1. Under the income- tax act, the incidence of taxation depends on......................
Correct : C. the residential status of the tax-payer.
2. Unabsorbed depreciation can be carried forward for set off.......................
Correct : C. for an unlimited number of years.
3. Residential status is determined for......................
Correct : A. previous year
4. How many heads of income are there to compute Gross total income.
Correct : B. five.
5. Income Tax Act came into force on............................
Correct : B. 01-04-1962
6. Income by way of rent of agricultural land is ..............
Correct : C. agricultural income
7. Receipt of amount on maturity of LIC Policy is.............................
Correct : B. a capital receipt.
8. Which of the following is not a capital receipt?
Correct : D. goods sold for cash.
9. Compensation for cancellation of a licence by the government resulting in cessation of business
is...................................
Correct : C. a revenue receipt.
10. Compensation received for loss of trading asset is a....................
Correct : A. capital receipt.
11. Salary received by the manager of an agricultural farm is .................................
Correct : B. a salary income.
12. A citizen of India who goes abroad for the purpose of employment, he must stay in India at least for
............................. days to become a resident
Correct : D. 182 days
13. Loss due to fire of hired machinery is.............................
Correct : A. capital loss.
14. Embezzlement of cash by a cashier is.................
Correct : A. a revenue loss.
15. Who among the following may be “not ordinarily resident”
Correct : D. hindu undivided family.
16. Agricultural income in Pakistan is assessable for........................
Correct : A. resident
17. The following is not taxable as income under the head "Salaries".
Correct : B. remuneration received by a partner
18. Section.................. of the Income Tax Act deals with exempted incomes.
Correct : C. 10
19. Gratuity received by a government employee is .......................
Correct : A. fully exempted
20. Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profit
in any accounting year can be carried forward for.....................
Correct : C. indefinite
21. __________ is / are empowered to levy and collect income tax.
Correct : B. central government
22. In which year Income Tax was levied in India for the first time ?
Correct : C. 1860
23. Income Tax Act was passed in the year_____________.
Correct : B. 1961
24. CBDT is control by ______________.
Correct : A. central government
25. previous year started from ______________.
Correct : A. april
26. Who is Tax payer?
Correct : A. assessee
27. Income tax is a ........................
Correct : C. direct tax
28. A person is said to be an ordinarily Resident when the person is satisfying ________________.
Correct : A. both basic and additional conditions
29. A person is said to be a non resident when he is _______________.
Correct : A. not fulfilling any one of the basic conditions
30. Who is assessee in case of a HUF?
Correct : C. karta
31. Education cess on tax payable is at................
Correct : A. 2%
32. Agriculture Income is __________.
Correct : B. not taxable
33. Section 10 0f Income Tax Act deals with _________.
Correct : B. exempted incomes
34. Income Tax Authorities are grouped into two main wings; Administrative and.................
Correct : A. judicial.
35. The highest Administrative Authority for Income Tax in India is............
Correct : B. cbdt.
36. What are the exemption limit in Hostel Expenditure Allowance?
Correct : B. rs.300pm
37. Rates of Income tax are fixed under .......................
Correct : C. the finance act
38. The number allotted by income tax authorities to assessees for identification and which should be
quoted in all documents and correspondence is.......................
Correct : C. permanent account number (pan).
39. Deduction of tax at source made for incomes which can be calculated in advance is called.......
Correct : A. t.d.s.
40. Due date of filing of return by a non business assessee is...................
Correct : C. 31st july.
41. In case of residential status of HUF ,firm and AOP if control and management are wholly outside India
they are deemed as..................
Correct : C. non resident
42. An Indian company’s residential status is that it is always.....................
Correct : A. resident.
43. Salary paid by an Indian company to its employees working in one of its branches outside India
is................................
Correct : A. salary accruing in india.
44. Income received in India is taxable in the hands of...........................
Correct : D. all assessees.
45. Income accrued in India is taxable in the hands of............................
Correct : C. all assesses.
46. Income accrued and received outside India is taxable in the hands of...........................
Correct : B. resident and ordinarily resident.
47. Past untaxed income brought to India is taxable in the hands of.................
Correct : D. none of these.
48. The CII for the financial year 2012-13 is ..........................
Correct : B. 852
49. Income from a farm house is..........................
Correct : C. agricultural income
50. Incomes on which Income tax is not charged are called..............
Correct : C. exempted incomes.
51. Exempted incomes are defined under section................
Correct : C. 10 of income tax act.
52. Incomes absolutely exempt from Tax are listed under.............................
Correct : B. sec 10.
