WorksheetsExemptions Quiz
Total questions: 30
Worksheet time: 10mins
Name
Class
Date
1.
The registration of a Trust for availing benefit u/s 11 is granted by Commissioner/Director of Income Tax under section
a)
Section 12
b)
Section 12AA
c)
Section 13
d)
Section 13B
2.
The trust can invest the accumulated fund in any of the following asset for availing the benefit of exemption u/s. 11–
a)
Share of public limited companies
b)
Investments in protection of involvement
c)
Government securities, deposits and bonds as specified u/s 11(5) of the act.
d)
Government securities, bonds, deposits, infrastructures as specified u/s 11(4) of the act.
3.
Once the registration of exemption is granted to a trust by the Commissioner/ Director of Income Tax (Exemption) them, the same can only be cancelled by the following authority-
a)
By Chief Commissioner of Income Tax.
b)
Director General of Income Tax (Exemption).
c)
By the issuing Authority after providing reasonable opportunity to the trust.
d)
Central Board of Direct Taxes.
4.
The Commissioner of Income tax, can grant or refuse registration to the Trust for exemption within-in which of the following
a)
12 months from the end of the month when the application was received u/s 12A.
b)
9 months from the end of the month when the application for registration was received u/s 12A.
c)
2 years from the end of the assessment year when the application was filed u/s 12A.
d)
6 months from the end of the month when the application for registration was received
5.
Anonymous donation received by a Charitable Trust is exempt and not liable for tax-
a)
True
b)
False
c)
It is taxable as per provisions of Section 13(7) of the Act.
d)
None of the above
6.
Political parties will lose the exemption of its income from taxation if it fails to comply with the following-
a)
Helping government in maintaining the Electoral roles.
b)
The treasurer or authorised person of such political party or any person of the political party fails to submit a report under sub- section 3 of Section 29C of the representation of Peoples Act, 1951 for such financial year.
c)
Fails to give copy of accounts of its expenditure on election of its candidate to its election observer appointed by Election Commission of India.
d)
All of Above
7.
Income of a trust derived from its property is exempt from tax if it is applied towards-
a)
Only Charitable purposes
b)
Only Religious purposes
c)
Charitable or religious purposes
d)
Objects of the trust as specified in the Trust Deed
8.
The income of a Charitable or religious trust shall be charged-
a)
At maximum marginal rate.
b)
At normal rates applicable to AOP.
c)
To the extent that income is not exempt u/s 11 or 12 or is invested in prohibited modes; at normal rates.
d)
To the extent that income is not exempt u/s 11 or 12 or is invested in prohibited modes; at maximum marginal rates.
9.
The income derived from property of the Trust in the previous year will not be taxable if such income is applied towards the object of the Trust to the extent of –
a)
50 percent
b)
75 percent
c)
85 percent
d)
90 percent
10.
Voluntary contribution received by an Electoral Trust shall not be included in its total income of the previous year only if-
a)
it distributes 95% of aggregate donation received by it during the previous year along with surplus if any brought forward from earlier previous year.
b)
Such Electoral Trust functions in accordance with the Rules made by the Central Government.
c)
Such distribution must be to any political party which is registered u/s 29A of representation of Peoples Act, 1951
d)
If it complies with all the above conditions (a), (b) & (c).
11.
A trustee does not commit a breach of trust
a)
When he employs the trust money to the where satisfaction of the beneficiaries even when he departs from the directions contained in the trust.
b)
When his sole motive should be to maximize the benefit of the trust irrespective of the trust deeds.
c)
When he does not follow the terms laid down in the trust.
d)
When he follow the directions given in the trust even when the trust money earns less income.
12.
A trust may invest in any of the following:
a)
Securities of the central government of India or the Unit Trust of India.
b)
Mutual funds performing well.
c)
Share Market.
d)
Only if the securities bear interest.
13.
In a trust deed, the person who reposes or declares the confidence is called -
a)
Author of the trust
b)
Trustee
c)
Beneficiary
d)
Instrument of trust.
