1. Income tax is collected on all types of income except .
Correct : A. agricultural income
2. The Income Tax Act came into force from .
Correct : D. 1st april 1961
3. The Income Tax Act came into force all over India except .
Correct : D. none of the above
4. As per Income Tax Act, 1961, income tax is charged on the income of
at a rates which are prescribed by the Finance Act of relevant assessment
year.
Correct : C. previous year
5. The tax payer liability is determined with reference to his or her .
Correct : B. residential status
6. As per the definition of Income, the income includes the following .
Correct : D. all of the above
7. The period of 12 months commencing on the first day of April every year
and ending on 31st March is called as .
Correct : B. assessment year
8. Previous year means the financial year immediately preceding the .
Correct : B. assessment year
9. Agricultural income is completely exempted for assessment year
Correct : A. 1974-75
10. The income from foreign companies by providing the services in project
connected with security of India is from tax liability.
Correct : C. 100% exempted
11. The awards and rewards are exempted from Income Tax if .
Correct : C. payment is in cash or in kind
12. Income received in India whether occurred in India or outside India, the tax
incidence in case of resident is .
Correct : A. taxable as per slabs
13. Income received in India whether occurred in India or outside India, the tax
incidence in case of resident but not ordinarily resident is .
Correct : A. taxable as per slabs
14. Income received in India whether occurred in India or outside India, the tax
incidence in case of non-resident is .
Correct : A. taxable as per slabs
15. Income deemed to be received in India whether occurred in India or
outside India, the tax incidence in case of resident is .
Correct : A. taxable as per slabs
16. The income received and accrued outside India from a business controlled
or profession set up in India, the tax incidence in case of resident is .
Correct : A. taxable
17. The income received and accrued outside India from a business controlled
or profession set up in India, the tax incidence in case of non-resident is .
Correct : B. non-taxable
18. The tax incidence for company or firm in which income received in India
and company is resident is .
Correct : A. taxable
19. The tax incidence for company or firm in which income received in India
and company for non-resident is .
Correct : A. taxable
20. The tax incidence for company or firm in which income received outside
India from a source controlled from India for resident is .
Correct : A. taxable
21. The tax incidence for company or firm in which income received outside
India from a source controlled from India for non-resident is .
Correct : A. non-taxable
22. …………. is exempted from income tax.
Correct : D. dividend from indian company
23. Which section of the Income Tax Act exempted incomes have been
mentioned?
Correct : C. section 10
24. ……………….of Income Tax Act is related to residential status.
Correct : B. section 6
25. Resident of India includes .
Correct : D. both (a) and (b)
26. The Company may have the residential status as .
Correct : A. resident or non-resident
27. The number of income source for a person are .
Correct : D. any of the above
28. The sum of various heads is called as .
Correct : C. gross total income
29. The agricultural income includes .
Correct : D. all of the above
30. …………..comes under agricultural income.
Correct : C. all of the above
31. If the agricultural income is ……….. then the agricultural income is
considered for calculating tax.
Correct : A. more than ` 5,000 and total income is exceeding exemption limit
32. The Income Tax Act, 1961 broadly covers .
Correct : D. all of the above
33. The capital gain is chargeable under of Income Tax Act.
Correct : A. section 45
34. The definition of the person includes .
Correct : A. an individual
35. Any rent or revenue derived from land which is situated in India and is used
for agricultural purpose is .
Correct : C. exempted from tax
36. Residential Status of an assesses can be .
Correct : B. different for different assessment year
37. The income of previous year is chargeable to tax in the .
Correct : A. immediately succeeding assessment year
38. The interest on loan paid by the Government of India to a non-resident
outside India is………..in India.
Correct : A. not taxable
39. Basic condition will be for a person who leaves India for employment .
Correct : A. at least 182 days in india
40. The term income includes the following types of incomes.
Correct : D. legal and illegal both
41. ……………is the casual income.
Correct : D. winning from lotteries
42. The way of tax liability by taking full advantage provided by the Act is .
Correct : C. tax planning
43. Mr. A, partner of M/s ABC, is assessable as .
Correct : A. firm
44. The income is chargeable under the head of salary under ……………of Income
Tax Act, 1961.
Correct : A. section 15
45. Pension is ……………under the salary head.
Correct : A. fully taxable
46. The salary of Member of Parliament is taxable under the head .
Correct : B. income from other sources
47. The death-c um-retirement gratuity received by the Government Employee or employee of the local authority is.
Correct : B. fully exempted
48. Under Section 15 of Income Tax Act, the salary due in previous years and
even if it is not received is .
Correct : A. taxable
49. The assesses can claim relief under…………….for arrears or advance salary.
Correct : A. section 89(1)
50. The Payment of Gratuity Act came into force in…………...
Correct : D. 1972
51. Which of the following is not taxable under the head Salary?
Correct : D. both (a) and (b)
52. The children education allowance, the amount exempted from taxable income is limited to
Correct : C. 100 per month per child upto 2 children
53. If the employee receives retirement gratuity from more than one employer,
he can claim exemption in respect of .
Correct : C. both employer
54. The family pension received by the family members of armed forces after
death of employee is .
