Deck 1: Income Tax Act 1961

Question 1

Income tax is collected on all types of income except .

A)agricultural income
B)industrial income
C)capital gain
D)household property

Answer 1

agricultural income

Question 2

The Income Tax Act came into force from .

A)1st march 1971
B)1st april 1971
C)1st march 1961
D)1st april 1961

Answer 2

1st april 1961

Question 3

The Income Tax Act came into force all over India except .

A)andaman & nicobar
B)maldives
C)jammu & kashmir
D)none of the above

Answer 3

none of the above

Question 4

As per Income Tax Act, 1961, income tax is charged on the income ofat a rates which are prescribed by the Finance Act of relevant assessmentyear.

A)current year
B)one year before previous year
C)previous year
D)none of the above

Question 5

The tax payer liability is determined with reference to his or her .

A)financial status
B)residential status
C)all of the above
D)none of the above

Question 6

As per the definition of Income, the income includes the following .

A)profits and gains
B)dividend declared
C)voluntary contribution received by a trust created
D)all of the above

Question 7

The period of 12 months commencing on the first day of April every year and ending on 31st March is called as .

A)previous year
B)assessment year
C)accounting year
D)financial year

Question 8

Previous year means the financial year immediately preceding the .

A)accounting year
B)assessment year
C)all of the above
D)none of the above

Question 9

Agricultural income is completely exempted for assessment year

A)1974-75
B)1985-86
C)1975-76
D)1978-79

Question 10

The income from foreign companies by providing the services in project connected with security of India is from tax liability.

A)50% exempted
B)20% exempted
C)100% exempted
D)55% exempted

Question 11

The awards and rewards are exempted from Income Tax if .

A)payment is in cash
B)payment is in kind
C)payment is in cash or in kind
D)none of the above

Question 12

Income received in India whether occurred in India or outside India, the tax incidence in case of resident is .

A)taxable as per slabs
B)exempted from tax
C)partly exempted
D)none of the above

Question 13

Income received in India whether occurred in India or outside India, the tax incidence in case of resident but not ordinarily resident is .

A)taxable as per slabs
B)exempted from tax
C)partly exempted
D)none of the above

Question 14

Income received in India whether occurred in India or outside India, the tax incidence in case of non-resident is .

A)taxable as per slabs
B)exempted from slab
C)partly exempted
D)none of the above

Question 15

Income deemed to be received in India whether occurred in India or outside India, the tax incidence in case of resident is .

A)taxable as per slabs
B)exempted from slab
C)partly exempted
D)none of the above

Question 16

The income received and accrued outside India from a business controlled or profession set up in India, the tax incidence in case of resident is .

A)taxable
B)non-taxable
C)partly taxable
D)none of the above

Question 17

The income received and accrued outside India from a business controlled or profession set up in India, the tax incidence in case of non-resident is .

A)taxable
B)non-taxable
C)partly taxable
D)none of the above

Question 18

The tax incidence for company or firm in which income received in India and company is resident is .

A)taxable
B)non-taxable
C)partly taxable
D)none of the above

Question 19

The tax incidence for company or firm in which income received in India and company for non-resident is .

A)taxable
B)non-taxable
C)partly taxable
D)none of the above

Question 20

The tax incidence for company or firm in which income received outside India from a source controlled from India for resident is .

A)taxable
B)non-taxable
C)partly taxable
D)none of the above

Question 21

The tax incidence for company or firm in which income received outside India from a source controlled from India for non-resident is .

A)non-taxable
B)taxable
C)partly taxable
D)none of the above

Question 22

…………. is exempted from income tax.

A)interest from indian company
B)dividend from foreign company
C)cooperative dividend
D)dividend from indian company

Question 23

Which section of the Income Tax Act exempted incomes have been mentioned?

A)section 80c
B)section 80dd
C)section 10
D)section 2

Question 24

……………….of Income Tax Act is related to residential status.

A)section 2
B)section 6
C)section 5
D)section 4

Question 25

Resident of India includes .

A)ordinarily resident
B)not ordinarily resident
C)nri
D)both (a) and (b)

Question 26

The Company may have the residential status as .

A)resident or non-resident
B)not ordinarily resident
C)non-resident
D)resident

Question 27

The number of income source for a person are .

A)one head
B)two heads
C)various heads
D)any of the above

Question 28

The sum of various heads is called as .

A)taxable income
B)total income
C)gross total income
D)adjusted income

Question 29

The agricultural income includes .

A)income from sale of crop
B)income from preparation of crop
C)income from nursery
D)all of the above

Question 30

…………..comes under agricultural income.

A)tea garden
B)commodity farming
C)all of the above
D)none of the above

Question 31

If the agricultural income is ……….. then the agricultural income is considered for calculating tax.

A)more than ` 5,000 and total income is exceeding exemption limit
B)more than ` 5,000
C)more than ` 10,000
D)any amount

Question 32

The Income Tax Act, 1961 broadly covers .

A)basic charging income
B)rebates and reliefs
C)incomes exempted from income tax
D)all of the above

Question 33

The capital gain is chargeable under of Income Tax Act.

A)section 45
B)section 55
C)section 56
D)section 40

Question 34

The definition of the person includes .

A)an individual
B)a company
C)a hindu undivided family
D)all of the above

Question 35

Any rent or revenue derived from land which is situated in India and is used for agricultural purpose is .

A)partially taxable
B)fully taxable
C)exempted from tax
D)none of the above

Question 36

Residential Status of an assesses can be .

A)different for different previous year in the same assessment year
B)different for different assessment year
C)none of the above
D)all of the above

Question 37

The income of previous year is chargeable to tax in the .

A)immediately succeeding assessment year
B)same previous year
C)immediately preceding academic year
D)none of the above

Question 38

The interest on loan paid by the Government of India to a non-resident outside India is………..in India.

A)not taxable
B)partially taxable
C)taxable
D)can't say

Question 39

Basic condition will be for a person who leaves India for employment .

A)at least 182 days in india
B)at least 60 days in previous year and 365 days in preceding 4 years
C)at least 730 days in preceding 7 years
D)all of the above

Question 40

The term income includes the following types of incomes.

A)illegal
B)legal income from india only
C)legal
D)legal and illegal both

Question 41

……………is the casual income.

A)interest received
B)dividend income
C)pension received
D)winning from lotteries

Question 42

The way of tax liability by taking full advantage provided by the Act is .

A)tax management
B)tax avoidance
C)tax planning
D)tax evasion

Question 43

Mr. A, partner of M/s ABC, is assessable as .

A)firm
B)an individual
C)body of individual
D)huf