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Created on February 16, 2026 By

CA Sonal Saboo

CMA Inter

Inter Direct and Indirect Taxation PN-7 Quiz 1

This quiz is based on the CMA Direct and Indirect Taxation paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA DIT concepts.

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Category: Direct and Indirect Taxation PN - 7

1. Which of the following deductions is /are not allowed in case of a deemed to be let-out house?

a. New construction allowance

b. Repairs

c. Vacancy allowance

d. All of the above

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Category: Direct and Indirect Taxation PN - 7

2. Following assessee(s) can considered a house property as self occupied:

a. Individual & HUF

b. All assessee

c. All assessee other than company

d. All assessee other than firm

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Category: Direct and Indirect Taxation PN - 7

3. A house property located outside India is:

a. Taxable in hands of all assessee

b. Taxable in hands of non resident assessee

c. Taxable in hands of resident and ordinarily resident assessee

d. Exempted from tax in India.

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Category: Direct and Indirect Taxation PN - 7

4. Net Annual Value of a self-occupied property treated as such is:

a. Fair Rent

b. Nil

c. Reasonable Expected Rent as reduced by municipal tax paid during the previous year.

d. None of the Above

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Category: Direct and Indirect Taxation PN - 7

5. Who among the following is a specified employee?

a. A director of a company

b. An employee drawing a salary of ₹ 15,000 p.m.

c. A person who is an owner of equity shares carrying 10% voting power in the employer company.

d. Both (1) and (2) above

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Category: Direct and Indirect Taxation PN - 7

6. Which of the following is taxable under the head ‘salaries’?

a. Salary received by a Member of State Legislature.

b. Commission received by an employee director of a company.

c. Family pension received

d. Both (1) and (2) above

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Category: Direct and Indirect Taxation PN - 7

7. If a domestic servant is engaged by the employer and salary is paid by him, the perquisite is:

a. Taxable in the hands of all employees

b. Not taxable in the hands of both specified and non- specified employers

c. Taxable in the hands of specified employees only

d. Taxable to the extent of ₹ 120 per person in the hands of all employees.

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Category: Direct and Indirect Taxation PN - 7

8. Which of the following is not taxable under head ‘Salaries’?

a. Remuneration paid to the lecturer of a college for setting a question paper by a university.

b. Salary received by a member of the Parliament.

c. Commission received by an employee director of a company.

d. Both (1) and (2) above

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Category: Direct and Indirect Taxation PN - 7

9. Mr. X is engaged in growing and manufacturing tea in India. His income from this activity is ₹ 1,40,000. His agriculture income will be –

a. ₹ 70,000

b. ₹ 84,000

c. ₹ 1,40,000

d. ₹ 56,000

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Category: Direct and Indirect Taxation PN - 7

10. An individual is said to be a resident in India in the previous year (in which the Feb month has 29 days) if he is in India in that year for a period of .

a. 182 days or more

b. 183 days or more

c. 70 days or more

d. 150 days or more

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Category: Direct and Indirect Taxation PN - 7

11. Income of ₹ 3,00,000 is received in Sri Lanka by an ordinarily resident of India. But later on ₹ 50,000 is remitted to India –

a. ₹ 3,00,000 will be taxable

b. ₹ 3,50,000 will be taxable

c. It is not taxable at all

d. ₹ 50,000 will be taxable

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Category: Direct and Indirect Taxation PN - 7

12. An individual (aged 28 Years) born in India left for first time for employment in France on 30.10.2023. His visit outside India is for the first time. His residential status for the assessment year 2024-25 will be –

a. Resident and ordinarily resident

b. Resident but not ordinarily resident

c. Non-resident

d. Residential Status is not applicable

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Category: Direct and Indirect Taxation PN - 7

13. Income from saplings shall be considered as .

a. Agricultural Income

b. Business Income

c. Partly agricultural income and partly business income

d. Income from other sources

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Category: Direct and Indirect Taxation PN - 7

14. In case of an assessee engaged in the business of manufacturing of tea, his agricultural income is –

a. 60% of total receipt of the business

b. 60% of income of the business

c. Nil

d. 40% of income of the business

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Category: Direct and Indirect Taxation PN - 7

15. Which of the following is an agriculture income?

a. Dividend paid by a company to its shareholders out of agricultural income

b. Share of Profit of a Partner from a firm engaged in an agriculture operation

c. Income from supply of water by an assessee from a tank in agriculture land

d. Interest received by a money lender in the form of agricultural produce

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Category: Direct and Indirect Taxation PN - 7

16. The incidence of taxation depends on the –

a. Residential status of the assessee

b. Accommodation of the assessee

c. Citizenship of the as assessee

d. Marital status of the assessee

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Category: Direct and Indirect Taxation PN - 7

17. An individual is said to be resident in India if –

a. He has a house in India

b. He is in India in the previous year for a period of 182 days or more

c. He is in India for a period of 30 days or more during the previous year and for 365 or more days during 4 previous years immediately preceding the relevant previous year

d. His parents are Indian citizen

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Category: Direct and Indirect Taxation PN - 7

18. Income received in India in the previous year is taxable in the hands of –

a. Resident

b. Non-Resident

c. All assessee irrespective of residential status

d. Not Ordinarily resident

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Category: Direct and Indirect Taxation PN - 7

19. A person is said to be a person of Indian origin if –

a. He or either of his parents were born in undivided India

b. He or either of his siblings were born in undivided India

c. He or either of his parents or either of his grandparents were born in undivided India

d. He was born in India

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Category: Direct and Indirect Taxation PN - 7

20. Which of the following receipt is not included in the term ‘Income’ under the Income-tax Act, 1961?

a. Profits and gains of Business or Profession

b. Profit in lieu of salary

c. Dividend

d. Reimbursement of travelling expenses

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Category: Direct and Indirect Taxation PN - 7

21. Which of the following is Casual Income?

a. Dividend income

b. Winning from lotteries

c. Interest received

d. Pension received

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Category: Direct and Indirect Taxation PN - 7

22. Out of the following which one is not a capital receipt?

a. Dividend on investment

b. Bonus Shares

c. Sale of know-how

d. Compensation received for vacating business place

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Category: Direct and Indirect Taxation PN - 7

23. Income accruing in Japan and received there is taxable in India in the case of:

a. Resident and Ordinarily Resident only

b. Both Resident and Ordinarily Resident and Resident but not Ordinarily Resident

c. Both Resident and Non-resident

d. Non-resident

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Category: Direct and Indirect Taxation PN - 7

24. AB was born in England, his parents were born in India in 1952. His grand parents were born in South Africa. AB shall be a:

a. Person of Indian origin

b. Foreign National

c. Artificial Person

d. Citizen of India

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Category: Direct and Indirect Taxation PN - 7

25. Charging of income of the previous year in the same year is not mandatory for:

a. Shipping business of non-resident

b. Persons leaving India

c. Association formed for a particular event

d. Discontinuation of business

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Inter PN-7 Direct and Indirect Taxation Quiz 1

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