MCQ on Income Tax Law | Income Tax MCQs

Questions

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

View Answer

Answer:1st April, 2018 to 31st March, 2019

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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

View Answer

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)

View Answer

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

View Answer

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

View Answer

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.

View Answer

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 %

View Answer

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.

View Answer

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

View Answer

Answer:Total Income

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