McqMate
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. |
51. |
Exempted incomes are defined under section................ |
A. | 15 of income tax act. |
B. | 18 of income tax act |
C. | 10 of income tax act. |
D. | 20 of income tax act. |
Answer» C. 10 of income tax act. |
52. |
Incomes absolutely exempt from Tax are listed under............................. |
A. | sec 2. |
B. | sec 10. |
C. | sec 38. |
D. | sec. 80c. |
Answer» B. sec 10. |
53. |
Scholarship granted is................... |
A. | fully exempted. |
B. | fully taxable. |
C. | partly exempt |
Answer» A. fully exempted. |
54. |
Any payments made under and awards instituted by central or state Governments are.............. |
A. | fully exempted |
B. | fully taxable |
C. | partly exempt |
Answer» A. fully exempted |
55. |
Allowances of MP/M.L.A / or M.L.C are. |
A. | fully exempted. |
B. | fully taxable. |
C. | partly exempt |
Answer» A. fully exempted. |
56. |
Income of political parties is not to be included in total income if certain conditions are satisfied. The relevant section of IT Act 1961 is. |
A. | section 13a . |
B. | s |
C. | 1 |
Answer» A. section 13a . |
57. |
Tax Holiday is. |
A. | income tax on holiday income. |
B. | cancellation of tax for the entire country. |
C. | tax exemption for a specified peri |
Answer» C. tax exemption for a specified peri |
58. |
The existing Maximum Marginal Rate of tax of an individual assessee is......................... |
A. | 10% |
B. | 20% |
C. | 30% |
D. | 35% |
Answer» C. 30% |
59. |
Which of the following is not included in salary income. |
A. | commuted pension |
B. | un commuted pension |
C. | family pension |
D. | leave salary |
Answer» C. family pension |
60. |
Share of income from firm is................ |
A. | taxable in the hands of partner |
B. | exempted in the hands of partner. |
C. | exempted in the hands of firm. |
D. | none of these. |
Answer» B. exempted in the hands of partner. |
61. |
The periodic payment of money for the past service is known as ........................ |
A. | gratuity |
B. | pension |
C. | commuted pension |
D. | leave salary |
Answer» B. pension |
62. |
When a receipt is determined as Capital Receipt or Revenue receipt. |
A. | at the time it is received |
B. | while preparing final accounts. |
C. | when the received amount is us |
Answer» A. at the time it is received |
63. |
Pension is taxable under ..........................head. |
A. | salary |
B. | house property |
C. | capital gains |
D. | other sources |
Answer» A. salary |
64. |
. Salary received by a partner from the firm in which he is a partner is taxable under the head................ |
A. | income from salary |
B. | capital gains |
C. | profits and gains of business or profession |
D. | income from other sources |
Answer» C. profits and gains of business or profession |
65. |
Family pension received by the widow of a deceased employee is taxable under the head............ |
A. | income from salary |
B. | capital gains |
C. | profits and gains of business or profession |
D. | income from other sources |
Answer» D. income from other sources |
66. |
Salary paid by an employer out of capital will be................ |
A. | a revenue receipt in the hands of employee |
B. | a capital receipt in the hands of employee |
C. | a casual receipt |
D. | none of the above. |
Answer» A. a revenue receipt in the hands of employee |
67. |
Which of the following is not a capital expense? |
A. | installation expenditure of plant of a company. |
B. | legal expenses for reduction of capital. |
C. | commission to employees to achieve sales targets. |
D. | expenses of promoting a company. |
Answer» C. commission to employees to achieve sales targets. |
68. |
Salary received by a Member of Parliament is taxable under the head......................... |
A. | income from salary |
B. | capital gains |
C. | profits and gains of business or profession |
D. | income from other sources |
Answer» D. income from other sources |
69. |
Interest on capital paid by the firm to its partners is allowed up to ................... |
A. | 6% |
B. | 12% |
C. | 15% |
D. | 16% |
Answer» B. 12% |
70. |
Under Income Tax Act depreciation is allowed on .................. |
A. | purchase price |
B. | market price |
C. | w d v |
D. | face value |
Answer» C. w d v |
71. |
The rate of depreciation on intangible asset is ...................... |
A. | 5% |
B. | 15% |
C. | 20% |
D. | 25% |
Answer» D. 25% |
72. |
Residential status of an assessee is ascertained as per the provisions of........................ |
A. | sec. 6. |
B. | s |
C. | 7. c. sec. 9. |
D. | sec. 11. |
Answer» A. sec. 6. |
73. |
The income tax rate on long term capital gains for an individual is ................................. |
A. | 10% |
B. | 15% |
C. | 20% |
D. | 25% |
Answer» C. 20% |
74. |
Residential status of taxable entities is.......................... |
A. | fixed in nature. |
B. | can change from year to year. |
C. | fixed once in 5 years. |
D. | none of these. |
Answer» B. can change from year to year. |
75. |
As per the first basic condition to determine residential status, a person should have been in India during the previous year concerned for.................. |
A. | 60 days or more |
B. | 120 days or more. |
C. | 182 days or more. |
D. | 240 days or more. |
Answer» C. 182 days or more. |
76. |
An individual who wants to be resident of India must satisfy at least................... |
A. | one of the two basic conditions. |
B. | both the basic conditions. |
C. | both the additional conditions. |
D. | both the basic conditions and the additional conditions |
Answer» A. one of the two basic conditions. |
