Tax Laws MCQ on Assessment of Partnership Firms, LLP, AOP & BOI: Check the below Tax Laws MCQ on Assessment of Partnership Firms, LLP, AOP & BOI with Answers Pdf free download. Tax Laws MCQ on Assessment of Partnership Firms, LLP, AOP & BOI Questions for Tax Laws with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Assessment of Partnership Firms, LLP, AOP & BOI with Answers to help students understand the concept very well. Students should practice Assessment of Partnership Firms, LLP, AOP & BOI – CS Executive Tax Laws MCQ Questions with Answers based on the latest syllabus.

Tax Laws MCQ on Assessment of Partnership Firms, LLP, AOP & BOI

1. Under the Income-tax Act, 1961, interest on capital received by a partner from a partnership firm is chargeable under the head
(A) Profits and gains of business or profession
(B) Income from other sources
(C) Capital gains
(D) None of the above

2. Salary received by a partner from his partnership firm is considered in his personal assessment as
(A) Income from salary
(B) Profit from business or profession
(C) Income from other sources
(D) Exempted income

3. If an LLP claims a deduction under Section 35AD, the provisions of Alternate Minimum Tax (AMT) under Section 115JC will apply when the adjusted total income exceeds
(A) ₹ 10 i.e. no limit
(B) ₹ 10 lakh
(C) ₹ 20 lakh
(D) ₹ 3 Crore

4. Profit earned during the year by a partnership firm is ₹ 1,40,000. The maximum amount of remuneration deductible from profit is
(A) ₹ 1,26,000
(B) ₹ 1,40,000
(C) ₹ 1,50,000
(D) ₹ 50,000

5. The book profit of a partnership firm is ₹ 1,20,000. The actual remuneration paid to working partners is ₹ 3,54,000. The allowable deduction under Section 40(b) towards remuneration to partners is
(A) ₹ 1,50,000
(B) ₹ 3,54,000
(C) ₹ 1,08,000
(D) ₹ 1,20,000

6. The provisions of Alternate Minimum Tax (AMT) will apply only when the adjusted total income computed under section 115JC exceeds:
(A) ₹ 5 lakh
(B) ₹ 20 lakh
(C) ₹ 50 lakh
(D) ₹ 100 lakh

7. Under the Income-tax Act, 1961, Partnership Firm is chargeable to tax @:
(A) 30% plus H&EC or AMT @ 18.596 plus H&EC
(B) 30% plus H&EC or AMT @ 17.596 plus H&EC
(C) 30% plus H&EC or MAT @ 18.596 plus H&EC
(D) 30% plus H&EC or MAT @ 18.596 plus H&EC

8. When a partnership firm has total sales of ₹ 90 lakhs, the maximum amount deductible as the salary of working partners on the basis of presumptive income determined u/s 44AD is
(A) ₹ 5,22,000
(B) ₹ 3,60,000
(C) ₹ 3,30,000
(D) Nil 

9. When a non-domestic company is a member of an AOP and its share of profit is indeterminate, the tax on the total income of the AOP is charged at the
(A) Nominal rate
(B) Maximum marginal rate
(C) Rate applicable to the company
(D) Least of the above three rates

10. From a tax point of view, a limited liability partnership (LLP) is treated as
(A) Sole trader concern
(B) General partnership firm
(C) Private limited company
(D) Public limited company

11. The tax shall be charged on the total income of the AOP at the maximum marginal rate under the provisions of Section 167B of Income Tax Act, 1961:
(A) Where individual shares of the members of an association or body are indeterminable or unknown in relation to the whole of the income
(B) Where members share equally
(C) Where the individual shares of the members of an associate or body are indeterminable or unknown relating to any part of the income
(D) Both (A) and (C)

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By Team Learning Mantras