Question 1

A new business was set up on 15-11-2017 and it commences its business from 1-12-2017. The first previous year in this case shall be _______________________

Accepted Answer

A)  15-11-2017 to 31-3-2018
B)  1-12-2017 to 31-3-2018
C)  2017-18
D)  2019-20 A

Question 2

Income which accrue in India from a business controlled from India _________________

Accepted Answer

A)  Is taxable only for resident
B)  Is not taxable only for non - resident
C)  Is taxable for resident, a resident but only ordinarily resident non- resident
D)  Is exempt in all cases B

Question 3

Body of individual should consist of ____________

Accepted Answer

A)  Individual only
B)  Persons other than individual only
C)  A local authority
D)  Income of all persons A

Question 4

In which year is the income tax liability computed_______________

Accepted Answer

A)  Assessment Year
B)  Previous Year
C)  Financial Year
D)  Calendar Year

Question 5

A company joining with two other Companies in a Joint venture is treated under Income tax laws as __________.

Accepted Answer

A)  A Company
B)  An Association of persons
C)  A body of individuals
D)  An artificial juridical person

Question 6

Income received in India ____________

Accepted Answer

A)  Is taxable only for Resident
B)  Is not taxable only for a non -resident
C)  Is taxable for a resident, a resident but only ordinarily resident non -resident
D)  Is exempt in all cases.

Question 7

Whose income is chargeable to Income tax _______________

Accepted Answer

A)  Income of only Indian Citizen
B)  Income of only residents
C)  Income of all persons
D)  Income of only assesses

Question 8

Mr. Joshi runs a chemist's shop, accounting year of which is the financial year. On November -9,2017. He sets up a chemical factory. What is the previous year for the assessment year 2018-19 for the above two businesses___________________

Accepted Answer

A)  1-4-2017 to 31-3-2018 for both
B)  9-11-2017 to 31-3-2018 for both
C)  1-1-2017 to 31-12-2017 for both
D)  Shop: 1-4-2017 to 31-3-2018 and factory 9-11-2017 to 31-3-2018

Question 9

Previous year means the _____________

Accepted Answer

A)  Financial year immediately after the assessment year
B)  The period of twelve months commencing on the first day of April every year
C)  Financial year immediately preceding the assessment year.
D)  Calendar year immediately preceding the assessment year

Question 10

Assessment year is the period of twelve months commencing on ________________

Accepted Answer

A)  The first day of March every year
B)  The first day of January every year
C)  Financial year immediately preceding the previous year.
D)  The first day of April every year

Question 11

M,who is entitled to a salary of Rs.20,000 p.m took an advance of Rs.50,000 against the salary in the month of March ,2018. The gross salary of m for assessment year 2018-19 shall be _________

Accepted Answer

A)  2,90,000
B)  2,40,000
C)  50,000
D)  60,000

Question 12

Out of the following which is a revenue receipt _______________-

Accepted Answer

A)  Premium received on issue of new shares.
B)  Annuity received from former employer
C)  Interest from investments
D)  New Shares

Question 13

M.a chartered accountant is employed with M ltd, as an internal auditor and requests the employer to call the remuneration as internal audit fee.M. shall be chargeable to tax for such fees under the head __________

Accepted Answer

A)  Income from salaries
B)  Profit and gains from business and profession
C)  Income from other sources
D)  None of these

Question 14

Income which accrue or arise outside India and also received outside India is taxable in case of __________

Accepted Answer

A)  Resident only
B)  Non- resident in India
C)  Not ordinarily resident in India
D)  Resident

Question 15

Salary of M becomes due on 1st of next month and it is paid on 7th of that month. For the assessment year 2018-19, the salary of M shall be taken from ________

Accepted Answer

A)  April 2017 to March 2018
B)  March 2017 to February 2018
C)  April 2018 to March 2019
D)  April 2019 to March 2020

Question 16

Residential status is to be determined for ____________

Accepted Answer

A)  Previous year
B)  Assessment year
C)  Accounting year
D)  Resident

Question 17

Income accruing in Japan and received there is taxable in India in the case of ______________

Accepted Answer

A)  Resident and ordinarily resident only
B)  A resident but not ordinarily resident
C)  A non -resident
D)  Resident

Question 18

Income which accrue or arise outside India but are received directly into India are taxable in case of ________

Accepted Answer

A)  Resident only
B)  Both ordinarily resident and NOR
C)  Non -resident
D)  All these assesses

Question 19

One who is liable to pay the income tax__________________

Accepted Answer

A)  Indian Citizen
B)  Resident in India
C)  Any Person
D)  An Assessee

Question 20

Income earned during what period is taxed____________

Accepted Answer