Income Tax MCQ with Answers Pdf (Multiple Choice Questions)
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Basic Concept – QUIZ
Income Tax MCQ with Answers Pdf – 1
Income Tax MCQ – 1
1. Income tax is a
A) Direct tax
B) Indirect tax
C) Total tax
D) Danger tax
2. Sambalpur university is a
A) Local authority
B) Association of person
C) Individual
D) Artificial juridical person
3. Education cess is levid in case of
A) Individual
B) Hindu undivided family
C) All assesse
D) Company assesse
4. Income tax act 1961 imposed on
A) Legal income
B) Illegal income
C) Both legal and illegal income
D) None of this
5. Income tax act 1961 applicable to
A) Jammu and Kashmir only
B) All state in India
C) All metro city
D) All India except Jammu and Kashmir
6. Assesse includes
A) Individual
B) Company
C) HUF, AOP/BOI
D) All of the above
7. AOP consist of
A) Individual only
B) Other than individual
C) Both
D) None of Above
8. BOI consist of
A) Individual only
B) Other than individual
C) Both
D) None of Above
9. Health & Education cess is
A) 6%
B) 2%
C) 4%
D) 3%
10. The term income is defined u/s
A) 2(24)
B) 3(24)
C) 24(2)
D) None of the above
11. Income tax act 1961 came in to force on
A) 1st April 1960
B) 31st march 1972
C) 1st April 1962
D) None of the above
12. Who has the statutory power to issued notification under income tax act1961
A) Central board of direct taxes
B) Central board of film certification
C) Finance department of state
D) None of the above
13. Income tax is imposed on
A) Half yearly
B) Annually
C) Monthly
D) Daily
14. Assessment year start on
A) 1st April
B) 31st march
C) 1st July
D) None of the Above
15. Previous year ends With
A) 1st April
B) 31st march
C) 1st July
D) None of the Above
16. How many head of income are there
A) 6
B) 3
C) 4
D) 5
17. Residential status is determined on
A) Assessment year
B) Calendar year
C) Previous year
D) Accounting year
18. Taxable income is determined on the basic of
A) Residential status in India
B) Citizenship of India
C) BPL card holder
D) Govt. job holder
19. Section of residential status is
A) 7
B) 6
C) 5
D) 4
20. Salary to MP/MLA is
A) Exempted
B) Free
C) Taxable
D) illegal
MCQ on Income from Salary QUIZ
Income Tax MCQ – 2
Income Tax MCQ with Answers Pdf-2
1. Computation of income from salary section is
A) Sec 11-12
B) Sec 15-17
C) Sec 6-10
D) Sec 16-20
2. Deduction allowed against gross salary
A) Income tax
B) Entertainment tax
C) Professional tax
D) education tax
3. RPF full form in income tax
A) Reserve police force
B) Railway police force
C) Recognized provident fund
D) None of the above
4. Exemption limit of interest credit to RPF is
A) 6.5%
B) 9.5%
C) 7.5%
D) None of this
5. Employer contribution to RPF is Exempted up
A) 12%
B) 9.5%
C) 19%
D) 10%
6. Taxable amount of perquisite in respect of small car for offial and personal purpose
A) 1500 p.m.
B) 1800 p.m.
C) 2400 p.m.
D) None of the Above
7. Taxable amount of perquisite in respect of Big car for offial and personal purpose
A) 1800 p.m.
B) 2000 p.m.
C) 1500 p.m.
D) 2400 p.m.
