduction will be
(a) Profit of the business of undertaking
(b) Profit x \(\frac{\text { export turnover }}{\text { total turnover }}\)
(c) 100% of the profit x\( \frac{\text { export turnover }}{\text { total turnover }}\)
(d) None of the above
Answer:
(c) 100% of the profit x\( \frac{\text { export turnover }}{\text { total turnover }}\)
Deduction under Section 10AA depends upon the quantum of profits derived from
export of article or things or services. It is calculated as: Profit x turnover
Total turnover
100% of the profits are deductible for first five years and 50% of such profits are deductible in the next 5 years.
Question 31.
Tax holiday under Section 10AA in respect of new established units in SEZ is allowed for a total period of –
(a) 5 Years
(b) 10 Years
(c) 15 Years
(d) 20 Years
Answer:
(c) 15 Years
Question 32.
Income of a minor child up to ₹ in respect of each minor
child whose income is includible under section 64(1A) is exempt u/s 10(32)
(a) ₹ 1500 per month
(b) ₹ 3000 per month
(c) ₹ 1500 per child
(d) ₹ 1500 per child up-to 2 children
Answer:
(c) ₹ 1500 per child
Question 33.
Incomes of two minor children are included in the income of their father. Father is entitled to exemption u/s 10(32) upto
(a) ₹ 1,500
(b) ₹ 1,000.
(c) ₹ 3,000
(d) ₹ 2,000
Answer:
(c) ₹ 3,000
Question 34.
Pension and family pension of gallantry award winners is
(a) Exempt upto ₹ 15,000
(b) Exempt upto 1/3rd of pension received
(c) Fully exempt u/s 10(18)
(d) None of the above
Answer:
(c) Fully exempt u/s 10(18)
Question 35.
Salary received by a foreign citizen as an employer of a foreign enterprise provided his stay in India does not exceed days is exempt u/s 10(6)(vi)
(a) 100 days
(b) 90 days
(c) 180 days
(d) 60 days
Answer:
(b) 90 days
Question 36.
Share of a partner from the firm is
(a) Taxable as salary
(b) Taxable as business Income
(c) Exempt u/s 10(2A)
(d) Taxable as income from other sources
Answer:
(c) Exempt u/s 10(2A)
Question 37.
The share of a member of an HUF is
(a) Taxable in the hands of members
(b) Exempt is the hand of member
(c) Partly exempt
(d) 40% taxable 60% exempt
Answer:
(b) Exempt is the hand of member
Question 38.
Murali received ₹ 1 lakh from the HUF of which he is a coparcener. The HUF consists of four coparceners including his father who is the Karta of the HUF. The amount paid was by way of debit to the capital account of HUF engaged in textile business. Is the amount of receipt chargeable to tax –
(a) Yes, full amount is taxable
(b) 50%, i.e. ₹ 50,000 is taxable
(c) Nil, i.e. it is exempt from tax
(d) 25%, i.e. ₹ 25,000 is taxable
Answer:
(b) 50%, i.e. ₹ 50,000 is taxable
Question 39.
Choose the correct statement
(a) All Exempted income are fully exempt for all assessee
(b) All types of incomes are exempt for trade unions.
(c) Exempted income have no role in calculation of tax liability
(d) Exempted income like agriculture income may be integrated with non-agriculture income in order to determine tax liabilities
Answer:
(d) Exempted income like agriculture income may be integrated with non-agriculture income in order to determine tax liabilities
Question 40.
Income of an assessee engaged in the business growing and manufacturing tea in India is taxable to the extent of-
(a) 40% of such income
(b) 60% of such income
(c) 70% of such income
(d) 30% of such income
Answer:
(a) 40% of such income
Question 41.
Any subsidy received from Tea Board for replanting or replacement of Tea bushes or consolidation or rejuvenation of areas used for cultivation is exempt u/s
(a) 10(32)
(b) 10(31)
(c) 10(30)
(d) 10(29)
Answer:
(c) 10(30)
Question 42.
