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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