McqMate
| 1. |
Income Tax Act, 1961 came into force on: |
| A. | 1 – 1 – 1961 |
| B. | 1 – 4 – 1961 |
| C. | 1 – 1 – 1962 |
| D. | 1 – 4 – 1962 |
| Answer» D. 1 – 4 – 1962 | |
| 2. |
Income tax was levied in India first time in: |
| A. | 1960 |
| B. | 1860 |
| C. | 1921 |
| D. | 1961 |
| Answer» B. 1860 | |
| 3. |
The rate of income tax is fixed under: |
| A. | Income Tax Act |
| B. | Notification of CBDT |
| C. | Finance Act |
| D. | Ordinance of Govt. |
| Answer» C. Finance Act | |
| 4. |
The total of various heads of income is called: |
| A. | Total Income |
| B. | Gross Total Income |
| C. | Taxable Income |
| D. | Aggregate Income |
| Answer» B. Gross Total Income | |
| 5. |
Income tax was introduced in India for the first time by: |
| A. | Sir John Williams |
| B. | Sir James Wilson |
| C. | Sir Joseph |
| D. | Sir James Paascal |
| Answer» B. Sir James Wilson | |
| 6. |
According to Income Tax Act, there are.................heads of income. |
| A. | Three |
| B. | Four |
| C. | Five |
| D. | Six |
| Answer» C. Five | |
| 7. |
Income tax is a .................tax. |
| A. | Direct |
| B. | Indirect |
| C. | Business |
| D. | None of these |
| Answer» A. Direct | |
| 8. |
Under Income Tax Act, which of the following entities comes under the term “Person”: |
| A. | Individual |
| B. | HUF |
| C. | BOI/AOP |
| D. | All of these |
| Answer» D. All of these | |
| 9. |
Income Tax Department works under: |
| A. | Central Government |
| B. | CBDT |
| C. | State Government |
| D. | Chief Commissioner of Income Tax |
| Answer» C. State Government | |
| 10. |
For Income Tax purpose, a senior citizen is an individual who the age of : |
| A. | 60 years |
| B. | 60 years or more |
| C. | 60 year or more but less than 80 years |
| D. | 65 years or more |
| Answer» C. 60 year or more but less than 80 years | |
| 11. |
The income tax rate for short term capital gains specified in Sec.111A is: |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 30% |
| Answer» B. 15% | |
| 12. |
Which of the following section of Income Tax Act is termed as “Charging Section”: |
| A. | Section 3 |
| B. | Section 4 |
| C. | Section 5 |
| D. | None of these |
| Answer» B. Section 4 | |
| 13. |
For the A.Y , the tax exemption limit of income for BOI is: |
| A. | Rs: 5,00,000 |
| B. | Rs: 3,00,000 |
| C. | Rs: 2,50,000 |
| D. | Rs: 2,00,000 |
| Answer» C. Rs: 2,50,000 | |
| 14. |
For the A.Y 2019-20, an individual who is resident in India, is eligible for rebate if his total income does not exceed: |
| A. | Rs: 3,00,000 |
| B. | Rs: 5,00,000 |
| C. | Rs: 3,50,000 |
| D. | Rs: 3,40,000 |
| Answer» C. Rs: 3,50,000 | |
| 15. |
The income tax rate for long term capital gains is: |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 30% |
| Answer» C. 20% | |
| 16. |
The income tax rate for long term capital gains is: |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 30% |
| Answer» D. 30% | |
| 17. |
Health and education Cess is charged on the amount of: |
| A. | Total income |
| B. | Gross Total Income |
| C. | Income tax |
| D. | Income tax and Surcharge |
| Answer» D. Income tax and Surcharge | |
| 18. |
Which among the following is included in income? |
| A. | Sum received under Key man Insurance Policy |
| B. | LPG subsidy |
| C. | Pin money received by wife from her husband |
| D. | Reimbursement of expense |
| Answer» A. Sum received under Key man Insurance Policy | |
| 19. |
A citizen of India who goes abroad for the purpose of employment, must stay in India for a period of at least ..................... days during the P.Y. to become ordinarily resident. |
| A. | 60 days |
| B. | 182 days |
| C. | 90 days |
| D. | 180 days |
| Answer» B. 182 days | |
| 20. |
Income accruing in India is assessable for : |
| A. | Ordinarily resident |
| B. | Not ordinarily resident |
| C. | Non resident |
| D. | All the above |
| Answer» D. All the above | |
| 21. |
Agricultural income from China is assessable for: |
| A. | Ordinarily resident |
| B. | Not ordinarily resident |
| C. | Non resident |
