Business Taxation MCQs with Answers

Multiple Choice Questions 59 Pages

Savitribai Phule Pune University

Bachelor of Business Administration

SBJ

Contributed by

Sai Bhai Johal

Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

UNIT – I INCOME TAX ACT – 1961 ( Meaning, Concepts and Definition)

1. Income tax is collected on all types of income except .
(a) Agricultural Income
(b) Industrial Income
(c) Capital Gain
(d) Household Property

2. The Income Tax Act came into force from .
(a) 1st March 1971
(b) 1st April 1971
(c) 1st March 1961
(d) 1st April 1961

3. The Income Tax Act came into force all over India except .
(a) Andaman & Nicobar
(b) Maldives
(c) Jammu & Kashmir
(d) None of the above

4. As per Income Tax Act, 1961, income tax is charged on the income of
at a rates which are prescribed by the Finance Act of relevant assessment
year.
(a) Current year
(b) One year before previous year
(c) Previous year
(d) None of the above

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Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

5. The tax payer liability is determined with reference to his or her .
(a) Financial Status
(b) Residential Status
(c) All of the above
(d) None of the above

6. As per the definition of Income, the income includes the following .
(a) Profits and gains
(b) Dividend declared
(c) Voluntary contribution received by a trust created
(d) All of the above

7. The period of 12 months commencing on the first day of April every year
and ending on 31st March is called as .
(a) Previous Year
(b) Assessment year
(c) Accounting Year
(d) Financial Year

8. Previous year means the financial year immediately preceding the .
(a) Accounting Year
(b) Assessment Year
(c) All of the above
(d) None of the above

9. Under Income Tax Act, the income liable for tax is classified on the basis of
(a) Income from Salaries
(b) Income from House Property
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Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

(c) Agricultural Income
(d) Both (a) and (b)

10. Agricultural income is completely exempted for assessment year
(a) 1974-75
(b) 1985-86
(c) 1975-76
(d) 1978-79

11. The income from foreign companies by providing the services in project
connected with security of India is from tax liability.
(a) 50% exempted
(b) 20% exempted
(c) 100% exempted
(d) 55% exempted

12. An individual is said to be resident in India if .
(a) It is in India in the previous year for a period of 182 days or more
(b) It is in India for period of 60 days or more during the previous and 365 days
or more during the four years immediately proceeding previous year
(c) All of the above
(d) None of the above

13. The HUF is said to be resident in India if .
(a) The control and management of its affairs is wholly or partly situated in
India
(b) The control and management of its affairs is partially situated out of India
(c) The control and management of its affairs is wholly or partly in out of India
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Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

(d) None of the above

14. The awards and rewards are exempted from Income Tax if .
(a) Payment is in cash
(b) Payment is in kind
(c) Payment is in cash or in kind
(d) None of the above

15. Income received in India whether occurred in India or outside India, the tax
incidence in case of resident is .
(a) Taxable as per slabs
(b) Exempted from tax
(c) Partly exempted
(d) None of the above

16. Income received in India whether occurred in India or outside India, the tax
incidence in case of resident but not ordinarily resident is .
(a) Taxable as per slabs
(b) Exempted from tax
(c) Partly exempted
(d) None of the above

17. Income received in India whether occurred in India or outside India, the tax
incidence in case of non-resident is .
(a) Taxable as per slabs
(b) Exempted from slab
(c) Partly exempted
(d) None of the above
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Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

18. Income deemed to be received in India whether occurred in India or
outside India, the tax incidence in case of resident is .
(a) Taxable as per slabs
(b) Exempted from slab
(c) Partly exempted
(d) None of the above

19. The income received and accrued outside India from a business controlled
or profession set up in India, the tax incidence in case of resident is .
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above

20. 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 .
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above

21. The tax incidence for company or firm in which income received in India
and company is resident is .
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above

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Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

22. The tax incidence for company or firm in which income received in India
and company for non-resident is .
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above

23. The tax incidence for company or firm in which income received outside
India from a source controlled from India for resident is .
(a) Taxable
(b) Non-taxable
(c) Partly taxable
(d) None of the above

24. The tax incidence for company or firm in which income received outside
India from a source controlled from India for non-resident is .
(a) Non-taxable
(b) Taxable
(c) Partly taxable
(d) None of the above

25. …………. is exempted from income tax.
(a) Interest from Indian company
(b) Dividend from foreign company
(c) Cooperative dividend
(d) Dividend from Indian company

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Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

26. Which section of the Income Tax Act exempted incomes have been
mentioned?
(a) Section 80C
(b) Section 80DD
(c) Section 10
(d) Section 2

27……………….of Income Tax Act is related to residential status.
(a) Section 2
(b) Section 6
(c) Section 5
(d) Section 4

28. Resident of India includes .
(a) Ordinarily resident
(b) Not ordinarily resident
(c) NRI
(d) Both (a) and (b)

29. The Company may have the residential status as .
(a) Resident or Non-resident
(b) Not ordinarily resident
(c) Non-resident
(d) Resident

30. The meaning of exempted income is .
(a) Not included in total income
(b) Agricultural income
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Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

(c) Not taxable under income tax
(d) All of the above

31. The number of income source for a person are .
(a) One head
(b) Two heads
(c) Various heads
(d) Any of the above

32. The sum of various heads is called as .
(a) Taxable income
(b) Total income
(c) Gross total income
(d) Adjusted income

33. The agricultural income includes .
(a) Income from sale of crop
(b) Income from preparation of crop
(c) Income from nursery
(d) All of the above

34. …………..comes under agricultural income.
(a) Tea garden
(b) Commodity farming
(c) All of the above
(d) None of the above

Page 8
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

35. If the agricultural income is ……….. then the agricultural income is
considered for calculating tax.
(a) More than ` 5,000 and total income is exceeding exemption limit
(b) More than ` 5,000
(c) More than ` 10,000
(d) Any amount

36. The Income Tax Act, 1961 broadly covers .
(a) Basic charging income
(b) Rebates and reliefs
(c) Incomes exempted from income tax
(d) All of the above

37. The capital gain is chargeable under of Income Tax Act.
(a) Section 45
(b) Section 55
(c) Section 56
(d) Section 40

38. The definition of the person includes .
(a) An individual
(b) A company
(c) A Hindu undivided family
(d) All of the above

Page 9
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Business Taxation Sem- IV 2013 pattern Sub.code- 403 Class: S. Y.BBA
MULTIPLE CHOICE QUESTIONS

Prof. Shinde.P.S. www.dacc.edu.in

39. Any rent or revenue derived from land which is situated in India and is used
for agricultural purpose is .
(a) Partially taxable
(b) Fully taxable
(c) Exempted from tax
(d) None of the above

40. Residential Status of an assesses can be .
(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

41. The income of previous year is chargeable to tax in the .
(a) Immediately succeeding assessment year
(b) Same previous year
(c) Immediately preceding academic year
(d) None of the above

42. The interest on loan paid by the Government of India to a non-resident
outside India is………..in India.
(a) Not taxable
(b) Partially taxable
(c) Taxable
(d) Can’t say

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Business Taxation MCQs with Answers

Business Taxation MCQs with Answers

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