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Basic Concepts of Income Tax

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Income Tax Act came into force as on

a)

1-4 -1961

b)

1-3 -1961

c)

1-4 -1962

d)

31-3-1962

2.

Income earned during the ______ is to be assessed in _______.

a)

Previous year, Assessment Year

b)

Assessment year, Previous Year

c)

Assessment year, Financial Year

d)

Calendar Year, Previous Year.

3.

Previous year starts from

a)

1st April every year

b)

In the case of newly started business- from the date of commencement

c)

In the case of newly started business- from the date of commencement. In any other case - 1st April of the year

d)

1st January every year

4.

Income under the Income-Tax Act, 1961, is to be computed under -

a)

Five heads

b)

Six heads

c)

Four heads

d)

Seven heads

5.

Income tax is a .......................... tax

a)

Direct

b)

Indirect

c)

Consumption

d)

Local

6.

Income Tax is imposed by..................

a)

State Government

b)

Central Government

c)

Both of the above

d)

Constitution of India

7.

Parliament has the power to levy tax on incomes other than......................

a)

Exempt Incomes

b)

Income of poor people

c)

Agricultural Income

d)

All incomes are taxable

8.

Highest Administrative Authority for Income Tax in India is

a)

Finance Minister

b)

CBDT

c)

President of India

d)

Director of Income Tax

9.

As per Section 2(7),“Assesses” means a person

a)

By whom any tax or other sum of money is payable

b)

Against whom proceeding has been taken under the act

c)

A person deemed to be assessee in default

d)

All of the above

10.

Which of the following income is not included in the term ‘income’ ?

a)

Profit & gains

b)

Dividend

c)

Profit in lieu of salary

d)

Reimbursement of travelling expenses

11.

Finance Bill becomes the Finance Act when it is passed by

a)

Lok Sabha

b)

Both Lok Sabha & Rajya Sabha

c)

Both House of Parliament & signed by President

d)

Both House of Parliament & signed by Prime Minister

12.

In which of the following cases, income earned during the previous year is assessed in the same year? / In which of the following cases previous year and assessment year are same?

a)

Shipping business of non resident

b)

Discontinued business

c)

Person who are likely to transfer their assets to avoid tax

d)

All of the above

13.

As per section 288A , amount of tax shall be rounded off to the

a)

nearest multiple of Rs.10

b)

nearest multiple of Rs.100

c)

nearest multiple of Rs.5

d)

nearest multiple of Rs.50

14.

Residential status of an assessee is determined as per the provisions of........................

a)

Section 6

b)

Section 7

c)

Section 8

d)

Section 11

15.

Incomes which do not form part of total Income are called..............

a)

Exceptional income

b)

Deemed income

c)

Exempted income

d)

Speculative income