MCQ ON Income Tax Law and Accounts(UNIT 3)
BCOM SEM VI
UNIVERSITY OF LUCKNOW
Unit 4
Q1. A person includes .
(a) Individual & HUF
(b) Firm & Company
(c) AOP/BOI, LA, Every AJP
(d) All of the above.
Q2. Notifications issued by CBDT are binding on .
(a) Assessee
(b) Income Tax Authority
(c) Both of above
(d) None of the above
Q3. 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
Q4. Every assessee is a person, & every person is .
(a) Also an assessee
(b) Need not be an assessee
Q5. In which following situation, income f minor child shall be clubbed in the income of parents
(a) Income of child suffering from disease u/s 800
(b) Income earned by child from manual work
(c) Income of child from interest on FDR
(d) Income earned from an activity involving skill
Q6. For the provisions of clubbing of incomes to calculate substantial interest we consider the holding of.
(a) the individual only
(b) the individual & his spouse taken together
(c) the individual along with his relatives
(d) the individual & his spouse taken separately
Q7. If any income has to be clubbed u/s 64, it will be clubbed under the.
(a) head of income from other sources
(b) relevant head to which it belongs
(c) none of these two
Q8. Section 70-79 deals with
a. Salary
b. capital gain
C Clubbing of income
d. Set off and carry forward
Q9. If there is a transfer of income by a person to another person without the transfer of the asset from which the income arises, such income shall be included in the income of
(a) Transferor
(b) Transferee
(c) Transferor irrespective of whether the transfer revocable or irrevocable
(d) Transferee if transfer is irrevocable
Q10. Mr. P transfers income of Rs. 51,000 from rent to his major son without transfer of house property. Rent of Rs. 51,000 is
(a) Taxable in the hands of the transferor-father
(b) Taxable in the hands of his son
(c) Taxable the hands of the that parent whose total income is higher
(d) Exempt from tax
Q11. Income derived on the accretion of transferred property:
(a) Shall be clubbed in the hands of transferor
(b) Shall be clubbed in the hands of transferee
(c) Cannot be clubbed
(d) Not taxable
Q12. Clubbing provisions u/s 64(1)(vi) are applicable where the asset is transferred by an individual without an adequate consideration to.
(a) Daughter’s husband
(b) Daughter in law
(c) Minor child
(d) Spouse
Q13. Income arising to a minor married daughter is
(a) to be assessed in hands of the minor married daughter
(b) to be clubbed with the income of that parent whose total income, is higher
(c) completely exempt from tax
(d) to be clubbed with the income of her husband
Q14. Interest from a fixed deposit received by a minor married daughter is
(a) to be assessed in the hands of the minor child
(b) to be clubbed with the income of that parent whose total income, before including minor’s income, is higher
(c) completely exempt from tax
(d) to be clubbed with the income of her husband
Q15. When income of minor child is clubbed in the income of the parent such parent will be allowed exemption of Rs. 1,500 pa per child u/s of.
(a) 10(1)
(b) 10(2)
(c) 10(2A)
(d) 10(32)
Q16. In certain cases, income of other person is included in the income of assesses. It is called
(a) Clubbing of income
(b) Increase in income
(c) Addition to income
(d) Set-off of income
Q17. For the purpose of clubbing of income of the specified person in the income of the individual u/s 64, the word income includes?
(a) Loss
(b) Expenses
(c) Interest
(d) All of the above
Q18. Intra head set off is done u/s.
(a) Sec 70
(b) Sec 71
(c) Sec 72
(d) Sec 73
Q19. Loss from a speculation business can be set off from.
(a) Any head of income.
(b) Profits & gains from any business.
(c) Profits & gains from any business other than speculation business.
(d) Income of speculation business.
Q20. Loss on account of owing & maintaining the race horses can be set off from.
(a) Any business income
b) Any income under the head other sources
(c) Income from horse races
(d) Income of owing & maintaining of race horses
Q21. Short-term capital loss can be set off from.
(a) STCG
(b) LTCG
(c) STCG or LTCG
(d) IFOS
Q22. Choose the most appropriate answer from the given options. Short-term capital loss can be set-off from
(a) STCG
(b) LTCG
(c) STCG or LTCG
Q23. Which of the following is correct?
(a) LTCG can be set off from LTCG only.
(b) LTCG can be set off from STCG only.
(c) Loss of business can be set off from salary income
(d) Loss of speculation business can be set off from income from normal business
Q24. The term “Person” includes .
(a) Registered Firm
(b) Unregistered Firm
(c) Both of (a) & (b)
(d) None of (a) or (b)
Q25. Association of persons consists of .
(a) Individuals (only)
(b) Company
(c) Any Person other than (a)
(d) Any kind of person
Q26. Explanation gives to the main provision in
(a) Clarification
(b) Exceptions
(c) Proper Administration
(d) None of these
Q27. Part 1 of schedule I ofthe FinanceAct, 2018 gives rate of income tax for AY .
(a) 2018-19
(b) 2019-20
(c) 2017-18
(d) 2016-17
Q28. 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.
Q29. Loss under the head capital gains can.
