Top 150+ Solved Tax Planning and Management MCQ Questions Answer
Q. The Income Tax Act came into force from _______________
a. 1st March 1971
b. 1st April 1971
c. 1st March 1961
d. 1st April 1962
Q. An assessee paid insurance premium against risk of damage or destruction of stocks or stores used for the purposes of his business or profession. Such expenditure shall be considered as
a. Revenue expenditure
b. Capital expenditure
c. Deferred revenue expenditure
d. Illegal expenditure
Q. _______________ is the casual income.
a. Interest received
b. Dividend income
c. Pension received
d. Winning from lotteries
Q. salary of Member of Parliament is taxable under the head _______________
a. Salary
b. Income from Other Sources
c. Income from Business
d. All of the above
Q. The salary, remuneration or compensation received by the partners is taxable under the head -----
a. Income from Other Sources
b. Income from Business
c. Salary
d. None of the above
Q. In accordance with the provisions of Section 17(1) of Income Tax Act, 1961, the term salaryincludes _______________
a. Any annuity or pension
b. Any gratuity
c. Any fees, commission, perquisite or profits in lieu of or in addition to any salary orwages
d. All of the above
Q. Under the Income-tax Act, 1961, 'notional profit' from speculative business is –
a. Taxable under the head 'income from profits and gains of business and profession
b. Taxable under the head 'income from other ' sources'
c. Taxable either as income from other sources or as income from profits and gains of business and profession
d. Not taxable.
Q. The books of accounts are to be kept and maintained for a period of how many years from theend of the relevant assessment year.
a. 6 years
b. 5 years
c. 8 years
d. Unlimited period
Q. Alternate Minimum Tax shall not be applicable to a non-corporate assessee who has claimed anydeduction under:
a. Sections 80-IA to 80RRB
b. section 80P
c. Section 10AA
d. Section 35AD
Q. Under the Income-tax Act, 1961, interest on capital received by a partner from a partnership firmis chargeable under the head
a. Profits and gains of business or profession
b. Income from other sources
c. Capital gains
d. None of the above
Q. The employer made a contribution of Rs 25,000 to recognized provident fund for the previousyear 2018-19. Such payment was made on 12th March, 2019. Such expenditure shall be considered as
a. Revenue expenditure
b. Capital expenditure
c. Deferred revenue expenditure
d. None of the above
Q. Income tax rates are fixed in……………..
a. Income tax Act
b. Finance Act
c. Income tax rules
d. Finance rules
Q. Section 2(9) of Income tax deals with…………..
a. Person
b. Assessee
c. Previous Year
d. Assessment Year
Q. CBDT stands for …………………………..
a. Central Bureau of Direct Taxes
b. Central Board of Direct Taxes
c. Citizen’s Board of Direct Taxes
d. Citizen’s Bureau of Direct Taxes