If non -agricultural income is ₹ 2,52,000 and net agricultural income is ₹ 40,000 the tax liability of an individual assessee will be
(a) ₹ Nil
(b) ₹200
(c) ₹ 206
(d) ₹ 4,326
Answer:
(a) ₹ Nil
Question 43.
Which of the following additional in-comes will not be treated as agricultural income
(a) Additional income from selling ginned cotton as compared to un-ginned cotton
(b) Additional income from selling dried-up coffee as compared to raw coffee
(c) Additional income from selling cured tobacco as compared to green tobacco leaves
(d) Additional income from selling dried up tea leaves as compared to raw tea leaves
Answer:
(c) Additional income from selling cured tobacco as compared to green tobacco leaves
Question 44.
Pawan reports net income of ₹ 5 lakh from the activity of growing and manufacturing rubber. How much of such income is to be treated as non-agricultural income –
(a) ₹ 1,75,000
(b) ₹ 2,00,000
(c) X 1,25,000
(d) Nil
Answer:
(a) ₹ 1,75,000
Question 45.
Mrs. Rose derives ₹ 5,40,000 by way of income from sale of coffee grown and manufactured in India. The income charge-able to income tax would be –
(a) 50%, i.e. ₹ 2,70,000
(b) 25%, i.e. ₹ 1,35,000
(c) 40%, i.e. ₹ 2,16,000
(d) 60%, i.e. X3,24,000
Answer:
(b) 25%, i.e. ₹ 1,35,000
Question 46.
Mr. Robert aged 52 years received monthly pension of ₹ 30,000 during the Financial year 2020-2021. His agricultural income in India is ₹ 50,000. His net income-tax liability is:
(a) ₹ 1,040
(b) ₹ 9,270
(c) ₹ 4,120
(d) ₹ Nil
Answer:
(d) ₹ Nil
Question 47.
Mr. Vinayak derived income from sale of tea manufactured and grown in Coorg, Karnataka. His income for the previous year 2020-21 from the said activity is ₹ 20 lakhs. The amount exempt from tax by way of agricultural income is:
(a) ₹ 8 lakhs (40%)
(b) ₹ 5 lakhs (25%)
(c) ₹12 lakhs (60%)
(d) ₹ 7 lakhs (35%)
Answer:
(c) ₹12 lakhs (60%)
Question 48.
Mr. Ramesh engaged in the business of growing and manufacturing tea in India received 21 lakhs from Tea Board towards replacement of tea hushes destroyed by forest fire. The amount received from Tea Board by Mr. Ramesh is:
(a) Liable to tax
(b) Exempt from tax
(c) 50%, is exempt from tax
(d) 25% is exempt from tax
Answer:
(b) Exempt from tax
Question 49.
Mr. Menon having tea estate in Munnar (Kerala) earned X 5 lakh by way of growing tea leaves and manufacturing tea. The income chargeable to tax would be:
(a) ₹ 2,00,000
(b) ₹ 1,75,000
(c) ₹ 1,25,000
(d) ₹ 3,00,000
Answer:
(a) ₹ 2,00,000
As per Rule 8, ₹ 5,00,000 X 40% =₹ 2,00,000
Question 50.
Registered political parties have to maintain a record of the contributions and names and addresses of the persons who have made such contribution where each contribution exceeds:
(a) ₹ 1,000
(b) ₹ 5,000
(c) ₹ 10,000
(d) ₹ 20,000
Answer:
(d) ₹ 20,000
Question 51.
Mr. X grows sugarcane and manufactures Sugar. The cost of cultivating sugar cane was ₹ 75,00,000 where as the market price of this sugarcane was X 89,00,000. His total profits were ₹ 30,00,000. What will be his agricultural income, as exempt under section 10(1) of the Income-tax Act, 1961 and Rule 7 of the Income-tax Rules, 1962.
(a) ₹ 75 lakhs
(b) ₹ 16 lakhs
(c) ₹ 14 lakhs
(d) Cannot be determined
Answer:
(c) ₹ 14 lakhs
As per Rule 7, the agricultural income will be market price of the sugarcane i.e. ₹ 89,00,000 minus cost of cultivation (i.e. ₹ 75,00,000). Therefore, agricultural income is ₹ 14 lakhs
Question 52.
