MCQOPTIONS
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MCQOPTIONS
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.
| 351. |
As per Second additional condition, a resident will be an ordinarily resident if stay in India for at least ......................... days during the seven previous years preceding the relevant |
| A. | 182 days |
| B. | 365 days |
| C. | 60 days |
| D. | 730 days |
| Answer» E. | |
| 352. |
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 | |
| 353. |
A person is Non resident if he fails to fulfil......... |
| A. | The additional conditions |
| B. | At least on of the basic conditions |
| C. | Both basic conditions |
| D. | None of the above |
| Answer» C. Both basic conditions | |
| 354. |
A person who is of Indian origin visiting India during the previous year to be called resident must stay in India for at least..... |
| A. | 60 days in PY |
| B. | 6 days in PY and 365 days or more during 4 years preceding the PY |
| C. | 182 days in PY |
| D. | 730 days during 7 years preceding the PY |
| Answer» D. 730 days during 7 years preceding the PY | |
| 355. |
Residential status of taxable entities is........ |
| A. | Fixed in nature |
| B. | Can change from year to year |
| C. | Fixed once in 5 years |
| D. | None of these |
| Answer» C. Fixed once in 5 years | |
| 356. |
The income tax rate on long term capital gains for an individual is .......... |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 25% |
| Answer» D. 25% | |
| 357. |
Residential status of an assessee is ascertained as per the provisions of........ |
| A. | Section 6 |
| B. | Section 7 |
| C. | Section 9 |
| D. | Section 11 |
| Answer» B. Section 7 | |
| 358. |
The rate of depreciation on intangible asset is ...... |
| A. | 5% |
| B. | 15% |
| C. | 20% |
| D. | 25% |
| Answer» E. | |
| 359. |
Under Income Tax Act depreciation is allowed on .... |
| A. | Purchase price |
| B. | Market price |
| C. | W D V |
| D. | Face value |
| Answer» D. Face value | |
| 360. |
Interest on capital paid by the firm to its partners is allowed up to ......... |
| A. | 6% |
| B. | 12% |
| C. | 15% |
| D. | 16% |
| Answer» C. 15% | |
| 361. |
Salary received by a Member of Parliament is taxable under the head....... |
| A. | Income from salary |
| B. | Capital gains |
| C. | Profits and gains of business or profession |
| D. | Income from other sources |
| Answer» E. | |
| 362. |
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 | |
| 363. |
Income tax is a ......... |
| A. | business tax |
| B. | profession tax |
| C. | Direct tax |
| D. | Indirect tax |
| Answer» D. Indirect tax | |
| 364. |
Who is Tax payer? |
| A. | Assessee |
| B. | Businessman |
| C. | Trust |
| D. | Govt. employee |
| Answer» B. Businessman | |
| 365. |
previous year started from ___ |
| A. | April |
| B. | March |
| C. | January |
| D. | September |
| Answer» B. March | |
| 366. |
CBDT is control by ____ |
| A. | Central Government |
| B. | State Government |
| C. | both (A) and (b) |
| D. | none of this above |
| Answer» B. State Government | |
| 367. |
Income Tax Act was passed in the year___________ |
| A. | 1955 |
| B. | 1961 |
| C. | 1956 |
| D. | 1962 |
| Answer» C. 1956 | |
| 368. |
_________ 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 | |
| 369. |
In which year Income Tax was levied in India for the first time? |
| A. | 1960 |
| B. | 1961 |
| C. | 1860 |
| D. | 1857 |
| Answer» D. 1857 | |
| 370. |
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 | |
| 371. |
What are the exemption limit in Hostel Expenditure Allowance? |
| A. | Rs.200pm |
| B. | Rs.300pm |
| C. | Rs.400pm |
| D. | Rs.500pm |
| Answer» C. Rs.400pm | |
| 372. |
Income Tax Authorities are grouped into two main wings Administrative and..... |
| A. | Judicial |
| B. | Managerial |
| C. | Executives |
| D. | Clerical |
| Answer» B. Managerial | |
| 373. |
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 | |
| 374. |
Education cess on tax payable is at |
| A. | 2% |
| B. | 1% |
| C. | 3% |
| D. | 5% |
| Answer» B. 1% | |
| 375. |
Agriculture Income is ____ |
| A. | Taxable |
| B. | not taxable |
| C. | partly taxable |
| D. | none of this above |
| Answer» C. partly taxable | |
| 376. |
Who is assessee in case of a HUF? |
| A. | Father |
| B. | spouse |
| C. | Karta |
| D. | Deemed Karta |
| Answer» D. Deemed Karta | |
| 377. |
Pension is taxable under ..........................head |
| A. | Salary |
| B. | House property |
| C. | Capital gains |
| D. | other sources |
| Answer» B. House property | |
| 378. |
When a receipt is determined as Capital Receipt or Revenue receipt. |
| A. | At the time it is received |
| B. | While preparing final accounts |
| C. | When the received amount is used |
| D. | None of the above |
| Answer» B. While preparing final accounts | |
| 379. |
The periodic payment of money for the past service is known as ........ |
| A. | Gratuity |
| B. | Pension |
| C. | Commuted pension |
| D. | Leave salary |
| Answer» C. Commuted pension | |
| 380. |
Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profit in any accounting year can be carried forward for........ |
| A. | 16 |
| B. | 8 |
| C. | indefinite |
| D. | 12 |
| Answer» D. 12 | |
| 381. |
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 | |
| 382. |
Agricultural income in Pakistan is assessable for ............ |
| A. | Resident |
| B. | Not Ordinarily Resident |
| C. | Non-resident |
| D. | Not taxable |
| Answer» B. Not Ordinarily Resident | |
| 383. |
Section.................. of the Income Tax Act deals with exempted incomes |
| A. | Section 2 |
| B. | Section 7 |
| C. | Section 10 |
| D. | Section 80 |
| Answer» D. Section 80 | |
| 384. |
Who among the following may be “not ordinarily resident” |
| A. | Partnership firm |
| B. | Company |
| C. | Association of persons. |
| D. | Hindu Undivided Family |
| Answer» E. | |
| 385. |
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 | |
| 386. |
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 | |
| 387. |
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. | |
| 388. |
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. | |
| 389. |
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 | |
| 390. |
Compensation for cancellation of a licence by the government resulting in cessation of business is ...... |
| A. | a casual receipt |
| B. | a capital receipt |
| C. | a revenue receipt |
| D. | None of the above |
| Answer» D. None of the above | |
| 391. |
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 | |
| 392. |
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 | |
| 393. |
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 | |
| 394. |
Due date of filing of return by a non business assessee is.............. |
| A. | 30th June |
| B. | 31st August |
| C. | 30th November |
| D. | 31st July |
| Answer» E. | |
| 395. |
The number allotted by income tax authorities to assessees for identification and which should be quoted 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. | |
| 396. |
Income by way of rent of agricultural land is .... |
| A. | Business income |
| B. | Income from other sources |
| C. | Agricultural income |
| D. | asual income |
| Answer» D. asual income | |
| 397. |
Residential status is determined for ........... |
| A. | Previous year |
| B. | Assessment year |
| C. | Accounting year |
| D. | Financial year. |
| Answer» B. Assessment year | |
| 398. |
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. | |
| 399. |
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 | |
| 400. |
How many heads of income are there to compute Gross total income. |
| A. | Six |
| B. | Five |
| C. | Four |
| D. | Three |
| Answer» C. Four | |