Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations

Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations | Commerce

Income Tax and Corporate Tax MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Income Tax and Corporate Tax MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-7 section-7

Under Income Tax Act, 1961, which of the following heads 'income' is chargeable?

A) Section 15 B) Section 20 C) Section 14 D) Section 16

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Answer & Solution

Answer: Option A

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Which assesses are allowed deduction under Section 80C?

A) An individual or a HUF B) An individual and a company C) An individual; HUF or AOP/BOI D) An individual; HUF; AOP/BOI or a company

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Answer & Solution

Answer: Option A

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Under which of the following sections of Income Tax Act, the capital gain is chargeable?

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

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Answer & Solution

Answer: Option A

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Time limit to set-off the losses from house property is

A) 2 years B) 6 years C) 8 years D) 9 years

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Answer & Solution

Answer: Option C

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Consider the following statements.
Assertion (A): Revenue from indirect taxes was the major source of tax revenue till tax reforms were taken during nineties.
Reason (R): Traditionally India's tax regime relied heavily on indirect taxes including customs and excise.

A) Both (A) and (R) are correct, bur (R) is not the correct explanation of (A) B) (A) is correct, but (R) is not correct C) Both (A) and (R) are correct and (R) is the correct explanation of (A) D) Both (A) and (R) are incorrect

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Answer & Solution

Answer: Option C

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An individual being Indian citizen or a person of Indian origin, is resident in India if:

A) His total stay in India for 60 days or more in the relevant previous year B) His total stay in India for 182 days or more in the relevant assessment year C) His total stay in India for 182 days or more in the relevant previous year D) His total stay in India for 182 days or more in the previous year preceding the relevant previous year

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Answer & Solution

Answer: Option C

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Which of the following is non-agricultural income?

A) Income from leasing out tea estates B) Income from sale by the assessee of plants grown in pots C) Amount received in reward by a farmer for growing more crops on his field D) Income from sale of tobacco after drying it

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Answer & Solution

Answer: Option B

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Total income of an assessee is

A) gross total income B) computed by deducting from the gross total income, all deductions under Section 80C to 80U C) computed by deducting from the gross total income, all deductions permissible under Chapter VIA of the Income Tax Act D) Both B and C

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Answer & Solution

Answer: Option D

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Family pension received by legal heirs of employee is chargeable to tax under the head:

A) Income from salaries B) Income from other sources C) Capital gains D) Profits and gains of business or profession income

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Answer & Solution

Answer: Option B

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In case of an individual taxpayer, surcharge shall be levied only if the income exceeds the following amount

A) One lakh rupees B) One crore rupees C) Ten lakh rupees D) None of the above

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Answer & Solution

Answer: Option B

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