Income Tax Set 1
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This set of Income Tax Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Set 1
Q1 | Under the income- tax act, the incidence of taxation depends on......................
- the citizenship of the tax-payer.
- the age of the taxpayer
- the residential status of the tax-payer.
- the gender of the taxpayer
Q2 | Unabsorbed depreciation can be carried forward for set off.......................
- for a period of four years only.
- for a period of eight years only.
- for an unlimited number of years.
- for a period of eighteen years only.
Q3 | Residential status is determined for......................
- previous year
- assessment year
- accounting year
- financial year.
Q4 | How many heads of income are there to compute Gross total income.
- six.
- five.
- four.
- three.
Q5 | Income Tax Act came into force on............................
- 01-04-1961
- 01-04-1962
- 01-04-1956
- 01-04-1965
Q6 | Income by way of rent of agricultural land is ..............
- business income
- income from other sources.
- agricultural income
- casual income
Q7 | Receipt of amount on maturity of LIC Policy is.............................
- a revenue receipt.
- a capital receipt.
- a casual receipt.
- none of these.
Q8 | Which of the following is not a capital receipt?
- 'salami' for settlement of tenancy.
- insurance claim received on machinery lost by fire.
- lump sum received on sale of shares.
- goods sold for cash.
Q9 | Compensation for cancellation of a licence by the government resulting in cessation of businessis...................................
- a casual receipt.
- a capital receipt.
- a revenue receipt.
- none of the above.
Q10 | Compensation received for loss of trading asset is a....................
- capital receipt.
- revenue receipt.
- a casual receipt.
- none of these.
Q11 | Salary received by the manager of an agricultural farm is .................................
- an agricultural income.
- a salary income.
- a business income.
- a capital income.
Q12 | A citizen of India who goes abroad for the purpose of employment, he must stay in India at least for............................. days to become a resident
- 90 days
- 162 days
- 180 days
- 182 days
Q13 | Loss due to fire of hired machinery is.............................
- capital loss.
- revenue loss.
- capital expenditure
- none of the above.
Q14 | Embezzlement of cash by a cashier is.................
- a revenue loss.
- a capital loss.
- a casual loss.
- none of these.
Q15 | Who among the following may be “not ordinarily resident”
- partnership firm.
- company.
- association of persons.
- hindu undivided family.
Q16 | Agricultural income in Pakistan is assessable for........................
- resident
- not ordinarily resident
- non-resident
- not taxable
Q17 | The following is not taxable as income under the head "Salaries".
- commission received by a full time director
- remuneration received by a partner
- allowances received by an employee
- free accommodation given to an employee
Q18 | Section.................. of the Income Tax Act deals with exempted incomes.
- 2
- 7
- 10
- 80
Q19 | Gratuity received by a government employee is .......................
- fully exempted
- partly exempted
- fully taxable
- exempted up to rs:1,00,000
Q20 | Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profitin any accounting year can be carried forward for.....................
- 16
- 8
- indefinite
- 12
Q21 | __________ is / are empowered to levy and collect income tax.
- state governments
- central government
- rbi
- local self government department
Q22 | In which year Income Tax was levied in India for the first time ?
- 1960
- 1961
- 1860
- 1857
Q23 | Income Tax Act was passed in the year_____________.
- 1955
- 1961
- 1956
- 1962
Q24 | CBDT is control by ______________.
- central government
- state government
- both (a) and (b)
- none of this above
Q25 | previous year started from ______________.
- april
- march
- january
- september