MCQOPTIONS
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MCQOPTIONS
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. |
Agriculture income is exempt in India: |
| A. | True |
| B. | False |
| C. | Somewhat agree |
| D. | Neither of them |
| Answer» B. False | |
| 2. |
Gain from sale of shares of Private Limited companies is taxable under section_________. |
| A. | 37 |
| B. | 37A |
| C. | Not taxable |
| D. | None of (a) to (c) |
| Answer» B. 37A | |
| 3. |
The deduction available under section 80QQB in respect of royalty income of authors shall not exceed _____________in previous year. |
| A. | 1,50,000 |
| B. | 2,50,000 |
| C. | 3,00,000 |
| D. | 1,00,000 |
| Answer» C. 3,00,000 | |
| 4. |
Bonus shares are issued by a company to its ______ without receiving any amount from them. |
| A. | Employees |
| B. | Customer |
| C. | Shareholders |
| D. | All of the above |
| Answer» D. All of the above | |
| 5. |
An individual is said to be resident in India if he stays for_ days during theprevious year |
| A. | 180 |
| B. | 182 |
| C. | 183 |
| D. | 184 |
| Answer» C. 183 | |
| 6. |
The period of 12 months commencing on the first day of April every year and ending on 31stMarch is called as . |
| A. | Previous Year |
| B. | Assessment year |
| C. | Accounting Year |
| D. | Financial Year |
| Answer» C. Accounting Year | |
| 7. |
Income deemed to be received in India whether occurred in India or outside India, the taxincidence 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 | |
| 8. |
Dearness allowance is taxable in the handsof................. |
| A. | Govtemployees |
| B. | Non Govtemployees |
| C. | Allemployees. |
| D. | None ofthese. |
| Answer» E. | |
| 9. |
Deduction under sec 80DD is available to the extent of |
| A. | Rs 75,000 |
| B. | Rs 50,000 |
| C. | Rs 25,000 |
| D. | None of these |
| Answer» B. Rs 50,000 | |
| 10. |
.Deduction under section 80D is available on |
| A. | Health Insurance Premium |
| B. | Life Insurance Premium |
| C. | Education Insurance Premium |
| D. | None of these |
| Answer» B. Life Insurance Premium | |
| 11. |
Deduction under section 80 CCD is available to investment made in the fund of |
| A. | State government |
| B. | Deemed government |
| C. | Centralgovt. |
| D. | None of these |
| Answer» D. None of these | |
| 12. |
A loss on the sale of jewellery is _______ under the head capital gain. |
| A. | recognized |
| B. | not recognized |
| C. | taxable |
| D. | none of above |
| Answer» C. taxable | |
| 13. |
__________ is exempted from income tax. |
| A. | Interest from Indian company |
| B. | Dividend from foreign company |
| C. | (a) Cooperative dividend |
| D. | (d) Dividend from Indian company |
| Answer» E. | |
| 14. |
Gifts received from others on the occasion other than marriage would be taxableif the aggregate amount exceeds |
| A. | Rs 50,000 |
| B. | Rs 51,000 |
| C. | Rs 52,000 |
| D. | Neither of the above |
| Answer» B. Rs 51,000 | |
| 15. |
To determine the residential status of HUF, the residential status of |
| A. | member is considered |
| B. | karta is considered |
| C. | co-parceners is considered |
| D. | neither of the above |
| Answer» C. co-parceners is considered | |
| 16. |
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 | |
| 17. |
In case of assessees other than companies, the following is advance tax rate to be payable on or before of 15th September: |
| A. | 45% |
| B. | 30% |
| C. | 15% |
| D. | 10% |
| Answer» C. 15% | |
| 18. |
For the purposes of computing minimum alternate tax under Section 115B(a) of the Income Tax Act, 1961, the book profit need not to be increased by inter alia, the amount of deferred tax debited to the profit and loss account. |