| D. | All the above |
| Answer» A. Ordinarily resident | |
| 22. |
Every year the residential status of an assessee: |
| A. | will certainly change |
| B. | will not change |
| C. | may change |
| D. | none of the above |
| Answer» C. may change | |
| 23. |
interest credited to a recognised provident fund account is exempt up to: |
| A. | 8% |
| B. | 8.5% |
| C. | 9% |
| D. | 9.5% |
| Answer» D. 9.5% | |
| 24. |
The amount of exemption in respect of academic allowance is limited to: |
| A. | Rs: 5,000 p.a. |
| B. | Actual amount spent |
| C. | a or b whichever is less |
| D. | None of the above |
| Answer» B. Actual amount spent | |
| 25. |
Children education allowance is exempted for.............. children. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» B. Two | |
| 26. |
Which among the following is a fully exempted allowance? |
| A. | Uniform allowance |
| B. | HRA |
| C. | Foreign allowance |
| D. | CCA |
| Answer» C. Foreign allowance | |
| 27. |
Income from salary includes: |
| A. | Profit in lieu of salary |
| B. | Perquisites |
| C. | Allowances |
| D. | All of the above |
| Answer» D. All of the above | |
| 28. |
Salary received by a partner from his firm is an income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» B. Profits and gains from business or profession | |
| 29. |
Salary received by MLA or MP is treated as income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» D. Other sources | |
| 30. |
Family pension received by a widow is treated as an income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» D. Other sources | |
| 31. |
Salary received from a former employer is treated as an income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» A. Salaries | |
| 32. |
Remuneration received from a person other than employer is treated an income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» D. Other sources | |
| 33. |
Which among the following is a deduction allowed under section 16 : |
| A. | Employment tax |
| B. | Standard deduction |
| C. | Entertainment Allowance |
| D. | All of the above |
| Answer» D. All of the above | |
| 34. |
Pension is treated as an income under the head: |
| A. | Salaries |
| B. | Capital gains |
| C. | Other sources |
| D. | None of these |
| Answer» A. Salaries | |
| 35. |
Annuity received from the present employer is treated as income under: |
| A. | Salary under section 17(1) |
| B. | Perquisites |
| C. | Allowances |
| D. | Profit in lieu of salary |
| Answer» A. Salary under section 17(1) | |
| 36. |
Annuity received from former employer is treated as income under: |
| A. | Salary under section 17(1) |
| B. | Profit in lieu of salary |
| C. | Allowances |
| D. | Perquisites |
| Answer» B. Profit in lieu of salary | |
| 37. |
Annual accretion is taxable under: |
| A. | Salary under section 17(1) |
| B. | Perquisites |
| C. | Allowances |
| D. | Profit in lieu of salary |
| Answer» A. Salary under section 17(1) | |
| 38. |
Per-diem allowance given for the purpose of lodging facilities is : |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» B. Fully exempted | |
| 39. |
Sumptuary allowance to Judges of Supreme Court and High Court is: |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» B. Fully exempted | |
| 40. |
Festival allowance is : |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» A. Fully taxable | |
| 41. |
HRA received by an employee who is living in own house is: |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» A. Fully taxable | |
| 42. |
Standard deduction allowed from salary for A. Y 2019-20 is: |
| A. | Rs: 35,000 |
| B. | Rs: 40,000 |
| C. | Rs: 50,000 |
| D. | None of these |
| Answer» B. Rs: 40,000 | |
| 43. |
Entertainment allowance received by an employee of statutory corporation is: |
| A. | Fully exempted |
| B. | Fully taxable |
| C. | Partly Exempted |
| D. | None of these |
| Answer» B. Fully taxable | |
| 44. |
Children education allowance is exempt up to .................. per month per child for a maximum of two children. |
