Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9

1.
Residential status of an assesses can be:

A. Different for different previous year in the same assessment year

B. Different for different assessment years

C. None of the above

D. All of the above

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2.
Match the following.

List-I List-II

a. . . . . . . . . means accumulated wealth. 1. Flow

b. Capital is . . . . . . . . 2. Capital

c. . . . . . . . . is one, which is turned over, and in the process of being turned over yields income or loss. 3. Fund

d. Revenue is . . . . . . . . 4. Circulating Capital

A. a-2, b-3, c-4, d-1

B. a-4, b-3, c-2, d-1

C. a-2, b-4, c-3, d-1

D. a-4, b-2, c-3, d-1

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3.
X purchased a land in th PY 1997-98 for Rs. 50,000. This land was sold by him during the PY 2018-19 for Rs. 8,00,000. The fair market value of this land on 1^st April 2021 was Rs. 1,20,000. It the cost inflation index for the AY 2019-20 is his capital gain for the AY 2019-20 will be

A. Rs. 4,64,000

B. Rs. 7,50,000

C. Rs. 6,80,000

D. Rs. 41,600

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4.
The house rent allowance (HRA) under the salary head of Income Tax Act is given by:

A. Section 10

B. 10(13A)

C. Section 11(13B)

D. Section 11

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5.
Which two of the following are correct about the due date of issue of the TDS certificate?
(1) Form No 16 - Annual
(2) Form No 16A - Quarterly
(3) Form No 16B - Half Yearly
(4) Form No 16C - Monthly
Choose the correct option from those below:

A. 1 and 4

B. 1 and 3

C. 1 and 2

D. 3 and 4

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6.
Objective of tax planning is

A. avoidance of tax

B. minimise of tax liability

C. payment of tax at time

D. different of tax

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7.
Which of the following sections provide for penalty for failure to obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be)?

A. 272BB(1A)

B. 272BB(1)

C. 271H

D. 271C

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8.
A tax is meant for welfare of community. Which kind of payment is it to the government by the subject?

A. Compulsory

B. Optional

C. Both A and B

D. None of the above

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9.
If the coffee is grown and cured, then the tax liability on the agricultural income is:

A. 75% agricultural and 25% non-agricultural Income

B. 65% agricultural and 35% non-agricultural Income

C. 55% agricultural and 45% non-agricultural Income

D. 35% agricultural and 65% non-agricultural income

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10.
The value of free accommodation in Delhi provided by employer in the private sector is:

A. 10% of salary

B. 15% of salary

C. 20% of salary

D. 25% of salary

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. . . . . . . . . means accumulated wealth.	1. Flow
b. Capital is . . . . . . . .	2. Capital
c. . . . . . . . . is one, which is turned over, and in the process of being turned over yields income or loss.	3. Fund
d. Revenue is . . . . . . . .	4. Circulating Capital

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

1. Residential status of an assesses can be:

Answer & Solution

Answer & Solution

3. X purchased a land in th PY 1997-98 for Rs. 50,000. This land was sold by him during the PY 2018-19 for Rs. 8,00,000. The fair market value of this land on 1st April 2021 was Rs. 1,20,000. It the cost inflation index for the AY 2019-20 is his capital gain for the AY 2019-20 will be

Answer & Solution

4. The house rent allowance (HRA) under the salary head of Income Tax Act is given by:

Answer & Solution

5. Which two of the following are correct about the due date of issue of the TDS certificate? (1) Form No 16 - Annual (2) Form No 16A - Quarterly (3) Form No 16B - Half Yearly (4) Form No 16C - Monthly Choose the correct option from those below:

Answer & Solution

6. Objective of tax planning is

Answer & Solution

7. Which of the following sections provide for penalty for failure to obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be)?

Answer & Solution

8. A tax is meant for welfare of community. Which kind of payment is it to the government by the subject?

Answer & Solution

9. If the coffee is grown and cured, then the tax liability on the agricultural income is:

Answer & Solution

10. The value of free accommodation in Delhi provided by employer in the private sector is:

Answer & Solution

Read More Section(Income Tax and Corporate Tax)

1.
Residential status of an assesses can be:

3.
X purchased a land in th PY 1997-98 for Rs. 50,000. This land was sold by him during the PY 2018-19 for Rs. 8,00,000. The fair market value of this land on 1^st April 2021 was Rs. 1,20,000. It the cost inflation index for the AY 2019-20 is his capital gain for the AY 2019-20 will be

4.
The house rent allowance (HRA) under the salary head of Income Tax Act is given by:

5.
Which two of the following are correct about the due date of issue of the TDS certificate?
(1) Form No 16 - Annual
(2) Form No 16A - Quarterly
(3) Form No 16B - Half Yearly
(4) Form No 16C - Monthly
Choose the correct option from those below:

6.
Objective of tax planning is

7.
Which of the following sections provide for penalty for failure to obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be)?

8.
A tax is meant for welfare of community. Which kind of payment is it to the government by the subject?

9.
If the coffee is grown and cured, then the tax liability on the agricultural income is:

10.
The value of free accommodation in Delhi provided by employer in the private sector is: