Basic Concepts of Income Tax
- Special Rates of Tax are given in
(a) Income Tax Act
(b) Income Tax Rules
(c) Finance Act
(d) Companies Act - Any decision given by Supreme Court becomes a law which will be binding on —
I. Appellate Tribunals
II. Income Tax Authorities
III. All the assessees
IV. All the Courts
Codes:
(a) I II III
(b) I II IV
(c) II III IV
(d) I II III IV - Maximum amount which is not chargeable to Income Tax for different assesses is Nil:
I. Artificial Judicial Person
II. Firm
III. Local Authorities
IV. Co-operative Society
V. Company
Codes:
(a) I II III IV V
(b) II IV V
(c) II III IV V
(d) I III - Any person discontinuing any business or profession shall give to Assessing officer notice of such discontinuance within:
(a) 30 days
(b) 60 days
(c) 15 days
(d) no need to give notice - A person may not have his own assessable income but may still be ——
(a) Person
(b) Assessee
(c) An Individual
(d) Not an assessee - Flat Rate of Tax is applicable:
I. Local Authorities
II. Artificial Judicial Person
III. Firm
IV. Co-operative Society
V. Company
Codes:
(a) I II III IV V
(b) II IV V
(c) I III V
(d) I III - The following assessee is charged to income tax in the assessment year following the previous year.
(a) A non-resident business firm which shipped goods on 1/5/2018, at Vishakhapatnam port in Andhra Pradesh
(b) An employee left India to USA on 1/8/2018 with no intention of returning.
(c) ABC firm which discontinued its business on 1/9/2018
(d) An employee assessee of college who worked during 1/4/2018 to 31/3/2019 - Match the following
List I
A. Individual more than 80 years age
B. Individual age between 60 to 80 years
C. Individual age below than 60 years
D. Innovative Ltd.
List II
1. Nil
2. 5,00,000
3. 3,00,000
4. 2,50,000
Codes:
A B C D
(a) 1 4 3 2
(b) 2 4 3 1
(c) 2 3 4 1
(d) 1 4 2 3 - The provision of AMT in case of Individual, HUF, AOP and BOI and Artificial Judicial Person (AJP) is applicable if the adjusted total income of such person exceed from —-
(a) 10 Lakh
(b) 20 Lakh
(c) 50 Lakh
(d) 1 Crore - MAT is calculated on —- @ 18.5%
(a) Total Income
(b) Adjusted Total Income
(c) Gross Total Income
(d) Book Profit - AMT is calculated on —- @ 18.5%
(a) Total Income
(b) Adjusted Total Income
(c) Gross Total Income
(d) Book Profit - Surcharge is calculated on
(a) Total Taxable Income
(b) Basic Tax Liability
(c) Tax Liability
(d) Gross Total Income - The basic source of income-tax law is –
(a) Income-tax Act, 1961
(b) Circulars/Notifications issued by CBDT
(c) Judgments of Courts
(d) None of the above - The rates of income tax are mentioned in –
(a) The Income-tax Act, 1961 only
(b) The Annual Finance Act
(c) Both in the Income-tax Act, 1961 and the Annual Finance Act
(d) Income-tax Rules, 1962. - The provision of AMT shall apply to a person who has claimed any deduction under:
I. Section 80 C to 80 U other than 80 P
II. Section 80IA to 80 U
III. Section 10AA
IV. Section 80 IA- to 80 RRB
Codes:
(a) I II III IV
(b) I II IV
(c) I III
(d) I II III IV - Maximum number of members in CBDT is
(a) 6
(b) 21
(c) 5
(d) 26 - Income Tax Act was passed in which year?
(a) 1961
(b) 1971
(c) 1951
(d) 1981 - Who is not an assessee?
(a) A person who files the self-assessment return
(b) A person who files the return of income on behalf of minor
(c) A person who has to take refund of income tax from IT Department
(d) A person whose income is below the exemption limit - Additional surcharge (Health and Education Cess) of 4 % per cent is payable on
(a) Income tax
(b) Income tax plus surcharge if any
(c) Surcharge
(d) Total Income - Describe the status of the following person (i.e. individual, HUF, Firm, Company etc.) X and Y are legal heirs of Z. Z died in 2018 and X and Y carry on his business without entering into a partnership.
(a) Firm
(b) Limited Liability Partnership
(c) Company
(d) Body of Individual - In case of a female individual, who is of 59 years of age, what is the maximum exemption limit for AY 2019-20:
(a) Rs. 2,00,000
(b) Rs. 2,50,000
(c) Rs. 5,00,000
(d) Nil - Calculate the amount of rebate under section 87A in case of a resident individual having total income of Rs. 3,00,000.
(a) Rs. 30,000
(b) Rs. 10,000
(c) Rs. 2,500
(d) Rs. 5,000 - The first income tax act was introduced in the year
(a) 1918
(b) 1860
(c) 1861
(d) 1886 - X is an individual of 65 years of age having gross total income Rs. 3,50,000. What is the tax liability for assessment year 2019-20 ?
(a) Rs.5,000
(b) Rs.2,500
(c) Nil
(d) Rs.3,000 - In which of the following cases, Assessing Officer has the discretion to assess the income of previous year in previous year itself or in the subsequent assessment year:
(a) Shipping business of non-residents
(b) Assessment of Association of Persons or Body of Individuals formed for a particular event or purpose
(c) Assessment of persons likely to transfer property to avoid tax
(d) Discontinued business - As per section 2(31), the following is not included in the definition of ‘person’ –
(a) An individual
(b) A Hindu undivided family
(c) A company
(d) A minor - X Ltd., a domestic company, has a total income of Rs.10,01,00,000 for A.Y.2019-20. The gross receipts of X Ltd. for P.Y.2016-17 is Rs.240 crore. The tax liability of X Ltd. for A.Y.2019-20 is
(a) Rs.2,76,55,500
(b) Rs.2,79,24,000
(c) Rs.3,46,42,610
(d) Rs.3,49,78,940 - The tax levied by Local Governments i.e. Municipal Corporations and municipalities is———-
(a) Income Tax
(b) House Tax
(c) Wealth Tax
(d) Gift Tax