Deck 1: Income Tax: Important Concepts and Definitions

Question 1

Income tax Act extends to ____________

A)Whole of India
B)Whole of India except Jammu & Kashmir
C)Whole of Maharashtra Only
D)Madhya Pradesh

Answer 1

Whole of India

Question 2

Out of the following which is a revenue receipt _______________-

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

Answer 2

Interest from investments

Question 3

Body of individual should consist of ____________

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

Answer 3

Individual only

Question 4

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 _______________________

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

Question 5

Shivaji University is assessable under the Income Tax Act as _______________.

A)An Individual
B)An artificial Juridical Person
C)A local Authority
D)Person other than Individual

Question 6

In which year is the income tax liability computed_______________

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

Question 7

Income earned during what period is taxed____________

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

Question 8

Whose income is chargeable to Income tax _______________

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

Question 9

One who is liable to pay the income tax__________________

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

Question 10

Assessment year is the period of twelve months commencing on ________________

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

Previous year means the _____________

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 12

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___________________

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 13

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

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

Question 14

Residential status is to be determined for ____________

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

Question 15

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

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

Question 16

Total income of person is determined on the basis of his ________________

A)Residential Status in India
B)Citizenship in India
C)Citizen
D)Non -resident

Question 17

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

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

Question 18

Income received in India ____________

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 19

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

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

Question 20

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

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

Question 21

Mr. Manmohan Sharma goes out to India every year for 274 days. For the assessment year 2018 -19, he is ____________________

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

Question 22

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 __________

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

Question 23

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 _________

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

Question 24

M, who is entitled to salary of Rs.12,000 p.m. took advantage salary from his employer for the month of March, 2018 on 31-3-2018.The gross salary of M for assessment year 2018-19 shall__________

A)1,44,000
B)1,68,000
C)Rs.24,000
D)2,90,000

Question 25

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 ________

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