| A. | Rs: 100 |
| B. | Rs: 200 |
| C. | Rs: 300 |
| D. | Rs: 500 |
| Answer» A. Rs: 100 | |
| 45. |
Rent free accommodation is an example for: |
| A. | Allowance |
| B. | Profit in lieu of salary |
| C. | Perquisites |
| D. | None of these |
| Answer» C. Perquisites | |
| 46. |
Children hostel allowance is exempt up to .................. per month per child for a maximum of two children. |
| A. | Rs: 100 |
| B. | Rs: 200 |
| C. | Rs: 300 |
| D. | Rs: 500 |
| Answer» C. Rs: 300 | |
| 47. |
Underground allowance is exempt up to: |
| A. | Rs: 3200 p.m |
| B. | Rs: 1600 p.m |
| C. | Rs: 800 p.m |
| D. | Rs: 900 p.m |
| Answer» C. Rs: 800 p.m | |
| 48. |
In case of an orthopedically handicapped employee, transport allowance is exempt up to: |
| A. | Rs: 3200 p.m |
| B. | Rs: 1600 p.m |
| C. | Rs: 800 p.m |
| D. | Rs: 900 p.m |
| Answer» A. Rs: 3200 p.m | |
| 49. |
The amount of exemption in respect of tribal area allowance is: |
| A. | Rs: 100 p.m |
| B. | Rs: 200 p.m |
| C. | Rs: 300 p.m |
| D. | Rs: 325 p.m |
| Answer» B. Rs: 200 p.m | |
| 50. |
Value of facility of a house, owned by the employer, provided to an employee in the city where the population is 15 lakh, shall be: |
| A. | 7.5% of salary |
| B. | 10% of salary |
| C. | 15% of salary |
| D. | 24% of salary |
| Answer» B. 10% of salary | |
| 51. |
Value of unfurnished house, hired by employer, provided to an employee shall be: |
| A. | 15% of salary |
| B. | Actual rent |
| C. | 15% of salary or actual rent whichever is less |
| D. | 15% of salary or actual rent whichever is more |
| Answer» C. 15% of salary or actual rent whichever is less | |
| 52. |
The periodic payment of money for past service is called....................... |
| A. | Gratuity |
| B. | Pension |
| C. | Commute pension |
| D. | Retrenchment compensation |
| Answer» B. Pension | |
| 53. |
Gratuity received by a government employee is exempted: |
| A. | Up to Rs:10,00,000 |
| B. | Up to Rs:15,00,000 |
| C. | Fully |
| D. | None of these |
| Answer» C. Fully | |
| 54. |
The maximum amount of exemption in respect of gratuity received by an employee covered by the Payment of Gratuity Act is: |
| A. | Rs: 2,50,000 |
| B. | Rs: 5,00,000 |
| C. | Rs: 10,00,000 |
| D. | Rs: 20,00,000 |
| Answer» D. Rs: 20,00,000 | |
| 55. |
Commuted pension received by a non-government employee, who has not received gratuity shall be exempt: |
| A. | ¼ of total pension |
| B. | ½ of total pension |
| C. | 1/3 of total pension |
| D. | 2/3 of total pension |
| Answer» B. ½ of total pension | |
| 56. |
Leave salary received by a government employee during service is: |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» A. Fully taxable | |
| 57. |
Leave salary received by a government employee at the time of retirement is: |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» B. Fully exempted | |
| 58. |
The exemption of leave salary received by a non-government employee at the time of retirement shall not exceed: |
| A. | Rs: 2,50,000 |
| B. | Rs: 3,00,000 |
| C. | Rs: 5,00,000 |
| D. | Rs: 10,00,000 |
| Answer» B. Rs: 3,00,000 | |
| 59. |
The exemption of retrenchment compensation received by an employee under Industrial Dispute Act shall not exceed: |
| A. | Rs: 2,50,000 |
| B. | Rs: 3,00,000 |
| C. | Rs: 5,00,000 |
| D. | Rs: 10,00,000 |
| Answer» C. Rs: 5,00,000 | |
| 60. |
The exemption of payment received under VRS shall not exceed: |
| A. | Rs: 2,50,000 |
| B. | Rs: 3,00,000 |
| C. | Rs: 5,00,000 |
| D. | Rs: 10,00,000 |
| Answer» C. Rs: 5,00,000 | |
| 61. |
Employee’s contribution to which of the following is eligible for deduction u/s 80C: |
| A. | Statutory Provident Fund |
| B. | Recognised Provident Fund |
| C. | Unrecognised Provident Fund |
| D. | All of these |
| Answer» C. Unrecognised Provident Fund | |
| 62. |
Unrecognised Provident Fund is a provident fund which is not recognised by: |
| A. | Commissioner of Provident Fund |
| B. | Commissioner of Income Tax |
| C. | Both a and b |
| D. | None of these |
