McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) .
| 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 | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.