MCQOPTIONS
Saved Bookmarks
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. |
Gain on disposal of immovable property is chargeable to at _____%, where holding periodis up to one year. |
| A. | 10 |
| B. | 2 |
| C. | 6 |
| D. | 12 |
| Answer» B. 2 | |
| 2. |
Maximum limit for the deduction of Life insurance premia from the gross total income is . |
| A. | Rs. 2,00,000 |
| B. | Rs 1,50,000 |
| C. | R s 1,00,000 |
| D. | Rs 1,25,000 |
| Answer» C. R s 1,00,000 | |
| 3. |
Amount of deduction in case of a person with severe disability under section 80U willbe______________ . |
| A. | (a) 75,000 |
| B. | (b) 85,000 |
| C. | (c) 1,50,000 |
| D. | (d) 1,25,000 |
| Answer» E. | |
| 4. |
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 | |
| 5. |
Every assesse has to file return of income if their taxable income exceeds |
| A. | gross total income |
| B. | total income |
| C. | net income |
| D. | basic exemption limit |
| Answer» E. | |
| 6. |
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 | |
| 7. |
Maximum deduction under section 80CCE is subject to a maximum of |
| A. | Rs. 5,00,000. |
| B. | Rs.2,00,000. |
| C. | Rs.1,00,000. |
| D. | Rs.1,50,000. |
| Answer» E. | |
| 8. |
A company in which at least 50% of the shares are held by a foreign government is ___________. |
| A. | Private company |
| B. | Public company |
| C. | Foreign company |
| D. | All of the above |
| Answer» C. Foreign company | |
| 9. |
A person is said to be of Indian origin if he or his parent were born in |
| A. | undivided india |
| B. | divided india |
| C. | partitioned india |
| D. | Neither of the above |
| Answer» B. divided india | |
| 10. |
Education allowance is exempted for…….. |
| A. | One person |
| B. | Four persons |
| C. | Two persons |
| D. | None of these |
| Answer» D. None of these | |
| 11. |
The tax incidence for company or firm in which income received in India and company fornon-resident is . |
| A. | Taxable |
| B. | Non-taxable |
| C. | Partly taxable |
| D. | None of the above |
| Answer» B. Non-taxable | |
| 12. |
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. | (c) Taxable |
| D. | (d)Can’t say |
| Answer» B. Partially taxable | |
| 13. |
Receipt by a member from HUF is fully exempt |
| A. | true |
| B. | false |
| C. | somewhat agree |
| D. | all of the above |
| Answer» B. false | |
| 14. |
An individual is said to be resident in India if . |
| A. | It is in India in the previous year for a period of 182 days or more |
| B. | It is in India for period of 60 days or more during the previous and 365 days or more during the four years immediately proceeding previous year |
| C. | All of the above |
| D. | None of the above |
| Answer» D. None of the above | |
| 15. |
Interest on capital or loan received by a partner from a firm is: |
| A. | Exempt U/S 10(2A) |
| B. | Taxable U/H business and profession |
| C. | Taxable U/H income from other sources |
| D. | none |
| Answer» C. Taxable U/H income from other sources | |
| 16. |
Any incidental expenditure on disposal of capital assets shall form part of _____________. |
| A. | Cost of assets |
| B. | Disposal consideration |
| C. | Selling cost |
| D. | None of a to c |
| Answer» B. Disposal consideration | |
| 17. |
Income received in India whether occurred in India or outside India, the tax incidence in caseof resident is . |
| A. | Taxable as per slabs |
| B. | Exempted from tax |
| C. | Partly exempted |
| D. | None of the above |
| Answer» B. Exempted from tax | |
| 18. |
The maximum aggregate amount of deduction under sections 80C, 80CCC and 80CCD cannot exceed . |
| A. | Rs 1,10,000 |
| B. | Rs 2,00,000 |
| C. | Rs 1,50,000 |
| D. | Nil |
| Answer» D. Nil | |
| 19. |
Which of the following is covered under section 80D of the Income Tax Act, 1961? |
| A. | Medical treatment of handicapped dependent |
| B. | Medical insurance premium |
| C. | Reimbursement of medical expenses |
| D. | Repayment of loan taken for higher education |
| Answer» C. Reimbursement of medical expenses | |
| 20. |
Deduction in respect of contribution to pension scheme of central government comes under _____________of Income Tax Act, 1961. |
| A. | Section 80CCD |
| B. | Section 80U |
| C. | Section 80EE |
| D. | Section 80G |
| Answer» B. Section 80U | |
| 21. |
Maximum amount of deduction in case of a person with severe disability under section 80U will be . |
| A. | 50,000 |
| B. | 75,000 |
| C. | 80,000 |
| D. | 1,00,000 |
| Answer» B. 75,000 | |
| 22. |
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 | |
| 23. |
The income received and accrued outside India from a business controlled or profession setup 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 | |
| 24. |
Deduction under section 80DD is available to |
| A. | dependent |
| B. | disabled dependent |
| C. | Less dependent |
| D. | None of these |
| Answer» C. Less dependent | |
| 25. |
The meaning of exempted income is . |
| A. | Not included in total income |
| B. | Agricultural income |
