Under the income- tax act, the incidence of taxation depends on......................

the citizenship of the tax-payer.

the residential status of the tax-payer.

Unabsorbed depreciation can be carried forward for set off.......................

for a period of eighteen years only.

for a period of four years only.

for a period of eight years only.

for an unlimited number of years.

for a period of eighteen years only.

__________ is / are empowered to levy and collect income tax.

local self government department

A person is said to be an ordinarily Resident when the person is satisfying ________________.

both basic and additional conditions

not basic and additional conditions

A person is said to be a non resident when he is _______________.

fulfilling only basic conditions

not fulfilling any one of the basic conditions

fulfilling only basic conditions

fulfilling only additional conditions

fulfilling both basic and additional conditions

The number allotted by income tax authorities to assessees for identification and which should bequoted in all documents and correspondence is.......................

permanent account number (pan).

Income accrued in India is taxable in the hands of............................

resident and ordinarily resident only.

resident and not ordinarily resident only.

resident and ordinarily resident only.

Salary paid by an Indian company to its employees working in one of its branches outside Indiais................................

salary deemed to accrue in india.

Income received in India is taxable in the hands of...........................

resident and ordinarily resident only.

Income accrued and received outside India is taxable in the hands of...........................

resident and ordinarily resident.

Past untaxed income brought to India is taxable in the hands of.................

resident and not ordinarily resident.

resident and ordinarily resident.

cancellation of tax for the entire country.

tax exemption for a specified peri

410 + Mcqs in Income Tax & Taxation in Finance & Accounting Page 1 McqOptions

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» D. the gender of the taxpayer

Discussion

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» D. for a period of eighteen years only.

Discussion

3.	Residential status is determined for......................
A.	previous year
B.	assessment year
C.	accounting year
D.	financial year.
Answer» B. assessment year

Discussion

4.	Income Tax Act came into force on............................
A.	01-04-1961
B.	01-04-1962
C.	01-04-1956
D.	01-04-1965
Answer» C. 01-04-1956

Discussion

5.	Income by way of rent of agricultural land is ..............
A.	business income
B.	income from other sources.
C.	agricultural income
D.	casual income
Answer» D. casual income

Discussion

6.	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» C. a casual receipt.

Discussion

7.	Compensation received for loss of trading asset is a....................
A.	capital receipt.
B.	revenue receipt.
C.	a casual receipt.
D.	none of these.
Answer» B. revenue receipt.

Discussion

8.	Compensation for cancellation of a licence by the government resulting in cessation of businessis...................................
A.	a casual receipt.
B.	a capital receipt.
C.	a revenue receipt.
D.	none of the above.
Answer» D. none of the above.

Discussion

9.	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» C. a business income.

Discussion

10.	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» E.

Discussion

11.	Loss due to fire of hired machinery is.............................
A.	capital loss.
B.	revenue loss.
C.	capital expenditure
D.	none of the above.
Answer» B. revenue loss.

Discussion

12.	Embezzlement of cash by a cashier is.................
A.	a revenue loss.
B.	a capital loss.
C.	a casual loss.
D.	none of these.
Answer» B. a capital loss.

Discussion

13.	Agricultural income in Pakistan is assessable for........................
A.	resident
B.	not ordinarily resident
C.	non-resident
D.	not taxable
Answer» B. not ordinarily resident

Discussion

14.	Section.................. of the Income Tax Act deals with exempted incomes.
A.	2
B.	7
C.	10
D.	80
Answer» D. 80

Discussion

15.	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» B. partly exempted

Discussion

16.	Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profitin any accounting year can be carried forward for.....................
A.	16
B.	8
C.	indefinite
D.	12
Answer» D. 12

Discussion

17.	In which year Income Tax was levied in India for the first time ?
A.	1960
B.	1961
C.	1860
D.	1857
Answer» D. 1857

Discussion

18.	__________ is / are empowered to levy and collect income tax.
A.	state governments
B.	central government
C.	rbi
D.	local self government department
Answer» C. rbi

Discussion

19.	Income Tax Act was passed in the year_____________.
A.	1955
B.	1961
C.	1956
D.	1962
Answer» C. 1956

Discussion

20.	CBDT is control by ______________.
A.	central government
B.	state government
C.	both (a) and (b)
D.	none of this above
Answer» B. state government

Discussion

21.	previous year started from ______________.
A.	april
B.	march
C.	january
D.	september
Answer» B. march

Discussion

22.	Income tax is a ........................
A.	business tax
B.	profession tax
C.	direct tax
D.	indirect tax
Answer» D. indirect tax

Discussion

23.	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» B. only basic conditions

Discussion

24.	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» B. fulfilling only basic conditions

Discussion

25.	Education cess on tax payable is at................
A.	2%
B.	1%
C.	3%
D.	5%
Answer» B. 1%

Discussion

26.	Agriculture Income is __________.
A.	taxable
B.	not taxable
C.	partly taxable
D.	none of this above
Answer» C. partly taxable

Discussion

27.	Section 10 0f Income Tax Act deals with _________.
A.	deductions
B.	exempted incomes
C.	income from salary
D.	casual incomes
Answer» C. income from salary

Discussion

28.	Income Tax Authorities are grouped into two main wings; Administrative and.................
A.	judicial.
B.	managerial.
C.	executives.
D.	clerical.
Answer» B. managerial.

Discussion

29.	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» C. president of india.

