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

Q1 | Income tax Act extends to ____________
  • Whole of India
  • Whole of India except Jammu & Kashmir
  • Whole of Maharashtra Only
  • Madhya Pradesh
Q2 | Out of the following which is a revenue receipt _______________-
  • Premium received on issue of new shares.
  • Annuity received from former employer
  • Interest from investments
  • New Shares
Q3 | Body of individual should consist of ____________
  • Individual only
  • Persons other than individual only
  • A local authority
  • Income of all persons
Q4 | A new business was set up on 15-11-2017 and it commences its business from 1-12-2017. The firstprevious year in this case shall be _______________________
  • 15-11-2017 to 31-3-2018
  • 1-12-2017 to 31-3-2018
  • 2017-18
  • 2019-20
Q5 | Shivaji University is assessable under the Income Tax Act as _______________.
  • An Individual
  • An artificial Juridical Person
  • A local Authority
  • Person other than Individual
Q6 | In which year is the income tax liability computed_______________
  • Assessment Year
  • Previous Year
  • Financial Year
  • Calendar Year
Q7 | Income earned during what period is taxed____________
  • Assessment Year
  • Previous Year
  • Financial Year
  • Calendar Year
Q8 | Whose income is chargeable to Income tax _______________
  • Income of only Indian Citizen
  • Income of only residents
  • Income of all persons
  • Income of only assesses
Q9 | One who is liable to pay the income tax__________________
  • Indian Citizen
  • Resident in India
  • Any Person
  • An Assessee
Q10 | Assessment year is the period of twelve months commencing on ________________
  • The first day of March every year
  • The first day of January every year
  • Financial year immediately preceding the previous year.
  • The first day of April every year
Q11 | Previous year means the _____________
  • Financial year immediately after the assessment year
  • The period of twelve months commencing on the first day of April every year
  • Financial year immediately preceding the assessment year.
  • Calendar year immediately preceding the assessment year
Q12 | Mr. Joshi runs a chemist`s shop, accounting year of which is the financial year. On November -9,2017.He sets up a chemical factory. What is the previous year for the assessment year 2018-19 for the above two businesses___________________
  • 1-4-2017 to 31-3-2018 for both
  • 9-11-2017 to 31-3-2018 for both
  • 1-1-2017 to 31-12-2017 for both
  • Shop: 1-4-2017 to 31-3-2018 and factory 9-11-2017 to 31-3-2018
Q13 | A company joining with two other Companies in a Joint venture is treated under Income tax laws as __________.
  • A Company
  • An Association of persons
  • A body of individuals
  • An artificial juridical person
Q14 | Residential status is to be determined for ____________
  • Previous year
  • Assessment year
  • Accounting year
  • Resident
Q15 | Income which accrue or arise outside India but are received directly into India are taxable in case of________
  • Resident only
  • Both ordinarily resident and NOR
  • Non -resident
  • All these assesses
Q16 | Total income of person is determined on the basis of his ________________
  • Residential Status in India
  • Citizenship in India
  • Citizen
  • Non -resident
Q17 | Income which accrue or arise outside India and also received outside India is taxable in case of__________
  • Resident only
  • Non- resident in India
  • Not ordinarily resident in India
  • Resident
Q18 | Income received in India ____________
  • Is taxable only for Resident
  • Is not taxable only for a non -resident
  • Is taxable for a resident, a resident but only ordinarily resident non -resident
  • Is exempt in all cases.
Q19 | Income which accrue in India from a business controlled from India _________________
  • Is taxable only for resident
  • Is not taxable only for non – resident
  • Is taxable for resident, a resident but only ordinarily resident non- resident
  • Is exempt in all cases
Q20 | Income accruing in Japan and received there is taxable in India in the case of ______________
  • Resident and ordinarily resident only
  • A resident but not ordinarily resident
  • A non -resident
  • Resident
Q21 | Mr. Manmohan Sharma goes out to India every year for 274 days. For the assessment year 2018 -19,he is ____________________
  • A resident and ordinarily resident
  • A resident but not ordinarily a resident
  • A non-resident
  • Resident
Q22 | M.a chartered accountant is employed with M ltd, as an internal auditor and requests the employer to call the remuneration as internal audit fee.M. shall be chargeable to tax for such fees under the head __________
  • Income from salaries
  • Profit and gains from business and profession
  • Income from other sources
  • None of these
Q23 | M,who is entitled to a salary of Rs.20,000 p.m took an advance of Rs.50,000 against the salary in themonth of March ,2018. The gross salary of m for assessment year 2018-19 shall be _________
  • 2,90,000
  • 2,40,000
  • 50,000
  • 60,000
Q24 | M, who is entitled to salary of Rs.12,000 p.m. took advantage salary from his employer for the month of March, 2018 on 31-3-2018.The gross salary of M for assessment year 2018-19 shall__________
  • 1,44,000
  • 1,68,000
  • Rs.24,000
  • 2,90,000
Q25 | Salary of M becomes due on 1st of next month and it is paid on 7th of that month. For the assessment year 2018-19, the salary of M shall be taken from ________
  • April 2017 to March 2018
  • March 2017 to February 2018
  • April 2018 to March 2019
  • April 2019 to March 2020