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WorksheetsTax Quiz 2
Total questions: 121
Worksheet time: 1hrs 1mins
Which of the following constitutional provisions deals with the GST Legislative Article?
Article 288
Article 289
Article 301
Article 246A
How many types of canons of taxation were dealt with by Adam Smith?
3
4
5
6
Which constitutional amendment deals with GST?
101st Amendment1
122nd Amendment
108th Amendment
97th Amendment
No tax shall be levied or collected except by authority of law is mentioned in which Article?
Article 256
Article 265
Article 275
Article 300
India has adopted GST from which country?
USA
Canada
France
Australia
Taxability of Dearness Allowance is ________?
Fully taxable
Fully exempt
Exempt up to a limit
Partially exempt
What does STCG stand for in the context of taxation?
Short-Term Capital Gains
Short-Term Credit Gains
Standard Tax Credit Gain
Special Term Capital Gain
GST is levied on all kinds of supply except ________.
Petrol
Diesel
Alcoholic Liquor for Human Consumption
All of the above
Tax is a ________ money.
Voluntary
Mandatory
Optional
Discretionary
Who is the member of GST Council in Tamil Nadu?
Chief Minister
Finance Minister
Revenue Secretary
Governor
Which is the first country to introduce GST in the World?
Canada
France
Germany
Australia
The taxpayer's liability is determined with reference to his or her _______________ status.
Residence
Citizenship
Occupation
Age
Taxability of Agricultural Income under the Income Tax Act is _______.
Fully taxable
Partially taxable
Exempt
Zero-rated
The income of the previous year is chargeable to tax in the _______________.
Assessment Year
Current Year
Financial Year
Calendar Year
The salary of a Member of Parliament is taxable under the head ________.
Income from Salary
Income from Business
Income from House Property
Income from Other Sources
Which section of the Income Tax Act provides for deductions on premiums paid for Life Insurance Policies (LIC)?
Section 80C
Section 80D
Section 10(10D)
Section 80E
What does TDS stand for?
Tax Deducted at Source
Tax Determined at Source
Tax Deferred at Source
Tax Delivered at Source
What does TCS stand for?
Tax Collected at Source
Tax Calculated at Source
Tax Credited at Source
Tax Computed at Source
What is the primary purpose TDS?
To simplify tax payments
To ensure that taxes are collected at the source of income
To provide tax exemptions
To refund excess tax paid
What is the term for the process where the tax department examines the tax returns filed by the taxpayer?
Adjudication
Assessment
Reconciliation
Verification
Which section of the Income Tax Act deals with penalties for failure to furnish returns, non-compliance with notices, and concealment of income?
Section 180
Section 271
Section 140
Section 223
What does ITAT stand for?
Income Tax Appeal Tribunal
Income Tax Appellate Tribunal
Income Tax Assessment Tribunal
Income Tax Advisory Tribunal
Which of the following principles is enshrined in Article 265 of the Indian Constitution?
The State shall provide free and compulsory education to children.
The State shall not discriminate against any citizen on the grounds of religion.
Every citizen shall have the right to equality before the law.
No tax shall be levied or collected except by authority of law.
What does Article 276 of the Indian Constitution address?
Prohibition of discrimination on grounds of religion2
Expenditure of funds from the Consolidated Fund of India
Taxes on professions, trades, callings, and employments
The right to freedom of speech and expression
What is the primary objective of conducting a search under Section 132 of the Income Tax Act?
To assess the taxpayer's financial status
To recover the outstanding tax dues
To gather evidence of undisclosed income or assets
To provide tax advice.
What can be seized during a search operation under Section 132 of the Income Tax Act?
Only cash
Only documents
Cash, documents, and valuables
Only bank accounts
In case of seizure, what document is issued to the person from whose possession the items were seized?
A receipt for the items seized
A notice of demand
A summons for appearance
A notice of assessment
Which forum is the first level of appeal against an assessment order issued by an Assessing Officer?
