McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Accounting and Finance (BAF) .
| 1. |
The Constitution of india empowers ____________________________________ to levy tax on income |
| A. | state government |
| B. | central government |
| C. | parliament |
| D. | finance minister |
| Answer» B. central government | |
| 2. |
The income tax act extends to __________________________________________ of india |
| A. | states |
| B. | union territories |
| C. | citizens |
| D. | whole |
| Answer» D. whole | |
| 3. |
Residential has nothing to do with |
| A. | constitution |
| B. | citizenship |
| C. | censorship |
| D. | change |
| Answer» B. citizenship | |
| 4. |
Residential Status of an individual depends on the stay of assesses in india during the |
| A. | calender year |
| B. | accounting year |
| C. | asseseement year |
| D. | previous year |
| Answer» D. previous year | |
| 5. |
A person by whom any tax is payable under income tax act 1961 is called as |
| A. | individual |
| B. | tax receiver |
| C. | assessee |
| D. | none of the above |
| Answer» C. assessee | |
| 6. |
The Financial year in which the income is earned is called as the |
| A. | assessment year |
| B. | present year |
| C. | previous year |
| D. | current year |
| Answer» C. previous year | |
| 7. |
An Company is always resident in india |
| A. | industrial |
| B. | individual |
| C. | indian |
| D. | investment |
| Answer» C. indian | |
| 8. |
Income tax act extends to |
| A. | whole of india |
| B. | whole of india except jammu & kashmir |
| C. | india & sri lanka |
| D. | none of these |
| Answer» A. whole of india | |
| 9. |
Shivaji University is assessable under the income tax act as |
| A. | a individual |
| B. | an artificial juridical person |
| C. | a local authority |
| D. | none of these |
| Answer» B. an artificial juridical person | |
| 10. |
A firm is regarded as a unit of assessment as per ______________________________ |
| A. | income tax act |
| B. | partnership act |
| C. | companies act |
| D. | finance act |
| Answer» A. income tax act | |
| 11. |
____________________________ is chargeable u/s 45 |
| A. | capital gains |
| B. | profit and gains |
| C. | dividend |
| D. | voluntary contribution |
| Answer» A. capital gains | |
| 12. |
What is the section of Incidence of law |
| A. | 6 |
| B. | 5 |
| C. | 7 |
| D. | 4 |
| Answer» B. 5 | |
| 13. |
Incomes which accrue or arise outside India but received directly in India are taxable in case of |
| A. | resident and ordinarily resident only |
| B. | resident but not ordinarily resident |
| C. | non-resident |
| D. | All of the above |
| Answer» D. All of the above | |
| 14. |
R Ltd. Is an Indian company whose place of effective management is outside India. R Ltd., shall be: |
| A. | resident in India |
| B. | non-resident in India |
| C. | not ordinarily resident in India |
| D. | resident and ordinarily resident only |
| Answer» A. resident in India | |
| 15. |
which of the following are the persons under sec2(A) |
| A. | Individual |
| B. | firm |
| C. | body of person |
| D. | All of the above |
| Answer» D. All of the above | |
| 16. |
The HUF is said to be resident in India if |
| A. | The control and management of its affairs is wholly or partly situated in India |
| B. | The control and management of its affairs is partially situated out of India |
| C. | The control and management of its affairs is wholly or partly in out of India |
| D. | None of the above |
| Answer» A. The control and management of its affairs is wholly or partly situated in India | |
| 17. |
The Company may have the residential status as |
| A. | Resident and non resident |
| B. | non ordinary resident |
| C. | ordinary Resident |
| D. | none of the above |
| Answer» A. Resident and non resident | |
| 18. |
Benefits Given in kind are |
| A. | Allowance |
| B. | Perquisites |
| C. | both a and b |
| D. | none of the above |
| Answer» B. Perquisites | |
| 19. |
which of the following heads are the head of Income under Income tax Act 1961 |
| A. | salary |
| B. | capital gain |
| C. | House Property |
