McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration in Finance (BBA Finance) , Staff Selection Commission (SSC) .
| 1. |
Under the income- tax act, the incidence of taxation depends on...................... |
| A. | the citizenship of the tax-payer. |
| B. | the age of the taxpayer |
| C. | the residential status of the tax-payer. |
| D. | the gender of the taxpayer |
| Answer» C. the residential status of the tax-payer. | |
| 2. |
Unabsorbed depreciation can be carried forward for set off....................... |
| A. | for a period of four years only. |
| B. | for a period of eight years only. |
| C. | for an unlimited number of years. |
| D. | for a period of eighteen years only. |
| Answer» C. for an unlimited number of years. | |
| 3. |
Residential status is determined for...................... |
| A. | previous year |
| B. | assessment year |
| C. | accounting year |
| D. | financial year. |
| Answer» A. previous year | |
| 4. |
How many heads of income are there to compute Gross total income. |
| A. | six. |
| B. | five. |
| C. | four. |
| D. | three. |
| Answer» B. five. | |
| 5. |
Income Tax Act came into force on............................ |
| A. | 01-04-1961 |
| B. | 01-04-1962 |
| C. | 01-04-1956 |
| D. | 01-04-1965 |
| Answer» B. 01-04-1962 | |
| 6. |
Income by way of rent of agricultural land is .............. |
| A. | business income |
| B. | income from other sources. |
| C. | agricultural income |
| D. | casual income |
| Answer» C. agricultural income | |
| 7. |
Receipt of amount on maturity of LIC Policy is............................. |
| A. | a revenue receipt. |
| B. | a capital receipt. |
| C. | a casual receipt. |
| D. | none of these. |
| Answer» B. a capital receipt. | |
| 8. |
Which of the following is not a capital receipt? |
| A. | 'salami' for settlement of tenancy. |
| B. | insurance claim received on machinery lost by fire. |
| C. | lump sum received on sale of shares. |
| D. | goods sold for cash. |
| Answer» D. goods sold for cash. | |
| 9. |
Compensation for cancellation of a licence by the government resulting in cessation of business is................................... |
| A. | a casual receipt. |
| B. | a capital receipt. |
| C. | a revenue receipt. |
| D. | none of the above. |
| Answer» C. a revenue receipt. | |
| 10. |
Compensation received for loss of trading asset is a.................... |
| A. | capital receipt. |
| B. | revenue receipt. |
| C. | a casual receipt. |
| D. | none of these. |
| Answer» A. capital receipt. | |
| 11. |
Salary received by the manager of an agricultural farm is ................................. |
| A. | an agricultural income. |
| B. | a salary income. |
| C. | a business income. |
| D. | a capital income. |
| Answer» B. a salary income. | |
| 12. |
A citizen of India who goes abroad for the purpose of employment, he must stay in India at least for ............................. days to become a resident |
| A. | 90 days |
| B. | 162 days |
| C. | 180 days |
| D. | 182 days |
| Answer» D. 182 days | |
| 13. |
Loss due to fire of hired machinery is............................. |
| A. | capital loss. |
| B. | revenue loss. |
| C. | capital expenditure |
| D. | none of the above. |
| Answer» A. capital loss. | |
| 14. |
Embezzlement of cash by a cashier is................. |
| A. | a revenue loss. |
| B. | a capital loss. |
| C. | a casual loss. |
| D. | none of these. |
| Answer» A. a revenue loss. | |
| 15. |
Who among the following may be “not ordinarily resident” |
| A. | partnership firm. |
| B. | company. |
| C. | association of persons. |
| D. | hindu undivided family. |
| Answer» D. hindu undivided family. | |
| 16. |
Agricultural income in Pakistan is assessable for........................ |
| A. | resident |
| B. | not ordinarily resident |
| C. | non-resident |
| D. | not taxable |
| Answer» A. resident | |
| 17. |
The following is not taxable as income under the head "Salaries". |
| A. | commission received by a full time director |
| B. | remuneration received by a partner |
| C. | allowances received by an employee |
| D. | free accommodation given to an employee |
| Answer» B. remuneration received by a partner | |
| 18. |
Section.................. of the Income Tax Act deals with exempted incomes. |
| A. | 2 |
| B. | 7 |
| C. | 10 |
| D. | 80 |
| Answer» C. 10 | |
| 19. |
Gratuity received by a government employee is ....................... |
| A. | fully exempted |
| B. | partly exempted |
| C. | fully taxable |
| D. | exempted up to rs:1,00,000 |
| Answer» A. fully exempted | |
| 20. |
Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profit in any accounting year can be carried forward for..................... |
| A. | 16 |
| B. | 8 |
| C. | indefinite |
| D. | 12 |
| Answer» C. indefinite | |
| 21. |
__________ is / are empowered to levy and collect income tax. |
| A. | state governments |
| B. | central government |
| C. | rbi |
| D. | local self government department |
| Answer» B. central government | |
| 22. |
In which year Income Tax was levied in India for the first time ? |
| A. | 1960 |
| B. | 1961 |
| C. | 1860 |
| D. | 1857 |
| Answer» C. 1860 | |
| 23. |
Income Tax Act was passed in the year_____________. |
| A. | 1955 |
| B. | 1961 |
| C. | 1956 |
| D. | 1962 |
| Answer» B. 1961 | |
| 24. |
CBDT is control by ______________. |
| A. | central government |
| B. | state government |
| C. | both (a) and (b) |
| D. | none of this above |
| Answer» A. central government | |
| 25. |
previous year started from ______________. |
| A. | april |
| B. | march |
| C. | january |
| D. | september |
| Answer» A. april | |
| 26. |
