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All questions of Taxation for Commerce Exam
Which of the following is NOT a deductible expense for income tax purposes?- a)Mortgage interest
- b)Charitable contributions
- c)Property taxes
- d)Entertainment expenses
Correct answer is option 'D'. Can you explain this answer?
Which of the following is NOT a deductible expense for income tax purposes?
a)
Mortgage interest
b)
Charitable contributions
c)
Property taxes
d)
Entertainment expenses
|
KP Classes answered |
While mortgage interest, charitable contributions, and property taxes are typically deductible expenses for income tax purposes, entertainment expenses are generally not fully deductible. The tax law may allow for a partial deduction of entertainment expenses under certain conditions, but it is not fully deductible in most cases.
If a person's annual salary is Rs. 60,000 and they contribute Rs. 5,000 to a retirement account that is tax-deductible, what is their taxable income?- a)Rs. 55,000
- b)Rs. 60,000
- c)Rs. 65,000
- d)Rs. 70,000
Correct answer is option 'A'. Can you explain this answer?
If a person's annual salary is Rs. 60,000 and they contribute Rs. 5,000 to a retirement account that is tax-deductible, what is their taxable income?
a)
Rs. 55,000
b)
Rs. 60,000
c)
Rs. 65,000
d)
Rs. 70,000
|
Learning Educators answered |
Taxable income is calculated by subtracting the deductible retirement account contribution from the annual salary: Rs. 60,000 - Rs. 5,000 = Rs. 55,000.
If the value added at each stage of production for a product is Rs. 500 and the VAT rate is 10%, what is the total VAT paid for the product?- a)Rs. 50
- b)Rs. 100
- c)Rs. 150
- d)Rs. 200
Correct answer is option 'A'. Can you explain this answer?
If the value added at each stage of production for a product is Rs. 500 and the VAT rate is 10%, what is the total VAT paid for the product?
a)
Rs. 50
b)
Rs. 100
c)
Rs. 150
d)
Rs. 200
|
Nipun Tuteja answered |
The total VAT paid is calculated by multiplying the value added by the VAT rate: Rs. 500 * 0.10 = Rs. 50.
What does TDS stand for in the context of taxation?- a)Tax Deducted at Source
- b)Tax Deduction Scheme
- c)Tax Distribution System
- d)Total Deduction Sum
Correct answer is option 'A'. Can you explain this answer?
What does TDS stand for in the context of taxation?
a)
Tax Deducted at Source
b)
Tax Deduction Scheme
c)
Tax Distribution System
d)
Total Deduction Sum
|
|
Pj Commerce Academy answered |
TDS stands for Tax Deducted at Source. It is a mechanism through which taxes are deducted at the time of payment itself. This system ensures that taxes are collected in advance from various sources of income such as salaries, interest, dividends, etc.
If a property is valued at Rs. 300,000 and the property tax rate is 2%, how much tax does the owner owe annually?- a)Rs. 3,000
- b)Rs. 6,000
- c)Rs. 30,000
- d)Rs. 60,000
Correct answer is option 'A'. Can you explain this answer?
If a property is valued at Rs. 300,000 and the property tax rate is 2%, how much tax does the owner owe annually?
a)
Rs. 3,000
b)
Rs. 6,000
c)
Rs. 30,000
d)
Rs. 60,000
|
Curiosity Classes answered |
The annual tax owed is calculated by multiplying the property value by the property tax rate: Rs. 300,000 * 0.02 = Rs. 6,000.
A company makes a profit of Rs. 1,000,000 before taxes. If the corporate tax rate is 30%, how much tax does the company owe?- a)Rs. 200,000
- b)Rs. 250,000
- c)Rs. 300,000
- d)Rs. 350,000
Correct answer is option 'C'. Can you explain this answer?
A company makes a profit of Rs. 1,000,000 before taxes. If the corporate tax rate is 30%, how much tax does the company owe?
a)
Rs. 200,000
b)
Rs. 250,000
c)
Rs. 300,000
d)
Rs. 350,000
|
|
Learning Educators answered |
The tax owed is calculated by multiplying the profit before taxes by the tax rate: Rs. 1,000,000 * 0.30 = Rs. 300,000.
If the estate tax rate is 40% and an estate is valued at Rs. 5,000,000, how much tax is owed?- a)Rs. 1,000,000
- b)Rs. 2,000,000
- c)Rs. 3,000,000
- d)Rs. 4,000,000
Correct answer is option 'B'. Can you explain this answer?
If the estate tax rate is 40% and an estate is valued at Rs. 5,000,000, how much tax is owed?
a)
Rs. 1,000,000
b)
Rs. 2,000,000
c)
Rs. 3,000,000
d)
Rs. 4,000,000
|
|
Nipun Tuteja answered |
The tax owed is calculated by multiplying the estate value by the estate tax rate: Rs. 5,000,000 * 0.40 = Rs. 2,000,000.
A company has a revenue of Rs. 2,000,000 and deductible expenses of Rs. 1,500,000. If the corporate tax rate is 25%, how much tax does the company owe?- a)Rs. 125,000
- b)Rs. 250,000
- c)Rs. 375,000
- d)Rs. 500,000
Correct answer is option 'D'. Can you explain this answer?
A company has a revenue of Rs. 2,000,000 and deductible expenses of Rs. 1,500,000. If the corporate tax rate is 25%, how much tax does the company owe?
a)
Rs. 125,000
b)
Rs. 250,000
c)
Rs. 375,000
d)
Rs. 500,000
|
|
Pj Commerce Academy answered |
The taxable income is calculated by subtracting deductible expenses from revenue: Rs. 2,000,000 - Rs. 1,500,000 = Rs. 500,000. The tax owed is then calculated by multiplying the taxable income by the tax rate: Rs. 500,000 * 0.25 = Rs. 125,000.