The income derived from growing, manufacturing and sale of Centrifuged latex or Cenex or Latex based crops as per Rule 7A of the Incometax Rules, 1962 shall be taken as agricultural and non-agricultural income in the following ratio :
(a) 75% and 25%
(b) 60% and 40%
(c) 65% and 35%
(d) None of the above
Answer:
(c) 65% and 35%
Question 53.
A non-resident (other than company) and a foreign company will pay tax on the income of interest received from an infra-structure debt fund referred to in section 10(47) at the rate of :
(a) 20%
(b) 5%
(c) 10%
(d) 7.5%
Answer:
(b) 5%
Question 54.
Any income by way of interest pay-able to a non-resident, not being a company or a foreign company, by an Indian Company or business trust in respect of monies borrowed from a source outside India by issue of Rupee denominated bond during the period beginning from the …….. and ending on ……… is exempt under section 10(4C).
(a) 17.10.2018,31.3.2019.
(b) 17.9.2018,31.3.2019.
(c) 17.9.2018,31.3.2020.
(d) 1.10.2018,31.3.2020.
Answer:
(b) 17.9.2018,31.3.2019.
As inserted by Finance (No. 2) Act, 2019, w.e.f. 1.4.2019
Question 55.
As per the newly inserted section 10(15)(ix) any income by way of interest payable to a non-resident by a unit located in an International Financial Services Centre in respect of monies borrowed by
it on or after the ………..shall be exempt from the Assessment year 2021-22.
(a) 1st day of September, 2018
(b) 1st day of September, 2019
(c) 1st day of April, 2019
(d) 1 st day of October, 2019
Answer:
(b) 1st day of September, 2019
As inserted by the Finance (No. 2) Act, 2019.
Question 56.
The income of a news agency which applies its income or accumulates it for the sole purpose of collection and distribution of news and does not distribute to its members is exempt under section
(a) [10(22B)]
(b) [10(22C)]
(c) [10(23B)]
(d) [10(23BB)]
Answer:
(a) [10(22B)]
Question 57.
Any Income arising from providing any specified services and chargeable to equalization levy is exempt under section:
(a) [10(45)]
(b) [10(47)]
(c) [10(50)]
(d) [10(53)]
Answer:
(c) [10(50)]
Question 58.
The reason for totally exempting agricultural income from the scope of Income-tax is :
(a) To encourage the agriculture industry.
(b) Since there is not much profit in agriculture.
(c) To encourage the primary sector.
(d) under the Constitution, the Central Government has no power to levy a tax on agricultural income
Answer:
(d) under the Constitution, the Central Government has no power to levy a tax on agricultural income
Question 59.
As per Explanation 3 to Section 2(1 A) income derived from saplings or seedlings grown in a nursery would be deemed to be agricultural income :
(a) Whether or not the basic operations were carried out on land.
(b) If some basic operations are carried out on land before transplanting the saplings.
(c) If some basic operations like cultivating etc. is performed on land.
(d) Income derived from saplings or seedlings grown in a nursery would be deemed to be agricultural income.
Answer:
(a) Whether or not the basic operations were carried out on land.
Question 60.
The process employed by Mr. X to render the agricultural produce fit to be taken to the market is exempt u/s 10(1) as agricultural income if:
(a) Mr. X was the cultivator.
(b) Mr. X had given the land to Mr. Y on rent and Y who used the land for agricultural operations paid Mr. X, some amount in terms of money as rent.
(c) Mr. X had given the land to Mr. Y on rent and Y who used the land for agricultural operations paid Mr. X, the cultivated crops as rent.
(d) Either (a) or (c).
Answer:
(d) Either (a) or (c).
Question 61.
As per Rule 7 of the Income-tax Rules, 1962, in determination of market value of agricultural produce which is not capable of being sold in the market in raw form or after application of any ordinary process, the market value will be:
(a) Expenses of cultivation.