Correct : B. exempted after fulfilling of certain conditions
55. The entertainment allowance is applicable to .
Correct : C. government employees
56. The assessment period for income tax on salary is .
Correct : C. only 12 months
57. Total income is to be rounded off to nearest multiple of …………….and tax
is to be rounded off to nearest multiple of .
Correct : C. ten, ten
58. Income accrued outside India and received outside India is taxable in case
of.
Correct : A. resident and ordinary resident (ror) only
59. Deduction under section 80C to 80U cannot exceed .
Correct : A. gross total income
60. The maximum limit for the claim of deduction under salary head
Contributions to certain pension funds of LIC or any other insurer is .
Correct : B. up to ` 1,50,000
61. Encashment of earned leave is given by………………. of Income Tax Act, 1961.
Correct : A. section 10(10aa)
62. Compensation received on voluntary retirement is given by of Income
Tax Act, 1961.
Correct : B. section 10(10c)
63. The house rent allowance (HRA) under the salary head of Income Tax Act is
given by
Correct : B. sec 10(13a)
64. ……………….of Income Tax Act defines the perquisites and their valuation.
Correct : D. section 17(c)
65. The Income tax rate for the financial year 2016-17 for individual is…………..
Correct : A. ` 5,00,000 to ` 10,00,000 is 20%
66. Income tax rate for the senior citizens for year 2016-17 is .
Correct : A. upto ` 5 lakh is nil
67. For computation for Income tax liability for individual, the Education Cess is
Correct : A. 3%
68. The rate of tax for the financial year 2016-17 for the foreign companies is
Correct : C. 40% flat
69. Which of the following are true regarding taxing the rich?
Correct : D. all of the above
70. Surcharge is levied at the rate …………….if the income exceeds ` 1 crore of
the financial year 2016-17.
Correct : C. 15%
71. Tax Liability for the individual for 2016-17 who is not the resident of the
India whose income ` 2,50,000 to ` 5,00,000 is……………….
Correct : A. 10% of total income minus ` 2,00,000
72. The following is not taxable as income under the head “Salaries”:
Correct : B. remuneration received by a partner
73. The following is exempt income from Income Tax:.
Correct : D. perquisites in india
74. Advance salary is taxable and advance against salary is .
Correct : C. not taxable
75. If loan granted by employer to employee does not exceed …………., it is not
treated as perquisite to employee for purpose of income tax.
Correct : B. 40,000
76. Gift to employee up to p.a. will not be treated as perquisite taxable in the
hands of employee.
Correct : B. ` 5,000
77. Expenditure on free meals to employee in excess of………………per meal will
be treated as perquisite of employee.
Correct : B. 50
78. Any commission due or received by a partner of a firm from the firm shall
not be regarded as salary income under .
Correct : A. section 15
79. Under the Head Income from House Property, the basis of charge is the
of property.
Correct : A. annual value
80. Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m.
Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rental
income of Laxman is taxable under the head .
Correct : B. income from other sources
81. An individual who transfers house property without an adequate
consideration to his owner spouse or to minor child is called as .
Correct : B. deemed owner
82. Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid `
8,000 as local taxes during the year. He uses this house for his residential
purposes but lets out half of the house @ ` 3,000 p.m. The annual value of
the house is.
Correct : B. ` 16,000
83. If the individual using the property for the business or professional purpose
the income taxable under the……………..head.
Correct : D. income from business or proprietorship
84. If the assesses let out the building or staff quarters to the employee of
business, the rent collected from such employees is assessable as income
from .
Correct : C. other sources
85. Calculate the Gross Annual Value from the following details: Municipal
Value ` 45,000
Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000
Correct : B. 48,000
86. Which of the following is not a case of deemed ownership of house
property?
Correct : D. co-owner of a property
87. ,67,000. While computing income from house property, the deduction is
allowable to the extent of .
Correct : D. ` 1,50,000
88. Deduction for other expenses except interest in the computation of income
from house property is allowable to the extent of .
Correct : C. 30% of annual value
89. Arrear rent is taxable after deducting…………..as per Section 25B of the
Income Tax Act, 1961.
Correct : A. 30%
90. The value of interest-free concessional loans to employees is determined
on the basis of lending rates of for the same purpose.
Correct : D. state government
91. Value of rent-free accommodation in case of Government employee shall
be taxable up to
Correct : C. license fee fixed by government
92. Value of rent-free accommodation or a house owned by employer in case
of non-government employees with above 25 lakh population is .
Correct : A. 15% of employee salary
93. Rate of depreciation on residential building is……………..
Correct : D. 5%
94. House property held for less than 36 months is .
Correct : C. exempted capital asset
95. Mr. Shushant is the owner of a house, the details of which are given below
the gross annual value would be Municipal value ` 36,000 Actual rent `
32,000 Fair Rent ` 36,000 Standard Rent ` 40,000
Correct : A. ` 36,000
96. Expected rent shall be higher of .
Correct : D. municipal value and fair rent
97. Interest on capital, borrowed on 10.10.2000, for self-occupied property is
deductible up to a maximum amount of .
Correct : B. ` 1,50,000
98. Deduction from annual value is allowed under .
Correct : A. section 24
99. ………………..standard deduction from annual value is allowed.
Correct : C. 30%
100. Interest on loan for self-occupied house taken before 1st April, 1999 will be
allowed up to