Practice Test

Q1) Income-tax Act extends to Show Answer

Q2) Out of the following which is a revenue receipt Show Answer

Q3) Body of individual should consist of : Show Answer

Q4) A new business was set up on 15-11-2016 and it commenced its business from 1-12-2016. The first previous year in this case shall be : Show Answer

Q5) Shivaji University is assessable under the Income Tax Act as Show Answer

Q6) Previous year means the ___ year immediately preceeding the assessment year. Show Answer

Q7) The first previous year of a newly set up business can be _____12 months. Show Answer

Q8) A period of twelve months commencing on the first day of April every year is called ____ Show Answer

Q9) An assessment is defined under Income-tax Act to include ______ Show Answer

Q10) Full form of AOP is Show Answer

Q11) HUF stands for Show Answer

Q12) A person who is liable to pay tax under Income Tax Act is known as Show Answer

Q13) _____ is a revenue receipt. Show Answer

Q14) A. O. P. should consist of : Show Answer

Q15) Income means any receipt in cash. Show Answer

Q16) A company under the Income –Tax Act means a company as defined under the Companies Act. Show Answer

Q17) Previous year always indicates a period of 12 months from 1st April to 31st March. Show Answer

Q18) Assessee means a person liable to pay tax on his income. Show Answer

Q19) On rendering some service to a garments manufacturing unit M is given a suit as remuneration. It is not an “Income”, since he has not received anything in cash. Show Answer

Q20) On Sale of goods illegally imported from a foreign country C generates a surplus of Rs.5,500. As the income is derived from an illegal activity, it is not chargeable to tax. Show Answer

Q21) A birthday gift received by V from his father Rs.20,000 is not taxable as income of V. Show Answer

Q22) Out of Rs.29,000 per month received by Mrs. V from her husband for household expenses, she saves approximately Rs.1,200 per month which is deposited by her in a bank account Rs.12,400 is “Income” of Mrs. V. Show Answer

Q23) Profit on sale of a house property is capital receipt which is, however, chargeable to tax Show Answer

Q24) Salary, paid to M by his employer X Ltd. out of capital reserve, is not income in the hands of M. Show Answer

Q25) Income earned by an assessee during the assessment year is charged to tax during the previous year. Show Answer

Q26) Every person does not have to pay income-tax. Show Answer