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Income Tax - GK Multiple Choice Questions(MCQs) and Answers | Income Tax Objective Questions

(1) Under the income- tax act, the incidence of taxation depends on........
[A] The citizenship of the tax-payer
[B] The age of the taxpayer
[C] The residential status of the tax-payer
[D] The gender of the taxpayer

Comment

Answer: Option [C]
(2) Unabsorbed depreciation can be carried forward for set off..............
[A] for a period of four years only.
[B] for an unlimited number of years.
[C] for a period of eight years only.
[D] for a period of eighteen years only.

Comment

Answer: Option [B]
(3) Residential status is determined for................
[A] Previous year
[B] Assessment year
[C] Accounting year
[D] Financial year.

Comment

Answer: Option [A]
(4) How many heads of income are there to compute Gross total income.
[A] Six
[B] Five
[C] Four
[D] Three

Comment

Answer: Option [B]
(5) Income Tax Act came into force on...........
[A] 01-04-1961
[B] 01-04-1962
[C] 01-04-1956
[D] 01-04-1965

Comment

Answer: Option [B]
(6) Income by way of rent of agricultural land is ..........
[A] Business income
[B] Agricultural income
[C] Income from other sources
[D] Casual income

Comment

Answer: Option [C]
(7) Income by way of rent of agricultural land is ..........
[A] A revenue receipt.
[B] A casual receipt.
[C] A capital receipt.
[D]None of these.

Comment

Answer: Option [B]
(8) Which of the following is not a capital receipt?
[A] 'Salami' for settlement of Tenancy.
[B] Insurance claim received on machinery lost by fire.
[C] Lump sum received on sale of shares.
[D]Goods sold for cash.

Comment

Answer: Option [D]
(9) Compensation for cancellation of a licence by the government resulting in cessation of business is........................
[A] a casual receipt
[B] a capital receipt
[C] a revenue receipt
[D] None of the above

Comment

Answer: Option [C]
(10) Compensation received for loss of trading asset is a..........
[A] Capital receipt
[B] Revenue receipt
[C] a casual receipt.
[D] None of the above

Comment

Answer: Option [A]

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