Explore topic-wise MCQs in Finance & Accounting.

This section includes 410 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.

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