Commissioner of Income Tax (Appeals)
Income Tax Appellate Tribunal (ITAT)
High Court
Supreme Court
In which court can a taxpayer appeal if they are dissatisfied with the order of the Income Tax Appellate Tribunal (ITAT)?
High Court
Supreme Court
District Court
Income Tax Appellate Tribunal (ITAT) itself
Progressive tax is based on the principle higher the ______, higher the ______.
Income, tax
Consumption, tax
Profit, benefit
Value, cost
GAV stands for ______.
Gross Assessable Value
Gross Annual Value
General Annual Value
Government Annual Value
What is the rate of percentage for standard deduction in Income from House Property?
20%
25%
30%
50%
Rent received by the original tenant from the sub-tenant (Sub-let) is taxable under the head ________.
Income from salary
Income from Business
Income from Other Sources
Income from Capital Gains
Self-assessment means ________.
Evaluation done by a third party
Taxpayer calculates their own tax liability
Assessment conducted by a tax authority
Evaluation by an accountant
Section 132 of the Income-tax Act, 1961 empowers income tax authorities to:
Conduct a search and seizure of books of accounts, documents, cash, jewellery, and other assets
Assess income and impose penalties
Collect taxes and issue refunds
Conduct audits and reviews
What is the primary purpose of levying a cess in India?
To reduce the income tax rates for individuals
To fund specific government initiatives or programs
To provide a subsidy for certain products
To replace other forms of taxation
Which of the following cesses was introduced to fund Clean India initiatives in India?
Swachh Bharat Cess
SAH Cess
Education Cess
Infrastructure Cess
GSTAT stands for ______.
Goods and Services Tax Appellate Tribunal
Goods and Services Tax Assessment Tribunal
General Services Tax Appellate Tribunal
Goods and Services Tax Administrative Tribunal
ITAT stands for ______.
Income Tax Assessment Tribunal
Income Tax Advisory Tribunal
Income Tax Administrative Tribunal
Income Tax Appellate Tribunal
International taxation refers to the taxation of:
Domestic income
Cross-border transactions
Local businesses only
Tax on import duties
Mr. Ram owns a house property. He lent it to Laxman at 10,000 per month. Laxman sublet it to Mr. Maruti on a monthly rent of 20,000. The rental income of Ram is taxable under the head:
Income from Salaries
Income from Other Sources
Income from House Property
Income from Business and Profession
Expansion for PAN:
Permanent Account Number
Public Account Number
Primary Account Number
Personal Account Number
DTAA stands for ______.
Domestic Tax Avoidance Act
Dual Taxation Allocation Agreement
Direct Taxation and Allocation Agreement
Double Taxation Avoidance Agreement
Permanent Establishment (PE) refers to ______.
A temporary business arrangement in a foreign country
A fixed place of business that gives rise to tax liability in another country3
The process of setting up a company in a domestic market
A tax-free entity operating internationally
POEM stands for ______.
Place of Economic Management
Point of Effective Management
Place of Effective Management
Point of Economic Management
Which of the following defines the 'Assessment Year'?
The year before the current financial year
The year in which income tax is assessed and paid
The year in which income is earned
The year after the previous year
What defines the 'Assessment Year'?
The year before the current financial year
The year in which income tax is assessed and paid
The year in which income is earned
The year after the previous year
If an individual resides in India for a period of last 32 financial years, his residential status would be:
Resident and ordinarily resident
Non-resident
Resident but not ordinarily resident
None of the above
Article 14 of the Indian Constitution deals with:
The right to equality before the law
The right to freedom of speech and expression
The right to protection against arbitrary arrest and detention
The right to equality of opportunity in public employment
The Seventh Schedule of the Indian Constitution divides powers between the Union and the States into which of the following lists?
Union List, State List, and Concurrent List
Central List, State List, and Regional List
Federal List, Regional List, and Concurrent List
National List, State List, and Common List
What is the meaning of the 'Finance Budget'?
