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Questions
Income tax is a…………………. A) Professional tax B) Direct tax C) Indirect tax D) Service tax
Income tax rates are fixed in…………….. A) Income tax Act B) Finance Act C) Income tax rules D) Finance rules
There are …………… heads of income A) 3 B) 4 C) 5 D) 2
A person with the age of ………… or more is considered as a super senior citizen as per Income tax Act. A) 56 B) 60 C) 80 D)
Rebate of Income tax is defined as per section …………….. A) 81A B) 87A C) 81C D) 87C

Method of Accounting is not relevant for –

A. Salaries
B. Income from House Property
C. Capital Gains
D. All of the above
Assessment year is the period of 12 months commencing from ……………. Every year. A) 1st March B) 31st March C) 1st Apr
As per Income tax Act, Person includes …………… A) Individual B) HUF C) Local Authority D) All of the above
. CBDT stands for ………………………….. A) Central Bureau of Direct Taxes B) Central Board of Direct Taxes C) Citizen’s Board o
Agricultural income is exempted under which Section ?A)10(1) B)11 C) 3 D)4
Deduction of tax at source made for incomes which can be calculated in advance is called....... A. T.D.S. B. P.A.S. C. F.A.S. D
. __________ is / are empowered to levy and collect income tax. A. State governments B. Central Government C. RBI D. loc
previous year started from ______________. A. April B. March C. January D. September
. Who is assessee in case of a HUF? A. Father B. spouse C. Karta D. Deemed Karta
Section 10 0f Income Tax Act deals with _________. A. Deductions B. Exempted incomes C. Income from salary D. Casual in
The highest Administrative Authority for Income Tax in India is............ A. Finance Minister. B. CBDT. C. President of India. D
Income Tax is charged in -A)Financial year B)Assessment year C)Previous year D)Accounting year
A person includes:
A. Only Individual
B. Only Individual and HUF
C. Individuals, HUF, Firm, Company only
D. Individuals, HUF, Company, Firm, AOP or BOI,Local Authority, Every Artificial Juridical Person

As per section 2(31), the following is not included in the definition of 'person'
A. An individual
B. A Hindu undivided family
C. A company
D. A minor

Every assessee is a person, and -

A. every person is also an assessee
B. every person need not be an assessee
C. an individual is always an assessee
D. A HUF is always an assessee

Assessment year can be a period of :

A. only more than 12 months
B. 12 months and less than 12 months
C. only 12 months
D. 12 months and more than 12 months

Year in which income is taxable is known as ___________ and year in which income is earned is known as ----
A. Previous year, Assessment year
B. Assessment year, Previous year
C. Assessment year, Assessment year
D. Previous year, Previous year
 All assesses are required to follow:
A. Uniform previous year which must be calendar year only
B. Uniform previous year which must be financial year only
C. Any period of 12 months
D. Period starting from 1st July to 30th June only

Municipality of Delhi falls under----- category of person-

A. Artificial juridical person
B. Local authority
C. Individual
D. Association of Person

Section __ of the Income-tax Act, 1961 defines the term 'person' -

A. 4
B. 2(31)
C. 5
D. 2(32)

Previous year is defined in -

A. Section 2(34)
B. Section 2(9)
C. Section 3
D. Section 4

Financial year means a year commencing on –

A. 31st March of the period
B. 1" day of the April
C. Mid of the year
D. None of these

In which of the following cases, income of previous year is assessable in the previous year itself:
A. Assessment of persons leaving India
B. A person in employment in India
C. A person who is into illegal business
D. A person who is running a charitable institution

In which of the following cases, Assessing Officer has the discretion to assess the income of previous year in previous
A. Shipping business of non-residents
B. Assessment of Association of Persons or Body of Individuals formed for a particular event or purpose
C. Assessment of persons likely to transfer property to avoid tax
D. Discontinued business

In case of non-residents engaged in shipping business in India income earned during the financial year is
A. Taxable in India the same financial year
B. Taxable in India the relevant assessment year
C. Not taxable in India in the same financial year
D. Not taxable in India.

In case of non-residents engaged in shipping business _____________ freight paid or payable to the owner or charter
A. 5%
B. 10%
C. 7.5 %
D. 20 %
 Income Tax is levied on the ___________ of a person.
A. Total Income
B. Total Income-Debt
C. Gross Total Income
D. Net Income-Debt Perquisites

According to section 2(24) definition of 'income' is -------

A. Inclusive
B. Exhaustive
C. Exclusive
D. Descriptive.

Income includes -
A. Profits and gains
B. Profit in lieu of Salary
C. Income from other sources
D. All of the above

The term' income' includes the following types of incomes -

A. ' Legal
B. Illegal
C. Legal and illegal both
D. None of the above,

Which amongst the following is not a head of Income?

a. Salaries
b. Income from house Property
c. Capital gains
d. Income from exports

Additional surcharge (health and education cess) of 4 per cent is payable on-
A. Income tax
B. Income tax plus surcharge
C. Surcharge
D. None of the three
What is the minimum basic exemption limit for a resident super senior citizen ?A)250000 B)300000 C)500000 D)400000
Under which section the term "Assessment " is defined ?A)2(8) B) 2(31) C) 3 D) 4
Surcharge is ….....of income tax if net income exceeds Rs. 1 crore in case of co-operative societies?A) 10% B)12% C)14% D)
Which is the type of tax where incidence and impact of taxation falls on the same entity?A)Direct tax B)Indirect tax C) GST
"Income is received by a person other than the person who is actually entitled for it .The recipient later on diverts the inco
actually entitled for it ."What is this concept called as ?A) Diversion of income by overriding title B)Rebate C) Application o
Assessee is defined under which section ? A) 3 B) 4 C) 2(7) d) 6
What is the minimum basic exemption limit for a resident senior citizen ?A)250000 B)300000 C)500000 D)400000

Under Income Tax Act partnership firm includes -

A. Limited liability partnership
B. Limited liability company
C. One person company
D. Association of person
 Body of individual should consist of :
A. Individual only
B. Persons other than individual only
C. Both individual and non individual persons.
D. None of these
What is the minimum basic exemption limit for a HUF ?A)250000 B)300000 C)500000 D)400000

In order to be assessed as HUF there should be -

A. Partnership
B. Co-Partnership
C. Co -Parcenership
D. Co-Ownership

Which of the following income is not included in the term 'income' under the Income-tax Act, 1961 -
A. Profit and gains
B. Dividend
C. Profit in lieu of salary
D. Reimbursement of travelling expenses.
Under which section the term "Assessment year " is defined ?A)2(9) B) 2(31) C) 3 D) 4
Answers
Direct tax
Finance Act
5
80
87A

D
1st April
All of the above
B
A
TDS
B
A
C
B
B
B

B
B

C
A

B
C
A
B
A

A
C
B

A
A
A

D
A