| A. | True |
| B. | False |
| C. | Can’t say |
| D. | none |
| Answer» C. Can’t say | |
| 19. |
Citizenship is the criteria of assessment |
| A. | true |
| B. | false |
| C. | somewhat agree |
| D. | partially correct |
| Answer» B. false | |
| 20. |
Which of the following is not included in salaryincome. |
| A. | Commuted pension |
| B. | Un commuted pension |
| C. | Family pension |
| D. | Leave salary |
| Answer» D. Leave salary | |
| 21. |
Deduction under Section 80C can be claimed for fixed deposit made in any scheduled bank, if the minimum period of deposit is . |
| A. | 10 Years |
| B. | 5 Years |
| C. | 12 Years |
| D. | 8 Years |
| Answer» D. 8 Years | |
| 22. |
Assesee means a person from whome |
| A. | Tax is to be collected |
| B. | Tds is to be deducted |
| C. | Advance tax is collected |
| D. | all of the above |
| Answer» E. | |
| 23. |
Capital gain tax shall not be chargeable on disposal of securities which are held for a periodof __________. |
| A. | one year |
| B. | two years |
| C. | three years |
| D. | six months |
| Answer» B. two years | |
| 24. |
if total income is up to 50,000 then the late fees of filing ROI IS |
| A. | 1,000 |
| B. | 2,000 |
| C. | 3,000 |
| D. | NONE OF THESE |
| Answer» B. 2,000 | |
| 25. |
Income tax is paid by every individual depending on his |
| A. | citizenship |
| B. | residential status |
| C. | both of the above |
| D. | neither of the above |
| Answer» C. both of the above | |
| 26. |
The Resident HUF is ordinarily resident in India, if |
| A. | He has been resident in India at least 2 years out of 10 previous years immediately |
| B. | He has been resident in India at least 3 years out of 10 previous years immediately |
| C. | He has been resident in India at least 2 years out of 5 previous years immediately |
| D. | None of the above |
| Answer» B. He has been resident in India at least 3 years out of 10 previous years immediately | |
| 27. |
The maximum deduction one can clam under section 80D is . |
| A. | 30,000 |
| B. | 50,000 |
| C. | 40,000 |
| D. | 60,000 |
| Answer» E. | |
| 28. |
Gifts received from relatives on the occasion of marriage would be |
| A. | taxable |
| B. | exempted |
| C. | both of the above |
| D. | Neither of the above |
| Answer» C. both of the above | |
| 29. |
In case of a hospital built in specified area after 31.3.2008 fulfilling the required conditions laid down in Section 80IB-(11C), the profits and gains derived from running the hospital are |
| A. | Deductible in full |
| B. | Deduction up to 50% |
| C. | Taxable in full |
| D. | Deductible up to 75% |
| Answer» E. | |
| 30. |
Income tax is collected on all types ofincome except . |
| A. | Agricultural Income |
| B. | Industrial Income |
| C. | Capital Gain |
| D. | Household Property |
| Answer» B. Industrial Income | |
| 31. |
If a company spent Rs: 80,000 as preliminary expenses on 31st March, 2018, the allowablededuction is: |
| A. | Rs: 8,000 |
| B. | Rs: 16,000 |
| C. | Rs: 20,000 |
| D. | Rs: 40,000 |
| Answer» C. Rs: 20,000 | |
| 32. |
The amount of deduction under section 80 C is restricted to: |
| A. | Rs: 1,00,000 |
| B. | Rs: 1,50,000 |
| C. | Rs: 2,00,000 |
| D. | Rs: 5,00,000 |
| Answer» C. Rs: 2,00,000 | |
| 33. |
The losses of non-speculation business can be carried forward and set off against: |
| A. | Profit from non-speculation business only |
| B. | Profit from any business |
| C. | Income from salary |
| D. | All of the above |
| Answer» C. Income from salary | |
| 34. |