53. Scholarship granted is...................
Correct : A. fully exempted.
54. Any payments made under and awards instituted by central or state Governments are..............
Correct : A. fully exempted
55. Allowances of MP/M.L.A / or M.L.C are.
Correct : A. fully exempted.
56. Income of political parties is not to be included in total income if certain conditions are satisfied. The
relevant section of IT Act 1961 is.
Correct : A. section 13a .
57. Tax Holiday is.
Correct : C. tax exemption for a specified peri
58. The existing Maximum Marginal Rate of tax of an individual assessee is.........................
Correct : C. 30%
59. Which of the following is not included in salary income.
Correct : C. family pension
60. Share of income from firm is................
Correct : B. exempted in the hands of partner.
61. The periodic payment of money for the past service is known as ........................
Correct : B. pension
62. When a receipt is determined as Capital Receipt or Revenue receipt.
Correct : A. at the time it is received
63. Pension is taxable under ..........................head.
Correct : A. salary
64. . Salary received by a partner from the firm in which he is a partner is taxable under the head................
Correct : C. profits and gains of business or profession
65. Family pension received by the widow of a deceased employee is taxable under the head............
Correct : D. income from other sources
66. Salary paid by an employer out of capital will be................
Correct : A. a revenue receipt in the hands of employee
67. Which of the following is not a capital expense?
Correct : C. commission to employees to achieve sales targets.
68. Salary received by a Member of Parliament is taxable under the head.........................
Correct : D. income from other sources
69. Interest on capital paid by the firm to its partners is allowed up to ...................
Correct : B. 12%
70. Under Income Tax Act depreciation is allowed on ..................
Correct : C. w d v
71. The rate of depreciation on intangible asset is ......................
Correct : D. 25%
72. Residential status of an assessee is ascertained as per the provisions of........................
Correct : A. sec. 6.
73. The income tax rate on long term capital gains for an individual is .................................
Correct : C. 20%
74. Residential status of taxable entities is..........................
Correct : B. can change from year to year.
75. As per the first basic condition to determine residential status, a person should have been in India during
the previous year concerned for..................
Correct : C. 182 days or more.
76. An individual who wants to be resident of India must satisfy at least...................
Correct : A. one of the two basic conditions.
77. An individual who wants to be resident of India must stay in India for at least................
Correct : B. 182 days in the previous year.
78. A person who is of Indian origin visiting India during the previous year to be called resident must stay in
India for at least.....................
Correct : C. 182 days in py.
79. As per Second additional condition, a resident will be an ordinarily resident if stay in India for at least
......................... days during the seven previous years preceding the relevant .
Correct : D. 730 days.
80. A person is Non resident if he fails to fulfil.....................
Correct : B. at least on of the basic conditions.
81. Casual income is.
Correct : A. fully taxable.
82. In case of Tax free salary, .......................................
Correct : A. tax is to be paid by employer
83. Salary received by a member of parliament is.
Correct : C. taxable as income from other sources.
84. Allowances received by a government employee posted abroad are.............
Correct : A. fully exempted.
85. Dearness allowance is taxable in the hands of.................
Correct : C. all employees.
86. House rent allowance is....................
Correct : B. partly taxable.
87. Exempted limit of HRA in metropolitan cities is.
Correct : A. 50% of salary.
88. Education allowance is exempted for a maximum of...................
Correct : B. two children.
89. Children education allowance is exempted up to..................
Correct : C. rs. 100 p.m. per chi
90. Hostel expenditure allowance is exempted up to..................
Correct : A. rs. 300 per month per child.
91. Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actual
allowance or.................
Correct : D. rs. 5,000.
92. A Perk is.........................
Correct : B. facility provided by employer to employee
93. Perquisites to employees are covered in the I.T. Act 1961 under...................
Correct : B. s
94. The value of Interest free concessional loans to employees is determined on the basis of lending rates of ..................... for the same purpose.
Correct : A. s
95. An employee is deemed as specified employee if he is a director in the company or has substantial in the company or his chargeable salary per annum exceeds.
Correct : D. rs. 50,000.
96. Value of rent free accommodation in case of Govt. employee shall be taxable up to.......................
Correct : C. license fee fixed by govt.
97. Value of rent free accommodation a house owned by employer in case of non- Govt. employees with
above 25 lakhs population is...........................
Correct : B. 15% of employees salary
98. Interest on RPF balance is exempted up to.......................
Correct : B. 9.5%.
99. Employers contribution to RPF is exempted up to...................
Correct : C. 12% of salary.
100. Commuted value of pension is fully exempted in case of......................