Quiznetik
Taxation | Set 1
1. The Constitution of india empowers ____________________________________ to levy tax on income
A. state government
B. central government
C. parliament
D. finance minister
Correct : B. central government
2. The income tax act extends to __________________________________________ of india
A. states
B. union territories
C. citizens
D. whole
Correct : D. whole
3. Residential has nothing to do with
A. constitution
B. citizenship
C. censorship
D. change
Correct : B. citizenship
4. Residential Status of an individual depends on the stay of assesses in india during the
A. calender year
B. accounting year
C. asseseement year
D. previous year
Correct : D. previous year
5. A person by whom any tax is payable under income tax act 1961 is called as
A. individual
B. tax receiver
C. assessee
D. none of the above
Correct : C. assessee
6. The Financial year in which the income is earned is called as the
A. assessment year
B. present year
C. previous year
D. current year
Correct : C. previous year
7. An Company is always resident in india
A. industrial
B. individual
C. indian
D. investment
Correct : C. indian
8. Income tax act extends to
A. whole of india
B. whole of india except jammu & kashmir
C. india & sri lanka
D. none of these
Correct : A. whole of india
9. Shivaji University is assessable under the income tax act as
A. a individual
B. an artificial juridical person
C. a local authority
D. none of these
Correct : B. an artificial juridical person
10. A firm is regarded as a unit of assessment as per ______________________________
A. income tax act
B. partnership act
C. companies act
D. finance act
Correct : A. income tax act
11. ____________________________ is chargeable u/s 45
A. capital gains
B. profit and gains
C. dividend
D. voluntary contribution
Correct : A. capital gains
12. What is the section of Incidence of law
A. 6
B. 5
C. 7
D. 4
Correct : B. 5
13. Incomes which accrue or arise outside India but received directly in India are taxable in case of
A. resident and ordinarily resident only
B. resident but not ordinarily resident
C. non-resident
D. All of the above
Correct : D. All of the above
14. R Ltd. Is an Indian company whose place of effective management is outside India. R Ltd., shall be:
A. resident in India
B. non-resident in India
C. not ordinarily resident in India
D. resident and ordinarily resident only
Correct : A. resident in India
15. which of the following are the persons under sec2(A)
A. Individual
B. firm
C. body of person
D. All of the above
Correct : D. All of the above
16. The HUF is said to be resident in India if
A. The control and management of its affairs is wholly or partly situated in India
B. The control and management of its affairs is partially situated out of India
C. The control and management of its affairs is wholly or partly in out of India
D. None of the above
Correct : A. The control and management of its affairs is wholly or partly situated in India
17. The Company may have the residential status as
A. Resident and non resident
B. non ordinary resident
C. ordinary Resident
D. none of the above
Correct : A. Resident and non resident
18. Benefits Given in kind are
A. Allowance
B. Perquisites
C. both a and b
D. none of the above
Correct : B. Perquisites
19. which of the following heads are the head of Income under Income tax Act 1961
A. salary
B. capital gain
C. House Property
D. All of the above
Correct : D. All of the above
20. Outstanding salary would be taxable basis
A. Due
B. receipts
C. both a & b
D. none of the above
Correct : A. Due
21. Advance salary would be taxable basis
A. Due
B. receipts
C. both a & b
D. none of the above
Correct : B. receipts
22. is a retirement benefit given by the employer to the employee in consideration of past services.
A. Gratuity
B. Dearness allowance
C. Lunch allowance
D. House Rent allowance
Correct : A. Gratuity
23. A is a non-cash benefit granted by an employer to the employee
A. Allowance
B. Perquisites
C. pension
D. none of the above
Correct : C. pension
24. Allowances to Judges of High Court/Supreme Court (Subject to certain conditions)
A. Taxable
B. Not taxable
C. Both A & B
D. none of the above
Correct : B. Not taxable
25. Previous year means the financial year immediately preceding the
A. Accounting year
B. Assesment year
C. non of the above
D. both
Correct : B. Assesment year
26. Full form of TDS
A. Tax deducted at source
B. Tax deducted for source
C. tax deducted by source
D. none of above
Correct : A. Tax deducted at source
27. profit or income of that particular year.
A. set off
B. carry forward
C. none of above
D. both of above
Correct : A. set off
28. Capital LosseCan be carry forward up to next assessment years from the assessment year in which the loss was incurred
A. 8
B. 4
C. 2
D. 5
Correct : A. 8
29. which of the following are the basic condition to become resident of india
A. He must be in India for 182 days or more in relevent previous year
B. He must be in India for 60 days or more in Relevent Previous year AND In preceding 4 previous year he must be in
C. both a and b
D. none of the above
Correct : B. He must be in India for 60 days or more in Relevent Previous year AND In preceding 4 previous year he must be in
30. .A is entitled to children education allowance @ Rs. 80 p.m. per child for 3 children amounting Rs. 240 p.m. It will be exempt to the extent of :
A. 200
B. 260
C. 160
D. 240
Correct : C. 160
31. of Income Tax Act is related to residential status
A. Section 6
B. section-5
C. section 8
D. section 9
Correct : A. Section 6
32. Salary should have relationship
A. employer employee
B. Master and servent
C. both a and b
D. none of the above
Correct : C. both a and b
33. salary is chargeable to tax on
A. Receipt
B. due
C. Receipt or due whichever is earlier
D. none of the above
Correct : C. Receipt or due whichever is earlier
34. Arear on salary are taxable on
A. Receipt
B. due
C. Receipt or due whichever is earlier
D. none of the above
Correct : A. Receipt
35. means fixed quantum of money given regularly in addition to salary to meet particular requirement
A. Allowance
B. Perquisites
C. pension
D. none of the above
Correct : A. Allowance
36. An allowance to meet the expenses in connection with the rent of the house, by whatever name called
A. House Rent allowance
B. Perquisites
C. pension
D. none of the above
Correct : A. House Rent allowance
37. It is an extra amount given to an employee to meet the burden of inflation or increased cost of living.
A. House Rent allowance
B. Dearness allowance
C. both a and b
D. none of the above
Correct : B. Dearness allowance
38. Which of the allowances are fully taxable
A. Dearness allowance
B. Lunch allowance
C. Medical allowance
D. All of the above
Correct : D. All of the above