A detailed report of the government's revenue and expenditure for a fiscal year
A plan for the allocation of funds to different government departments and projects
A document outlining the financial policies and strategies of the government
A summary of the financial performance of government enterprises
Transfer pricing refers to ______.
The pricing of goods and services transferred between unrelated companies
The pricing of goods and services transferred within a company or between related entities in different countries
The government-set price for international transactions
The method used to calculate customs duties
Who was the economist who played a key role in shaping Indian Tax Reforms during the 1950s?
John Maynard Keynes
Milton Friedman
Prof.Nicholas Kaldor
Amartya Sen
Pension is taxable under which head of income?
Income from Salary
Income from House Property
Income from Other Sources
Income from Capital Gains
Gratuity is taxable under which head of income?
Income from Salary
Income from Other Sources
Income from House Property
Capital Gains
Judges' salary is taxable under which head of income?
Income from Salary
Income from Other Sources
Income from Profits and Gains of Business or Profession
Exempt
Ministers' salary is taxable under which head of income?
Income from Salary
Income from Other Sources
Income from Profits and Gains of Business or Profession
Exempt
Partners' salary is taxable under which head of income?
Income from Salary
Income from Other Sources
Income from Profits and Gains of Business or Profession
Exempt
Agents' remuneration is taxable under which head of income?
Income from Salary
Income from Profits and Gains of Business or Profession
Income from Other Sources
Exempt
Taxability of overtime allowance falls under which head?
Income from Salary
Income from Other Sources
Income from House Property
Exempt
Taxability of food allowance is under which head?
Exempt
Income from Salary
Income from Other Sources
Income from Profits and Gains of Business or Profession
Taxability of Judges' allowances falls under which head?
Income capital gains
Income from Salary
Income from Other Sources
Income from Profits and Gains of Business or Profession
'Deemed owner' refers to?
The person who possesses the property in his name
The person who has transferred the property
The person who enjoys the property despite not being the legal owner
The person who is exempt from tax on property
AOP stands for:
Association of Parties
Association of Persons
Agreement of Persons
Alliance of People
BOI stands for:
Body of Individuals
Bureau of Investigation
Board of Incorporation
Bank of India
Income earned from a business in Germany but received in India, amounting to Rs 10,00,000, is:
Exempt from tax in India.
Taxable in India.
Taxable only in Germany.
Exempt if the person is a Non-Resident.
Income from property in Canada, amounting to Rs 1,00,000, and received in India, is:
Exempt from tax in India.
Taxable in Canada only.
Taxable in India.
Exempt if the person is a Non-Resident.
Income from Gift in Foreign Currency, amounting to Rs 5,00,000, and received in India, is:
Exempt from tax in India.
Taxable in Canada only.
Taxable in India.
Exempt if the person is a Non-Resident.
What is the maximum aggregate turnover limit for a taxpayer to opt for the Composition Scheme in most states?
₹50 lakh
₹75 lakh
₹1 crore
₹1.5 crore
Which of the following is NOT eligible to opt for the Composition Scheme?
A manufacturer of readymade garments
A supplier of restaurant services
A supplier of ice cream
A small retailer
Can a registered person opting for the Composition Scheme collect tax on his outward supplies?
Yes
No
Yes, if the amount of tax is prominently indicated in the invoice issued by him
Yes, only on such goods as may be notified by the Central Government
What will happen if the turnover of a registered person opting to pay taxes under the Composition Scheme during the year crosses the threshold limit?
He can continue under the Composition Scheme till the end of the financial year
He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year
He will be liable to pay tax at normal rates of GST on the turnover beyond the threshold limit
He must cease operations immediately
Can a taxpayer under the Composition Scheme avail Input Tax Credit (ITC)?
Yes, fully
Yes, but only on capital goods
No, ITC is not available
Yes, but only on intra-state supplies
A person registered under the Composition Scheme can supply goods/services to which of the following?
Only within the state
Only outside the state
Both within and outside the state
Only to unregistered dealers
Which of the following statements is TRUE regarding the Composition Scheme?
