Taxation Solved MCQs

1.

The Constitution of india empowers ____________________________________ to levy tax on income

A. state government
B. central government
C. parliament
D. finance minister
Answer» B. central government
2.

The income tax act extends to __________________________________________ of india

A. states
B. union territories
C. citizens
D. whole
Answer» D. whole
3.

Residential has nothing to do with

A. constitution
B. citizenship
C. censorship
D. change
Answer» B. citizenship
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
Answer» 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
Answer» C. assessee
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
Answer» C. previous year
7.

An Company is always resident in india

A. industrial
B. individual
C. indian
D. investment
Answer» C. indian
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
Answer» A. whole of india
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
Answer» B. an artificial juridical person
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
Answer» A. income tax act
11.

____________________________ is chargeable u/s 45

A. capital gains
B. profit and gains
C. dividend
D. voluntary contribution
Answer» A. capital gains
12.

What is the section of Incidence of law

A. 6
B. 5
C. 7
D. 4
Answer» B. 5
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
Answer» 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
Answer» A. resident in India
15.

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

A. Individual
B. firm
C. body of person
D. All of the above
Answer» 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
Answer» A. The control and management of its affairs is wholly or partly situated in India
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
Answer» A. Resident and non resident
18.

Benefits Given in kind are

A. Allowance
B. Perquisites
C. both a and b
D. none of the above
Answer» B. Perquisites
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
Answer» 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
Answer» A. Due
21.

Advance salary would be taxable basis

A. Due
B. receipts
C. both a & b
D. none of the above
Answer» B. receipts
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
Answer» A. Gratuity
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
Answer» C. pension
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
Answer» B. Not taxable
25.

Previous year means the financial year immediately preceding the                          

A. Accounting year
B. Assesment year
C. non of the above
D. both
Answer» B. Assesment year
26.

Full form of TDS

A. Tax deducted at source
B. Tax deducted for source
C. tax deducted by source
D. none of above
Answer» A. Tax deducted at source
27.

profit or income of that particular year.

A. set off
B. carry forward
C. none of above
D. both of above
Answer» A. set off
28.

Capital LosseCan be carry forward up to next             assessment years from the assessment year in which the loss was incurred

A. 8
B. 4
C. 2
D. 5
Answer» A. 8
29.

which of the following are the basic condition to become resident of india

A. He must be in India for 182 days or more in relevent previous year
B. He must be in India for 60 days or more in Relevent Previous year AND In preceding 4 previous year he must be in
C. both a and b
D. none of the above
Answer» B. He must be in India for 60 days or more in Relevent Previous year AND In preceding 4 previous year he must be in
30.

.A is entitled to children education allowance @ Rs. 80 p.m. per child for 3 children amounting Rs. 240 p.m. It will be exempt to the extent of :

A. 200
B. 260
C. 160
D. 240
Answer» C. 160
31.

              of Income Tax Act is related to residential status

A. Section 6
B. section-5
C. section 8
D. section 9
Answer» A. Section 6
32.

Salary should have relationship

A. employer employee
B. Master and servent
C. both a and b
D. none of the above
Answer» C. both a and b
33.

salary is chargeable to tax on

A. Receipt
B. due
C. Receipt or due whichever is earlier
D. none of the above
Answer» C. Receipt or due whichever is earlier
34.

Arear on salary are taxable on             

A. Receipt
B. due
C. Receipt or due whichever is earlier
D. none of the above
Answer» A. Receipt
35.

means fixed quantum of money given regularly in addition to salary to meet particular requirement

A. Allowance
B. Perquisites
C. pension
D. none of the above
Answer» A. Allowance
36.

An allowance to meet the expenses in connection with the rent of the house, by whatever name called

A. House Rent allowance
B. Perquisites
C. pension
D. none of the above
Answer» A. House Rent allowance
37.

It is an extra amount given to an employee to meet the burden of inflation or increased cost of living.

A. House Rent allowance
B. Dearness allowance
C. both a and b
D. none of the above
Answer» B. Dearness allowance
38.

Which of the allowances are fully taxable

A. Dearness allowance
B. Lunch allowance
C. Medical allowance
D. All of the above
Answer» D. All of the above
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