Question 1

As per the definition of Income, the income includes the following .

Accepted Answer

A) profits and gains 
B) dividend declared 
C) voluntary contribution received by a trust created 
D) all of the above

Question 2

The tax incidence for company or firm in which income received outside India from a source controlled from India for non-resident is .

Accepted Answer

A) non-taxable 
B) taxable 
C) partly taxable 
D) none of the above

Question 3

Basic condition will be for a person who leaves India for employment .

Accepted Answer

A) at least 182 days in india 
B) at least 60 days in previous year and 365 days in preceding 4 years 
C) at least 730 days in preceding 7 years 
D) all of the above

Question 4

The sum of various heads is called as .

Accepted Answer

A) taxable income 
B) total income 
C) gross total income 
D) adjusted income

Question 5

Income received in India whether occurred in India or outside India, the tax incidence in case of resident but not ordinarily resident is .

Accepted Answer

A) taxable as per slabs 
B) exempted from tax 
C) partly exempted 
D) none of the above

Question 6

The way of tax liability by taking full advantage provided by the Act is .

Accepted Answer

A) tax management 
B) tax avoidance 
C) tax planning 
D) tax evasion

Question 7

…………. is exempted from income tax.

Accepted Answer

A) interest from indian company 
B) dividend from foreign company 
C) cooperative dividend 
D) dividend from indian company

Question 8

The definition of the person includes .

Accepted Answer

A) an individual 
B) a company 
C) a hindu undivided family 
D) all of the above

Question 9

Residential Status of an assesses can be .

Accepted Answer

A) different for different previous year in the same assessment year 
B) different for different assessment year 
C) none of the above 
D) all of the above

Question 10

Resident of India includes .

Accepted Answer

A) ordinarily resident 
B) not ordinarily resident 
C) nri 
D) both (a) and (b)

Question 11

The Company may have the residential status as .

Accepted Answer

A) resident or non-resident 
B) not ordinarily resident 
C) non-resident 
D) resident

Question 12

Income tax is collected on all types of income except .

Accepted Answer

A) agricultural income 
B) industrial income 
C) capital gain 
D) household property

Question 13

The income received and accrued outside India from a business controlled or profession set up in India, the tax incidence in case of non-resident is .

Accepted Answer

A) taxable 
B) non-taxable 
C) partly taxable 
D) none of the above

Question 14

The term income includes the following types of incomes.

Accepted Answer

A) illegal 
B) legal income from india only 
C) legal 
D) legal and illegal both

Question 15

Income deemed to be received in India whether occurred in India or outside India, the tax incidence in case of resident is .

Accepted Answer

A) taxable as per slabs 
B) exempted from slab 
C) partly exempted 
D) none of the above

Question 16

Previous year means the financial year immediately preceding the .

Accepted Answer

A) accounting year 
B) assessment year 
C) all of the above 
D) none of the above

Question 17

The capital gain is chargeable under of Income Tax Act.

Accepted Answer

A) section 45 
B) section 55 
C) section 56 
D) section 40

Question 18

Agricultural income is completely exempted for assessment year

Accepted Answer

A) 1974-75 
B) 1985-86 
C) 1975-76 
D) 1978-79

Question 19

The tax payer liability is determined with reference to his or her .

Accepted Answer

A) financial status 
B) residential status 
C) all of the above 
D) none of the above

Question 20

The number of income source for a person are .

Accepted Answer

A) one head 
B) two heads 
C) various heads 
D) any of the above

Exam 1: Income Tax Act 1961