Explore topic-wise MCQs in Testing Subject.

This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.

1.

The children education allowance, the amount exempted from taxable income is limited to

A. ` 100 per month per child upto 3 children
B. ` 1,000 per year per child upto 2 children
C. ` 100 per year per child upto 2 children
D. none of the above
Answer» D. none of the above
Discussion
2.

If the employee receives retirement gratuity from more than one employer, he can claim exemption in respect of .

A. current employer
B. previous employer
C. both employer
D. not from single employer
Answer» D. not from single employer
Discussion
3.

Which of the following is not taxable under the head Salary?

A. remuneration paid to the lecturer of a college for setting a question paper
B. salary received by a member of parliament
C. commission received by an employee director of a company
D. both (a) and (b)
Answer» E.
Discussion
4.

The Payment of Gratuity Act came into force in…………...

A. 1973
B. 1980
C. 1991
D. 1972
Answer» E.
Discussion
5.

Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is .

A. taxable
B. not taxable
C. partially taxable
D. none of the above
Answer» B. not taxable
Discussion
6.

The assesses can claim relief under…………….for arrears or advance salary.

A. section 89(1)
B. section 89(2)
C. section 89(3)
D. section 89(4)
Answer» B. section 89(2)
Discussion
7.

The death-cum-retirement gratuity received by the Government Employee or employee of local authority is .

A. partially exempted
B. fully exempted
C. half taxable
D. none of the above
Answer» C. half taxable
Discussion
8.

Pension is ……………under the salary head.

A. fully taxable
B. partially taxable
C. not taxable
D. none of the above
Answer» B. partially taxable
Discussion
9.

The salary of Member of Parliament is taxable under the head .

A. salary
B. income from other sources
C. income from business
D. all of the above
Answer» B. income from other sources
Discussion
10.

The income is chargeable under the head of salary under ……………of Income Tax Act, 1961.

A. section 15
B. section 20
C. section 14
D. section 16
Answer» B. section 20
Discussion
11.

Mr. A, partner of M/s ABC, is assessable as .

A. firm
B. an individual
C. body of individual
D. huf
Answer» B. an individual
Discussion
12.

……………is the casual income.

A. interest received
B. dividend income
C. pension received
D. winning from lotteries
Answer» E.
Discussion
13.

The way of tax liability by taking full advantage provided by the Act is .

A. tax management
B. tax avoidance
C. tax planning
D. tax evasion
Answer» D. tax evasion
Discussion
14.

The term income includes the following types of incomes.

A. illegal
B. legal income from india only
C. legal
D. legal and illegal both
Answer» E.
Discussion
15.

Basic condition will be for a person who leaves India for employment .

A. at least 182 days in india
B. at least 60 days in previous year and 365 days in preceding 4 years
C. at least 730 days in preceding 7 years
D. all of the above
Answer» B. at least 60 days in previous year and 365 days in preceding 4 years
Discussion
16.

The interest on loan paid by the Government of India to a non-resident outside India is………..in India.

A. not taxable
B. partially taxable
C. taxable
D. can’t say
Answer» B. partially taxable
Discussion
17.

The income of previous year is chargeable to tax in the .

A. immediately succeeding assessment year
B. same previous year
C. immediately preceding academic year
D. none of the above
Answer» B. same previous year
Discussion
18.

Residential Status of an assesses can be .

A. different for different previous year in the same assessment year
B. different for different assessment year
C. none of the above
D. all of the above
Answer» C. none of the above
Discussion
19.

Any rent or revenue derived from land which is situated in India and is used for agricultural purpose is .

A. partially taxable
B. fully taxable
C. exempted from tax
D. none of the above
Answer» D. none of the above
Discussion
20.

The definition of the person includes .

A. an individual
B. a company
C. a hindu undivided family
D. all of the above
Answer» B. a company
Discussion
21.

The capital gain is chargeable under of Income Tax Act.

A. section 45
B. section 55
C. section 56
D. section 40
Answer» B. section 55
Discussion
22.

If the agricultural income is ……….. then the agricultural income is considered for calculating tax.

A. more than ` 5,000 and total income is exceeding exemption limit
B. more than ` 5,000
C. more than ` 10,000
D. any amount
Answer» B. more than ` 5,000
Discussion
23.

…………..comes under agricultural income.

A. tea garden
B. commodity farming
C. all of the above
D. none of the above
Answer» D. none of the above
Discussion
24.

The Income Tax Act, 1961 broadly covers .

A. basic charging income
B. rebates and reliefs
C. incomes exempted from income tax
D. all of the above
Answer» E.
Discussion
25.

The sum of various heads is called as .

A. taxable income
B. total income
C. gross total income
D. adjusted income
Answer» D. adjusted income
Discussion
26.

The number of income source for a person are .

A. one head
B. two heads
C. various heads
D. any of the above
Answer» E.
Discussion
27.

The agricultural income includes .

A. income from sale of crop
B. income from preparation of crop
C. income from nursery
D. all of the above
Answer» E.
Discussion
28.

The Company may have the residential status as .

A. resident or non-resident
B. not ordinarily resident
C. non-resident
D. resident
Answer» B. not ordinarily resident
Discussion
29.

Which section of the Income Tax Act exempted incomes have been mentioned?

A. section 80c
B. section 80dd
C. section 10
D. section 2
Answer» D. section 2
Discussion
30.

Resident of India includes .

A. ordinarily resident
B. not ordinarily resident
C. nri
D. both (a) and (b)
Answer» E.
Discussion
31.

……………….of Income Tax Act is related to residential status.

A. section 2
B. section 6
C. section 5
D. section 4
Answer» C. section 5
Discussion
32.

…………. is exempted from income tax.

A. interest from indian company
B. dividend from foreign company
C. cooperative dividend
D. dividend from indian company
Answer» E.
Discussion
33.

The tax incidence for company or firm in which income received outside India from a source controlled from India for non-resident is .

A. non-taxable
B. taxable
C. partly taxable
D. none of the above
Answer» B. taxable
Discussion
34.

The tax incidence for company or firm in which income received outside India from a source controlled from India for resident is .

A. taxable
B. non-taxable
C. partly taxable
D. none of the above
Answer» B. non-taxable
Discussion
35.

The tax incidence for company or firm in which income received in India and company is resident is .

A. taxable
B. non-taxable
C. partly taxable
D. none of the above
Answer» B. non-taxable
Discussion
36.

The tax incidence for company or firm in which income received in India and company for non-resident is .

A. taxable
B. non-taxable
C. partly taxable
D. none of the above
Answer» B. non-taxable
Discussion
37.

The income received and accrued outside India from a business controlled or profession set up in India, the tax incidence in case of non-resident is .

A. taxable
B. non-taxable
C. partly taxable
D. none of the above
Answer» C. partly taxable
Discussion
38.

The income received and accrued outside India from a business controlled or profession set up in India, the tax incidence in case of resident is .

A. taxable
B. non-taxable
C. partly taxable
D. none of the above
Answer» B. non-taxable
Discussion
39.

Income deemed to be received in India whether occurred in India or outside India, the tax incidence in case of resident is .

A. taxable as per slabs
B. exempted from slab
C. partly exempted
D. none of the above
Answer» B. exempted from slab
Discussion
40.

Income received in India whether occurred in India or outside India, the tax incidence in case of non-resident is .

A. taxable as per slabs
B. exempted from slab
C. partly exempted
D. none of the above
Answer» B. exempted from slab
Discussion
41.

Income received in India whether occurred in India or outside India, the tax incidence in case of resident is .

A. taxable as per slabs
B. exempted from tax
C. partly exempted
D. none of the above
Answer» B. exempted from tax
Discussion
42.

Income received in India whether occurred in India or outside India, the tax incidence in case of resident but not ordinarily resident is .

A. taxable as per slabs
B. exempted from tax
C. partly exempted
D. none of the above
Answer» B. exempted from tax
Discussion
43.

The awards and rewards are exempted from Income Tax if .

A. payment is in cash
B. payment is in kind
C. payment is in cash or in kind
D. none of the above
Answer» D. none of the above
Discussion
44.

The income from foreign companies by providing the services in project connected with security of India is from tax liability.

A. 50% exempted
B. 20% exempted
C. 100% exempted
D. 55% exempted
Answer» D. 55% exempted
Discussion
45.

Agricultural income is completely exempted for assessment year

A. 1974-75
B. 1985-86
C. 1975-76
D. 1978-79
Answer» B. 1985-86
Discussion
46.

Previous year means the financial year immediately preceding the .

A. accounting year
B. assessment year
C. all of the above
D. none of the above
Answer» C. all of the above
Discussion
47.

As per the definition of Income, the income includes the following .

A. profits and gains
B. dividend declared
C. voluntary contribution received by a trust created
D. all of the above
Answer» E.
Discussion
48.

The period of 12 months commencing on the first day of April every year and ending on 31st March is called as .

A. previous year
B. assessment year
C. accounting year
D. financial year
Answer» C. accounting year
Discussion
49.

The tax payer liability is determined with reference to his or her .

A. financial status
B. residential status
C. all of the above
D. none of the above
Answer» C. all of the above
Discussion
50.

As per Income Tax Act, 1961, income tax is charged on the income of at a rates which are prescribed by the Finance Act of relevant assessment year.

A. current year
B. one year before previous year
C. previous year
D. none of the above
Answer» D. none of the above
Discussion