1.What is tax planning?
(a) Paying the maximum amount of taxes possible
(b) Planning to minimise the amount of taxes owed
(c) Ignoring taxes completely
(d) None of the above
2. Which of the following is not a common tax deduction for individuals?
(a) Charitable donations (b) Mortgage interest
(c) State and local taxes
3. What is the difference between tax avoidance and tax evasion? Notes
(a) Tax avoidance is legal, while tax evasion is illegal
(b) Tax avoidance is illegal, while tax evasion is legal
(c) Tax avoidance and tax evasion are the same thing
(d) None of the above
4. What are some potential risks associated with tax planning during a corporaterestructuring process?
(a) Legal and regulatory risks (b) Reputational risks
(c) Financial risks (d) All of the above
5. How can tax planning help with estate planning?
(a) By minimising estate taxes
(b) By maximising the value of bequests to heirs
(c) By structuring trusts and other estate planning vehicles to minimise tax liability
(d) All of the above
6. What is a tax credit?
(a) A dollar-for-dollar reduction in the amount of taxes owed
(b) A deduction from taxable income
(c) A reduction in the tax rate applied to taxable income
(d) None of the above
7. What is a tax incentive?
(a) A penalty for not paying taxes on time
(b) A reward for engaging in certain activities or behaviours
(c) A deduction from taxable income
(d) None of the above
8. What is a tax treaty?
(a) An agreement between two or more countries to prevent double taxation
(b) A tax on international trade
(c) A tax on the transfer of property after death
(d) None of the above
9. What is dividend policy?
(a) The amount of dividend paid to shareholders
(b) The decision on whether to pay dividends or retain earnings
(c) The frequency of dividend payments
(d) None of the above
10. What is dividend distribution tax?
(a) A tax on the amount of dividend paid by a company to its shareholders
(b) A tax on the income earned by a company
(c) A tax on the transfer of property after death
(d) None of the above
11. What is the current rate of dividend distribution tax in India?
(a) 10% (b) 15%
(c) 20% (d) None of the above
12. What is a dividend?
(a) A portion of a company's profits paid to its shareholders
(b) A portion of a company's debts paid to its shareholders
(c) A portion of a company's losses paid to its shareholders
(d) None of the above
13. What is a bonus share?
(a) A share of stock given to shareholders for free
(b) A share of stock sold at a discount
(c) A share of stock purchased at a premium
(d) None of the above
14. What is a dividend policy?
(a) The decision on whether to pay dividends or reinvest profits in the company
(b) The amount of dividend paid to shareholders
(c) The frequency of dividend payments
(d) None of the above
15. What are tax incentives for exports?
(a) Tax exemptions or reductions given to companies that engage in exports
(b) Taxes levied on companies that engage in exports
(c) Taxes levied on imports
(d) None of the above
16. What is the purpose of tax incentives for exports?
(a) To promote and encourage exports
(b) To discourage exports and protect domestic industries
(c) To generate revenue for the government
(d) None of the above
17. Which of the following countries offers tax incentives for exports?
(a) India (b) China
(c) Mexico (d) All of the above
18. What is advance payment of tax?
(a) Paying taxes in advance of the due date
(b) Paying taxes after the due date
(c) Not paying taxes at all
(d) None of the above
19. Why do taxpayers make advance payments of tax?
(a) To avoid penalties and interest on late payments
(b) To avoid having to pay taxes at one time
(c) To reduce the amount of tax owed Notes
(d) None of the above
20. What is a dividend policy that involves paying a constant amount of dividend
per share each period?
(a) Constant payout ratio (b) Stable dividend policy
(c) Constant dividend payout (d) None of the above
21. The provision regarding under which Section of income tax.
(a) Section 192-206 (b) Section 195-206
(c) Section 192-207 (d) Section 193-208
22. From number applicable for TDS in respect of salary.
(a) 7 (b) 16
(c) 15 (d) 4
23. The rate of TDS on securities other than Govt. securities is .
(a) 7.5% (b) 5%
(c) 15% (d) 20%
24. TDS rate for lottery is only available if the amount winning is more than
.
(a) 5,000 (b) 20,000
(c) 10,000 (d) 50,000
25. Advance tax will not paid if tax payable after TDS is more than or equal to
.
(a) 5,000 (b) 20,000
(c) 10,000 (d) 50,000
26. The provision regarding under which Section of income tax .
(a) Section 192-206 (b) Section 195-206
(c) Section 192-207 (d) Section 193-208
27. From number applicable for TDS in respect of salary .
(a) 7 (b) 16
(c) 15 (d) 4
28. The rate of TDS on securities other than Govt. securities is .
(a) 7.5% (b) 3.75%
(c) 15% (d) 30%
29. TDS rate for lottery is only available if the amount win
30. Advance tax will not paid if tax payable after TDS is more than or equal to
(a) 5,000 (b) 20,000
(c) 10,000 (d) 50,000
1. (b) 16. (a)
2. (d) 17. (d)
3. (a). 18. (a)
4. (d). 19. (a)
5. (d) 20. (b)
6. (a). 21. (a)
7. (b) 22. (b)
8. (a). 23. (a)
9. (b) 24. (c)
10. (a) 25. (c)
11. (d) 26. (a)
12. (a). 27. (b)
13. (a) 28. (a)
14. (a). 29. (c)
15. (a). 30. (c)
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