GkSeries.com

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

Download PDF

Free download in PDF Tax Rate & Basic Concept of Income Tax Multiple Choice Questions and Answers for competitive exams. These short objective type questions with answers are very important for Board exams as well as competitive exams like UPSC, NDA, SSC etc. These short solved questions or quizzes are provided by Gkseries./p>

Go To Download Page
(1) First previous year in case of a business/profession newly set up on 31-3-2019 would:
[A] Start from 1st April, 2018 and end on 31st March 2019
[B] Start from 31" March, 2019 and will end on 31st March, 2019
[C] Start from 1st January, 2019 and end on 31st December, 2019
[D] Start from 1st January, 2019 and will end on 31st March,2019
Answer: Start from 31" March, 2019 and will end on 31st March, 2019
(2) Dr. Ashok commenced medical practice on 1st September, 2018. The previous year for the profession for the assessment year 2019-20 would be _
[A] 1st April, 2018 to 31st March, 2019
[B] 1st September, 2018 to 31st March, 2019
[C] 1st June, 2018 to 31st March, 2019
[D] 1st September, 2018 to 31st January, 2019
Answer: 1st April, 2018 to 31st March, 2019

DOWNLOAD CURRENT AFFAIRS PDF FROM APP

(3) Income of business commenced on 1st March, 2019 will be assessed in assessment year-
[A] 2018-19
[B] 2019-20
[C] 2020-21
[D] 2021-22
Answer: 2019-20
(4) A person follows calendar year for accounting. For taxation, he has to follow:
[A] Calendar year only :1stJanuary to 31st December
[B] Financial year only :1st April to 31st March
[C] Any of the Calendar or Financial year as per his choice
[D] He will to follow extended year from 1st January to next 31st March (a period of 15 months)
Answer: Financial year only :1st April to 31st March
(5) In which of the following cases, income of previous year is assessable in the previous year itself:
[A] Assessment of persons leaving India
[B] A person in employment in India
[C] A person who is into illegal business
[D] A person who is running a charitable institution
Answer: Assessment of persons leaving India
(6) In which of the following cases, Assessing Officer has the discretion to assess the income of previous year in previous year itself or in the subsequent assessment year:
[A] Shipping business of non-residents
[B] Assessment of Association of Persons or Body of Individuals formed for a particular event or purpose
[C] Assessment of persons likely to transfer property to avoid tax
[D] Discontinued business
Answer: Discontinued business
(7) In case of non-residents engaged in shipping business in India income earned during the financial year is
[A] Taxable in India the same financial year
[B] Taxable in India the relevant assessment year
[C] Not taxable in India in the same financial year
[D] Not taxable in India.
Answer: Taxable in India the same financial year
(8) In case of non-residents engaged in shipping business _____________ freight paid or payable to the owner or charterer shall be deemed to be total income.
[A] 5%
[B] 10%
[C] 7.5 %
[D] 20 %
Answer: 7.5 %
(9) Which amongst the following is an exception to the previous year rule?
[A] Business or Profession newly set up.
[B] Where a source of income newly set up.
[C] Non-resident engaged in shipping business
[D] None of the above.
Answer: Non-resident engaged in shipping business
(10) Income Tax is levied on the ___________ of a person.
[A] Total Income
[B] Total Income-Debt
[C] Gross Total Income
[D] Net Income-Debt Perquisites
Answer: Total Income

Please share this page

Click Here to Read more questions

Teacher Eligibility Test