IFOS Final 2

Q1. Deemed Dividend includes_________

•  (a) Dividend declared by the company

• (b) Distribution of debentures, or deposit certificates

• (c) Distribution by the company on reduction of its capital

• (d) Both (b) and (c)

Q2. Mr. A, a shareholder received dividends from ABC Ltd. of Rs. 50,000. He incurred some expenses to get such dividends which are commission to a broker of Rs. 5,000 and Rs. 20,000 as interest payment for a loan which was taken to buy shares of ABC Ltd. How much deduction he can claim against the income of Rs. 50,000?

• (a) Rs. 25,000

• (b) Rs. 20,000

• (c) Rs. 4,000

• (d) Rs. 10,000

Q3. Income from gambling activities is taxable at the rate of ______.

• (a) 10%

• (b) 20%

• (c) 30%

• (d) 40%

Q4. Whether any deduction is allowed for expenditure incurred for earning income from the lottery?

• (a) Yes

• (b) No

• (c) May be

• (d) Allowed with certain limit

Q5. Any excess premium received on the issuance of ________ issued by a closely held company from any person is considered taxable under the head income from other sources where the consideration received exceeds the face value and fair market value.

• (a) Equity shares

• (b) Preference shares

• (c) Both a and b

• (d) None of the above

Q6. Interest on compensation or enhanced compensation is taxable in the year of _________

• a) Compulsory acquisition of asset

• b) Receipt of the compensation

• c) Accrual of interest on such compensation

• d) Receipt of interest on such compensation

Q7. How much deduction shall be allowed if a taxpayer has interest income on compensation or enhanced compensation?

• (a) All expenses incurred on earning such interest

• (b) 20% of such interest

• (c) 50% of such interest

• (d) No deduction is allowed

Q8. Amount forfeited on account of non-transfer of __________ is considered as an income chargeable under the head ‘Income from other sources’

•  (a) Personal assets

• (b) Contracts revenue in nature

• (c) Capital assets

• (d) All of the above

Q9. The immovable properties received without consideration are considered as deemed income if the benefit exceeds __________ and this limit shall be checked for ________.

• (a) Rs. 50,000; a financial year

• (b) Rs. 50,000; each immovable property separately

• (c) Rs. 1,00,000; a financial year

• (d) Rs. 1,00,000; each immovable property separately

Q10. How much deduction is allowed with respect to the family pension received?

• (a) One-third of the family pension

• (b) Rs. 15,000

• (c) Higher of (a) or (b)

• (d) Lower of (a) or (b)