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

Tax Laws MCQ on Assessment of Trusts

1. Ray Charitable Trust (registered under section 12AA) has a total income of ₹ 20 lakh. It applied ₹ 10 lakh towards its objects. How much is chargeable to tax in case the trust does not opt for accumulation of income under section 11(2) of the Act?
(A) ₹ 10 lakh
(B) ₹ 7 lakh
(C) ₹ 5 lakh
(D) ₹ 3 lakh 

2. Ramji Charitable Trust had sold a capital asset costing ₹ 70,000 on 13th June 2020 for ₹ 1,50,000. It purchased new assets on 1st July 2020 for ₹ 1,20,000. The amount taxable as capital gains for Ramji Charitable Trust after exemption u/s 11(1 A) in A.Y. 2021-22 is
(A) ₹ 80,000
(B) Nil, because of charitable trust
(C) ₹ 30,000
(D) ₹ 40,000 

3. A charitable trust registered u/s 12AA has a total income of ₹ 40 lakhs, it spent ₹ 28 lakh, towards its objects. The total income of the trust chargeable to income-tax would be –
(A) Nil
(B) ₹ 12 lakh
(C) ₹ 6 lakh
(D) ₹ 2 lakh 

4. Ray Charitable Trust (registered under section 12AA) has a total income of ₹ 20 lakh. It applied ₹ 10 lakh towards its objects. How much is chargeable to tax in case the trust does not opt for accumulation of income under section 11(2) of the Act?
(A) ₹ 10 lakh
(B) ₹ 7 lakh
(C) ₹ 5 lakh
(D) ₹ 3 lakh 

5. A charitable trust registered as per section 12AA of Income-tax Act, having capital asset purchased in June 2017 for ₹ 1,00,000 and used for charitable purposes till the same was sold in December 2020 for ₹ 1,50,000. The Trust, after the sale of capital assets, purchased a new capital asset for ₹ 1,20,000 which was also used for charitable purposes of the Trust. The amount of capital gain utilized in purchase of new capital asset by Trust shall be
(A) ₹ 20,000
(B) ₹ 50,000
(C) ₹ 30,000
(D) Nil

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By Team Learning Mantras