Articleship assessment test ICAI – Level 2 | International Tax MCQ – Double Taxation Relief

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Articleship assessment test ICAI – MCQ

Question 1:- 

Bilateral relief could be provided by way of :-

(a) Credit Method

(b) Exemption Method

(c) Both A and B

(d) None of the above




Question 2:- 

In Tax Credit method :-

(a) Income is taxed in Country of source and Country of Residence and deduction is provided in other Country

(b) Income is taxed in one Country and exempt from tax in the other Country

(c) Both A and B

(d) None of the above

Question 3:- 

In Exemption Method :-

(a) Income is taxed in the Country of source and Country of Residence and deduction is provided in other Country

(b) Income is taxed in one Country and exempt from tax in the other Country

(c) Both A and B

(d) None of the above

Question 4:- 

Central Government may enter into an agreement, with the Government of any country outside India u/s 90 for grating relief in respect of :-

(a) Income, where income-tax has been paid both in India and in country of residence of taxpayer

(b) Income on which Income-tax is chargeable under the IT Act and under the corresponding law in force in that country

(c) Both A and B

(d) None of the above




Question 5:- 

Where an assessee is eligible to claim the DTAA benefit :-

(a) Provisions of DTAA shall apply to the assessee

(b) Provisions of Income-Tax Act shall apply to the assessee

(c) Provisions of DTAA or Income-Tax Act, whichever is more beneficial, shall apply to the assessee

(d) None of the above

Answers

1. (c) Both A and B

2. (b) Income is taxed in one Country and exempt from tax in the other Country

3. (a) Income is taxed in Country of source and Country of Residence and deduction is provided in other Country

4. (c) Both A and B

5. (c) Provisions of DTAA or Income-Tax Act, whichever is more beneficial, shall apply to the assessee

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