A taxpayer under the Composition Scheme must issue a tax invoice
A Composition Scheme taxpayer cannot supply exempt goods
The Composition Scheme is available only for service providers
There is no requirement for the Composition Scheme taxpayer to file GST returns
What is Input Tax Credit (ITC) under GST?
Tax credit available on input goods and services used for business purposes.
Tax credit available only on capital goods.
Tax credit available only on services.
Tax credit available only on goods.
What is one of the primary advantages of implementing GST in India?
It increases the number of indirect taxes.
It eliminates the cascading effect of taxes.
It applies only to goods, not services.
It is levied by individual states independently.
How has GST impacted the composition scheme for small businesses?
It has made it more complex.
It has simplified compliance for small businesses.
It has removed the composition scheme entirely.
It has increased the tax rates for small businesses.
How is the tax liability determined for a composite supply under GST?
Based on the supply with the highest tax rate
Based on the tax rate of the principal supply
By averaging the tax rates of all supplies
By applying the lowest tax rate among the supplies
Which of the following is an example of a composite supply?
A restaurant providing food and drinks together
A shop selling a gift pack containing chocolates, juices, and snacks
A combo offer of a mobile phone and a power bank
A supermarket selling different grocery items in a single invoice
How is the tax rate determined for a mixed supply under GST?
Based on the lowest tax rate among the supplies
Based on the tax rate of the supply with the highest rate
By taking an average tax rate of all items in the supply
By treating each item separately and applying individual tax rates
Which of the following qualifies as a mixed supply under GST?
A laptop sold with a charger and pre-installed software
A Diwali gift pack containing chocolates, dry fruits, and beverages sold as a single package
A travel package including airfare and hotel stay
A dentist providing a consultation along with prescribed medicines
What is the key difference between composite supply and mixed supply under GST?
Composite supply has one principal supply, while mixed supply does not11
Mixed supply always has a lower tax rate than composite supply
Composite supply is taxed at the highest rate among its supplies
Mixed supply can have different tax rates for different supplies
Section 8 of the CGST Act deals with which of the following concepts?
Levy and collection of tax
Determination of tax liability on composite and mixed supplies
Place of supply of goods and services
Input tax credit mechanism
What is the maximum rate at which CGST can be levied under Section 9(1) of the CGST Act?
10%
15%
20%
28%
Which of the following goods is explicitly excluded from CGST as per Section 9(1)?
Petroleum crude
High-speed diesel
Natural gas
Alcoholic liquor for human consumption
As per Section 9(2) of the CGST Act, when will GST be levied on petroleum crude, high-speed diesel, motor spirit ( पेट्रोल), natural gas, and aviation turbine fuel?
From the date of implementation of GST (1st July 2017)
As per state government regulations
From a date to be notified by the Government on the recommendation of the GST Council
These items are permanently exempt from GST
Under Section 9(3), who is liable to pay tax in case of a supply notified under the reverse charge mechanism?
The supplier of goods or services
The recipient of goods or services
The government
The transporter of goods
Which of the following transactions is likely to be covered under the reverse charge mechanism as per Section 9(3) of the CGST Act?
Supply of goods by a registered supplier to a registered recipient
Import of goods from a foreign supplier
Services provided by an unregistered person to a registered entity in certain notified categories
Sale of goods by a small retailer to an end consumer
Which of the following transactions qualifies as an inter-state supply under GST?
Supply of goods from Delhi to Mumbai
Supply of goods from Chennai to Coimbatore (both in Tamil Nadu)
Supply of services within the same state
Supply of goods within a union territory
What type of tax is levied on inter-state supply of goods and services?
CGST + SGST
CGST + UTGST
IGST
VAT
Intra-state supply of goods attracts which of the following taxes under GST?
IGST only
SGST and CGST
IGST and CGST
SGST and IGST
Which term refers to the passing of ownership or rights from one person to another, either voluntarily or involuntarily?
Transfer
Sale
Lease
Rent
In which of the following is no money involved, but goods are exchanged for other goods of equivalent value?
