Top 150+ Solved Income Tax MCQ Questions Answer
Q. 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
Q. 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.
Q. Residential status is determined for......................
a. previous year
b. assessment year
c. accounting year
d. financial year.
Q. How many heads of income are there to compute Gross total income.
a. six.
b. five.
c. four.
d. three.
Q. Income Tax Act came into force on............................
a. 01-04-1961
b. 01-04-1962
c. 01-04-1956
d. 01-04-1965
Q. Income by way of rent of agricultural land is ..............
a. business income
b. income from other sources.
c. agricultural income
d. casual income
Q. Receipt of amount on maturity of LIC Policy is.............................
a. a revenue receipt.
b. a capital receipt.
c. a casual receipt.
d. none of these.
Q. 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.
Q. Compensation for cancellation of a licence by the government resulting in cessation of businessis...................................
a. a casual receipt.
b. a capital receipt.
c. a revenue receipt.
d. none of the above.
Q. Compensation received for loss of trading asset is a....................
a. capital receipt.
b. revenue receipt.
c. a casual receipt.
d. none of these.
Q. 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.
Q. 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
Q. Loss due to fire of hired machinery is.............................
a. capital loss.
b. revenue loss.
c. capital expenditure
d. none of the above.
Q. Embezzlement of cash by a cashier is.................
a. a revenue loss.
b. a capital loss.
c. a casual loss.
d. none of these.
Q. Who among the following may be “not ordinarily resident”
a. partnership firm.
b. company.
c. association of persons.
d. hindu undivided family.