McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 1. |
Income tax Act extends to ____________ |
| A. | Whole of India |
| B. | Whole of India except Jammu & Kashmir |
| C. | Whole of Maharashtra Only |
| D. | Madhya Pradesh |
| Answer» A. Whole of India | |
| 2. |
Out of the following which is a revenue receipt _______________- |
| A. | Premium received on issue of new shares. |
| B. | Annuity received from former employer |
| C. | Interest from investments |
| D. | New Shares |
| Answer» C. Interest from investments | |
| 3. |
Body of individual should consist of ____________ |
| A. | Individual only |
| B. | Persons other than individual only |
| C. | A local authority |
| D. | Income of all persons |
| Answer» A. Individual only | |
| 4. |
A new business was set up on 15-11-2017 and it commences its business from 1-12-2017. The first previous year in this case shall be _______________________ |
| A. | 15-11-2017 to 31-3-2018 |
| B. | 1-12-2017 to 31-3-2018 |
| C. | 2017-18 |
| D. | 2019-20 |
| Answer» A. 15-11-2017 to 31-3-2018 | |
| 5. |
Shivaji University is assessable under the Income Tax Act as _______________. |
| A. | An Individual |
| B. | An artificial Juridical Person |
| C. | A local Authority |
| D. | Person other than Individual |
| Answer» B. An artificial Juridical Person | |
| 6. |
In which year is the income tax liability computed_______________ |
| A. | Assessment Year |
| B. | Previous Year |
| C. | Financial Year |
| D. | Calendar Year |
| Answer» A. Assessment Year | |
| 7. |
Income earned during what period is taxed____________ |
| A. | Assessment Year |
| B. | Previous Year |
| C. | Financial Year |
| D. | Calendar Year |
| Answer» B. Previous Year | |
| 8. |
Whose income is chargeable to Income tax _______________ |
| A. | Income of only Indian Citizen |
| B. | Income of only residents |
| C. | Income of all persons |
| D. | Income of only assesses |
| Answer» C. Income of all persons | |
| 9. |
One who is liable to pay the income tax__________________ |
| A. | Indian Citizen |
| B. | Resident in India |
| C. | Any Person |
| D. | An Assessee |
| Answer» D. An Assessee | |
| 10. |
Assessment year is the period of twelve months commencing on ________________ |
| A. | The first day of March every year |
| B. | The first day of January every year |
| C. | Financial year immediately preceding the previous year. |
| D. | The first day of April every year |
| Answer» D. The first day of April every year | |
| 11. |
Previous year means the _____________ |
| A. | Financial year immediately after the assessment year |
| B. | The period of twelve months commencing on the first day of April every year |
| C. | Financial year immediately preceding the assessment year. |
| D. | Calendar year immediately preceding the assessment year |
| Answer» C. Financial year immediately preceding the assessment year. | |
| 12. |
Mr. Joshi runs a chemist`s shop, accounting year of which is the financial year. On November -9,2017.He sets up a chemical factory. What is the previous year for the assessment year 2018-19 for the above two businesses___________________ |
| A. | 1-4-2017 to 31-3-2018 for both |
| B. | 9-11-2017 to 31-3-2018 for both |
| C. | 1-1-2017 to 31-12-2017 for both |
| D. | Shop: 1-4-2017 to 31-3-2018 and factory 9-11-2017 to 31-3-2018 |
| Answer» D. Shop: 1-4-2017 to 31-3-2018 and factory 9-11-2017 to 31-3-2018 | |
| 13. |
A company joining with two other Companies in a Joint venture is treated under Income tax laws as __________. |
| A. | A Company |
| B. | An Association of persons |
| C. | A body of individuals |
| D. | An artificial juridical person |
| Answer» B. An Association of persons | |
| 14. |
Residential status is to be determined for ____________ |
| A. | Previous year |
| B. | Assessment year |
| C. | Accounting year |
| D. | Resident |
