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.
Tax free incomes are mentioned in which Section of the income tax act?

A. Section 80

B. Section 88

C. Section 10

D. Section 2

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2.
If a money gift is received from which of the following is not taxable under any head?

A. From any relatives

B. On the occasion of the marriage of the individual

C. Under a will or by way of inheritance

D. All of the above

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3.
Which of the following statements are correct?
1. 30% depreciation is allowed on neon sign board.
2. Animals are used for business purposes. Hence, depreciation shall be allowed on them.
3. For the purpose of taxation, there should not be and indeed there is no distinction made between legal and illegal business.
Select the correct answer using the options given below

A. Only 1

B. Both 1 and 2

C. Only 3

D. Both 1 and 3

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4.
Which of the following is the type of assessment?

A. Self-assessment

B. Regular assessment

C. Best judgement assessment

D. All of the above

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5.
According to Section 2(7) of Income Tax Act 'Assessee' means a person:

A. By whom any tax or other sum of money is payable

B. By whom any proceeding under the Act has been taken

C. Who is deemed to be an assessee in default under any provision of this Act

D. All of the above

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6.
Match the items of the List-I with those of the List-II and indicate the correct answer:

List-I List-II

a. Residential status of an individual 1. Section 10(13A)

b. Agricultural income 2. Section 10(10)

c. House rent allowance 3. Section 6

d. Gratuity 4. Section 10(1)

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

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

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

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

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7.
Which form is required to be filed in for applying for TAN?

A. Form 49B

B. Form 49C

C. A and B

D. None of the above

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8.
Which of the following statement/s is/are true?

A. The return of income can be filed with the Income tax Department in electronic mode only

B. A company can file its return electronically without digital signature

C. Both A and B

D. None of the above

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9.
If any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1^st day of April, 2006 but before 1^st of October 2009, the whole sum is taxable under the head:

A. Income from Other Sources

B. Income from Business and Profession

C. Income from Capital Gain

D. None of the above

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10.
Tax treaty is part of international law; hence its interpretation should be based on a certain set of principles and rules of interpretation. Which convention is used globally for interpretation of tax treaties?

A. The UN model convention

B. The OECD model convention

C. Either A or B

D. The Vienna convention

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Residential status of an individual	1. Section 10(13A)
b. Agricultural income	2. Section 10(10)
c. House rent allowance	3. Section 6
d. Gratuity	4. Section 10(1)

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

1. Tax free incomes are mentioned in which Section of the income tax act?

Answer & Solution

2. If a money gift is received from which of the following is not taxable under any head?

Answer & Solution

Answer & Solution

4. Which of the following is the type of assessment?

Answer & Solution

5. According to Section 2(7) of Income Tax Act 'Assessee' means a person:

Answer & Solution

6. Match the items of the List-I with those of the List-II and indicate the correct answer: List-I List-II a. Residential status of an individual 1. Section 10(13A) b. Agricultural income 2. Section 10(10) c. House rent allowance 3. Section 6 d. Gratuity 4. Section 10(1)

Answer & Solution

7. Which form is required to be filed in for applying for TAN?

Answer & Solution

8. Which of the following statement/s is/are true?

Answer & Solution

Answer & Solution

10. Tax treaty is part of international law; hence its interpretation should be based on a certain set of principles and rules of interpretation. Which convention is used globally for interpretation of tax treaties?

Answer & Solution

Read More Section(Income Tax and Corporate Tax)

1.
Tax free incomes are mentioned in which Section of the income tax act?

2.
If a money gift is received from which of the following is not taxable under any head?

4.
Which of the following is the type of assessment?

5.
According to Section 2(7) of Income Tax Act 'Assessee' means a person:

6.
Match the items of the List-I with those of the List-II and indicate the correct answer:

List-I List-II

a. Residential status of an individual 1. Section 10(13A)

b. Agricultural income 2. Section 10(10)

c. House rent allowance 3. Section 6

d. Gratuity 4. Section 10(1)

7.
Which form is required to be filed in for applying for TAN?

8.
Which of the following statement/s is/are true?

10.
Tax treaty is part of international law; hence its interpretation should be based on a certain set of principles and rules of interpretation. Which convention is used globally for interpretation of tax treaties?