Rent free accommodation is an example for: |
| A. | Allowance |
| B. | Profit in lieu of salary |
| C. | Perquisites |
| D. | None of these |
| Answer» D. None of these | |
| 35. |
Income Tax Act, 1961 came into force on: |
| A. | 1 – 1 – 1961 |
| B. | 1 – 4 – 1961 |
| C. | 1 – 1 – 1962 |
| D. | 1 – 4 – 1962 |
| Answer» E. | |
| 36. |
For the A.Y 2019-20, an individual who is resident in India, is eligible for rebate if his totalincome does not exceed: |
| A. | Rs: 3,00,000 |
| B. | Rs: 5,00,000 |
| C. | Rs: 3,50,000 |
| D. | Rs: 3,40,000 |
| Answer» D. Rs: 3,40,000 | |
| 37. |
The unabsorbed loss under “Income from house property” shall be carried forward andset-off in subsequent assessment years up to a maximum of ............................... years against income from house property. |
| A. | 4 years |
| B. | 6 years |
| C. | 8 years |
| D. | 12 yeas |
| Answer» D. 12 yeas | |
| 38. |
While computing the profit of a firm, interest allowed on partners’ capital is allowed: |
| A. | Up to 12% |
| B. | Up to 15% |
| C. | Up to 18% |
| D. | Up to 20% |
| Answer» B. Up to 15% | |
| 39. |
Under Income Tax Act, which of the following entities comes under the term “Person”: |
| A. | Individual |
| B. | HUF |
| C. | BOI/AOP |
| D. | All of these |
| Answer» E. | |
| 40. |
The annual value of a house property is Rs:1,40,000. Mr. X and Mr. Y are equal co- owners ofthe house. X’s income from house property shall be: |
| A. | Rs: 70,000 |
| B. | Rs: 1,40,000 |
| C. | Rs: 49,000 |
| D. | Zero |
| Answer» D. Zero | |
| 41. |
Which among the following is included in income? |
| A. | Sum received under Key man Insurance Policy |
| B. | LPG subsidy |
| C. | Pin money received by wife from her husband |
| D. | Reimbursement of expense |
| Answer» B. LPG subsidy | |
| 42. |
While computing the total income, an individual assessee with disability is entitled to adeduction of: |
| A. | Rs: 50,000 |
| B. | Rs: 75,000 |
| C. | Rs: 1,25,000 |
| D. | Rs: 1,50,000 |
| Answer» C. Rs: 1,25,000 | |
| 43. |
Health and education Cess is charged on the amount of: |
| A. | Total income |
| B. | Gross Total Income |
| C. | Income tax |
| D. | Income tax and Surcharge |
| Answer» E. | |
| 44. |
Value of unfurnished house, hired by employer, provided to an employee shall be: |
| A. | 15% of salary |
| B. | Actual rent |
| C. | 15% of salary or actual rent whichever is less |
| D. | 15% of salary or actual rent whichever is more |
| Answer» D. 15% of salary or actual rent whichever is more | |
| 45. |
Income tax was introduced in India for the first time by: |
| A. | Sir John Williams |
| B. | Sir James Wilson |
| C. | Sir Joseph |
| D. | Sir James Paascal |
| Answer» C. Sir Joseph | |
| 46. |
The amount of exemption in respect of tribal area allowance is: |
| A. | Rs: 100 p.m |
| B. | Rs: 200 p.m |
| C. | Rs: 300 p.m |
| D. | Rs: 325 p.m |
| Answer» C. Rs: 300 p.m | |
| 47. |
For being long term capital gain, the asset should be retained by the assessee for a period of: |
| A. | 36 months |
| B. | More than 36 months |
| C. | 24 months |
| D. | 12 months |
| Answer» C. 24 months | |
| 48. |
The rate of surcharge if total income of an individual assessee exceeds Rs: one crore is: |
| A. | 7.5% |
| B. | 10% |
| C. | 15% |
| D. | 20% |
| Answer» D. 20% | |
| 49. |
Gratuity received by a government employee is exempted: |
| A. | Up to Rs:10,00,000 |
| B. | Up to Rs:15,00,000 |
| C. | Fully |
| D. | None of these |
| Answer» D. None of these | |
| 50. |
Children education allowance is exempted for.............. children. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» C. Three | |