If a person's taxable income is Rs 50,000 and the tax rate is 20%, how much tax do they owe?- a)Rs. 5,000
- b)Rs. 10,000
- c)Rs. 15,000
- d)Rs. 20,000
Correct answer is option 'A'. Can you explain this answer?
If a person's taxable income is Rs 50,000 and the tax rate is 20%, how much tax do they owe?
a)
Rs. 5,000
b)
Rs. 10,000
c)
Rs. 15,000
d)
Rs. 20,000
|
|
Curiosity Classes answered |
The tax owed is calculated by multiplying the taxable income by the tax rate: Rs. 50,000 * 0.20 = Rs. 10,000.
If the gift tax rate is 35% and a person gives a gift worth Rs. 50,000, how much tax is owed?- a)Rs. 10,000
- b)Rs. 17,500
- c)Rs. 25,000
- d)Rs. 35,000
Correct answer is option 'C'. Can you explain this answer?
If the gift tax rate is 35% and a person gives a gift worth Rs. 50,000, how much tax is owed?
a)
Rs. 10,000
b)
Rs. 17,500
c)
Rs. 25,000
d)
Rs. 35,000
|
|
Pj Commerce Academy answered |
The tax owed is calculated by multiplying the value of the gift by the gift tax rate: Rs. 50,000 * 0.35 = Rs. 17,500.
Calculate the capital gains tax for an individual who sells a stock for Rs. 10,000 that was purchased for Rs. 7,000.- a)Rs. 500
- b)Rs. 1,000
- c)Rs. 1,500
- d)Rs. 2,000
Correct answer is option 'A'. Can you explain this answer?
Calculate the capital gains tax for an individual who sells a stock for Rs. 10,000 that was purchased for Rs. 7,000.
a)
Rs. 500
b)
Rs. 1,000
c)
Rs. 1,500
d)
Rs. 2,000
|
|
Nipun Tuteja answered |
Capital gains tax is calculated on the profit made from selling the stock. Profit = Selling price - Purchase price = Rs. 10,000 - Rs. 7,000 = Rs. 3,000. Tax = Profit * Capital gains tax rate = Rs. 3,000 * 0.1667 (for the average tax rate) = Rs. 500.
If the sales tax rate is 8% and you buy a laptop for Rs. 1000, how much tax do you pay?- a)Rs. 80
- b)Rs. 88
- c)Rs. 100
- d)Rs. 108
Correct answer is option 'B'. Can you explain this answer?
If the sales tax rate is 8% and you buy a laptop for Rs. 1000, how much tax do you pay?
a)
Rs. 80
b)
Rs. 88
c)
Rs. 100
d)
Rs. 108
|
|
KP Classes answered |
The tax paid is calculated by multiplying the price of the laptop by the sales tax rate: Rs. 1000 * 0.08 = Rs. 80. So, the total amount paid including tax is Rs. 1000 + Rs. 80 = Rs. 108.
Calculate the total income tax for an individual with taxable income of Rs. 75,000 if the tax rates are 10% on the first Rs. 10,000, 15% on the next Rs. 20,000, and 25% on the remaining amount.
- a)Rs. 10,500
- b)Rs. 11,250
- c)Rs. 15,250
- d)Rs. 15,000
Correct answer is option 'C'. Can you explain this answer?
Calculate the total income tax for an individual with taxable income of Rs. 75,000 if the tax rates are 10% on the first Rs. 10,000, 15% on the next Rs. 20,000, and 25% on the remaining amount.
a)
Rs. 10,500
b)
Rs. 11,250
c)
Rs. 15,250
d)
Rs. 15,000
|
|
Curiosity Classes answered |
Tax is calculated in tiers:
- On the first Rs. 10,000: Rs. 10,000 * 0.10 = Rs. 1,000
- On the next Rs. 20,000 (total Rs. 10,001 to Rs. 30,000): Rs. 20,000 * 0.15 = Rs. 3,000
- On the remaining Rs. 45,000 (total Rs. 30,001 to Rs. 75,000): Rs. 45,000 * 0.25 = Rs. 11,250
Total tax = Rs. 1,000 + Rs. 3,000 + Rs. 11,250 = Rs. 13,750.
A tax system in which the average tax rate increases as the taxpayer's income increases is known as:- a)Progressive tax
- b)Regressive tax
- c)Flat tax
- d)Proportional tax
Correct answer is option 'A'. Can you explain this answer?
A tax system in which the average tax rate increases as the taxpayer's income increases is known as:
a)
Progressive tax
b)
Regressive tax
c)
Flat tax
d)
Proportional tax
|
|
Pj Commerce Academy answered |
In a progressive tax system, as income increases, the average tax rate also increases. This means that higher-income individuals pay a higher percentage of their income in taxes compared to lower-income individuals.
If a company has a net income of Rs. 500,000 and the corporate tax rate is 25%, how much tax does the company owe?- a)Rs. 100,000
- b)Rs. 125,000
- c)Rs. 250,000
- d)Rs. 375,000
Correct answer is option 'B'. Can you explain this answer?
If a company has a net income of Rs. 500,000 and the corporate tax rate is 25%, how much tax does the company owe?
a)
Rs. 100,000
b)
Rs. 125,000
c)
Rs. 250,000
d)
Rs. 375,000
|
|
Pj Commerce Academy answered |
The tax owed is calculated by multiplying the net income by the tax rate: Rs. 500,000 * 0.25 = Rs. 125,000.
Chapter doubts & questions for Taxation - Applied Mathematics for Class 11 2025 is part of Commerce exam preparation. The chapters have been prepared according to the Commerce exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for Commerce 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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Applied Mathematics for Class 11
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