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This set of Taxation Multiple Choice Questions & Answers (MCQs) focuses on Taxation Set 1

Q1 | The Constitution of india empowers ____________________________________ to levy tax on income
  • state government
  • central government
  • parliament
  • finance minister
Q2 | The income tax act extends to __________________________________________ of india
  • states
  • union territories
  • citizens
  • whole
Q3 | Residential has nothing to do with
  • constitution
  • citizenship
  • censorship
  • change
Q4 | Residential Status of an individual depends on the stay of assesses in india during the
  • calender year
  • accounting year
  • asseseement year
  • previous year
Q5 | A person by whom any tax is payable under income tax act 1961 is called as
  • individual
  • tax receiver
  • assessee
  • none of the above
Q6 | The Financial year in which the income is earned is called as the
  • assessment year
  • present year
  • previous year
  • current year
Q7 | An Company is always resident in india
  • industrial
  • individual
  • indian
  • investment
Q8 | Income tax act extends to
  • whole of india
  • whole of india except jammu & kashmir
  • india & sri lanka
  • none of these
Q9 | Shivaji University is assessable under the income tax act as
  • a individual
  • an artificial juridical person
  • a local authority
  • none of these
Q10 | A firm is regarded as a unit of assessment as per ______________________________
  • income tax act
  • partnership act
  • companies act
  • finance act
Q11 | ____________________________ is chargeable u/s 45
  • capital gains
  • profit and gains
  • dividend
  • voluntary contribution
Q12 | What is the section of Incidence of law
  • 6
  • 5
  • 7
  • 4
Q13 | Incomes which accrue or arise outside India but received directly in India are taxable in case of
  • resident and ordinarily resident only
  • resident but not ordinarily resident
  • non-resident
  • All of the above
Q14 | R Ltd. Is an Indian company whose place of effective management is outside India. R Ltd., shall be:
  • resident in India
  • non-resident in India
  • not ordinarily resident in India
  • resident and ordinarily resident only
Q15 | which of the following are the persons under sec2(A)
  • Individual
  • firm
  • body of person
  • All of the above
Q16 | The HUF is said to be resident in India if                    
  • The control and management of its affairs is wholly or partly situated in India
  • The control and management of its affairs is partially situated out of India
  • The control and management of its affairs is wholly or partly in out of India
  • None of the above
Q17 | The Company may have the residential status as
  • Resident and non resident
  • non ordinary resident
  • ordinary Resident
  • none of the above
Q18 | Benefits Given in kind are
  • Allowance
  • Perquisites
  • both a and b
  • none of the above
Q19 | which of the following heads are the head of Income under Income tax Act 1961
  • salary
  • capital gain
  • House Property
  • All of the above
Q20 | Outstanding salary would be taxable basis
  • Due
  • receipts
  • both a & b
  • none of the above
Q21 | Advance salary would be taxable basis
  • Due
  • receipts
  • both a & b
  • none of the above
Q22 | is a retirement benefit given by the employer to the employee in consideration of past services.
  • Gratuity
  • Dearness allowance
  • Lunch allowance
  • House Rent allowance
Q23 | A is a non-cash benefit granted by an employer to the employee
  • Allowance
  • Perquisites
  • pension
  • none of the above
Q24 | Allowances to Judges of High Court/Supreme Court (Subject to certain conditions)
  • Taxable
  • Not taxable
  • Both A & B
  • none of the above
Q25 | Previous year means the financial year immediately preceding the                          
  • Accounting year
  • Assesment year
  • non of the above
  • both