Income-tax Act MCQs

The Income-tax Act, 1961 came into force on:

• 1st January 1961

• 1st April 1962

• 1st April 1961

• 15th August 1962

"Previous Year" under Section 3 generally means:

• Calendar year

• Financial year immediately preceding the assessment year

• Year of earning income and assessment both

• Any 12-month period chosen by assessee

Income of a non-resident seafarer for services rendered outside India is:

• Taxable in India always

• Exempt even if credited to NRE account in India

• Taxable only if received in India

• Partially taxable

Residential status is determined:

• Once in lifetime

• Based on citizenship

• Separately for each assessment year

• Based on domicile

Which of the following is NOT an exception to the "60 days + 365 days" rule?

• Indian citizen leaving India for employment

• Crew member of Indian ship

• Indian citizen/PIO visiting India

• Indian citizen going abroad for business tour

A person is RNOR if:

• Non-resident in 9 out of 10 preceding years, OR stayed ≤729 days in last 7 years

• Stayed 365 days in last 4 years

• Stayed 182 days in PY

• None of the above

Place of Effective Management (POEM) relates to residential status of:

• Individuals

• HUF

• Company

• AOP/BOI

Which of the following is "deemed to be received" income?

• Salary received in India

• Employer's contribution to RPF exceeding 12% of salary

• Dividend from Indian company

• Income earned abroad by a non-resident

Dividend declared by a foreign company outside India is:

• Deemed to accrue in India if company has Indian assets

• Not deemed to accrue in India

• Always taxable in India

• Tax-free only for residents

Salary for services rendered in India is taxable in India:

• Only if received in India

• Only if paid in India

• Irrespective of where paid or received

• Only if employer is resident