Q1: Income Tax Act, 1961 came into force on:
- A. 1 – 1 – 1961
- B. 1 – 4 – 1961
- C. 1 – 1 – 1962
- D. 1 – 4 – 1962
Answer
Answer D. 1 – 4 – 1962
Q2: Income tax was levied in India first time in:
- A. 1960
- B. 1860
- C. 1921
- D. 1961
Answer
Answer B. 1860
Q3: The rate of income tax is fixed under:
- A. Income Tax Act
- B. Notification of CBDT
- C. Finance Act
- D. Ordinance of Govt
Answer
Answer C. Finance Act
Q4: The total of various heads of income is called:
- A. Total Income
- B. Gross Total Income
- C. Taxable Income
- D. Aggregate Income
Answer
Answer B. Gross Total Income
Q5: Income tax was introduced in India for the first time by:
- A. Sir John Williams
- B. Sir James Wilson
- C. Sir Joseph
- D. Sir James Paascal
Answer
Answer B. Sir James Wilson
Q6: According to Income Tax Act, there are___heads of income.
- A. Three
- B. Four
- C. Five
- D. Six
Answer
Answer C. Five
Q7: Income tax is a___tax.
- A. Direct
- B. Indirect
- C. Business
- D. None of these
Answer
Answer A. Direct
Q8: Under Income Tax Act, which of the following entities comes under the term “Person”:
- A. Individual
- B. HUF
- C. BOI/AOP
- D. All of these
Answer
Answer D. All of these
Q9: Income Tax Department works under:
- A. Central Government
- B. CBDT
- C. State Government
- D. Chief Commissioner of Income Tax
Answer
Answer C. State Government
Q10: For Income Tax purpose, a senior citizen is an individual who the age of:
- A. 60 years
- B. 60 years or more
- C. 60 year or more but less than 80 years
- D. 65 years or more
Answer
Answer C. 60 year or more but less than 80 years
Q11: The income tax rate for short term capital gains specified in Sec.111A is:
- A. 10%
- B. 15%
- C. 20%
- D. 30%
Answer
Answer B. 15%
Q12: Which of the following section of Income Tax Act is termed as “Charging Section”:
- A. Section 3
- B. Section 4
- C. Section 5
- D. None of these
Answer
Answer B. Section 4
Q13: For the A.Y , the tax exemption limit of income for BOI is:
- A. Rs: 5,00,000
- B. Rs: 3,00,000
- C. Rs: 2,50,000
- D. Rs: 2,00,000
Answer
Answer C. 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:
- A. Rs: 3,00,000
- B. Rs: 5,00,000
- C. Rs: 3,50,000
- D. Rs: 3,40,000
Answer
Answer C. Rs: 3,50,000
Q15: The income tax rate for long term capital gains is:
- A. 10%
- B. 15%
- C. 20%
- D. 30%
Answer
Answer C. 20%
Q16: Health and education Cess is charged on the amount of:
- A. Total income
- B. Gross Total Income
- C. Income tax
- D. Income tax and Surcharge
Answer
Answer D. Income tax and Surcharge
Q17: Which among the following is included in income?
- A. Sum received under Key man Insurance Policy
- B. LPG subsidy
- C. Pin money received by wife from her husband
- D. Reimbursement of expense
Answer
Answer A. Sum received under Key man Insurance Policy
Q18: 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.
- A. 60 days
- B. 182 days
- C. 90 days
- D. 180 days
Answer
Answer B. 182 days
Q19: Income accruing in India is assessable for:
- A. Ordinarily resident
- B. Not ordinarily resident
- C. Non resident
- D. All the above
Answer
Answer D. All the above
Q20: Agricultural income from China is assessable for:
- A. Ordinarily resident
- B. Not ordinarily resident
- C. Non resident
- D. All the above
Answer
Answer A. Ordinarily resident
Q21: Every year the residential status of an assessee:
- A. will certainly change
- B. will not change
- C. may change
- D. none of the above
Answer
Answer C. may change
Q22: interest credited to a recognised provident fund account is exempt up to:
- A. 8%
- B. 8.5%
- C. 9%
- D. 9.5%
Answer
Answer D. 9.5%
Q23: The amount of exemption in respect of academic allowance is limited to:
- A. Rs: 5,000 p.a
- B. Actual amount spent
- C. a or b whichever is less
- D. None of the above
Answer
Answer B. Actual amount spent
Q24: Children education allowance is exempted for___children.
- A. One
- B. Two
- C. Three
- D. Four
Answer
Answer B. Two
Q25: Which among the following is a fully exempted allowance?
- A. Uniform allowance
- B. HRA
- C. Foreign allowance
- D. CCA
Answer
Answer C. Foreign allowance
Q26: Income from salary includes:
- A. Profit in lieu of salary
- B. Perquisites
- C. Allowances
- D. All of the above
Answer
Answer D. All of the above
Q27: Salary received by a partner from his firm is an income under the head:
- A. Salaries
- B. Profits and gains from business or profession
- C. Capital gains
- D. Other sources
Answer
Answer B. Profits and gains from business or profession
Q28: Salary received by MLA or MP is treated as income under the head:
- A. Salaries
- B. Profits and gains from business or profession
- C. Capital gains
- D. Other sources
Answer
Answer D. Other sources
Q29: Family pension received by a widow is treated as an income under the head:
- A. Salaries
- B. Profits and gains from business or profession
- C. Capital gains
- D. Other sources
Answer
Answer D. Other sources
Q30: Salary received from a former employer is treated as an income under the head:
- A. Salaries
- B. Profits and gains from business or profession
- C. Capital gains
- D. Other sources
Answer
Answer A. Salaries
Q31: Remuneration received from a person other than employer is treated an income under the head:
- A. Salaries
- B. Profits and gains from business or profession
- C. Capital gains
- D. Other sources
Answer
Answer D. Other sources
Q32: Which among the following is a deduction allowed under section 16:
- A. Employment tax
- B. Standard deduction
- C. Entertainment Allowance
- D. All of the above
Answer
Answer D. All of the above
Q33: Pension is treated as an income under the head:
- A. Salaries
- B. Capital gains
- C. Other sources
- D. None of these
Answer
Answer A. Salaries
Q34: Annuity received from the present employer is treated as income under:
- A. Salary under section 17(1)
- B. Perquisites
- C. Allowances
- D. Profit in lieu of salary
Answer
Answer A. Salary under section 17(1)
Q35: Annuity received from former employer is treated as income under:
- A. Salary under section 17(1)
- B. Profit in lieu of salary
- C. Allowances
- D. Perquisites
Answer
Answer B. Profit in lieu of salary
Q36: Annual accretion is taxable under:
- A. Salary under section 17(1)
- B. Perquisites
- C. Allowances
- D. Profit in lieu of salary
Answer
Answer A. Salary under section 17(1)
Q37: Per-diem allowance given for the purpose of lodging facilities is:
- A. Fully taxable
- B. Fully exempted
- C. Partly taxable
- D. None of these
Answer
Answer B. Fully exempted
Q38: Sumptuary allowance to Judges of Supreme Court and High Court is:
- A. Fully taxable
- B. Fully exempted
- C. Partly taxable
- D. None of these
Answer
Answer B. Fully exempted
Q39: Festival allowance is:
- A. Fully taxable
- B. Fully exempted
- C. Partly taxable
- D. None of these
Answer
Answer A. Fully taxable
Q40: HRA received by an employee who is living in own house is:
- A. Fully taxable
- B. Fully exempted
- C. Partly taxable
- D. None of these
Answer
Answer A. Fully taxable
