Income Tax Multiple Choice Questions (MCQs) and Answers | Income Tax Objective Questions and Answers

(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

Comment

Answer: Option [C]

(2) Unabsorbed depreciation can be carried forward for set off..............

[A] for a period of four years only.

[B] for an unlimited number of years.

[C] for a period of eight years only.

[D] for a period of eighteen years only.

Comment

Answer: Option [B]

(3) Residential status is determined for................

[A] Previous year

[B] Assessment year

[C] Accounting year

[D] Financial year.

Comment

Answer: Option [A]

(4) How many heads of income are there to compute Gross total income.

[A] Six

[B] Five

[C] Four

[D] Three

Comment

Answer: Option [B]

(5) Income Tax Act came into force on...........

[A] 01-04-1961

[B] 01-04-1962

[C] 01-04-1956

[D] 01-04-1965

Comment

Answer: Option [B]

(6) Income by way of rent of agricultural land is ..........

[A] Business income

[B] Agricultural income

[C] Income from other sources

[D] Casual income

Comment

Answer: Option [C]

(7) Income by way of rent of agricultural land is ..........

[A] A revenue receipt.

[B] A casual receipt.

[C] A capital receipt.

[D]None of these.

Comment

Answer: Option [B]

(8) 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.

Comment

Answer: Option [D]

(9) 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

Comment

Answer: Option [C]

(10) Compensation received for loss of trading asset is a..........

[A] Capital receipt

[B] Revenue receipt

[C] a casual receipt.

[D] None of the above

Comment

Answer: Option [A]

Income Tax Multiple Choice Questions (MCQs) and Answers | Income Tax Objective Questions and Answers | Income Tax Quiz

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