8. Deduction from salary is allowed u/s
A) Sec 15
B) Sec 16
C) Sec 25
D) None of Above
9. Education allowancw is exempted
A) Rs. 200 per month up to 4 child
B) Rs. 200 per month up to 3 child
C) Rs. 100per month up to 2 child
D) Rs. 100 per month up to 10 child
10. Medical bil reimbursed in respect of treatment in private hospital
A) Up to 15,000
B) Up to 12,000
C) Up to 25,000
D) None of the above
11. HRA exempted u/s
A) 15(13B)
B) 12(13C)
C) 10(13A)
D) None of the above
12. Perquisite Comes U/S
A) 19(3)
B) 17(2)
C) 2(17)
D) None of the above
13. Allowance from U.N.O is
A) partly taxable
B) fully taxable
C) fully exempted
D) None of the above
14. Entertainment allowance is
A) Partly exempted
B) Exempted
C) fully taxable
D) None of the Above
15. HRA exempted u/s 10(13A) includes
A) 40% of salary if accommodation is situated at Delhi, Mumbai, Chennai, Kolkata
B) 60% of salary if accommodation is situated at Delhi, Mumbai, Chennai, Kolkata
C) 50% of salary if accommodation is situated at Delhi, Mumbai, Chennai, Kolkata
D) None of the Above
16. Free food during working hours at office/ business premises exemopted up to
A) Rs. 50 per meal
B) Rs. 60 per meal
C) Rs. 90 per meal
D) None of the above
17. Agricultural income is
A) Taxable
B) Fully taxable
C) Exempted
D) Partly taxable
18. Exempted Income comes under section
A) Sec 12
B) Sec 10
C) Sec 24
D) Sec 13
19. Sec 10AA deduction implies
A) Buffer zone
B) Special economic zone
C) POK zone
D) None of the above
20. Allowance of MP/MLA is
A) Exempted
B) Free
C) Taxable
D) illegal
MCQ on Income from House Property QUIZ
Income Tax MCQ – 3
Income Tax MCQ with Answers Pdf-3
1. The basis of charge Under the head Income from House Property is
A) Rent Received
B) Gross Annual Value
C) Annual Value
D) None of the above
2. Annual value is defined u/s
A) 23(1)
B) 22(1)
C) 21(1)
D) None of the above
3. The Income from House Property is taxable on individual even if property is not registered in his name
A) When the property has been transferred to spouse for inadequate consideration
B) Where the individual holds on importable estate
C) Where the property is transferred to a minor child for inadequate consideration
D) All of the above
4. Mr. A owns a house property. He lent it to Mr.B at 20,000 p.m. Mr.B sublet it to Mr. C on monthly rent of ` 30,000 p.m. Rental income of A is taxable under the head ….
A) Income from Other Sources
B) Income from House Property
C) Income from Salary
D) None of this
5. For claiming the deduction for unrealised rent, the assessee must satisfy Which of the following rules
A) Rule 4A
B) Rule 4
C) Section 4 A
D) None of this
6. The tax paid by the tenant is ?
A) Added to rent received
B) No adjustment
C) Added to Annual value
D) All of the above
7. What % is allowed as deduction from the annual value.
A) 20%
B) 25%
C) 30%
D) None of Above
8. which purposes are deductible from annual value for Interest on loan taken?
A) Construction
B) Purchase
C) Repair
D) All of the Above
9. Which of the following is not deductible from annual value?
A) Interest on loan taken for repairs
B) Interest on loan taken for reconstruction
C) Interest on unpaid interest
D) 3%
10. Annual value of self-occupied house is….
A) Nil
B) Equal to Municipal Value
C) Equal to Fair rent
D) None of the above
11. Foreign house property’s income is taxable in the case of
A) Non Resident
B) Not Ordinarily Resident
C) Ordinarily Resident
D) None of the above
12. Which of the following is deductible from the annual value of House Property ?
A) Municipal taxes paid by the owner during the previous year
B) Municipal taxes paid by the owner for the previous year
C) Municipal taxes paid by the owner
D) None of the above
13. Which of the following conditions must be satisfied to charge the rental income under the head Income of House Property:
A) The asssessee should be one of the property
B) The property should consist of any buildings or lands
C) The property should not be used by the owner for the purpose of business or professional purpose
D) All of the above
14. Mr. A owns a house property. He lent it to Mr. B at ` 10,000 p.m. Mr. B sublet it to Mr. C on monthly rent of ` 20,000 p.m. Rental income of Mr. B is taxable under the head
A) Income from Other Sources
B) Income from House Property
C) Income from Salary
D) None of the Above
15. Rule 4 includes
A) All of the Below
B) The defaulting tenant has vacated or steps have been taken to vacate the house
C) Tenancy must be bonafide
D) Tenancy must be bonafide
16. If the house remains vacant for the whole year, Then annual value will be
A) Equal to Fair rent
B) Equal to Municipal Value
C) Nil
D) None of the above
17. In incomre House Property, A sum equal to 30% is allowed as deduction from the annual value as
A) Basic Deduction
B) Standard Deduction
C) Deduction
D) All of the above
18. Deductions from annual value is comes under section….
A) 24
B) 24A
C) 24AA
D) All of the above
19. Interest for pre-acquisition period is deductible in ………………. instalments
A) 7
B) 6
C) 5
D) 4
20. From the amount of arrears of rent received, ….. % Is allowed as deduction
A) 30%
B) 20%
C) 40%
D) 10%
MCQ on Income from Capital Gain QUIZ
- 1. Sec 45 related to
a. Capital assets
b. capitals gains
c. Assets
d. d. none of the above
- 2. Where total block of depreciable assets is transferred after 36 months, there will
a. Short term capital gains or loss
b. short term capital gains
c. long term capital gains
d. long term capital gains or losses
- 3. capital assets includes
a. deposit bonds
b. stock in trade
c. shares
d. none of the above
- 4. indexation will be allowed in case of
a. LTCG
b. STCG
c. Both
d. None of the above
- 5. How many types of capital gains are there
a. 3
b. 2
c. 4
d. None of the above
- 6. Indexation will be done
a. Shares
b. Debenture
c. Other security
d. All of the above
- 7. Cost inflation index before 31stmarch, 2001 …
a. 150
b. 200
c. 100
d. None of the above
- 8. Exemption is not allowed u/s
a. 54B
b. 54E
c. 54
d. None of the above
- 9. Short term capital gains is taxed at……. Price
a. Normal tax rates
b. Fixed tax rates
c. Market rates
d. None of the above
- 10. Exemption under section 54 is available to which persons
a. Company
b. Individual and HUF
c. AOP/BOI
d. None of the above
- 11. For deduction u/s 54EC , the individual should invest the whole or part of the capital gains in the specified asserts …….
a. Within 6 months from the date of long term capital assets transfer
b. Within 3 months from the date of long term capital assets transfer
c. Within 12 months from the date of long term capital assets transfer
d. None of the above
- 12. Long term capital gain is taxed ……..
a. 30%
b. 25%
c. 20%
d. None of the above
- 13. If the goodwill of profession which is self-generated is transferred , then there will be
a. Long term capital gains
b. Short term capital gins
c. No capital gains
d. None of the above
- 14. Deduction from capital gains under section 54B is for capital gains arising from transfer of….
a. Agricultural land
b. Salary
c. House property
d. None of the above
- 15. The rate of tax that is imposed on STCG arising from transfer of equity shares of a company , concern, units of an equity oriented fund is…..
a. 25%
b. 15%
c. 30%
d. None of the above
- 16. Short term capital assets has been defined
a. Sec 4(24A)
b. Sec 4(22A)
c. Sec 2(42A)
d. None of the above
- 17. Long term capital assets
a. Sec 2(29A)
b. Sec 2 (92A)
c. Sec 9(22A)
d. None of the above
- 18. Transfer of capitals assets has been defined u/s
a. Sec 7(42)
b. Sec 2(47)
c. Sec 2(74)
d. None of the above
- 19. The computation of capital gains is u/s
a. 48
b. 49
c. 47
d. None of the above
- 20. Full form of STCG
a. Short term capital gains
b. Short term capital gold
c. Short time capital gain
d. None of the above
- 21. Computation of capital gains in case of slump sale has been defined u/s
a. 50C
b. 50D
c. 50B
d. None of the above
- 22. Transfer of security by depository u/s
a. 45(2B)
b. 45(2A)
c. 45(A2)
d. None of the above
- 23. Transfer of depreciable assets u/s
a. 50
b. 51
c. 52
d. None of the above
- 24. Transfer of capital assets being the units of UTI or other mutual funds comes u/s
a. Sec 45(8)
b. Sec 45(7)
c. Sec 45(6)
d. None of the above
- 25. Full form of LTCG
a. Long term capital gains
b. Long term capital gold
c. Long time capital gain
d. None of the above
MCQ on income tax 2020 21 pdf
MCQ on Income from Others Sources QUIZ
Income Tax MCQ with Answers Pdf-5
- 1. What is the maximum amount of deduction from family pension is…
a. 20,000
b. 15,000
c. 25,000
d. None of the above
- 2. The aggregate value of monetary gift received during the previous year is exempted , if it
a. Doesn’t exceed 50,000
b. Exceed 50,000
c. Exceed 45,000
d. None of the above
- 3. T.D.S. is not deducted on lottery income up to…. Amount
a. 10,000
b. 15,000
c. 5,000
d. None of the above
- 4. Income from others sources may be includes
a. Indian company dividend
b. Dividend from units
c. Foreign company dividend
d. All of the above
- 5. If I win from crossword puzzles, horse races, card games and lotteries . then rate of TDS……?
a. 25%
b. 15%
c. 30%
d. None of the above
- 6. The amount of dividend received from cooperative society is….
a. Partly taxable
b. Exempted
c. Taxable
d. None of the above
- 7. Gift received from my wife is
a. Exempted
b. Partly taxable
c. Taxable
d. None of the above
- 8. Income from others sources is known as
a. films head of income
b. Residuary head of income
c. marriage heads of income
d. none of the above
- 9. income from others sources is u/s ……
a. 56
b. 57
c. 55
d. None of the above
- 10. Interest on saving bank account is exempted up to……
a. 15,000
b. 12,000
c. 10,000
d. None of the above
MCQ on Profits and Gains from Business or Profession QUIZ
Income Tax MCQ with Answers Pdf-6
- 1. Business has been defined
a. u/s 2(13)
b. u/s 13(2)
c. u/s 10(2)
d. None of the above
- 2. Chartered accountant is a …..
a. Profession
b. Vocation
c. Business
d. None of the above
- 3. Singer is a ….
a. Profession
b. Vocation
c. Business
d. None of the above
- 4. Example of Profession
a. Dancer
b. Singer
c. Lawyer
d. None of the above
- 5. Expenses allowed as a deduction u/s …. Under the head of profit and gain of business and profession
a. Sec 20 to 25
b. Sec 15 to 27
c. Sec 30 to 37
d. None of the above
- 6. Depreciation comes u/s…. under the head of business profession
a. Sec 32
b. Sec 42
c. Sec 22
d. None of the above
- 7. Repairs & maintenance of machinery , plant & furniture
a. Sec 34
b. Sec 33
c. Sec 31
d. None of the above
- 8. Rent rates and taxes, repair & insurance for building come under section
a. Sec 40
b. Sec 30
c. Sec 20
d. None of the above
- 9. Speculative business are
a. Partly taxable
b. Fully taxable
c. Exempted
d. None of the above
- 10. Recovered against bad debts comes under section
a. Sec 41(4)
b. Sec 31(4)
c. Sec 21(4)
d. None of the above
MCQ on income tax 2020 21 pdf
MCQ on Agricultural Income QUIZ
Income Tax MCQ with Answers Pdf-7
- 1. Agricultural income defined u/s
a. sec 2(1A)
b. Sec 2(2A)
c. Sec 1(2A)
d. None of the above
- 2. Agricultural income related to
a. Capital
b. Land
c. Machinery
d. None of the above
- 3. Agricultural income includes
a. Cultivation
b. Farm house building
c. Agricultural activities
d. All of the above
- 4. Rule 7applicable to all except
a. Tea, coffee, and rubber
b. Samosa, aluchop, biribada
c. Pan ,pudia, bhang
d. None of the above
- 5. Non-agricultural income formulas = sale proceeds of industrial product – M.V. of agricultural produce used as raw material – industrial expenses (except cost of cultivation)
a. False
b. True
c. Doubt
d. None of the above
- 6. Agricultural income formulas = M.V. agricultural produce used as raw material – cost of cultivation
a. True
b. False
c. Doubt
d. None of the above
- 7. Rule 8related to
a. Gas manufacturing
b. Tea manufacturing
c. Pan card business
d. None of the above
- 8. Income from coffee manufacturing has been divided as
a. 75% as agricultural income & 25% as business income
b. 25% as agricultural income & 75% as business income
c. 40% as agricultural income & 60% as business income
d. None of the above
- 9. Profit from tea manufacturing has been divided as
a. 40% as agricultural income & 60% as business income
b. 60% as agricultural income & 40% as business income
c. 75% as agricultural income & 25% as business income
d. None of the above
- 10. Income from rubber manufacturing has been divided as
a. 35% as agricultural income & 65% as business income
b. 75% as agricultural income & 25% as business income
c. 65% as agricultural income & 35% as business income
d. None of the above
11. Nonagricultural income is
a. fishery
b. mining
c. dairy income
d. All of the above
12. Partly agricultural income is from
a. nursery
b. Tea garden
c. Self-growing tree
d. None of the above
13. Agricultural income is considered while calculating tax if it is
a. more than 10,000
b. more than 5,000
c. more than 5,000 and the non-agricultural exceed the basic income exemption limit
d. none of the above
14. Which income related to land is not agricultural income
a. income from mine
b. income from royalty from mine
c. income of a purchaser of standing crop
d. all of the above
15. income from building used for agriculture is computed as
a. income from capital gain
b. income from business and profession
c. income from house property
D. None of the above
16. losses from agricultural operation can be carried forward and set off with agricultural income for the next how many year…..?
a. 8 Assessment year
b.4 Assessment year
c.6 Assessment year
d. None of the above
MCQ on Set-off and Carry-forward of Losses QUIZ
Income Tax MCQ – 8
Income Tax MCQ with Answers Pdf-8
1. Set of loss under the same head of income comes under section
A) Sec 60
B) Sec 70
C) Sec 80
D) None of the above
2. Set of loss against income under other heads of income under section……
A) Sec 51
B) Sec 61
C) Sec 71
D) None of the above
3. Loss from the house property can be set off against ……
A) Business profession
B) Capital gains
C) Salaries
D) All of the above
4. Long term capital gain can be carried forward for
A) 8 subsequent assessment years
B) Indefinitely
C) 6 years
D) None of the above
5. Short term capital loss can be set off in the same assessment year from
A) Long term capital gains
B) Short term capital gold
C) Both
D) None of the above
6. Loss from specified business can be set off
A) Income other than salary
B) Any head of income
C) Profits of any other specified business only
D) None of the above
7. Compulsory filing of loss return has been defined u/s
A) 80
B) 70
C) 60
D) None of the above
8. Carry forward and set off of capital losses comes under section
A) 74(1) & (2)
B) 73(1) & (2)
C) 71(1) & (2)
D) None of the Above
9. The share of loss from a from cannot be set off by a partner against his…..income
A) Gross
B) Total
C) Individual
D) None of the above
10. Loss from house property can be set off only up to ….. From any head on income
A) 2,50,000
B) 2,00,000
C) 3,00,000
D) None of the Above
11. Loss from business can’t be set off against…
A. salaries
B. business and profession
C. capital gain
D. None of the above
12. Loss of partnership firm can be set-off only against…
A. salaries
B. capita gain
C. firm
D. None of the above
13. Capital loss can be carried forward for a maximum period of …
A. 4 subsequent year assessment year
B. 8 subsequent year assessment year
C. 10 subsequent year assessment year
D. None of the above
14. The loss in speculation business can be carried forward only for a maximum period of…
A. 4 subsequent year assessment year
B. 8 subsequent year assessment year
C. 2 subsequent year assessment year
D. None of the above
15. long term capital loss can be adjusted only against
A. short term capital gain
B. long term capital gain
C. both the above
D. None of the above
16. Unabsorbed depreciation can be carried forward for a period of …
A. 8 year
B. 4 year
C. indefinite
D. None of the above
17. Loss from the business of owning and maintaining race horses can be carried forward for a period of…
A. 4 subsequent year assessment year
B. 8 subsequent year assessment year
C. indefinite subsequent year assessment year
D. None of the above
18. Losses of discontinued business of an industrial undertaking after re-establishment or revival can be carried forward up to…
A. 4 subsequent year assessment year
B. 8 subsequent year assessment year
C. indefinite subsequent year assessment year
D. None of the above
19. Treatment of losses after succession comes under
A. sec 78(2)
B. sec 77(2)
C. sec 76(2)
d. None of the above
20 . Loss from other sources can be carried forward for …. Subsequent year
A. 4 year
B. 8 year
C. No carried forward
D. None of the above
MCQ on Clubbing and Aggregation of Income QUIZ
Income Tax MCQ – 9
Income Tax MCQ with Answers Pdf-9
1. Revocable transfer of assets has been defined under sec……
A) Sec 51
B) Sec 61
C) Sec 71
D) None of the above
2. In order to curb tax avoidance practices, some necessary clubbing provision have been incorporated u/s …..
A) 60 to 64
B) 50 to 54
C) 70 to 74
D) None of the above
3. Inclusion of others incomes in the income of the assessee is known as….
A) Inclusion of income
B) Other income
C) Clubbing of income
D) None of the above
4. Clubbing of income of minor child has been defined under section….
A) Sec 64(1A)
B) Sec 74(1A)
C) Sec 64(1B)
D) None of the above
5. Exemption to parent comes u/s….
A) Sec 10(31)
B) Sec 10(32)
C) Sec 10(33)
D) None of the above
6. Amounting to Rs. …. Is exemption in respect to each minor child under clubbing and aggregation of income
A) 2500
B) 1500
C) 3500
D) None of the above
7. The person on whose name the property has been purchased is known as …… and the property is known as……
A) Benamidar, Benami property
B) Ostensible owner, own property
C) Benami, footpath
D) None of the above
8. Clubbing provision are applicable for
A) HUF
B) Individual
C) Firms
D) None of the Above
9. Clubbing provision are applicable in case of
A) Positive income
B) Negative income
C) Both
D) None of the above
10. In case parent are separated, then the income of minor will be included in the income of Mother
A) Mother
B) Father
C) That parent who maintain the minor
D) None of the Above
MCQ on Deductions from Gross Total Income QUIZ
Income Tax MCQ – 10
Income Tax MCQ with Answers Pdf-10
1. Gross total income has been defined u/s …….
A) Sec 80A(1)
B) Sec 80(1)
C) Sec 80u
D) None of the above
2. Maximum deduction allowed in respect of LIP, contribution to PF etc. u/s 80C
A) 125000
B) 175000
C) 150000
D) None of the above
3. Full form of NSC in deduction from gross total income
A) National saving certificate
B) National saving circle
C) National service commission
D) None of the above
4. Who is eligible for deduction in respect of contribution to certain penson funds u/s 80CCC
A) HUF
B) Individual
C) Firms
D) None of the above
5. Deduction in respect of investment made under rajiv Gandhi equity saving scheme comes u/s
A) 80CCC
B) 80CGC
C) 80CCG
D) None of the above
6. Deduction in respect to medical treatment of disabled dependent has been defined u/s
A) Sec 80CC
B) Sec 80DD
C) Sec 80BB
D) None of the above
7. Deduction in respect to medical treatment come u/s….
A) 80DDB
B) 80CCB
C) 80AAB
D) None of the above
8. Deduction in respect of interest in loan taken for higher education come u/s…..
A) 80E
B) 80C
C) 80D
D) None of the Above
9. Deduction in respect to donation to charitable institution come u/s….
A) 80E
B) 80G
C) 80GG
D) None of the above
10. Deduction in respect of rent paid comes under section….
A) 80U
B) 80E
C) 80GG
D) None of the Above
11. Deduction to political parties has been defined u/s…….
A) 80GGC
B) 80CCG
C) 80GCG
D) None of the above
12. Deduction in respect of profits and gains of an eligible startup comes u/s…..?
A) 80CAI
B) 80ACI
C) 80IAC
D) None of the above
13. Deduction in respect to special economic zone(SEZ) Unit come u/s ….
A) 80ABI
B) 80IAB
C) 80AIB
D) None of the above
14. Deduction in respect of cooperative society…..
A) 80P
B) 80C
C) 80CO
D) None of the Above
15. Deduction in respect of royalty of author….
A) Sec 80QQB
B) Sec 80RA
C) Sec 80ROA
D) None of the above
MCQ on Income Tax Authorities
Coming Soon…
Here, we are sharing all the important Income Tax MCQ . we have covered multiple choice questions from almost all the topic of income tax . We have collected the selective Income Tax MCQ for UGC NET Aspirants. Also given the multiple choice questions on taxation with answers in Bold Text. You can download MCQ on Income Tax 2020-21 Pdf which will easy to store with your Mobile.
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Thanks for This….!
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