77. |
An individual who wants to be resident of India must stay in India for at least................ |
A. | 730 days in 10 previous years. |
B. | 182 days in the previous year. |
C. | 365 days in the previous year. |
D. | 150 days in the previous year. |
Answer» B. 182 days in the previous year. |
78. |
A person who is of Indian origin visiting India during the previous year to be called resident must stay in India for at least..................... |
A. | 60 days in py. |
B. | 6 days in py and 365 days or more during 4 years preceding the py. |
C. | 182 days in py. |
D. | 730 days during 7 years preceding the py. |
Answer» C. 182 days in py. |
79. |
As per Second additional condition, a resident will be an ordinarily resident if stay in India for at least ......................... days during the seven previous years preceding the relevant . |
A. | 182 days. |
B. | 365 days. |
C. | 60 days. |
D. | 730 days. |
Answer» D. 730 days. |
80. |
A person is Non resident if he fails to fulfil..................... |
A. | the additional conditions. |
B. | at least on of the basic conditions. |
C. | both basic conditions. |
D. | none of these. |
Answer» B. at least on of the basic conditions. |
81. |
Casual income is. |
A. | fully taxable. |
B. | partly taxable. |
C. | fully exempt |
D. | d. none of these. |
Answer» A. fully taxable. |
82. |
In case of Tax free salary, ....................................... |
A. | tax is to be paid by employer |
B. | no tax is payable on such salary |
C. | tax is to be paid by the employee. |
D. | govt, itself pays the tax at a future date. |
Answer» A. tax is to be paid by employer |
83. |
Salary received by a member of parliament is. |
A. | taxable as salary income |
B. | exempt from tax sources. |
C. | taxable as income from other sources. |
D. | none of these. |
Answer» C. taxable as income from other sources. |
84. |
Allowances received by a government employee posted abroad are............. |
A. | fully exempted. |
B. | partly exempted. |
C. | fully taxable. |
D. | taxable by the country where posted. |
Answer» A. fully exempted. |
85. |
Dearness allowance is taxable in the hands of................. |
A. | govt employees |
B. | non govt employees |
C. | all employees. |
D. | none of these. |
Answer» C. all employees. |
86. |
House rent allowance is.................... |
A. | fully exempted. |
B. | partly taxable. |
C. | fully taxable. |
D. | actual rent paid alone is taxable. |
Answer» B. partly taxable. |
87. |
Exempted limit of HRA in metropolitan cities is. |
A. | 50% of salary. |
B. | 40% of salary. |
C. | 15% of salary. |
D. | none of these. |
Answer» A. 50% of salary. |
88. |
Education allowance is exempted for a maximum of................... |
A. | one child. |
B. | two children. |
C. | three children. |
D. | four children. |
Answer» B. two children. |
89. |
Children education allowance is exempted up to.................. |
A. | rs. 200 p.m. per child. |
B. | rs. 300 p.m. per child. |
C. | rs. 100 p.m. per chi |
Answer» C. rs. 100 p.m. per chi |
90. |
Hostel expenditure allowance is exempted up to.................. |
A. | rs. 300 per month per child. |
B. | rs. 200 per month per child. |
C. | rs. 150 per month per chi |
Answer» A. rs. 300 per month per child. |
91. |
Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actual allowance or................. |
A. | rs. 1,000. |
B. | rs. 2,000. |
C. | rs. 20,000. |
D. | rs. 5,000. |
Answer» D. rs. 5,000. |
92. |
A Perk is......................... |
A. | cash paid by employer to employee |
B. | facility provided by employer to employee |
C. | amount credited to employees. |
D. | none of these accounts. |
Answer» B. facility provided by employer to employee |
93. |
Perquisites to employees are covered in the I.T. Act 1961 under................... |
A. | sec 2a. |
B. | s |
C. | 17b. c. sec 28a. |
D. | sec. 36 c. |
Answer» B. s |
94. |
The value of Interest free concessional loans to employees is determined on the basis of lending rates of ..................... for the same purpose. |
A. | s |
B. | i. b. r.b.i. |
C. | central govt. |
D. | state govt. |
Answer» A. s |
95. |
An employee is deemed as specified employee if he is a director in the company or has substantial in the company or his chargeable salary per annum exceeds. |
A. | rs. 5,00,000. |
B. | rs. 2,00,000. |
C. | rs. 1,00,000. |
D. | rs. 50,000. |
Answer» D. rs. 50,000. |
96. |
Value of rent free accommodation in case of Govt. employee shall be taxable up to....................... |
A. | 15% of employees salary. |
B. | 7.5% of employees salary. |
C. | license fee fixed by govt. |
D. | 10% of employees salary. |
Answer» C. license fee fixed by govt. |
97. |
Value of rent free accommodation a house owned by employer in case of non- Govt. employees with above 25 lakhs population is........................... |
A. | 10% of employees salary |
B. | 15% of employees salary |
C. | 7.5% of employee salary |
D. | 20% of employees salary |
Answer» B. 15% of employees salary |
98. |
Interest on RPF balance is exempted up to....................... |
A. | 9.75%. |
B. | 9.5%. |
C. | 10%. |
D. | 12%. |
Answer» B. 9.5%. |
99. |
Employers contribution to RPF is exempted up to................... |
A. | 10% of salary. |
B. | 13% of salary. |
C. | 12% of salary. |
D. | 11% of salary. |
Answer» C. 12% of salary. |
100. |
Commuted value of pension is fully exempted in case of...................... |
A. | an employee of private sector. |
B. | an employee of a public sector undertaking. |
C. | a govt. employee. |
D. | none of these. |
Answer» C. a govt. employee. |
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