McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 1. |
Income tax is collected on all types of income except . |
| A. | agricultural income |
| B. | industrial income |
| C. | capital gain |
| D. | household property |
| Answer» A. agricultural income | |
| 2. |
The Income Tax Act came into force from . |
| A. | 1st march 1971 |
| B. | 1st april 1971 |
| C. | 1st march 1961 |
| D. | 1st april 1961 |
| Answer» D. 1st april 1961 | |
| 3. |
The Income Tax Act came into force all over India except . |
| A. | andaman & nicobar |
| B. | maldives |
| C. | jammu & kashmir |
| D. | none of the above |
| Answer» D. none of the above | |
| 4. |
As per Income Tax Act, 1961, income tax is charged on the income of
|
| A. | current year |
| B. | one year before previous year |
| C. | previous year |
| D. | none of the above |
| Answer» C. previous year | |
| 5. |
The tax payer liability is determined with reference to his or her . |
| A. | financial status |
| B. | residential status |
| C. | all of the above |
| D. | none of the above |
| Answer» B. residential status | |
| 6. |
As per the definition of Income, the income includes the following . |
| A. | profits and gains |
| B. | dividend declared |
| C. | voluntary contribution received by a trust created |
| D. | all of the above |
| Answer» D. all of the above | |
| 7. |
The period of 12 months commencing on the first day of April every year and ending on 31st March is called as . |
| A. | previous year |
| B. | assessment year |
| C. | accounting year |
| D. | financial year |
| Answer» B. assessment year | |
| 8. |
Previous year means the financial year immediately preceding the . |
| A. | accounting year |
| B. | assessment year |
| C. | all of the above |
| D. | none of the above |
| Answer» B. assessment year | |
| 9. |
Agricultural income is completely exempted for assessment year |
| A. | 1974-75 |
| B. | 1985-86 |
| C. | 1975-76 |
| D. | 1978-79 |
| Answer» A. 1974-75 | |
| 10. |
The income from foreign companies by providing the services in project connected with security of India is from tax liability. |
| A. | 50% exempted |
| B. | 20% exempted |
| C. | 100% exempted |
| D. | 55% exempted |
| Answer» C. 100% exempted | |
| 11. |
The awards and rewards are exempted from Income Tax if . |
| A. | payment is in cash |
| B. | payment is in kind |
| C. | payment is in cash or in kind |
| D. | none of the above |
| Answer» C. payment is in cash or in kind | |
| 12. |
Income received in India whether occurred in India or outside India, the tax incidence in case of resident is . |
| A. | taxable as per slabs |
| B. | exempted from tax |
| C. | partly exempted |
| D. | none of the above |
| Answer» A. taxable as per slabs | |
| 13. |
Income received in India whether occurred in India or outside India, the tax incidence in case of resident but not ordinarily resident is . |
| A. | taxable as per slabs |
| B. | exempted from tax |
| C. | partly exempted |
| D. | none of the above |
| Answer» A. taxable as per slabs | |
| 14. |
Income received in India whether occurred in India or outside India, the tax incidence in case of non-resident is . |
| A. | taxable as per slabs |
| B. | exempted from slab |
| C. | partly exempted |
| D. | none of the above |
| Answer» A. taxable as per slabs | |
| 15. |
Income deemed to be received in India whether occurred in India or outside India, the tax incidence in case of resident is . |
| A. | taxable as per slabs |
| B. | exempted from slab |
| C. | partly exempted |
| D. | none of the above |
| Answer» A. taxable as per slabs | |
| 16. |
The income received and accrued outside India from a business controlled or profession set up in India, the tax incidence in case of resident is . |
| A. | taxable |
| B. | non-taxable |
| C. | partly taxable |
| D. | none of the above |
| Answer» A. taxable | |
| 17. |
The income received and accrued outside India from a business controlled or profession set up in India, the tax incidence in case of non-resident is . |
| A. | taxable |
| B. | non-taxable |
| C. | partly taxable |
| D. | none of the above |
| Answer» B. non-taxable | |
| 18. |
The tax incidence for company or firm in which income received in India and company is resident is . |
| A. | taxable |
| B. | non-taxable |
| C. | partly taxable |
| D. | none of the above |
| Answer» A. taxable | |
| 19. |
The tax incidence for company or firm in which income received in India and company for non-resident is . |
| A. | taxable |
| B. | non-taxable |
| C. | partly taxable |
| D. | none of the above |
| Answer» A. taxable | |
| 20. |
The tax incidence for company or firm in which income received outside India from a source controlled from India for resident is . |
| A. | taxable |
| B. | non-taxable |
| C. | partly taxable |
| D. | none of the above |
| Answer» A. taxable | |
| 21. |
The tax incidence for company or firm in which income received outside India from a source controlled from India for non-resident is . |
| A. | non-taxable |
| B. | taxable |
| C. | partly taxable |
| D. | none of the above |
| Answer» A. non-taxable | |
| 22. |
…………. is exempted from income tax. |
| A. | interest from indian company |
| B. | dividend from foreign company |
| C. | cooperative dividend |
| D. | dividend from indian company |
| Answer» D. dividend from indian company | |
| 23. |
Which section of the Income Tax Act exempted incomes have been mentioned? |
| A. | section 80c |
| B. | section 80dd |
| C. | section 10 |
| D. | section 2 |
| Answer» C. section 10 | |
| 24. |
……………….of Income Tax Act is related to residential status. |
| A. | section 2 |
| B. | section 6 |
| C. | section 5 |
