Taxation solved MCQs

1 of 2

1. The Constitution of india empowers ____________________________________ to levy tax on income

a. state government

B. central government

c. parliament

d. finance minister

2. The income tax act extends to __________________________________________ of india

a. states

B. union territories

c. citizens

d. whole

3. Residential has nothing to do with

a. constitution

B. citizenship

c. censorship

d. change

4. Residential Status of an individual depends on the stay of assesses in india during the

a. calender year

B. accounting year

c. asseseement year

d. previous year

5. A person by whom any tax is payable under income tax act 1961 is called as

a. individual

B. tax receiver

c. assessee

d. none of the above

6. The Financial year in which the income is earned is called as the

a. assessment year

B. present year

c. previous year

d. current year

7. An Company is always resident in india

a. industrial

B. individual

c. indian

d. investment

8. Income tax act extends to

a. whole of india

B. whole of india except jammu & kashmir

c. india & sri lanka

d. none of these

9. Shivaji University is assessable under the income tax act as

a. a individual

B. an artificial juridical person

c. a local authority

d. none of these

10. A firm is regarded as a unit of assessment as per ______________________________

a. income tax act

B. partnership act

c. companies act

d. finance act

11. ____________________________ is chargeable u/s 45

a. capital gains

B. profit and gains

c. dividend

d. voluntary contribution

12. What is the section of Incidence of law

a. 6

B. 5

c. 7

d. 4

13. Incomes which accrue or arise outside India but received directly in India are taxable in case of

a. resident and ordinarily resident only

B. resident but not ordinarily resident

c. non-resident

d. All of the above

14. R Ltd. Is an Indian company whose place of effective management is outside India. R Ltd., shall be:

a. resident in India

B. non-resident in India

c. not ordinarily resident in India

d. resident and ordinarily resident only

15. which of the following are the persons under sec2(A)

a. Individual

B. firm

c. body of person

d. All of the above

16. The HUF is said to be resident in India if                    

a. The control and management of its affairs is wholly or partly situated in India

B. The control and management of its affairs is partially situated out of India

c. The control and management of its affairs is wholly or partly in out of India

d. None of the above

17. The Company may have the residential status as

a. Resident and non resident

B. non ordinary resident

c. ordinary Resident

d. none of the above

18. Benefits Given in kind are

a. Allowance

B. Perquisites

c. both a and b

d. none of the above

19. which of the following heads are the head of Income under Income tax Act 1961

a. salary

B. capital gain

c. House Property

d. All of the above

20. Outstanding salary would be taxable basis

a. Due

B. receipts

c. both a & b

d. none of the above

21. Advance salary would be taxable basis

a. Due

B. receipts

c. both a & b

d. none of the above

22. is a retirement benefit given by the employer to the employee in consideration of past services.

a. Gratuity

B. Dearness allowance

c. Lunch allowance

d. House Rent allowance

23. A is a non-cash benefit granted by an employer to the employee

a. Allowance

B. Perquisites

c. pension

d. none of the above

24. Allowances to Judges of High Court/Supreme Court (Subject to certain conditions)

a. Taxable

B. Not taxable

c. Both A & B

d. none of the above

25. Previous year means the financial year immediately preceding the                          

a. Accounting year

B. Assesment year

c. non of the above

d. both

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