| C. | Not taxable under income tax |
| D. | All of the above |
| Answer» B. Agricultural income | |
| 26. |
Sales of goods is a |
| A. | Revenue Receipt |
| B. | Capital Receipt |
| C. | Both of the above |
| D. | Neither of the above |
| Answer» B. Capital Receipt | |
| 27. |
If the assessee is living in own house HRA is………….. |
| A. | Fully Taxable |
| B. | Partly Taxable |
| C. | Fully Exempted |
| D. | None of these |
| Answer» B. Partly Taxable | |
| 28. |
In the case of every senior citizen resident in India, tax rebate under section 87A is ______. |
| A. | 5,000 |
| B. | 2,000 |
| C. | 1,000 |
| D. | Nil |
| Answer» E. | |
| 29. |
‘Derivatives’ is a general term for financial assets that are “derived” from other_______________. |
| A. | fixed assets |
| B. | current assets |
| C. | financial assets |
| D. | income |
| Answer» D. income | |
| 30. |
Sale of land is a |
| A. | Capital Receipt |
| B. | Revenue Receipt |
| C. | Both of the above |
| D. | Neither of the above |
| Answer» B. Revenue Receipt | |
| 31. |
Agricultural income from foreign is taxable |
| A. | True |
| B. | False |
| C. | Somewhat agree |
| D. | Neither of them |
| Answer» B. False | |
| 32. |
Income received or deemed to be received in India is taxable for |
| A. | ROR |
| B. | RNOR |
| C. | NR |
| D. | All of the above |
| Answer» E. | |
| 33. |
Which of the following is not included in the term Income under the Income Tax Act, 1961? |
| A. | Reimbursement of travelling expenses |
| B. | Profits and gains of business or profession |
| C. | Dividend |
| D. | Profit in lieu of salary |
| Answer» E. | |
| 34. |
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. | (c) Exempted from tax |
| D. | (d)None of the above |
| Answer» D. (d)None of the above | |
| 35. |
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» B. Section 80DD | |
| 36. |
Capital loss u/s 37 is allowed as deduction for those assets the gain of which is___________. |
| A. | Chargeable to tax |
| B. | Exempt from tax |
| C. | Both of these |
| D. | None of (a) to (c) |
| Answer» B. Exempt from tax | |
| 37. |
In Income Tax Act, 1961, deduction under sections 80C to 80U cannot exceed . |
| A. | Gross total income |
| B. | Total income |
| C. | Income from business or profession |
| D. | Income from house property |
| Answer» B. Total income | |
| 38. |
Ordinary resident must stay in India for_ days during the previous year |
| A. | 60 days |
| B. | 65 days |
| C. | 70 days |
| D. | neither of the above |
| Answer» B. 65 days | |
| 39. |
The HUF is said to be resident in India if . |
| A. | The control and management of its affairs is wholly or partly situated in India |
| B. | The control and management of its affairs is partially situated out of India |
| C. | The control and management of its affairs is wholly or partly in out of India |
| D. | None of the above |
| Answer» B. The control and management of its affairs is partially situated out of India | |
| 40. |
Bonus shares are the shares issued by a company_____________. |
| A. | Free of cost |
| B. | Issued at concessional rate |
| C. | On credit |
| D. | None of the above |
| Answer» B. Issued at concessional rate | |
| 41. |
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 | |
| 42. |
Deduction in respect of contribution to political party will . |
| A. | Be allowed in respect of sum paid by way of cash |
| B. | Not be allowed if payment made in cash |
| C. | This type of deduction is not allowed whether payment is in cash or not |
| D. | Be allowed if payment made in cash, subject to certain conditions |
| Answer» C. This type of deduction is not allowed whether payment is in cash or not | |
| 43. |
____________ comes under agricultural income. |
| A. | Tea garden |
| B. | Commodity farming |
| C. | All of the above |
| D. | None of the above |
| Answer» B. Commodity farming | |
| 44. |
Children education allowance is exempt up to per month per child for two children. |
| A. | Rs.100 |
| B. | Rs.150 |
| C. | Rs.200 |
| D. | Rs.250 |
| Answer» B. Rs.150 | |
| 45. |
Income tax is a |
| A. | Direct tax |
| B. | Indirect tax |
| C. | Neither of the above |
| D. | Both of the above |
| Answer» B. Indirect tax | |
| 46. |
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 | |
| 47. |
HRA is……………….. |
| A. | Fully Taxable |
| B. | Partly Taxable |
| C. | Fully Exempted |
| D. | None of these |
| Answer» C. Fully Exempted | |
| 48. |
GST is a…………………. |
| A. | Professional tax |
| B. | Direct tax |
| C. | Indirect tax |
| D. | Service tax |
| Answer» D. Service tax | |
| 49. |
Under the head Business or Profession, the method of accounting which an assessee can follow shall be: |
| A. | Mercantile system only |
| B. | Cash system only |
| C. | Mercantile or cash system only |
| D. | Hybrid system |
| Answer» D. Hybrid system | |
| 50. |
As the income goes up, the slab of income tax rate goes |
| A. | up |
| B. | down |
| C. | moderate |
| D. | fluctuate |
| Answer» B. down | |