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

Tax Laws MCQ on Offences and Penalties

1. The amount specified in the notice of demand must be paid within days otherwise the assessee would be treated as assessee in default.
(A) 10
(B) 15
(C) 30
(D) 60

2. Penalty for failure to furnish report under section 92E is:
(A) ₹ 25,000
(B) 2% of the value of international transactions
(C) ₹ 1,00,000
(D) ₹ 1,50,000

3. As per section 234F of the Income-tax Act, 1961 maximum fee for failure to file the return of income before the 31st day of December of the assessment year is
(A) ₹ 1,000
(B) ₹ 10,000
(C) ₹ 5,000
(D) ₹ 2,000

4. Padmaja Traders a partnership firm with a turnover of ₹ 140 lakhs omitted to get the books of account audited under section 44AB. The amount of penalty leviable for failure to get the accounts audited under section 4AB is:
(A) ₹ 10,000
(B) ₹ 70,000
(C) ₹ 1,50,000
(D) ₹ 20,000

5. The maximum penalty leviable for failure to get accounts audited or to furnish report u/s 44AB is
(A) ₹ 75,000
(B) ₹ 1,00,000
(C) ₹ 1,50,000
(D) ₹ 3,00,000

6. ABC Limited has filed its return of income for A.Y. 2021-22 as per section 139(1) but had failed to make the payment of tax on the returned income as per section 140A. The return so filed by ABC Limited shall be treated as:
(A) A defective return u/s 139(9)
(B) A valid return
(C) A non – est return
(D) None of the above 

7. When an assessee fails to furnish any information relating to a specified domestic transaction, the quantum of penalty as a percentage of the value of the transaction would be
(A) 2%
(B) 1%
(C) 5%
(D) 3% 

8. The maximum penalty leviable for underreporting of income which results from misreporting of income by the assessee is:
(A) Two hundred percent of the tax payable
(B) One hundred percent of the tax payable
(C) Fifty percent of the tax payable
(D) Three hundred percent of the tax payable 

9. As per Section 271 A, failures to keep, maintain or retain books of account would attract a penalty of –
(A) ₹ 10,000
(B) ₹ 1,00,000
(C) ₹ 2,000
(D) ₹ 25,000

10. The total income of Ram is ₹ 4,90,000 and the due date of filing the return of income for A.Y. 2021-22 is 31st July 2021. The return by Ram shall be filed on 20th September 2021. The late fee payable for late filing of return of income shall be:
(A) ₹ 1,000
(B) ₹ 5,000
(C) ₹ 10,000
(D) No late fee up to an income of ₹ 5 lakh

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By Team Learning Mantras