| Answer» B. Commissioner of Income Tax | |
| 63. |
Annual value of self occupied house is: |
| A. | Fair rent |
| B. | Municipal valuation |
| C. | Lower of a and b |
| D. | Zero |
| Answer» D. Zero | |
| 64. |
Standard deduction allowed on annual value of let out house property is: |
| A. | 30% |
| B. | 20% |
| C. | 40% |
| D. | None of these |
| Answer» A. 30% | |
| 65. |
The annual value of a house property is Rs:1,40,000. Mr. X and Mr. Y are equal co- owners of the house. X’s income from house property shall be: |
| A. | Rs: 70,000 |
| B. | Rs: 1,40,000 |
| C. | Rs: 49,000 |
| D. | Zero |
| Answer» C. Rs: 49,000 | |
| 66. |
The annual value of the vacant H.P. referred in section 23(2)(b) shall be: |
| A. | Fair rent |
| B. | Municipal value |
| C. | Standard rent |
| D. | Zero |
| Answer» D. Zero | |
| 67. |
An assessee paid Rs: 64,000 as interest on a loan taken in the P.Y 2018-19 for the renovation of self-occupied house. While computing income from H.P, he is eligible for deduction to the extent of: |
| A. | Rs: 64,000 |
| B. | Rs: 30,000 |
| C. | Rs: 1,20,000 |
| D. | Zero |
| Answer» B. Rs: 30,000 | |
| 68. |
is the base of computation of income under the head “income from H.P” |
| A. | Annual value |
| B. | Municipal rental value |
| C. | Standard rent |
| D. | Rent received |
| Answer» A. Annual value | |
| 69. |
Municipal tax paid by the owner during the P.Y. on house property is deducted from: |
| A. | Annual value |
| B. | Gross annual value |
| C. | Standard rent |
| D. | None of these |
| Answer» B. Gross annual value | |
| 70. |
Municipal tax paid by the owner during the P.Y.on self-occupied house property is: |
| A. | Deducted from Annual value |
| B. | Deducted from Gross annual value |
| C. | Deducted from Standard rent |
| D. | Not deductible |
| Answer» D. Not deductible | |
| 71. |
The standard deduction u/s 24(a) shall be................. , if the Annual Value of the H.P. is Rs: 60,000. |
| A. | Rs: 18,000 |
| B. | Rs: 30,000 |
| C. | Rs: 15,000 |
| D. | Rs: 60,000 |
| Answer» A. Rs: 18,000 | |
| 72. |
The work of a doctor is covered by the term: |
| A. | Business |
| B. | Trade |
| C. | Profession |
| D. | None of these |
| Answer» C. Profession | |
| 73. |
If a businessman spends certain amount for advertisement in a souvenir of a political party, he is eligible for deduction from: |
| A. | Income from other sources |
| B. | Profits and gains from business or profession |
| C. | Gross total income |
| D. | None f these |
| Answer» C. Gross total income | |
| 74. |
If a company spent Rs: 80,000 as preliminary expenses on 31st March, 2018, the allowable deduction is: |
| A. | Rs: 8,000 |
| B. | Rs: 16,000 |
| C. | Rs: 20,000 |
| D. | Rs: 40,000 |
| Answer» B. Rs: 16,000 | |
| 75. |
While computing the income of a business, which among the following is allowed: |
| A. | Doubtful debts |
| B. | Provision for doubtful debts |
| C. | Actual bad debts |
| D. | All the above |
| Answer» C. Actual bad debts | |
| 76. |
Which among the following is not an admissible expense: |
| A. | Income tax |
| B. | GST |
| C. | Bad debt |
| D. | Excise duty |
| Answer» A. Income tax | |
| 77. |
While computing the profit of a firm, interest allowed on partners’ capital is allowed: |
| A. | Up to 12% |
| B. | Up to 15% |
| C. | Up to 18% |
| D. | Up to 20% |
| Answer» A. Up to 12% | |
| 78. |
The deduction allowed in respect of payment made to an approved university for social research is: |
| A. | 200% |
| B. | 150% |
| C. | 125% |
| D. | 100% |
| Answer» D. 100% | |
| 79. |
For the purpose of income tax, depreciation is charged on: |
| A. | Market value |
| B. | Cost price |
| C. | WDV |
| D. | Book value |
| Answer» C. WDV | |
| 80. |
Depreciation is not allowed on: |
| A. | Computer |
| B. | Furniture |
| C. | Land |
| D. | Machinery |
| Answer» C. Land | |
| 81. |
Unabsorbed depreciation can be carried forward for set-off up to: |
| A. | 5 years |
| B. | 8 years |
| C. | 10 years |
| D. | Any number of years |
| Answer» D. Any number of years | |
| 82. |
