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Quiz 2- Tax 1

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

A person follows calendar year for accounting. For taxation, he has to follow:

a)

Calendar year only :1st January to 31st December

b)

Financial year only :1st April to 31st March

c)

Any of the Calendar or Financial year as per his choice

d)

He will to follow extended year from 1st January to next 31st March (a period of 15 months)

2.

In which of the following cases, income of previous year is assessable in the previous year itself:

a)

Assessment of persons leaving India

b)

A person in employment in India

c)

A person who is into illegal business

d)

A person who is running a charitable institution

3.

In case of non-residents engaged in shipping business in India income earned during the financial year is_______

a)

Taxable in India the same financial year

b)

Taxable in India the relevant assessment year

c)

Not taxable in India in the same financial year

d)

Not taxable in India

4.

Which amongst the following is an exception to the previous year rule?

a)

Business or Profession newly set up.

b)

Where a source of income newly set up.

c)

Non-resident engaged in shipping business

d)

None of these.

5.

The charging section of the Income-tax Act, 1961, states that the income earned in a year is taxable in the next year. This is known as ______

a)

Principle of mutuality

b)

Previous year rule

c)

Financial year rule

d)

None of these

6.

Income includes -

a)

Profits and gains

b)

Profit in lieu of Salary

c)

Income from other sources

d)

All of these

7.

Income is divided in ___________ heads of Income.

a)

4

b)

5

c)

6

d)

3

8.

The term' income' includes the following types of incomes -

a)

Legal

b)

Illegal

c)

Legal and illegal both

d)

None of these

9.

Which amongst the following is not a head of Income?

a)

Salaries

b)

Income from house Property

c)

Capital gains

d)

Income from exports

10.

Amongst the following which activity will be taxable?

a)

Profits & gains of any insurance business

b)

Income from specific services provided by carried on by a co-operative society. Trade, professional or similar association.

c)

The profits and gains of any banking business carried on by a co-operative society

d)

All of these