| Answer» A. Previous year | |
| 15. |
Income which accrue or arise outside India but are received directly into India are taxable in case of ________ |
| A. | Resident only |
| B. | Both ordinarily resident and NOR |
| C. | Non -resident |
| D. | All these assesses |
| Answer» D. All these assesses | |
| 16. |
Total income of person is determined on the basis of his ________________ |
| A. | Residential Status in India |
| B. | Citizenship in India |
| C. | Citizen |
| D. | Non -resident |
| Answer» A. Residential Status in India | |
| 17. |
Income which accrue or arise outside India and also received outside India is taxable in case of __________ |
| A. | Resident only |
| B. | Non- resident in India |
| C. | Not ordinarily resident in India |
| D. | Resident |
| Answer» A. Resident only | |
| 18. |
Income received in India ____________ |
| A. | Is taxable only for Resident |
| B. | Is not taxable only for a non -resident |
| C. | Is taxable for a resident, a resident but only ordinarily resident non -resident |
| D. | Is exempt in all cases. |
| Answer» C. Is taxable for a resident, a resident but only ordinarily resident non -resident | |
| 19. |
Income which accrue in India from a business controlled from India _________________ |
| A. | Is taxable only for resident |
| B. | Is not taxable only for non – resident |
| C. | Is taxable for resident, a resident but only ordinarily resident non- resident |
| D. | Is exempt in all cases |
| Answer» B. Is not taxable only for non – resident | |
| 20. |
Income accruing in Japan and received there is taxable in India in the case of ______________ |
| A. | Resident and ordinarily resident only |
| B. | A resident but not ordinarily resident |
| C. | A non -resident |
| D. | Resident |
| Answer» A. Resident and ordinarily resident only | |
| 21. |
Mr. Manmohan Sharma goes out to India every year for 274 days. For the assessment year 2018 -19, he is ____________________ |
| A. | A resident and ordinarily resident |
| B. | A resident but not ordinarily a resident |
| C. | A non-resident |
| D. | Resident |
| Answer» B. A resident but not ordinarily a resident | |
| 22. |
M.a chartered accountant is employed with M ltd, as an internal auditor and requests the employer to call the remuneration as internal audit fee.M. shall be chargeable to tax for such fees under the head __________ |
| A. | Income from salaries |
| B. | Profit and gains from business and profession |
| C. | Income from other sources |
| D. | None of these |
| Answer» A. Income from salaries | |
| 23. |
M,who is entitled to a salary of Rs.20,000 p.m took an advance of Rs.50,000 against the salary in the month of March ,2018. The gross salary of m for assessment year 2018-19 shall be _________ |
| A. | 2,90,000 |
| B. | 2,40,000 |
| C. | 50,000 |
| D. | 60,000 |
| Answer» B. 2,40,000 | |
| 24. |
M, who is entitled to salary of Rs.12,000 p.m. took advantage salary from his employer for the month of March, 2018 on 31-3-2018.The gross salary of M for assessment year 2018-19 shall__________ |
| A. | 1,44,000 |
| B. | 1,68,000 |
| C. | Rs.24,000 |
| D. | 2,90,000 |
| Answer» B. 1,68,000 | |
| 25. |
Salary of M becomes due on 1st of next month and it is paid on 7th of that month. For the assessment year 2018-19, the salary of M shall be taken from ________ |
| A. | April 2017 to March 2018 |
| B. | March 2017 to February 2018 |
| C. | April 2018 to March 2019 |
| D. | April 2019 to March 2020 |
| Answer» B. March 2017 to February 2018 | |
| 26. |
M.Ltd announced increase in D.A. on 21-03-2017 with retrospective effect from 21-3-2012 and the same were paid on 6-04-2017. The arrears of D.A. shall be taxable in the previous year ________ |
| A. | 2016-17 |
| B. | 2017-18 |
| C. | In respective previous years to which these relate |
| D. | Previous years |
| Answer» B. 2017-18 | |
| 27. |
