Top 80+ Solved Direct Tax MCQ Questions Answer
Q. Income tax Act extends to ____________
a. Whole of India
b. Whole of India except Jammu & Kashmir
c. Whole of Maharashtra Only
d. Madhya Pradesh
Q. Out of the following which is a revenue receipt _______________-
a. Premium received on issue of new shares.
b. Annuity received from former employer
c. Interest from investments
d. New Shares
Q. Body of individual should consist of ____________
a. Individual only
b. Persons other than individual only
c. A local authority
d. Income of all persons
Q. A new business was set up on 15-11-2017 and it commences its business from 1-12-2017. The firstprevious year in this case shall be _______________________
a. 15-11-2017 to 31-3-2018
b. 1-12-2017 to 31-3-2018
c. 2017-18
d. 2019-20
Q. Shivaji University is assessable under the Income Tax Act as _______________.
a. An Individual
b. An artificial Juridical Person
c. A local Authority
d. Person other than Individual
Q. In which year is the income tax liability computed_______________
a. Assessment Year
b. Previous Year
c. Financial Year
d. Calendar Year
Q. Income earned during what period is taxed____________
a. Assessment Year
b. Previous Year
c. Financial Year
d. Calendar Year
Q. Whose income is chargeable to Income tax _______________
a. Income of only Indian Citizen
b. Income of only residents
c. Income of all persons
d. Income of only assesses
Q. One who is liable to pay the income tax__________________
a. Indian Citizen
b. Resident in India
c. Any Person
d. An Assessee
Q. Assessment year is the period of twelve months commencing on ________________
a. The first day of March every year
b. The first day of January every year
c. Financial year immediately preceding the previous year.
d. The first day of April every year
Q. Previous year means the _____________
a. Financial year immediately after the assessment year
b. The period of twelve months commencing on the first day of April every year
c. Financial year immediately preceding the assessment year.
d. Calendar year immediately preceding the assessment year
Q. Mr. Joshi runs a chemist`s shop, accounting year of which is the financial year. On November -9,2017.He sets up a chemical factory. What is the previous year for the assessment year 2018-19 for the above two businesses___________________
a. 1-4-2017 to 31-3-2018 for both
b. 9-11-2017 to 31-3-2018 for both
c. 1-1-2017 to 31-12-2017 for both
d. Shop: 1-4-2017 to 31-3-2018 and factory 9-11-2017 to 31-3-2018
Q. A company joining with two other Companies in a Joint venture is treated under Income tax laws as __________.
a. A Company
b. An Association of persons
c. A body of individuals
d. An artificial juridical person
Q. Residential status is to be determined for ____________
a. Previous year
b. Assessment year
c. Accounting year
d. Resident
Q. Income which accrue or arise outside India but are received directly into India are taxable in case of________
a. Resident only
b. Both ordinarily resident and NOR
c. Non -resident
d. All these assesses