Top 25 MCQs for Basic Income Tax concept
Q1. Income Tax is imposed by .
(a) State Government (b) Central Government
(c) Both of the above (d) Constitution of India
Q2. Parliament has the power to levy tax on incomes other
than .
(a) Exempt Incomes (b) Income of poor people
(c) Agricultural Income (d) All incomes aretaxable
Q3. Which Entry of Union List gives the power to
Parliament to levy tax on incomes?
(a) Entry 81 of List I to Seventh schedule
(b) Entry 81 of List II to Seventh schedule
(c) Entry 82 of List I to Seventh schedule
(d) Entry 82 of List II to Seventh schedule
Q4. Highest Administrative Authority for Income Tax in
India is .
a) Finance Minister (b) CBDT
(c) President of India (d) Director of Income Tax
Q5. Income-tax Act, 1961 applies to
(a) Whole of India (b) Whole of India excluding J&K
(c) Maharashtra (d) All of the above
Q6. The basic source of income-tax law is .
(a) Income-tax Act, 1961 (b) Income-tax Rules, 1962
(c) Circulars/Notifications (d) Judgments of Courts
Q7. Income Tax Act came into force on .
(a) 1.4.1961 (b) 1.4.1962 (c) 1.4.1956 (d) 1.4.1965
Q8. Income Tax Act contains sections
(a) XIV (b) 297 (c) XV (d) 298
Q9. Income Tax Act contains schedules.
(a) XIV (b) 297 (c) XV (d) 298
Q10. Proviso gives to the main provision. Q24. Body of Individuals consists of.
(a) Clarification (b) Exceptions
(c) Proper Administration (d) None of these
(a) Individuals (only) (b) Company
(c) Any Person other than (a) (d) Any kind of person
Q11. Explanation gives to the main provision. Q25. As per Section 2(31), the following is not included in
(a) Clarification (b) Exceptions
(c) Proper Administration (d) None of these
Q12. Part 1 of schedule I ofthe FinanceAct, 2018 gives rate
of income tax for AY .
(a) 2018-19 (b) 2019-20 (c) 2017-18 (d) 2016-17
Q13. Finance Bill becomes the Finance Act when it is
passed by .
(a) Lok Sabha (b) Both Lok Sabha & Rajya Sabha
(c) Both House of Parliament & signed by President.
(d) Both House of Parliament & signed by Prime Minister.
Q14. Part 2 of schedule of I of the Finance Act, 2018 gives
rate of tax deductible of source for the PY .
(a) 2018-19 (b) 2019-20 (c) 2017-18 (d) 2016-17
Q15. Part 3 of schedule I of The Finance Act, 2018 gives
rate of advance tax payable for the AY .
(a) 2018-19 (b) 2019-20 (c) 2017-18 (d) 2016-17
Q16. Notifications issued by CBDT are binding on .
(a) Assessee (b) Income TaxAuthority
(c) Both of above (d) None of the above
Q17. Circulars issued by CBDT are binding on .
(a) Assessee (b) Income TaxAuthority
(c) Both of above (d) None of the above
Q18. Circulars are issued by the CBDT to the scope &
meaning of the provisions of Law.
(a) Clarify the doubts (b) Exceptions
(c) Proper Administration (d) None of these
Q19. As per Section 2(7),“Assesses” means a person
(a) By whom any tax or other sum of money is payable
(b) Against whom proceeding has been taken under the act
(c) A person deemed to be assessee in default
(d) All of the above
Q20. A person includes .
(a) Individual & HUF (b) Firm & Company
(c) AOP/BOI, LA, Every AJP (d) All of the above.
Q21. Every assessee is a person, & every person is .
(a) Also an assessee (b) Need not be an assessee
Q22. The term “Person” includes .
(a) Registered Firm (b) Unregistered Firm
(c) Both of (a) & (b) (d) None of (a) or (b)
Q23. Association of persons consists of .
(a) Individuals (only) (b) Company
(c) Any Person other than (a) (d) Any kind of person
Q24. Body of Individuals consists of.
(a) Clarification (b) Exceptions
(c) Proper Administration (d) None of these
(a) Individuals (only) (b) Company
(c) Any Person other than (a) (d) Any kind of person
Q25. As per Section 2(31), the following is not included in
the definition of ‘person’
.(a) Individual (b) HUF (c) Company (d) Minor
Q26. A municipal corporation legally entitled to manage &
control a municipal fund is taxable in the status of :
(a) Individual (b) AOP (c) LA (d) AJP
Q27. A & B are legal heirs of C. After death of C, A & B carry
on his business without entering into a partnership. What
is their Status?
(a) Company (b) LLP (c) AOP (d) Firm
Q28. As per sec. 2(24) definition of ‘income’ is:
(a) Inclusive (b) Exhaustive (c) Exclusive (d) Descriptive
1: d 2: c 3: c 4: b 5: a 6: a 7: b 8: d 9: a 10: b 11: a 12: b 13: c 14: a
15: b 16: c 17: b 18: a 19: d 20: d 21: b 22: c 23: d 24: a 25: d 26: c 27: c 28: a
