Income Tax Law And Practice Set 1

Master of Commerce (M.com)

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

Q1 | Income Tax Act, 1961 came into force on:
  • 1 – 1 – 1961
  • 1 – 4 – 1961
  • 1 – 1 – 1962
  • 1 – 4 – 1962
Answer: 1 – 4 – 1962
Q2 | Income tax was levied in India first time in:
  • 1960
  • 1860
  • 1921
  • 1961
Answer: 1860
Q3 | The rate of income tax is fixed under:
  • Income Tax Act
  • Notification of CBDT
  • Finance Act
  • Ordinance of Govt.
Answer: Finance Act
Q4 | The total of various heads of income is called:
  • Total Income
  • Gross Total Income
  • Taxable Income
  • Aggregate Income
Answer: Gross Total Income
Q5 | Income tax was introduced in India for the first time by:
  • Sir John Williams
  • Sir James Wilson
  • Sir Joseph
  • Sir James Paascal
Answer: Sir James Wilson
Q6 | According to Income Tax Act, there are.................heads of income.
  • Three
  • Four
  • Five
  • Six
Answer: Five
Q7 | Income tax is a .................tax.
  • Direct
  • Indirect
  • Business
  • None of these
Answer: Direct
Q8 | Under Income Tax Act, which of the following entities comes under the term “Person”:
  • Individual
  • HUF
  • BOI/AOP
  • All of these
Answer: All of these
Q9 | Income Tax Department works under:
  • Central Government
  • CBDT
  • State Government
  • Chief Commissioner of Income Tax
Answer: State Government
Q10 | For Income Tax purpose, a senior citizen is an individual who the age of :
  • 60 years
  • 60 years or more
  • 60 year or more but less than 80 years
  • 65 years or more
Answer: 60 year or more but less than 80 years
Q11 | The income tax rate for short term capital gains specified in Sec.111A is:
  • 10%
  • 15%
  • 20%
  • 30%
Answer: 15%
Q12 | Which of the following section of Income Tax Act is termed as “Charging Section”:
  • Section 3
  • Section 4
  • Section 5
  • None of these
Answer: Section 4
Q13 | For the A.Y , the tax exemption limit of income for BOI is:
  • Rs: 5,00,000
  • Rs: 3,00,000
  • Rs: 2,50,000
  • Rs: 2,00,000
Answer: Rs: 2,50,000
Q14 | For the A.Y 2019-20, an individual who is resident in India, is eligible for rebate if his totalincome does not exceed:
  • Rs: 3,00,000
  • Rs: 5,00,000
  • Rs: 3,50,000
  • Rs: 3,40,000
Answer: Rs: 3,50,000
Q15 | The income tax rate for long term capital gains is:
  • 10%
  • 15%
  • 20%
  • 30%
Answer: 20%
Q16 | The income tax rate for long term capital gains is:
  • 10%
  • 15%
  • 20%
  • 30%
Answer: 30%
Q17 | Health and education Cess is charged on the amount of:
  • Total income
  • Gross Total Income
  • Income tax
  • Income tax and Surcharge
Answer: Income tax and Surcharge
Q18 | Which among the following is included in income?
  • Sum received under Key man Insurance Policy
  • LPG subsidy
  • Pin money received by wife from her husband
  • Reimbursement of expense
Answer: Sum received under Key man Insurance Policy
Q19 | A citizen of India who goes abroad for the purpose of employment, must stay in India for aperiod of at least ..................... days during the P.Y. to become ordinarily resident.
  • 60 days
  • 182 days
  • 90 days
  • 180 days
Answer: 182 days
Q20 | Income accruing in India is assessable for :
  • Ordinarily resident
  • Not ordinarily resident
  • Non resident
  • All the above
Answer: All the above
Q21 | Agricultural income from China is assessable for:
  • Ordinarily resident
  • Not ordinarily resident
  • Non resident
  • All the above
Answer: Ordinarily resident
Q22 | Every year the residential status of an assessee:
  • will certainly change
  • will not change
  • may change
  • none of the above
Answer: may change
Q23 | interest credited to a recognised provident fund account is exempt up to:
  • 8%
  • 8.5%
  • 9%
  • 9.5%
Answer: 9.5%
Q24 | The amount of exemption in respect of academic allowance is limited to:
  • Rs: 5,000 p.a.
  • Actual amount spent
  • a or b whichever is less
  • None of the above
Answer: Actual amount spent
Q25 | Children education allowance is exempted for.............. children.
  • One
  • Two
  • Three
  • Four
Answer: Two
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