| D. | All of the above |
| Answer» D. All of the above | |
| 20. |
Outstanding salary would be taxable basis |
| A. | Due |
| B. | receipts |
| C. | both a & b |
| D. | none of the above |
| Answer» A. Due | |
| 21. |
Advance salary would be taxable basis |
| A. | Due |
| B. | receipts |
| C. | both a & b |
| D. | none of the above |
| Answer» B. receipts | |
| 22. |
is a retirement benefit given by the employer to the employee in consideration of past services. |
| A. | Gratuity |
| B. | Dearness allowance |
| C. | Lunch allowance |
| D. | House Rent allowance |
| Answer» A. Gratuity | |
| 23. |
A is a non-cash benefit granted by an employer to the employee |
| A. | Allowance |
| B. | Perquisites |
| C. | pension |
| D. | none of the above |
| Answer» C. pension | |
| 24. |
Allowances to Judges of High Court/Supreme Court (Subject to certain conditions) |
| A. | Taxable |
| B. | Not taxable |
| C. | Both A & B |
| D. | none of the above |
| Answer» B. Not taxable | |
| 25. |
Previous year means the financial year immediately preceding the |
| A. | Accounting year |
| B. | Assesment year |
| C. | non of the above |
| D. | both |
| Answer» B. Assesment year | |
| 26. |
Full form of TDS |
| A. | Tax deducted at source |
| B. | Tax deducted for source |
| C. | tax deducted by source |
| D. | none of above |
| Answer» A. Tax deducted at source | |
| 27. |
profit or income of that particular year. |
| A. | set off |
| B. | carry forward |
| C. | none of above |
| D. | both of above |
| Answer» A. set off | |
| 28. |
Capital LosseCan be carry forward up to next assessment years from the assessment year in which the loss was incurred |
| A. | 8 |
| B. | 4 |
| C. | 2 |
| D. | 5 |
| Answer» A. 8 | |
| 29. |
which of the following are the basic condition to become resident of india |
| A. | He must be in India for 182 days or more in relevent previous year |
| B. | He must be in India for 60 days or more in Relevent Previous year AND In preceding 4 previous year he must be in |
| C. | both a and b |
| D. | none of the above |
| Answer» B. He must be in India for 60 days or more in Relevent Previous year AND In preceding 4 previous year he must be in | |
| 30. |
.A is entitled to children education allowance @ Rs. 80 p.m. per child for 3 children amounting Rs. 240 p.m. It will be exempt to the extent of : |
| A. | 200 |
| B. | 260 |
| C. | 160 |
| D. | 240 |
| Answer» C. 160 | |
| 31. |
of Income Tax Act is related to residential status |
| A. | Section 6 |
| B. | section-5 |
| C. | section 8 |
| D. | section 9 |
| Answer» A. Section 6 | |
| 32. |
Salary should have relationship |
| A. | employer employee |
| B. | Master and servent |
| C. | both a and b |
| D. | none of the above |
| Answer» C. both a and b | |
| 33. |
salary is chargeable to tax on |
| A. | Receipt |
| B. | due |
| C. | Receipt or due whichever is earlier |
| D. | none of the above |
| Answer» C. Receipt or due whichever is earlier | |
| 34. |
Arear on salary are taxable on |
| A. | Receipt |
| B. | due |
| C. | Receipt or due whichever is earlier |
| D. | none of the above |
| Answer» A. Receipt | |
| 35. |
means fixed quantum of money given regularly in addition to salary to meet particular requirement |
| A. | Allowance |
| B. | Perquisites |
| C. | pension |
| D. | none of the above |
| Answer» A. Allowance | |
| 36. |
An allowance to meet the expenses in connection with the rent of the house, by whatever name called |
| A. | House Rent allowance |
| B. | Perquisites |
| C. | pension |
| D. | none of the above |
| Answer» A. House Rent allowance | |
| 37. |
It is an extra amount given to an employee to meet the burden of inflation or increased cost of living. |
| A. | House Rent allowance |
| B. | Dearness allowance |
| C. | both a and b |
| D. | none of the above |
| Answer» B. Dearness allowance | |
| 38. |
Which of the allowances are fully taxable |
| A. | Dearness allowance |
| B. | Lunch allowance |
| C. | Medical allowance |
| D. | All of the above |
| Answer» D. All of the above | |
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