On This Page

This set of Income Tax Law and Practices Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Law And Practices Set 1

Q1 | The Income Tax Act, was enacted in:
  • 1921
  • 1951
  • 1961
  • 1981
Q2 | Mr. X has started his business from 2nd Sept,2019 and does not have any other source of Income, his first previous year will start from
  • 1st April, 201 9
  • 2nd September,2019
  • Any of the above
  • None of the above
Q3 | In Assessment year, the tax will be calculated at
  • current year rate
  • previous year rate
  • previous to previous year rate
  • none of the above
Q4 | Assesee means a person from whome
  • Tax is to be collected
  • Tds is to be deducted
  • Advance tax is collected
  • all of the above
Q5 | Agriculture income is exempt in India:
  • TRUE
  • FALSE
  • Somewhat agree
  • Neither of them
Q6 | Agricultural income from foreign is taxable
  • TRUE
  • FALSE
  • Somewhat agree
  • Neither of them
Q7 | Sale of land is a
  • Capital Receipt
  • Revenue Receipt
  • Both of the above
  • Neither of the above
Q8 | Sales of goods is a
  • Revenue Receipt
  • Capital Receipt
  • Both of the above
  • Neither of the above
Q9 | As the income goes up, the slab of income tax rate goes
  • up
  • down
  • moderate
  • fluctuate
Q10 | The financial year starts from
  • 1st Jan to 31st Dec
  • 1st April to 31st March
  • 1st Oct to 30th September
  • 1st July to 31st August
Q11 | Person includes
  • AOP
  • BOI
  • Company
  • All of the above
Q12 | Income tax is paid by every individual depending on his
  • citizenship
  • residential status
  • both of the above
  • neither of the above
Q13 | Income tax is a
  • Direct tax
  • Indirect tax
  • Neither of the above
  • Both of the above
Q14 | Income tax is collected by
  • state government
  • central government
  • Semi-Government
  • All of the above
Q15 | Assessee includes any person in respect of whom:
  • who is liable to pay tax
  • any person in respect of whom proceedings under the Act have been started
  • any person who is deemed to be an asssessee
  • all of the above
Q16 | The residential status of an Individual can be:
  • Resident and Ordinary Resident
  • Resident but not ordinary resident
  • Non resident
  • All of the above
Q17 | Citizenship is the criteria of assessment
  • TRUE
  • FALSE
  • somewhat agree
  • partially correct
Q18 | An individual is said to be resident in India if he stays for_ days during theprevious year
  • 180
  • 182
  • 183
  • 184
Q19 | Income received or deemed to be received in India is taxable for
  • ROR
  • RNOR
  • NR
  • All of the above
Q20 | Gifts received from relatives on the occasion of marriage would be
  • taxable
  • exempted
  • both of the above
  • Neither of the above
Q21 | Gifts received from others on the occasion other than marriage would be taxableif the aggregate amount exceeds
  • Rs 50,000
  • Rs 51,000
  • Rs 52,000
  • Neither of the above
Q22 | As the income goes down, the slab of income tax rate goes
  • up
  • down
  • moderate
  • fluctuate
Q23 | The calendar year starts from
  • 1st Jan to 31st Dec
  • 1st April to 31st March
  • 1st Oct to 30th September
  • 1st July to 31st August
Q24 | Receipt of Income and remittance of income are different things
  • TRUE
  • FALSE
  • Somewhat agree
  • All of the above
Q25 | Ordinary resident must stay in India for_ days during the previous year
  • 60 days
  • 65 days
  • 70 days
  • neither of the above