(b) The land revenue or rent paid for the area on which it was grown.
(c) Amount which the Assessing officer may regard as representing the reasonable profit.
(d) Total of all of the above.
Answer:
(d) Total of all of the above.
Question 62.
Income from the sale of forest trees of spontaneous growth:
(a) Constitutes agricultural income.
(b) Does not constitute agricultural income.
(c) 65% of the total income is considered agricultural income.
(d) 60% of the total income is considered agricultural income.
Answer:
(b) Does not constitute agricultural income.
Question 63.
Any income of a specified person in the nature of dividend, interest or long-term capital gains arising from an investment made by it in India, whether in the form of debt or share capital or unit, is exempt u/s 10(23FE) if the investment is held for at least:
(a) 2 years
(b) 3 years
(c) 4 years
(d) 5 years
Answer:
(b) 3 years
Question 64.
Any income of a specified person in the nature of dividend, interest or long-term capital gains arising from an investment made by it in India, whether in the form of debt or share capital or unit, is exempt u/s 10(23FE) if it is made on or after but on or before the 31st day of March, 2024.
(a) 1.4.2020
(b) 1.4.2021
(c) 30.6.2020
(d) 30.6.2021
Answer:
(a) 1.4.2020
Question 65.
Arty income of a specified person in the nature of dividend, interest or long-term capital gains arising from an investment made by it in India, whether in the form of debt or share capital or unit, is exempt u/s 10(23FE) if it is made in the:
(a) a Category-I or Category-II Alter-native Investment Fund regulated under the Securities and Exchange Board of India having hundred percent investment in one or more of the company or enterprise or entity referred to in option(c)
(b) a business trust referred to in sub-clause (z) of clause (13A) of section 2
(c) a company or enterprise or an entity carrying on the business of developing, or operating and maintaining, or developing, operating and maintaining any infrastructure facility as defined in the Explanation to clause (z) of sub-section (4) of section 80-IA or such other business as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(d) All of the above.
Answer:
(d) All of the above.
Question 66.
Which of the following is not a “Specified person” for the purposes of section 10(23FE):
(a) a wholly owned subsidiary of the Abu Dhabi Investment Authority which is a resident of the United Arab Emirates and makes investment, directly or indirectly, out of the fund owned by the Government of the United Arab Emirates.
(b) a sovereign wealth fund which satisfies certain conditions.
(c) a wealth fund created as per the guidelines in India.
(d) a pension fund, which is created or established under the law of a foreign country and is not liable to tax in such foreign country provided it satisfies such other conditions as may be prescribed and is specified by the Central Government.
Answer:
(c) a wealth fund created as per the guidelines in India.
Question 67.
Exemption u/s 10(48C) is available to:
(a) Indian Strategic Petroleum Reserves Limited.
(b) Oil Industry Development Board.
(c) Oil and Natural Gas Co. Ltd.
(d) Oil Industry Ltd.
Answer:
(a) Indian Strategic Petroleum Reserves Limited.
Question 68.
Exemption u/s 10(48C) will not be available if the crude oil is not replenished in the storage facility within years
from the end of the financial year in which the crude oil was removed from the storage facility for the first time.
(a) 1 year
(b) 2 years.
(c) 3 years.
(d) 5 years.
Answer:
(c) 3 years.
Question 69.
Any income accruing or arising to, or received by, a unit holder from a “specified fund” or on transfer of units in a specified fund i.e. a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment
Fund) Regulations, 2012 and which is located in any International Financial Services Centre of which all the units are held by non-residents other than unit held by a sponsor or manager is exempt w.e.f 1.4.2021 u/s:
(a) 10(2 3 FBB)
(b) 10(23FBC)
(c) 10(23FC)
(d) 10(23FCB)
Answer:
(b) 10(23FBC)
Question 70.
Exemption u/s will not be available in the Assessment year 2021-22 as the section has been omitted w.e.f. 1.4.2021.
(a) 10(34)
(b) 10(45)
(c) 10(35)
(d) All of the above.
Answer:
(b) 10(45)