Discussion

30.	Rates of Income tax are fixed under .......................
A.	an ordinance
B.	the income tax act
C.	the finance act
D.	notification of cbdt
Answer» D. notification of cbdt

Discussion

31.	The number allotted by income tax authorities to assessees for identification and which should bequoted in all documents and correspondence is.......................
A.	i.d. no.
B.	register no.
C.	permanent account number (pan).
D.	licence no.
Answer» D. licence no.

Discussion

32.	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» B. p.a.s.

Discussion

33.	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» D. 30th november.

Discussion

34.	In case of residential status of HUF ,firm and AOP if control and management are wholly outside Indiathey are deemed as..................
A.	resident.
B.	ordinarily resident.
C.	non resident
D.	none of these.
Answer» D. none of these.

Discussion

35.	An Indian company’s residential status is that it is always.....................
A.	resident.
B.	non resident.
C.	ordinarily resident.
D.	none of these.
Answer» B. non resident.

Discussion

36.	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» D. resident and ordinarily resident only.

Discussion

37.	Salary paid by an Indian company to its employees working in one of its branches outside Indiais................................
A.	salary accruing in india.
B.	salary deemed to accrue in india.
C.	salary accruing outside india.
D.	none of these.
Answer» B. salary deemed to accrue in india.

Discussion

38.	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» E.

Discussion

39.	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» C. resident and not ordinarily.

Discussion

40.	Income from a farm house is..........................
A.	income from house property
B.	income from business
C.	agricultural income
D.	income from other sources
Answer» D. income from other sources

Discussion

41.	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» E.

Discussion

42.	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» D. none of the above

Discussion

43.	The CII for the financial year 2012-13 is ..........................
A.	582
B.	852
C.	632
D.	820
Answer» C. 632

Discussion

44.	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» D. 20 of income tax act.

Discussion

45.	Incomes absolutely exempt from Tax are listed under.............................
A.	sec 2.
B.	sec 10.
C.	sec 38.
D.	sec. 80c.
Answer» C. sec 38.

Discussion

46.	Any payments made under and awards instituted by central or state Governments are..............
A.	fully exempted
B.	fully taxable
C.	partly exempt
Answer» B. fully taxable

Discussion

47.	Scholarship granted is...................
A.	fully exempted.
B.	fully taxable.
C.	partly exempt
Answer» B. fully taxable.

Discussion

48.	Allowances of MP/M.L.A / or M.L.C are.
A.	fully exempted.
B.	fully taxable.
C.	partly exempt
Answer» B. fully taxable.

Discussion

49.	Income of political parties is not to be included in total income if certain conditions are satisfied. Therelevant section of IT Act 1961 is.
A.	section 13a .
B.	s
C.	1
Answer» B. s

Discussion

50.	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» D.

Discussion

Explore topic-wise MCQs in Finance & Accounting.

Under the income- tax act, the incidence of taxation depends on......................

Unabsorbed depreciation can be carried forward for set off.......................

Residential status is determined for......................

Income Tax Act came into force on............................

Income by way of rent of agricultural land is ..............

Receipt of amount on maturity of LIC Policy is.............................

Compensation received for loss of trading asset is a....................

Compensation for cancellation of a licence by the government resulting in cessation of businessis...................................

Salary received by the manager of an agricultural farm is .................................

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

Loss due to fire of hired machinery is.............................

Embezzlement of cash by a cashier is.................

Agricultural income in Pakistan is assessable for........................

Section.................. of the Income Tax Act deals with exempted incomes.

Gratuity received by a government employee is .......................

Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profitin any accounting year can be carried forward for.....................

In which year Income Tax was levied in India for the first time ?

__________ is / are empowered to levy and collect income tax.

Income Tax Act was passed in the year_____________.

CBDT is control by ______________.

previous year started from ______________.

Income tax is a ........................

A person is said to be an ordinarily Resident when the person is satisfying ________________.

A person is said to be a non resident when he is _______________.

Education cess on tax payable is at................

Agriculture Income is __________.

Section 10 0f Income Tax Act deals with _________.

Income Tax Authorities are grouped into two main wings; Administrative and.................

The highest Administrative Authority for Income Tax in India is............

Rates of Income tax are fixed under .......................

The number allotted by income tax authorities to assessees for identification and which should bequoted in all documents and correspondence is.......................

Deduction of tax at source made for incomes which can be calculated in advance is called.......

Due date of filing of return by a non business assessee is...................

In case of residential status of HUF ,firm and AOP if control and management are wholly outside Indiathey are deemed as..................

An Indian company’s residential status is that it is always.....................

Income accrued in India is taxable in the hands of............................

Salary paid by an Indian company to its employees working in one of its branches outside Indiais................................

Income received in India is taxable in the hands of...........................

Income accrued and received outside India is taxable in the hands of...........................

Income from a farm house is..........................

Past untaxed income brought to India is taxable in the hands of.................

Incomes on which Income tax is not charged are called..............

The CII for the financial year 2012-13 is ..........................

Exempted incomes are defined under section................

Incomes absolutely exempt from Tax are listed under.............................

Any payments made under and awards instituted by central or state Governments are..............

Scholarship granted is...................

Allowances of MP/M.L.A / or M.L.C are.

Income of political parties is not to be included in total income if certain conditions are satisfied. Therelevant section of IT Act 1961 is.

Tax Holiday is.