Deck 1: Income Tax Act

Question 1

Under the income- tax act, the incidence of taxation depends on......................

A)the citizenship of the tax-payer.
B)the age of the taxpayer
C)the residential status of the tax-payer.
D)the gender of the taxpayer

Answer 1

the residential status of the tax-payer.

Question 2

Unabsorbed depreciation can be carried forward for set off.......................

A)for a period of four years only.
B)for a period of eight years only.
C)for an unlimited number of years.
D)for a period of eighteen years only.

Answer 2

for an unlimited number of years.

Question 3

Income Tax Act came into force on............................

A)01-04-1961
B)01-04-1962
C)01-04-1956
D)01-04-1965

Answer 3

01-04-1962

Question 4

Which of the following is not a capital receipt?

A)'salami' for settlement of tenancy.
B)insurance claim received on machinery lost by fire.
C)lump sum received on sale of shares.
D)goods sold for cash.

Question 5

Compensation for cancellation of a licence by the government resulting in cessation of business is...................................

A)a casual receipt.
B)a capital receipt.
C)a revenue receipt.
D)none of the above.

Question 6

Compensation received for loss of trading asset is a....................

A)capital receipt.
B)revenue receipt.
C)a casual receipt.
D)none of these.

Question 7

Salary received by the manager of an agricultural farm is .................................

A)an agricultural income.
B)a salary income.
C)a business income.
D)a capital income.

Question 8

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

A)90 days
B)162 days
C)180 days
D)182 days

Question 9

Loss due to fire of hired machinery is.............................

A)capital loss.
B)revenue loss.
C)capital expenditure
D)none of the above.

Question 10

Embezzlement of cash by a cashier is.................

A)a revenue loss.
B)a capital loss.
C)a casual loss.
D)none of these.

Question 11

Who among the following may be "not ordinarily resident"

A)partnership firm.
B)company.
C)association of persons.
D)hindu undivided family.

Question 12

Agricultural income in Pakistan is assessable for........................

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

Question 13

Section.................. of the Income Tax Act deals with exempted incomes.

A)2
B)7
C)10
D)80

Question 14

Gratuity received by a government employee is .......................

A)fully exempted
B)partly exempted
C)fully taxable
D)exempted up to rs:1,00,000

Question 15

Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profit in any accounting year can be carried forward for.....................

A)16
B)8
C)indefinite
D)12

Question 16

__________ is / are empowered to levy and collect income tax.

A)state governments
B)central government
C)rbi
D)local self government department

Question 17

In which year Income Tax was levied in India for the first time ?

A)1960
B)1961
C)1860
D)1857

Question 18

CBDT is control by ______________.

A)central government
B)state government
C)both (a) and (b)
D)none of this above

Question 19

previous year started from ______________.

A)april
B)march
C)january
D)september