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Multiple Choice Questions and Answers on Income Tax Rate & Basic Concept of Income Tax | Income Tax Rate & Basic Concept of Income Tax MCQs

(1) Under Income Tax Act partnership firm includes -
[A] Limited liability partnership
[B] Limited liability company
[C] One person company
[D] Association of person
Answer: Limited liability partnership
(2) A.O.P should consist of :
[A] Individual only
[B] Persons other than individual only
[C] Both individual and non individual persons.
[D] None of these
Answer: Both individual and non individual persons.

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(3) Body of individual should consist of :
[A] Individual only
[B] Persons other than individual only
[C] Both individual and non individual persons.
[D] None of these
Answer: Individual only
(4) A person becomes a member of HUF by -
[A] Contract
[B] Agreement
[C] Popularity
[D] Status
Answer: Status
(5) In order to be assessed as HUF there should be -
[A] Partnership
[B] Co-Partnership
[C] Co -Parcenership
[D] Co-Ownership
Answer: Co -Parcenership
(6) Section __ of the Income-tax Act, 1961 defines the term 'person' -
[A] 4
[B] 2(31)
[C] 5
[D] 2(32)
Answer: 2(31)
(7) --------------must be one in which two or more persons join in for a common purpose or common action with the object of earning income or profits or gains.
[A] Partnership
[B] Co-ownership
[C] Body of Individuals
[D] Association of Persons
Answer: Association of Persons
(8) Which amongst the following is Artificial Juridical Person?
[A] Corporation
[B] Local Fund
[C] District Board
[D] None of these
Answer: Corporation
(9) Previous year is defined in -
[A] Section 2(34)
[B] Section 2(9)
[C] Section 3
[D] Section 4
Answer: Section 3
(10) Financial year means a year commencing on –
[A] 31st March of the period
[B] 1" day of the April
[C] Mid of the year
[D] None of these
Answer: 1" day of the April

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