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This set of Income Tax Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Set 2

Q1 | Who is Tax payer?
  • assessee
  • businessman
  • trust
  • govt. employee
Q2 | Income tax is a ........................
  • business tax
  • profession tax
  • direct tax
  • indirect tax
Q3 | A person is said to be an ordinarily Resident when the person is satisfying ________________.
  • both basic and additional conditions
  • only basic conditions
  • only additional conditions
  • not basic and additional conditions
Q4 | A person is said to be a non resident when he is _______________.
  • not fulfilling any one of the basic conditions
  • fulfilling only basic conditions
  • fulfilling only additional conditions
  • fulfilling both basic and additional conditions
Q5 | Who is assessee in case of a HUF?
  • father
  • spouse
  • karta
  • deemed karta
Q6 | Education cess on tax payable is at................
  • 2%
  • 1%
  • 3%
  • 5%
Q7 | Agriculture Income is __________.
  • taxable
  • not taxable
  • partly taxable
  • none of this above
Q8 | Section 10 0f Income Tax Act deals with _________.
  • deductions
  • exempted incomes
  • income from salary
  • casual incomes
Q9 | Income Tax Authorities are grouped into two main wings; Administrative and.................
  • judicial.
  • managerial.
  • executives.
  • clerical.
Q10 | The highest Administrative Authority for Income Tax in India is............
  • finance minister.
  • cbdt.
  • president of india.
  • director of income tax.
Q11 | What are the exemption limit in Hostel Expenditure Allowance?
  • rs.200pm
  • rs.300pm
  • rs.400pm
  • rs.500pm
Q12 | Rates of Income tax are fixed under .......................
  • an ordinance
  • the income tax act
  • the finance act
  • notification of cbdt
Q13 | The number allotted by income tax authorities to assessees for identification and which should bequoted in all documents and correspondence is.......................
  • i.d. no.
  • register no.
  • permanent account number (pan).
  • licence no.
Q14 | Deduction of tax at source made for incomes which can be calculated in advance is called.......
  • t.d.s.
  • p.a.s.
  • f.a.s.
  • m.a.s.
Q15 | Due date of filing of return by a non business assessee is...................
  • 30th june.
  • 31st august.
  • 31st july.
  • 30th november.
Q16 | In case of residential status of HUF ,firm and AOP if control and management are wholly outside Indiathey are deemed as..................
  • resident.
  • ordinarily resident.
  • non resident
  • none of these.
Q17 | An Indian company’s residential status is that it is always.....................
  • resident.
  • non resident.
  • ordinarily resident.
  • none of these.
Q18 | Salary paid by an Indian company to its employees working in one of its branches outside Indiais................................
  • salary accruing in india.
  • salary deemed to accrue in india.
  • salary accruing outside india.
  • none of these.
Q19 | Income received in India is taxable in the hands of...........................
  • resident only.
  • resident and ordinarily resident only.
  • non-resident only.
  • all assessees.
Q20 | Income accrued in India is taxable in the hands of............................
  • non-resident only.
  • resident and not ordinarily resident only.
  • all assesses.
  • resident and ordinarily resident only.
Q21 | Income accrued and received outside India is taxable in the hands of...........................
  • non-resident.
  • resident and ordinarily resident.
  • resident and not ordinarily.
  • none of these residents.
Q22 | Past untaxed income brought to India is taxable in the hands of.................
  • resident and not ordinarily resident.
  • resident and ordinarily resident.
  • non-resident.
  • none of these.
Q23 | The CII for the financial year 2012-13 is ..........................
  • 582
  • 852
  • 632
  • 820
Q24 | Income from a farm house is..........................
  • income from house property
  • income from business
  • agricultural income
  • income from other sources
Q25 | Incomes on which Income tax is not charged are called..............
  • exceptional incomes
  • privileged incomes
  • exempted incomes.
  • none of the above