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This set of Business Taxation Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Act 1961 (India) Set 1
Q1 | Income tax is collected on all types of income except .
- agricultural income
- industrial income
- capital gain
- household property
Q2 | The Income Tax Act came into force from .
- 1st march 1971
- 1st april 1971
- 1st march 1961
- 1st april 1961
Q3 | The Income Tax Act came into force all over India except .
- andaman & nicobar
- maldives
- jammu & kashmir
- none of the above
Q4 | As per Income Tax Act, 1961, income tax is charged on the income ofat a rates which are prescribed by the Finance Act of relevant assessmentyear.
- current year
- one year before previous year
- previous year
- none of the above
Q5 | The tax payer liability is determined with reference to his or her .
- financial status
- residential status
- all of the above
- none of the above
Q6 | As per the definition of Income, the income includes the following .
- profits and gains
- dividend declared
- voluntary contribution received by a trust created
- all of the above
Q7 | The period of 12 months commencing on the first day of April every yearand ending on 31st March is called as .
- previous year
- assessment year
- accounting year
- financial year
Q8 | Previous year means the financial year immediately preceding the .
- accounting year
- assessment year
- all of the above
- none of the above
Q9 | Agricultural income is completely exempted for assessment year
- 1974-75
- 1985-86
- 1975-76
- 1978-79
Q10 | The income from foreign companies by providing the services in projectconnected with security of India is from tax liability.
- 50% exempted
- 20% exempted
- 100% exempted
- 55% exempted
Q11 | The awards and rewards are exempted from Income Tax if .
- payment is in cash
- payment is in kind
- payment is in cash or in kind
- none of the above
Q12 | Income received in India whether occurred in India or outside India, the taxincidence in case of resident is .
- taxable as per slabs
- exempted from tax
- partly exempted
- none of the above
Q13 | Income received in India whether occurred in India or outside India, the taxincidence in case of resident but not ordinarily resident is .
- taxable as per slabs
- exempted from tax
- partly exempted
- none of the above
Q14 | Income received in India whether occurred in India or outside India, the taxincidence in case of non-resident is .
- taxable as per slabs
- exempted from slab
- partly exempted
- none of the above
Q15 | Income deemed to be received in India whether occurred in India oroutside India, the tax incidence in case of resident is .
- taxable as per slabs
- exempted from slab
- partly exempted
- none of the above
Q16 | The income received and accrued outside India from a business controlledor profession set up in India, the tax incidence in case of resident is .
- taxable
- non-taxable
- partly taxable
- none of the above
Q17 | The income received and accrued outside India from a business controlledor profession set up in India, the tax incidence in case of non-resident is .
- taxable
- non-taxable
- partly taxable
- none of the above
Q18 | The tax incidence for company or firm in which income received in Indiaand company is resident is .
- taxable
- non-taxable
- partly taxable
- none of the above
Q19 | The tax incidence for company or firm in which income received in Indiaand company for non-resident is .
- taxable
- non-taxable
- partly taxable
- none of the above
Q20 | The tax incidence for company or firm in which income received outsideIndia from a source controlled from India for resident is .
- taxable
- non-taxable
- partly taxable
- none of the above
Q21 | The tax incidence for company or firm in which income received outsideIndia from a source controlled from India for non-resident is .
- non-taxable
- taxable
- partly taxable
- none of the above
Q22 | …………. is exempted from income tax.
- interest from indian company
- dividend from foreign company
- cooperative dividend
- dividend from indian company
Q23 | Which section of the Income Tax Act exempted incomes have beenmentioned?
- section 80c
- section 80dd
- section 10
- section 2
Q24 | ……………….of Income Tax Act is related to residential status.
- section 2
- section 6
- section 5
- section 4
Q25 | Resident of India includes .
- ordinarily resident
- not ordinarily resident
- nri
- both (a) and (b)