14.
A trust is valid if-
a)
The ownership of the trust is transferred to the trustee.
b)
The ownership of the trust is transferred to the trustee.
c)
It concerns only immovable property.
d)
It is unregistered.
15.
Which one of the following is a condition to be fulfilled in order to avail exemption u/s 11 of the Income Tax Act?
a)
The organization should be registered u/s 12A of the Income Tax Act with CIT.
b)
The organization must be existing solely for public benefit.
c)
The organization can be either religious or charitable in nature.
d)
The organization cannot be religious in nature.
16.
The organization cannot be religious in nature.
a)
Section 11
b)
Section 12
c)
Section 115 BBC
d)
Section 113.
17.
Deduction under Section 80GGB relates to—
a)
Certain donations for scientific research
b)
Certain donation for rural development
c)
Contribution given by companies to political party
d)
Contribution given by individual to political party.
18.
Income of a charitable trust can be accumulated u/s 11(2) for a maximum period of-
a)
Five years
b)
Ten years
c)
Seven years
d)
Six years.
19.
Which section empowers the CIT to cancel the registration of a trust in certain circumstances-
a)
Section 12AA(1)
b)
Section 12AA(1A)
c)
Section 12AA(2)
d)
Section 12AA(3)
20.
The provisions of Section 11 are applicable only when certain specified conditions are fulfilled. Such conditions are specified under-
a)
Section 13
b)
Section 13A
c)
Section 10
d)
Section 12
21.
Charitable purpose includes:
a)
Relief of the poor, education, medical relief.
b)
Preservation monuments. of environment and
c)
Advancement of any other object of general public utility, not involving activities in the nature of business.
d)
All of the above.
22.
Application for Registration u/s 12A of the Income-tax Act is to be made to the CIT within a period of the Trust: from the date of creation of
a)
6 months
b)
12 months
c)
9 months
d)
3 months
23.
A person receives income from a property held under Trust wholly for charitable purposes and the trust has applied only 55% of such income to such purposes in India, then the taxable portion of the income shall be:
a)
100 percent
b)
75 percent
c)
85 percent
d)
30 percent
24.
Notice under Section 11(2) of the Income-tax Act for accumulation of income should be given in to the Assessing Officer/ Prescribed Authority in :
a)
Form No. 11
b)
Form No. 10
c)
Form No. 10A
d)
Form No. 10B.
25.
For companies claiming exemption under section 11 of the Act, the ITR applicable is:
a)
ITR-5
b)
ITR-7
c)
ITR-6
d)
ITR-4
26.
Income of a charitable trust can be accumulated u/s 11(1) for a maximum period of-
a)
3 Years
b)
5 Years
c)
1 Year
d)
10 Years
27.
Notice under Section 11(1) of the Income-tax Act for accumulation of income should be given in to the Assessing Officer/ Prescribed Authority:
a)
Form No. 11
b)
Form No. 10
c)
Form No. 10A
d)
Form No. 9A.
28.
Penalty u/s 271AAE for passing on unreasonable benefits to specified persons for first instance of violation is
a)
100% of the amount of unreasonable benefit provided to the specified person.
b)
50% of the amount of unreasonable benefit provided to the specified person.
c)
10% of the amount of unreasonable benefit provided to the specified person
d)
50% of the amount of unreasonable benefit provided to the specified person
29.
Audit Report for claim of exemption by trust registered u/s 10(23C) is to submitted in :
a)
Audit Report u/s 10B
b)
Audit Report u/s 10A
c)
Audit Report u/s 10
d)
Audit Report u/s 10BB
30.
Powers to condone the delay in filing of Forms 10B/10BB/9A/10 upto 365 days vests with the
a)
Commissioner of Income tax(Exemptions)
b)
Chief Commissioner of Income tax (Exemptions)
c)
Assessing Officer
d)
CBDT
100 %
