The 'Penalty' for under-reporting of income is: MCQ with Answer and Explanation

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The 'Penalty' for under-reporting of income is:

A. No penalty

B. 50% of tax payable on under-reported income

C. 200% of tax

D. 100% of tax

Answer: Option B

Solution (By JKExamLibrary)

Penalty for under-reporting is 50% of tax on under-reported income; for misreporting, 200%.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

The 'E-way Bill' is generated through the portal:

A. Income Tax portal

B. Customs portal

C. MCA portal

D. GSTN portal (ewaybillgst.gov.in)

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Correct Answer: Option D

Explanation:
E-way bill is generated on the dedicated portal ewaybillgst.gov.in.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

Social audit differs from financial audit mainly because:

A. It examines social impact and ethical behavior rather than just financial accuracy

B. It is always conducted by the CAG

C. It is done on a daily basis

D. It focuses solely on tax evasion

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Correct Answer: Option A

Explanation:
A social audit evaluates how well a company is achieving its social objectives and its impact on the community and environment.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

The 'Investor Education and Protection Fund' (IEPF) is established under:

A. RBI Act

B. Income Tax Act

C. SEBI Act

D. Companies Act, 2013

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Correct Answer: Option D

Explanation:
IEPF is constituted under Section 125 of Companies Act, 2013.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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