| D. | section 4 |
| Answer» B. section 6 | |
| 25. |
Resident of India includes . |
| A. | ordinarily resident |
| B. | not ordinarily resident |
| C. | nri |
| D. | both (a) and (b) |
| Answer» D. both (a) and (b) | |
| 26. |
The Company may have the residential status as . |
| A. | resident or non-resident |
| B. | not ordinarily resident |
| C. | non-resident |
| D. | resident |
| Answer» A. resident or non-resident | |
| 27. |
The number of income source for a person are . |
| A. | one head |
| B. | two heads |
| C. | various heads |
| D. | any of the above |
| Answer» D. any of the above | |
| 28. |
The sum of various heads is called as . |
| A. | taxable income |
| B. | total income |
| C. | gross total income |
| D. | adjusted income |
| Answer» C. gross total income | |
| 29. |
The agricultural income includes . |
| A. | income from sale of crop |
| B. | income from preparation of crop |
| C. | income from nursery |
| D. | all of the above |
| Answer» D. all of the above | |
| 30. |
…………..comes under agricultural income. |
| A. | tea garden |
| B. | commodity farming |
| C. | all of the above |
| D. | none of the above |
| Answer» C. all of the above | |
| 31. |
If the agricultural income is ……….. then the agricultural income is considered for calculating tax. |
| A. | more than ` 5,000 and total income is exceeding exemption limit |
| B. | more than ` 5,000 |
| C. | more than ` 10,000 |
| D. | any amount |
| Answer» A. more than ` 5,000 and total income is exceeding exemption limit | |
| 32. |
The Income Tax Act, 1961 broadly covers . |
| A. | basic charging income |
| B. | rebates and reliefs |
| C. | incomes exempted from income tax |
| D. | all of the above |
| Answer» D. all of the above | |
| 33. |
The capital gain is chargeable under of Income Tax Act. |
| A. | section 45 |
| B. | section 55 |
| C. | section 56 |
| D. | section 40 |
| Answer» A. section 45 | |
| 34. |
The definition of the person includes . |
| A. | an individual |
| B. | a company |
| C. | a hindu undivided family |
| D. | all of the above |
| Answer» A. an individual | |
| 35. |
Any rent or revenue derived from land which is situated in India and is used for agricultural purpose is . |
| A. | partially taxable |
| B. | fully taxable |
| C. | exempted from tax |
| D. | none of the above |
| Answer» C. exempted from tax | |
| 36. |
Residential Status of an assesses can be . |
| A. | different for different previous year in the same assessment year |
| B. | different for different assessment year |
| C. | none of the above |
| D. | all of the above |
| Answer» B. different for different assessment year | |
| 37. |
The income of previous year is chargeable to tax in the . |
| A. | immediately succeeding assessment year |
| B. | same previous year |
| C. | immediately preceding academic year |
| D. | none of the above |
| Answer» A. immediately succeeding assessment year | |
| 38. |
The interest on loan paid by the Government of India to a non-resident outside India is………..in India. |
| A. | not taxable |
| B. | partially taxable |
| C. | taxable |
| D. | can’t say |
| Answer» A. not taxable | |
| 39. |
Basic condition will be for a person who leaves India for employment . |
| A. | at least 182 days in india |
| B. | at least 60 days in previous year and 365 days in preceding 4 years |
| C. | at least 730 days in preceding 7 years |
| D. | all of the above |
| Answer» A. at least 182 days in india | |
| 40. |
The term income includes the following types of incomes. |
| A. | illegal |
| B. | legal income from india only |
| C. | legal |
| D. | legal and illegal both |
| Answer» D. legal and illegal both | |
| 41. |
……………is the casual income. |
| A. | interest received |
| B. | dividend income |
| C. | pension received |
| D. | winning from lotteries |
| Answer» D. winning from lotteries | |
| 42. |
The way of tax liability by taking full advantage provided by the Act is . |
| A. | tax management |
| B. | tax avoidance |
| C. | tax planning |
| D. | tax evasion |
| Answer» C. tax planning | |
| 43. |
Mr. A, partner of M/s ABC, is assessable as . |
| A. | firm |
| B. | an individual |
| C. | body of individual |
| D. | huf |
| Answer» A. firm | |
| 44. |
The income is chargeable under the head of salary under ……………of Income Tax Act, 1961. |
| A. | section 15 |
| B. | section 20 |
| C. | section 14 |
| D. | section 16 |
| Answer» A. section 15 | |
| 45. |
Pension is ……………under the salary head. |
| A. | fully taxable |
| B. | partially taxable |
| C. | not taxable |
| D. | none of the above |
| Answer» A. fully taxable | |
| 46. |
The salary of Member of Parliament is taxable under the head . |
| A. | salary |
| B. | income from other sources |
| C. | income from business |
| D. | all of the above |
| Answer» B. income from other sources | |
| 47. |
The death-c um-retirement gratuity received by the Government Employee or employee of the local authority is. |
| A. | partially exempted |
| B. | fully exempted |
| C. | half taxable |
| D. | none of the above |
| Answer» B. fully exempted | |
| 48. |
Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is . |
| A. | taxable |
| B. | not taxable |
| C. | partially taxable |
| D. | none of the above |
| Answer» A. taxable | |
| 49. |
The assesses can claim relief under…………….for arrears or advance salary. |
| A. | section 89(1) |
| B. | section 89(2) |
| C. | section 89(3) |
| D. | section 89(4) |
| Answer» A. section 89(1) | |
| 50. |
The Payment of Gratuity Act came into force in…………... |
| A. | 1973 |
| B. | 1980 |
| C. | 1991 |
| D. | 1972 |
| Answer» D. 1972 | |
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