Sale
Barter
Lease
Rental
Which of the following refers to giving something and receiving something else in return, where money may or may not be involved?
Barter
Exchange
Licence
Transfer
What is a licence in legal parlance?
Ownership of property
A temporary right to use a property without ownership
Sale of property
Exchange of property
Which of the following refers to regular payment made for using property without gaining ownership?
Transfer
Rent
Barter
Disposal
What does lease typically mean in property law?
Permanent sale of an asset
Transfer of ownership without payment
Temporary transfer of right to use a property for a fixed term
Exchange of goods
The term disposal refers to:
Selling goods at a discount
Getting rid of an asset by any method, including sale, destruction, or donation
Leasing a property
Bartering goods
Which of the following would best describe a barter transaction?
Trading a mobile phone for a laptop
Paying rent through bank transfer
Selling land for cash
Leasing a car for three years
When a company gives someone the right to use its intellectual property, it is said to have granted a:
Sale deed
Lease agreement
Licence
Disposal notice
A rental agreement typically includes:
Permanent transfer of ownership
Temporary usage rights in exchange for periodic payment
Free usage of property
Exchange of goods of equal value
Which of the following is most likely to involve legal title transfer?
Lease
Rent
Sale
Licence
In which situation would ownership remain with the lessor while the lessee enjoys usage rights?
Sale
Barter
Lease
Transfer
When someone transfers an asset without expecting payment, it is known as:
Exchange
Barter
Donation or disposal
Sale
Which of these is an example of exchange but not a sale?
Buying a car with cash
Trading gold for silver
Renting a flat
Leasing farm equipment
Ravi gives his old phone to Arjun and receives a pair of wireless earphones in return. No money is involved. What kind of transaction is this?
Sale
Lease
Exchange
Barter
Priya gives her house to Ramesh for two years. Ramesh pays her ₹15,000 per month. After the term, the house will be returned to Priya. What is this arrangement?
Sale
Lease
Licence
Transfer
A tech company allows a user to use its software under terms and conditions without transferring ownership. What is this legal arrangement called?
Licence
Sale
Rental
Exchange
Neha sells her bike to Suraj for ₹60,000. After receiving the money, the bike and its papers are handed over to Suraj. This is an example of:
Lease
Transfer
Sale
Disposal
A farmer gives 50 kg of wheat to another in return for 10 kg of pulses. This transaction is best described as:
Rental
Barter
Sale
Licence
An artist gives a sculpture to a museum for public display. The museum doesn't own it but can display it under a written agreement. What is this arrangement?
Lease
Transfer
Licence
Disposal
Sunil no longer needs his old laptop. He gives it to a school for free to be used in their lab. This is an example of:
Sale
Barter
Disposal
Lease
Rohan rents a projector for a college event by paying ₹500 per day. What kind of legal arrangement is this?
Lease
Sale
Rental
Transfer
Manoj exchanges his gold ring for a smartwatch with his friend. No money is paid. This is an example of:
Sale
Barter
Lease
Disposal
A property owner sells a flat to a buyer and transfers all rights and title after full payment. This transaction is best described as:
Lease
Licence
Transfer
Rent
A manufacturer in Tamil Nadu sells goods to a buyer located in Karnataka. What kind of supply is this?
Intra-State Supply
Inter-State Supply
Export Supply
Import Supply
A trader in Delhi sells goods to a customer in Delhi and delivers them within the city. What type of supply is this?
Inter-State Supply
Intra-State Supply
Import
Export
A dealer in Maharashtra sends goods to his branch in Gujarat. The branch is registered under GST. What is the nature of this supply?
Intra-State
Export
Inter-State
Composite Supply
A restaurant in Chennai supplies food to a customer in Chennai and issues an invoice. What is this transaction?
Intra-State Supply
Inter-State Supply
Mixed Supply
Export Supply
A company in Andhra Pradesh sells goods to a company in Telangana. The goods are delivered in Telangana. What type of supply is this?
Inter-State Supply
Intra-State Supply
Mixed Supply
Nil Supply
