Deck 1: Income Tax Act, 1961

Question 1

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 1

1 - 4 - 1962

Question 2

Income tax was levied in India first time in:

A)1960
B)1860
C)1921
D)1961

Answer 2

1860

Question 3

The rate of income tax is fixed under:

A)Income Tax Act
B)Notification of CBDT
C)Finance Act
D)Ordinance of Govt.

Answer 3

Finance Act

Question 4

The total of various heads of income is called:

A)Total Income
B)Gross Total Income
C)Taxable Income
D)Aggregate Income

Question 5

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

Question 6

According to Income Tax Act, there are.................heads of income.

A)Three
B)Four
C)Five
D)Six

Question 7

Income tax is a .................tax.

A)Direct
B)Indirect
C)Business
D)None of these

Question 8

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

Question 9

Income Tax Department works under:

A)Central Government
B)CBDT
C)State Government
D)Chief Commissioner of Income Tax

Question 10

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

Question 11

The income tax rate for short term capital gains specified in Sec.111A is:

A)10%
B)15%
C)20%
D)30%

Question 12

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

Question 13

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

Question 14

For the A.Y 2019-20, an individual who is resident in India, is eligible for rebate if his total income does not exceed:

A)Rs: 3,00,000
B)Rs: 5,00,000
C)Rs: 3,50,000
D)Rs: 3,40,000

Question 15

The income tax rate for long term capital gains is:

A)10%
B)15%
C)20%
D)30%

Question 16

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

Question 17

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

Question 18

A citizen of India who goes abroad for the purpose of employment, must stay in India for a period of at least ..................... days during the P.Y. to become ordinarily resident.

A)60 days
B)182 days
C)90 days
D)180 days

Question 19

Income accruing in India is assessable for :

A)Ordinarily resident
B)Not ordinarily resident
C)Non resident
D)All the above

Question 20

Agricultural income from China is assessable for:

A)Ordinarily resident
B)Not ordinarily resident
C)Non resident
D)All the above

Question 21

Every year the residential status of an assessee:

A)will certainly change
B)will not change
C)may change
D)none of the above

Question 22

interest credited to a recognised provident fund account is exempt up to:

A)8%
B)8.5%
C)9%
D)9.5%

Question 23

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

Question 24

Children education allowance is exempted for.............. children.

A)One
B)Two
C)Three
D)Four