Un -commuted pension received by a Government employee is ____________ |
| A. | Exempt |
| B. | Taxable |
| C. | 1/3 is exempt |
| D. | Non taxable |
| Answer» B. Taxable | |
| 28. |
M.claimed the exemption of gratuity in the past to the extent of Rs.2,50,000.He was entitled to the gratuity from the present employer amounting to Rs.2,00,000 in the previous year 2017-18. M can claim exemption to the maximum extent of ___________ |
| A. | Rs.2,00,000 |
| B. | Nil |
| C. | Rs.1,00,000 |
| D. | Rs.1,50,000 |
| Answer» A. Rs.2,00,000 | |
| 29. |
Employee M is neither a government employee nor covered under payment of gratuity Act, 1972. He has completed 16 years and 8 months of service. The number of completed years considered for gratuity exemption shall be _____________ |
| A. | 17 years |
| B. | 16 years |
| C. | 16 years and 8 months |
| D. | 19 years |
| Answer» B. 16 years | |
| 30. |
Compensation received on voluntary retirement is exempt under sec.10 (10c) to the maximum extent of ___________ |
| A. | Rs.2,40,000 |
| B. | Rs.3,00,000 |
| C. | Rs.5,00,000 |
| D. | Rs.6,00,000 |
| Answer» C. Rs.5,00,000 | |
| 31. |
M is entitled to children education allowance @80 p.m per child for 3 children amounting Rs.240p.m. It will be exempt to the extent of ___________ |
| A. | Rs.200 p.m |
| B. | Rs.160 p.m |
| C. | Rs.240 p.m |
| D. | Rs.250 pm |
| Answer» B. Rs.160 p.m | |
| 32. |
Entertainment allowance in case of government employee is _________________ |
| A. | Fully exempt |
| B. | Fully taxable |
| C. | Exempt up to certain limits mentioned in sec.16 |
| D. | First included in full in gross salary and thereafter deduction allowed from gross salary under section 16 (ii) |
| Answer» D. First included in full in gross salary and thereafter deduction allowed from gross salary under section 16 (ii) | |
| 33. |
Pension received by an employee of the central or state government who has been awarded “Param Vir Chakra” _____________ |
| A. | Is taxable as income from salary |
| B. | Is exempt from tax |
| C. | Is taxed after deducting Rs.15,000 or 1/3 whichever is lower |
| D. | Is taxable as income from other sources |
| Answer» B. Is exempt from tax | |
| 34. |
Children education allowance is ____________ |
| A. | Exempt upto lower of the amount actually spent or the prescribed limits. |
| B. | Exempt fully to the extent actually spent or the prescribed limits |
| C. | Exempt to the extent of lower of allowance received or the lump sum amount prescribed, irrespective of actual expenditure. |
| D. | Fully taxable |
| Answer» C. Exempt to the extent of lower of allowance received or the lump sum amount prescribed, irrespective of actual expenditure. | |
| 35. |
Leave travel concession is _________ |
| A. | Exempt up to lower of the amount actually spent or the prescribed limits. |
| B. | Exempt fully to the extent actually spent |
| C. | Exempt to the extent of lower of allowance received or the lump sum amount prescribed, irrespective of actual expenditure. |
| D. | Fully taxable |
| Answer» A. Exempt up to lower of the amount actually spent or the prescribed limits. | |
| 36. |
M.has taken a house on rent and sublets the same to A, income of M from such house property shall be taxable under the head _____________ |
| A. | Income from house property |
| B. | Income from other sources |
| C. | Business income |
| D. | Income |
| Answer» B. Income from other sources | |
| 37. |
Municipal valuation of the house is Rs.1,00,000 fair rent Rs.1,20,000, fair rent Rs.1,20,000, standard rent Rs.1,10,000 and actual rent received or receivable is Rs.1,40,000. The gross annual value in this case shall be ____________ |
| A. | 1,30,000 |
| B. | 1,25,000 |
| C. | 1,40,000 |
| D. | 1,35,000 |
| Answer» A. 1,30,000 | |
| 38. |
A has two house properties. Both are self-occupied. The annual value of ____ |