(a) be set off from any other head of income in same year
(b) be carried forward only
(c) neither be set off nor carried forward
(d) IFOS
Q30. Gross interest Net x 100/100-rate of
a.Tax
B.TDS
b. Deduction
C. Exempted
Q31. Payment of LIC premium can be claimed as deduction u/s
a. 80 C
b. 80 CCC
c. 80 D
d. 80 DD
Q32. Clubbing of income means
a. Addition income of two partners
b. Inclusion of income of other person in assessee income
c. Total income of various heads
d. Collection of income
Q33. Business loss of the current year cannot be set off against
(a) Any income other than business income
(b) LTCG
(c) Either LTCG/STCG
(d) Salary income
Q34. Loss under the head business & profession can be set off from income under
(a) any other head
(b) income from
(c) any other head except salary & lottery income
(d) any other head except H/P
Q35. Loss under the head of house property
a) can be carry forwarded for 8 years
b) can’t be carried forward
(c) can be carry for warded for 4 years
(d) may be carry forwarded.
Q36. Speculation loss can be carried forward for the maximum of.
(a) 8 AY
(b) 4 AY
(c) 10 AY
(d) Infinite
Q37. For Carry Forward of loss under various heads the assessee shall file a return of loss u/s 139(3) of Income Tax Act, 1961 within the prescribed time limit except loss under the head:
(a) Capital gain
(b) PGBP
(c) HP
(d) All the above
Q38. he loss is allowed to be carried forward only when an assessee has furnished
(a) return of loss at any time as per his wish
(b) return of loss on or before the due date u/s 139
(c) Not furnished the return of loss
Q39. the definition of ‘person’.
(a) Individual
(b) HUF
(c) Company
(d) Minor
Q40. A municipal corporation legally entitled to manage & control a municipal fund is taxable in the status of :
(a) Individual
(b) AOP
(c) LA
(d) AJP
Q41. A & B are legal heirs of C. After death of C, A & B carry on his business without entering into a partnership. What is their Status?
(a) Company
(b) LLP
(c) AOP
(d) Firm
Q42. As per sec. 2(24) definition of ‘income’ is:
(a) Inclusive
(b) Exhaustive
(c) Exclusive
(d) Descriptive
Q43. Income-tax authority
a. Executive authorities
b. Judicial Authorities
c. Both a and b
d. None of these
Q44. The designation of the assessing officer is created from the following dates :
A. 1-4-1988
B)1-4-1986
C. 1-10-1988
B. 1-4-1986.
D. None of these
Q45. Last chain of income tax authorities is :
A. Inspector of income tax
B. Tax recovery officer
C. income tax officer
D. Commissioner of Income Tax
Q46. CBDT can inform through the following media that such authority will work under control of the authority:
A. Through phone
B. Personal contact
C. information notification
D. none of these
Q47. Various income tax authority defined under section:
A. 116
B 115
C. 114
D.118
48. The provision regarding income tax authority appointmented by central government under section:
A. 116
B. 115
C. 117
D. 119
49. Circulars and Notifications are binding on the
- Central Board of Direct Taxes (CBOT)
- Assessee
- Income Tax Appellate Tribunal (ITAT)
- Income Tax Authorities
49. Supreme Courts precedent in binding on Courts
- Appellate Tribunals
- Income Tax Authorities
- All of the above.
50. High Court’s precedents are not binding on
- Tribunal
- Income Tax Authorities.
- Assessee
- None of the above.
51. Wherever in the Act the phrase as prescribed appears it means that
- Regulations are to be framed is in this respect
- Rules have been framed in this respect.
- Regulations were earlier framed in this respect
- Regulations are framed in this respect. in
52. Who amongst the following confers on the power to issue circulars and clarifications?
- Central Government
- CBOT
- State Government
53. Amendments by the finance act are made applicable from
- First day of next financial year
- First day of same financial year
- Last day of same Accounting year
- None of the above.
54. Assessing officer is :
A. Assistant Commissioner
B. Deputy commissioner
C. income tax officer
D.All Of these
55. Who controls Income Tax Department:
A. Income Tax commissioner
B. C.B.D.T
C. ITO
D. None
56. Top authorities are in Income Tax Department authorities:
A. Finance minister
B finance secretary
C. Board of direct tax
D. chief Commissioner
57. Due date of filing return of income tax in the case of individual:
a. 30th June
b. 31st July
c. 31st August
d. 30th September
58. Due date of filing income tax return in the case of firm,whose account are required to be edited is :
A. 31st July
B. 31st August
C. 30th September
D. 31st October
59. For individual having income from salary or family pension and interest the prescribed form is :
a. ITR-1
b. ITR-2
c. ITR-3
d. ITR-4
60. Getting Permanent Account number is compulsory for :
A. income tax assesse
B. importers
C. assessee under service tax
D. all of these
61. Rectification of mistake is done :
a. U/s 145
b. U/s 147
c. U/s 154
62. Section of self assessment is :
A. 140
B. 140A
C. 147
d. U/s 156
D. 148
63. Section of best judgement assessment
A. 143
B. 144
C. 147
D. 148
64. Assessment under section 143 for the assessment year 2018-19 shall be completed from the end of the relevant assessment year:
A. within 18 months
B. within 21 month
C. within 24 month
D. within 30 month
65. Pan must be quoted when the fixed deposit with the bank exceeds
A. Rs. 25,000
B. Rs. 50, 000
C. Rs. 10, 000
D. Rs. 20, 000
66. Types of assessment includes :
a. Self assessment
b. regular assessment
c. best judgement
d. All of these
Q67. Regular assessment means the assessment made on the basis of evidence under section.
A. 143 (2)
B. 143(3)
C. 143(1)
D. None
Q68. Circulars issued by CBDT are binding on .
(a) Assessee
(b) Income Tax Authority
(c) Both of above
(d) None of the above
Q69. Circulars are issued by the CBDT to the scope & meaning of the provisions of Law.
(a) Clarify the doubts
(b) Exceptions
(c) Proper Administration
(d) None of these