Who is Tax payer? |
| A. | assessee |
| B. | businessman |
| C. | trust |
| D. | govt. employee |
| Answer» A. assessee | |
| 27. |
Income tax is a ........................ |
| A. | business tax |
| B. | profession tax |
| C. | direct tax |
| D. | indirect tax |
| Answer» C. direct tax | |
| 28. |
A person is said to be an ordinarily Resident when the person is satisfying ________________. |
| A. | both basic and additional conditions |
| B. | only basic conditions |
| C. | only additional conditions |
| D. | not basic and additional conditions |
| Answer» A. both basic and additional conditions | |
| 29. |
A person is said to be a non resident when he is _______________. |
| A. | not fulfilling any one of the basic conditions |
| B. | fulfilling only basic conditions |
| C. | fulfilling only additional conditions |
| D. | fulfilling both basic and additional conditions |
| Answer» A. not fulfilling any one of the basic conditions | |
| 30. |
Who is assessee in case of a HUF? |
| A. | father |
| B. | spouse |
| C. | karta |
| D. | deemed karta |
| Answer» C. karta | |
| 31. |
Education cess on tax payable is at................ |
| A. | 2% |
| B. | 1% |
| C. | 3% |
| D. | 5% |
| Answer» A. 2% | |
| 32. |
Agriculture Income is __________. |
| A. | taxable |
| B. | not taxable |
| C. | partly taxable |
| D. | none of this above |
| Answer» B. not taxable | |
| 33. |
Section 10 0f Income Tax Act deals with _________. |
| A. | deductions |
| B. | exempted incomes |
| C. | income from salary |
| D. | casual incomes |
| Answer» B. exempted incomes | |
| 34. |
Income Tax Authorities are grouped into two main wings; Administrative and................. |
| A. | judicial. |
| B. | managerial. |
| C. | executives. |
| D. | clerical. |
| Answer» A. judicial. | |
| 35. |
The highest Administrative Authority for Income Tax in India is............ |
| A. | finance minister. |
| B. | cbdt. |
| C. | president of india. |
| D. | director of income tax. |
| Answer» B. cbdt. | |
| 36. |
What are the exemption limit in Hostel Expenditure Allowance? |
| A. | rs.200pm |
| B. | rs.300pm |
| C. | rs.400pm |
| D. | rs.500pm |
| Answer» B. rs.300pm | |
| 37. |
Rates of Income tax are fixed under ....................... |
| A. | an ordinance |
| B. | the income tax act |
| C. | the finance act |
| D. | notification of cbdt |
| Answer» C. the finance act | |
| 38. |
The number allotted by income tax authorities to assessees for identification and which should be quoted in all documents and correspondence is....................... |
| A. | i.d. no. |
| B. | register no. |
| C. | permanent account number (pan). |
| D. | licence no. |
| Answer» C. permanent account number (pan). | |
| 39. |
Deduction of tax at source made for incomes which can be calculated in advance is called....... |
| A. | t.d.s. |
| B. | p.a.s. |
| C. | f.a.s. |
| D. | m.a.s. |
| Answer» A. t.d.s. | |
| 40. |
Due date of filing of return by a non business assessee is................... |
| A. | 30th june. |
| B. | 31st august. |
| C. | 31st july. |
| D. | 30th november. |
| Answer» C. 31st july. | |
| 41. |
In case of residential status of HUF ,firm and AOP if control and management are wholly outside India they are deemed as.................. |
| A. | resident. |
| B. | ordinarily resident. |
| C. | non resident |
| D. | none of these. |
| Answer» C. non resident | |
| 42. |
An Indian company’s residential status is that it is always..................... |
| A. | resident. |
| B. | non resident. |
| C. | ordinarily resident. |
| D. | none of these. |
| Answer» A. resident. | |
| 43. |
Salary paid by an Indian company to its employees working in one of its branches outside India is................................ |
| A. | salary accruing in india. |
| B. | salary deemed to accrue in india. |
| C. | salary accruing outside india. |
| D. | none of these. |
| Answer» A. salary accruing in india. | |
| 44. |
Income received in India is taxable in the hands of........................... |
| A. | resident only. |
| B. | resident and ordinarily resident only. |
| C. | non-resident only. |
| D. | all assessees. |
| Answer» D. all assessees. | |
| 45. |
Income accrued in India is taxable in the hands of............................ |
| A. | non-resident only. |
| B. | resident and not ordinarily resident only. |
| C. | all assesses. |
| D. | resident and ordinarily resident only. |
| Answer» C. all assesses. | |
| 46. |
Income accrued and received outside India is taxable in the hands of........................... |
| A. | non-resident. |
| B. | resident and ordinarily resident. |
| C. | resident and not ordinarily. |
| D. | none of these residents. |
| Answer» B. resident and ordinarily resident. | |
| 47. |
Past untaxed income brought to India is taxable in the hands of................. |
| A. | resident and not ordinarily resident. |
| B. | resident and ordinarily resident. |
| C. | non-resident. |
| D. | none of these. |
| Answer» D. none of these. | |
| 48. |
The CII for the financial year 2012-13 is .......................... |
| A. | 582 |
| B. | 852 |
| C. | 632 |
| D. | 820 |
| Answer» B. 852 | |
| 49. |
Income from a farm house is.......................... |
| A. | income from house property |
| B. | income from business |
| C. | agricultural income |
| D. | income from other sources |
| Answer» C. agricultural income | |
| 50. |
Incomes on which Income tax is not charged are called.............. |
| A. | exceptional incomes |
| B. | privileged incomes |
| C. | exempted incomes. |
| D. | none of the above |
| Answer» C. exempted incomes. | |
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