The rate of depreciation applicable to intangible asset is: |
| A. | 5% |
| B. | 15% |
| C. | 20% |
| D. | 25% |
| Answer» D. 25% | |
| 83. |
The rate of depreciation applicable to furniture is: |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 5% |
| Answer» A. 10% | |
| 84. |
The allowable depreciation on motor car is: |
| A. | 5% |
| B. | 25% |
| C. | 30% |
| D. | 40% |
| Answer» C. 30% | |
| 85. |
What is the additional rate depreciation on new plant? |
| A. | 5% |
| B. | 10% |
| C. | 20% |
| D. | 25% |
| Answer» C. 20% | |
| 86. |
The allowable rate of depreciation on computer is: |
| A. | 30% |
| B. | 40% |
| C. | 50% |
| D. | 60% |
| Answer» B. 40% | |
| 87. |
Which among the following is not a capital asset? |
| A. | Jewellery |
| B. | Stock-in-trade |
| C. | Agricultural land |
| D. | Goodwill of a business |
| Answer» B. Stock-in-trade | |
| 88. |
Under which section, a firm is eligible for exemption in respect of long term capital gain arising from the sale of a residential house: |
| A. | Sec. 54S |
| B. | Sec. 54EC |
| C. | Sec. 54D |
| D. | Sec. 54F |
| Answer» B. Sec. 54EC | |
| 89. |
Income from the sale of a house hold furniture is a/an: |
| A. | Exempted income |
| B. | Taxable income |
| C. | Capital gain |
| D. | Income from house property |
| Answer» A. Exempted income | |
| 90. |
Cost Inflation Index for the Financial Year 2018-19 is: |
| A. | 1024 |
| B. | 272 |
| C. | 1081 |
| D. | 280 |
| Answer» D. 280 | |
| 91. |
For being long term capital gain, the asset should be retained by the assessee for a period of: |
| A. | 36 months |
| B. | More than 36 months |
| C. | 24 months |
| D. | 12 months |
| Answer» B. More than 36 months | |
| 92. |
Which among the following is not a capital asset? |
| A. | Household furniture |
| B. | Car for personal use |
| C. | Stock-in-trade |
| D. | All of these |
| Answer» D. All of these | |
| 93. |
Capital gain on depreciation assets is always: |
| A. | LTCG |
| B. | STCG |
| C. | Tax free |
| D. | None of these |
| Answer» B. STCG | |
| 94. |
For being a long term capital gain, the assessee should retain the shares for a period of: |
| A. | 12 months |
| B. | Less than 12 months |
| C. | More than 12 months |
| D. | None of these |
| Answer» C. More than 12 months | |
| 95. |
Capital gain arises from: |
| A. | Capital |
| B. | Stock |
| C. | Transfer of capital assets |
| D. | None of these |
| Answer» B. Stock | |
| 96. |
Which among the following is not a capital asset? |
| A. | Goodwill of business |
| B. | Jewellery |
| C. | Car used for business purposes |
| D. | Agricultural land situated in a village |
| Answer» D. Agricultural land situated in a village | |
| 97. |
Which among the following is not chargeable to tax under the head, income from other sources? |
| A. | Winnings from lottery |
| B. | Interest from bank |
| C. | Dividend from co-operative society |
| D. | Profit on sale of the goodwill of a business |
| Answer» D. Profit on sale of the goodwill of a business | |
| 98. |
The deduction allowable in respect of family pension is: |
| A. | Entire amount of family pension |
| B. | 33 1/3 % of the family pension |
| C. | 33 1/3 % of the family pension or Rs: 15,000 whichever is less |
| D. | 30 % of the family pension or Rs: 15,000 whichever is less |
| Answer» C. 33 1/3 % of the family pension or Rs: 15,000 whichever is less | |
| 99. |
The inclusion of others’ income in the income of an assessee is called: |
| A. | Aggregation |
| B. | Clubbing |
| C. | Set-off |
| D. | None of these |
| Answer» B. Clubbing | |
| 100. |
If marriage of parents subsists, the income of a minor child: |
| A. | Shall be included in the income of mother |
| B. | Shall be included in the income of father |
| C. | Shall included in the income of that parent whose total income is greater |
| D. | Shall included in the income of that parent whose total income is less |
| Answer» C. Shall included in the income of that parent whose total income is greater | |
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