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

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

Answer: Option [C]
2 Unabsorbed depreciation can be carried forward for set off..............
A for a period of four years only.
Bfor an unlimited number of years.
C for a period of eight years only.
Dfor a period of eighteen years only.

Answer: Option [C]
3 Residential status is determined for................
A Previous year
B Assessment year
C Accounting year
D Financial year.

Answer: Option [A]
4 How many heads of income are there to compute Gross total income.
A Six
B Five
C Four
D Three

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

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

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.
DNone of these.

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.
DGoods sold for cash.

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

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

Answer: Option [A]
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