Income Tax Act 1961 (India) Set 2
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This set of Business Taxation Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Act 1961 (India) Set 2
Q1 | The Company may have the residential status as .
- resident or non-resident
- not ordinarily resident
- non-resident
- resident
Q2 | The number of income source for a person are .
- one head
- two heads
- various heads
- any of the above
Q3 | The sum of various heads is called as .
- taxable income
- total income
- gross total income
- adjusted income
Q4 | The agricultural income includes .
- income from sale of crop
- income from preparation of crop
- income from nursery
- all of the above
Q5 | …………..comes under agricultural income.
- tea garden
- commodity farming
- all of the above
- none of the above
Q6 | If the agricultural income is ……….. then the agricultural income isconsidered for calculating tax.
- more than ` 5,000 and total income is exceeding exemption limit
- more than ` 5,000
- more than ` 10,000
- any amount
Q7 | The Income Tax Act, 1961 broadly covers .
- basic charging income
- rebates and reliefs
- incomes exempted from income tax
- all of the above
Q8 | The capital gain is chargeable under of Income Tax Act.
- section 45
- section 55
- section 56
- section 40
Q9 | The definition of the person includes .
- an individual
- a company
- a hindu undivided family
- all of the above
Q10 | Any rent or revenue derived from land which is situated in India and is usedfor agricultural purpose is .
- partially taxable
- fully taxable
- exempted from tax
- none of the above
Q11 | Residential Status of an assesses can be .
- different for different previous year in the same assessment year
- different for different assessment year
- none of the above
- all of the above
Q12 | The income of previous year is chargeable to tax in the .
- immediately succeeding assessment year
- same previous year
- immediately preceding academic year
- none of the above
Q13 | The interest on loan paid by the Government of India to a non-residentoutside India is………..in India.
- not taxable
- partially taxable
- taxable
- can’t say
Q14 | Basic condition will be for a person who leaves India for employment .
- at least 182 days in india
- at least 60 days in previous year and 365 days in preceding 4 years
- at least 730 days in preceding 7 years
- all of the above
Q15 | The term income includes the following types of incomes.
- illegal
- legal income from india only
- legal
- legal and illegal both
Q16 | ……………is the casual income.
- interest received
- dividend income
- pension received
- winning from lotteries
Q17 | The way of tax liability by taking full advantage provided by the Act is .
- tax management
- tax avoidance
- tax planning
- tax evasion
Q18 | Mr. A, partner of M/s ABC, is assessable as .
- firm
- an individual
- body of individual
- huf
Q19 | The income is chargeable under the head of salary under ……………of IncomeTax Act, 1961.
- section 15
- section 20
- section 14
- section 16
Q20 | Pension is ……………under the salary head.
- fully taxable
- partially taxable
- not taxable
- none of the above
Q21 | The salary of Member of Parliament is taxable under the head .
- salary
- income from other sources
- income from business
- all of the above
Q22 | The death-cum-retirement gratuity received by the Government Employeeor employee of local authority is .
- partially exempted
- fully exempted
- half taxable
- none of the above
Q23 | Under Section 15 of Income Tax Act, the salary due in previous years andeven if it is not received is .
- taxable
- not taxable
- partially taxable
- none of the above
Q24 | The assesses can claim relief under…………….for arrears or advance salary.
- section 89(1)
- section 89(2)
- section 89(3)
- section 89(4)
Q25 | The Payment of Gratuity Act came into force in…………...
- 1973
- 1980
- 1991
- 1972