| A. | Both houses shall be nil |
| B. | One house shall be nil |
| C. | No house shall be nil |
| D. | Single house |
| Answer» B. One house shall be nil | |
| 39. |
Municipal valuation of the house is Rs.1,20,000, fair rent 1,40,000, standard rent Rs.1,30,000 and actual rent received or receivable is Rs.1,25, 000.The gross annual value in this case shall be ______ |
| A. | 1,30,000 |
| B. | 1,25,000 |
| C. | 1,40,000 |
| D. | 1,60,000 |
| Answer» C. 1,40,000 | |
| 40. |
A has two house properties. Both are self-occupied. The annual value of _________ |
| A. | Both houses shall be nil |
| B. | One house shall be nil |
| C. | No house shall be nil |
| D. | None of the above |
| Answer» B. One house shall be nil | |
| 41. |
An assessee has borrowed money for purchase of house and interest is payable outside India. Such as interest shall ____________ |
| A. | Be allowed as deduction |
| B. | Not to be allowed as deduction |
| C. | Be allowed as deduction if the tax is deducted at source |
| D. | None of the above |
| Answer» C. Be allowed as deduction if the tax is deducted at source | |
| 42. |
Municipal tax is deducted from__________ |
| A. | Net annual value |
| B. | Gross annual value |
| C. | Municipal valuation |
| D. | Amount value |
| Answer» B. Gross annual value | |
| 43. |
In case the property is owned by co -owners and it is self-occupied by all co -owners. The annual value of such house property ____________ |
| A. | Be nil |
| B. | For each co-owner shall be nil |
| C. | Only for co -one owner will be nil |
| D. | None of the above |
| Answer» B. For each co-owner shall be nil | |
| 44. |
A house property with fair rent Rs.1,20,000 is neither let out nor self-occupied throughout the previous year. Its annual value shall be ________ |
| A. | Rs.1,20,000 |
| B. | Nil |
| C. | Rs.60,000 |
| D. | None of the above |
| Answer» A. Rs.1,20,000 | |
| 45. |
Unrealized rent is a deduction from ______- |
| A. | Gross annual value |
| B. | Net annual value |
| C. | Municipal value |
| D. | District |
| Answer» A. Gross annual value | |
| 46. |
Dhanesh is a member of house building cooperative society. The society is the owner of the flats constructed by it. One of the flats is allotted to Dhanesh. The income from that flat will be assesses in the hands of ____________ |
| A. | Co -Operative Society |
| B. | Dhanesh |
| C. | Neither of the above |
| D. | Society and Dhanesh equally |
| Answer» B. Dhanesh | |
| 47. |
Following will be taxable as income from house property_______- |
| A. | Sub -letting of a house |
| B. | Letting of an office building |
| C. | Sale of house at profit |
| D. | Rent from open land used for wedding functions |
| Answer» B. Letting of an office building | |
| 48. |
Municipal taxes to be deducted from GAV should be _______ |
| A. | Paid by the tenant during the previous year |
| B. | Paid by the owner during the previous year |
| C. | Accrued during the previous year |
| D. | Accrued or paid by owner whichever is lower |
| Answer» B. Paid by the owner during the previous year | |
| 49. |
Standard deduction under section 24(a) from income from House property is _______ |
| A. | 1/3 rd of NAV |
| B. | Repairs actually incurred by the owner |
| C. | 30% of NAV |
| D. | Rs.30,000 |
| Answer» A. 1/3 rd of NAV | |
| 50. |
Interest on borrowed capital accrued up to the end of the previous year to prior to the year of competition of construction is allowed__________ |
| A. | As a deduction in the year of completion of construction |
| B. | In 5 equal annual installments from the year of competition of construction. |
| C. | In the respective year in which the interest accrues |
| D. | Up to Rs.30,000 on Rs.20,000. |
| Answer» B. In 5 equal annual installments from the year of competition of construction. | |
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