All Courses
Get the App Signup / Login
Sign in Open App
Commerce Exam  >  Commerce Tests  >  Applied Mathematics for Class 11  >  Test: Taxation - Commerce MCQ

Test: Taxation - Commerce MCQ


Test Description

15 Questions MCQ Test Applied Mathematics for Class 11 - Test: Taxation

Test: Taxation for Commerce 2024 is part of Applied Mathematics for Class 11 preparation. The Test: Taxation questions and answers have been prepared according to the Commerce exam syllabus.The Test: Taxation MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Taxation below.
Solutions of Test: Taxation questions in English are available as part of our Applied Mathematics for Class 11 for Commerce & Test: Taxation solutions in Hindi for Applied Mathematics for Class 11 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Taxation | 15 questions in 15 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Applied Mathematics for Class 11 for Commerce Exam | Download free PDF with solutions
Test: Taxation - Question 1
Save

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?

Detailed Solution for Test: Taxation - Question 1

The tax owed is calculated by multiplying the net income by the tax rate: Rs. 500,000 * 0.25 = Rs. 125,000.

Test: Taxation - Question 2
Save

If the sales tax rate is 8% and you buy a laptop for Rs. 1000, how much tax do you pay?

Detailed Solution for Test: Taxation - Question 2

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.

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Taxation - Question 3
Save

If a person's taxable income is Rs 50,000 and the tax rate is 20%, how much tax do they owe?

Detailed Solution for Test: Taxation - Question 3

The tax owed is calculated by multiplying the taxable income by the tax rate: Rs. 50,000 * 0.20 = Rs. 10,000.

Test: Taxation - Question 4
Save

If a property is valued at Rs. 300,000 and the property tax rate is 2%, how much tax does the owner owe annually?
Detailed Solution for Test: Taxation - Question 4

The annual tax owed is calculated by multiplying the property value by the property tax rate: Rs. 300,000 * 0.02 = Rs. 6,000.

Test: Taxation - Question 5
Save

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.
Detailed Solution for Test: Taxation - Question 5

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. 15,250.

Test: Taxation - Question 6
Save

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?
Detailed Solution for Test: Taxation - Question 6

Taxable income is calculated by subtracting the deductible retirement account contribution from the annual salary: Rs. 60,000 - Rs. 5,000 = Rs. 55,000.

Test: Taxation - Question 7
Save

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?
Detailed Solution for Test: Taxation - Question 7

The tax owed is calculated by multiplying the profit before taxes by the tax rate: Rs. 1,000,000 * 0.30 = Rs. 300,000.

Test: Taxation - Question 8
Save

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?
Detailed Solution for Test: Taxation - Question 8

The total VAT paid is calculated by multiplying the value added by the VAT rate: Rs. 500 * 0.10 = Rs. 50.

Test: Taxation - Question 9
Save

If the estate tax rate is 40% and an estate is valued at Rs. 5,000,000, how much tax is owed?
Detailed Solution for Test: Taxation - Question 9

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.

Test: Taxation - Question 10
Save

Calculate the capital gains tax for an individual who sells a stock for Rs. 10,000 that was purchased for Rs. 7,000.
Detailed Solution for Test: Taxation - Question 10

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.

Test: Taxation - Question 11
Save

If the gift tax rate is 35% and a person gives a gift worth Rs. 50,000, how much tax is owed?
Detailed Solution for Test: Taxation - Question 11

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.

Test: Taxation - Question 12
Save

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?
Detailed Solution for Test: Taxation - Question 12

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.

Test: Taxation - Question 13
Save

A tax system in which the average tax rate increases as the taxpayer's income increases is known as:
Detailed Solution for Test: Taxation - Question 13

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.

Test: Taxation - Question 14
Save

What does TDS stand for in the context of taxation?
Detailed Solution for Test: Taxation - Question 14

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.

Test: Taxation - Question 15
Save

Which of the following is NOT a deductible expense for income tax purposes?
Detailed Solution for Test: Taxation - Question 15

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.

87 videos|88 docs|62 tests
Join Course
Information about Test: Taxation Page
In this test you can find the Exam questions for Test: Taxation solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Taxation, EduRev gives you an ample number of Online tests for practice

Top Courses for Commerce

Download as PDF

Top Courses for Commerce

Important Questions for Taxation

Find all the important questions for Taxation at EduRev.Get fully prepared for Taxation with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Taxation syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Taxation resources.

Taxation MCQs with Answers

Prepare for the Taxation within the Commerce exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Taxation Applied Mathematics for Class 11

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Taxation with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup