Practice Test

Q1) Circulars are binding on- Show Answer

Q2) The term 'person' in Income Tax Act, 1961 include which of the following- Show Answer

Q3) State whether true or false. "Subsidy or grant by Central Government for the purpose of corpus of trust or institution established by Central Government or State Government, as the case may be is not an income." Show Answer

Q4) Which of the following is a deemed income- Show Answer

Q5) What are the exceptions to the rule that income of Previous Year will be assessed in the Assessment Year- Show Answer

Q6) Where a ship is belonging to a non-resident and it is about to leave the port in India, of the freight payable whether in India or outside India for goods, passengers, mail shipped from any port in India is deemed to be his income which is charged to tax in the same year in which it is earned. Show Answer

Q7) Mr. X is leaving India for USA on 10/06/18 and it appears to Assessing Officer that he has no intention to return to India. Before leaving India, Mr. X will be required to pay income tax on income earned during- Show Answer

Q8) Mr. A, NR aged 69 years will get exemption up to for his total income- Show Answer

Q9) Stale whether true or false. "A resident individual whose 60th birthday falls on 01/04/19 would be treated as having attained the age of 60 years in Previous Year 18-19." Show Answer

Q10) k company which is not a domestic company will pay income tax at the rate of- Show Answer

Q11) An amount of Rs.45,000 was credited in the books of Mr. Ram for which Mr. Ram did not provide any explanation to the satisfaction of Assessing Officer. Therefore, Rs.45,000 was considered as income by Assessing Officer. Rate of tax payable on Rs.45,000 will be- Show Answer

Q12) Surcharge leviable on unexplained money is- Show Answer

Q13) Marginal Relief is to be deducted- Show Answer

Q14) Rebate u/s 87A is not available in respect of tax payable Show Answer

Q15) Health and education cess is applicable to- Show Answer

Q16) Rates of income tax are mentioned in- Show Answer

Q17) Surcharge applicable to a foreign company for Assessment Year 19-20 is- Show Answer

Q18) Rate of tax applicable to firm for Assessment Year 19-20 is Show Answer

Q19) Where total income of an artificial juridical person is Rs.3, 10,000, the income tax payable is and surcharge payable is Show Answer

Q20) Residential status of an assessee must be ascertained- Show Answer

Q21) Under Sec. 6(1) which of the following is one of the conditions which needs to be fulfilled to be called a resident in India? Show Answer

Q22) Mr. Ashish Agarwal stayed in territorial waters of India in ship for month of April, June, July, Oct, Nov, Dec, March of FY18-19. He is- Show Answer

Q23) To become resident, following condition needs to be satisfied-
i. Stay in India for 182 days or more
ii. Stay in India for 365 days or more during 4 years immediately preceding the PY
iii. Stay in India for 60 days or more
Show Answer

Q24) Miss Deepika Agarwal is a citizen of Canada. She came to India after 10 years on 05/06/2018 and left India on 03/12/2018. She is______for FY 18-19. Show Answer

Q25) Mr. Saket Jain, an Indian citizen left India on 27/06/2018 as a member of crew of Indian ship. He has been in India from 01/04/2015 to 27/06/2018. He is for FY 18-19 Show Answer

Q26) Condition of ordinarily and not ordinarily should be checked for- Show Answer

Q27) One of the condition to be satisfied for resident and ordinarily resident is Show Answer

Q28) HUF would be resident in India if- Show Answer

Q29) For HUF to be ordinarily resident in India, additional conditions have to be satisfied by- Show Answer

Q30) Company would be resident in India if- Show Answer

Q31) Income that would be taxable in the hands of Resident but not ordinarily resident- Show Answer

Q32) Mr. Diwakar Agarwa I, a non-resident received commission of Rs.7,00,000 from Indian company. This 7, 00,000 is remitted by him to his sister, Deepika (Resident). In whose hands will Rs.7,00,000 be taxable- Show Answer

Q33) Mr. Nipun Kasliwal, a Non-Resident sold his house property situated in Bhopal to Mr. Yash Porwal, a Non-Resident. Capital gain from this transaction is Rs.4,50, 000. Mr. Nipul also provided technical services to Mahek Singhvi (Resident) Ltd which will be utilized for the purpose of his business in Malaysia. For these services, Nipun charged Rs.10, 00,000. Income of Nipun for FY 18-19 is- Show Answer

Q34) Write the most appropriate answer from the given options in respect of the following having regard to the provisions of the relevant direct tax laws:
Which of the following may be a 'not ordinarily resident' in India ---
Show Answer

Q35) Past untaxed profit of the financial year 2004-05 brought to India in
2022-23 is chargeable to tax in the assessment year 2023-24 in the hands of --- Show Answer

Q36) Total income of a person is determined on the basis of his --- Show Answer

Q37) As per Section 2(31), the following is not included in the definition of 'person'- Show Answer

Q38) The tax exemption limit for a resident senior citizen is- Show Answer

Q39) For a domestic company, the minimum amount of total income liable for surcharge and the rate of surcharge applicable therein are- Show Answer

Q40) According to Section 2(24) definition of 'income' is- Show Answer

Q41) Which of the following is not included in taxable income- Show Answer

Q42) Income-tax in India is charged at the rates prescribed by- Show Answer

Q43) The following additional conditions are to be satisfied by a person to be resident and ordinarily resident in India- Show Answer

Q44) X, an Indian citizen, who is living in Delhi since 1980, left for Japan on 1 July, 2021 for employment. He came back to India on 1 January, 2023 on a visit and stayed for 4 months. His residential status for the assessment year 2023-24 would be - Show Answer

Q45) Abhay earns the following income during the previous year ended 31 March, 2023. Interest on U.K. Development Bonds (1/4" being received in India): 2,00,000; profits on sale of a building in India but received in Holland: 2,00,000.
The income liable to tax for the assessment year 2023-24 if Abhay is resident and not ordinarily resident in India, is- Show Answer

Q46) If Karta is resident and ordinarily resident in India but control and management of HUF is situated partly outside India in the previous year, the HUF is- Show Answer

Q47) Atul is a foreign citizen. His father was born in Delhi in 1951 and mother was born in England in 1950. His grandfather was born in Delhi in 1922. Atul visited India to see Taj Mahal and visit other historical places. He came to India on 1st November, 2022 for 200 days. He has never come to India before. His residential status for assessment year 2023-24 will be- Show Answer

Q48) 'Income' under section 2(24) includes -
(i) The profits and gains of a banking business carried on by a Co-operative Society with its members.
(ii) Any advance money forfeited in the course of negotiations for transfer of capital asset.
Choose the correct option with reference to the above statements- Show Answer

Q49) Paresh, a software engineer at ABC Ltd. left India on 10th August, 2022 for the treatment of his wife. For income-tax purpose, his residential status for the assessment year 2023-24 will be- Show Answer

Q50) Under the Income-tax Act, 1961, LLP is chargeable to tax @ -- Show Answer

Q51) The year in which the income is earned is known as- Show Answer

Q52) Residential Status of an Indian company is resident and ordinarily resident for the year- Show Answer

Q53) A new business was set-up on 1 July, 2022 and trading activity was commenced from 1" September, 2022, the previous year would be the period commencing from: Show Answer

Q54) HUF of Ashwin consisting of himself, his wife and 2 sons is assessed to income-tax. The residential status of HUF would be non-resident, when- Show Answer

Q55) Ram who was born and brought up in India left for
employment in Dubai on 20th August, 2022. His residential status in respect of the assessment year 2023-24 would be: Show Answer

Q56) Dr. Ashok commenced medical practice on 1st September, 2022. The previous year for the profession for the assessment year 2023-24
would be- Show Answer

Q57) Alpha Ltd. is an Indian company. It carries its business in Delhi and London. The place of effective management of the company is situated in London. More than 85% of its business income is from the business in England. If so, its residential status will be- Show Answer

Q58) Under the Income-tax Act, 1961 the term 'assessee' means a person --- Show Answer

Q59) Normal rates of income-tax are prescribed in the - Show Answer

Q60) A company incorporated outside India having its place of effective management fully situated in India in the previous year will be treated as --- Show Answer

Q61) Ritesh, an Indian citizen, left India for U.K. on 1st September, 2022 to take up a job there. His residential status for the assessment year 2023-24 would be - Show Answer

Q62) Satish brought into India, in the previous year, past untaxed income which was earned in U.K. The income will be taxable if Satish is- Show Answer

Q63) Mr. Rajiv, born and brought up in India left for employment in Belgium on 15-10-2022. He has never gone out of India, previously. What is his residential status for the assessment year 2023-24? Show Answer

Q64) Mr. Ramji (age 55) is Karta of HUF doing textile business in Nagur. Mr. Ramji is residing in Dubai for the past 10 years and visited India for 20 days every year for filing the income tax return of HUF. His two major sons take care of the day to day affairs of the business in India. The residential status of HUF for the assessment year 2023-24 is: Show Answer

Q65) Thomas Inc. of Australia borrowed money from various companies in Australia for doing business in India by name ANS Co. Ltd., Mumbai. Thomas Inc. paid interest of 500 lakhs (converted) to various lenders. The amount of interest paid: Show Answer

Q66) A municipal committee legally entitled to manage and control a municipal fund is chargeable to income-tax in the status of: Show Answer

Q67) A domestic company has total income of 120 lakhs. The rate of surcharge is applicable on income-tax would be: Show Answer

Q68) Mr. Alok Chatterjee born and brought up in India since 1970, left for Singapore on 10-10-2022 for the purpose of employment. His residential status would be: Show Answer

Q69) In the case of an individual being not ordinarily resident the following income is chargeable to tax: Show Answer

Q70) Mr. Ajay (age 40) resident of India earned agricultural income of Rs.1 lakh from land situated in Sri Lanka. His total income in India amounts to 7 lakhs. The tax liability would be: Show Answer

Q71) Income chargeable to tax under the Income Tax Act, 1961 in the Assessment Year has been defined in section 2(24) to include:
(i) Voluntary contribution received by an electoral trust
(ii) Profits of insurance business
(iii) Amounts received under Keyman Insurance Policy [except where it is exempt u/s 10/(10D)]
(iv) Gift from non-relative of an amount exceeding 50,000 Show Answer

Q72) John is a foreign citizen born in USA. His father was born in Delhi in 1960 and his grand-father was born in Lahore in 1935 but his mother was born in UK in 1963. John came to India for the first time on 1st June, 2022 and stayed in India for 183 days and then left for USA. His residential status for the A.Y. 2023-24 shall be: Show Answer

Q73) The following income of Ms. Nargis who is a non-resident shall be included in her total income:
(i) Salary for 2 months received in Delhi 40,000. (ii) Interest on Savings Bank Account in Mumbai 2,100.
(iii) Agricultural income in Bangladesh and Invested in shares in Bangladesh.
(iv) Amount brought into India out of past non-taxed profits earned in USA. Show Answer

Q74) The income earned during the previous year is subject to tax under the Act on the basis of residential status of an assessee. However, the residential status of an assessee........ every year. Show Answer

Q75) Surcharge on the amount of tax is to be levied at specified percentage when an individual is having income exceeding specified limits: Show Answer

Q76) An employee director of a company was paid 5 lakh as a lump sum consideration for resigning from the directorship by XYZ Ltd. The amount so paid shall be treated in the accounts of the company as _______ Show Answer

Q77) The basic exemption limit in case of a non-resident individual being a senior citizen for assessment year 2023-24 is: Show Answer

Q78) Total income-tax including cess payable in case of a
resident individual aged 58 years, whose computed total income is 3,40,000 for assessment year 2023-24 shall be: Show Answer

Q79) Which out of the following criteria determines the Place of Effective Management (POEM) in order to treat a foreign company as resident in India (resident company) during the previous year as per guidelines issued by CBDT and the provisions contained under the Income
Tax Act, 1961 ________ Show Answer

Q80) A person is deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in............. Show Answer

Q81) Central Board of Direct Taxes (CBDT) vide Circular No. 8 of 2017 dated 23rd February, 2017 has clarified that the Place of Effective Management (POEM) provisions shall not apply to a company having turnover or gross receipts in a financial year of................ Show Answer

Q82) Thomas, an Indian citizen is living in Kerala since birth in 1954 and left for UAE on 13th June, 2017 for a salaried employment contract for 4 years and came back on 7th July, 2022 to India and settled at Kerala. His residential status for the Assessment Year 2023-24 shall be: Show Answer

Q83) The Apex Court in the case of CIT-Gujarat Vs. Saurashtra Cements Ltd. (2010) 233 CTR 209 has held that liquidated damages received from the supplier on account of delay in the supply of plant and machinery shall be treated in the nature of: Show Answer

Q84) Karnataka High Court in case of CIT vs. ITC Hotels Ltd. (2011) 334 ITR 109 has held that the expenditure incurred on the issue and collection of debentures including the convertible debentures (which had to be converted into shares at a later date) shall be treated as ............... Show Answer

Q85) Shane Warne, an Australian Cricketer coming to India regularly for playing different league matches since April, 2013 and was staying in India in each of the financial year for 100 days. His residential status for the previous year ended on 31.3.2023 relevant for A.Y. 2023-2024 shall be: Show Answer

Q86) A company shall be said to be engaged in "active business outside India" (ABOI), if the passive income is not -------- of its total income and -------- of its total assets are situated in India. Show Answer

Q87) Incomes not actually received by the assessee during the - relevant assessment year are also included in the total income as income deemed to have been received. Find which out of the following are the income deemed to have been received as per Income Tax Act, 1961 during the financial year:
(i) Amount of unrecorded investment
(ii) All sums deducted by way of tax at source
(iii) Any dividend declared by a company
(iv) Transferred balance in Recognised PF Show Answer

Q88) Xavier, a resident and ordinary resident had the income computed under the salary of 1,20,000; agriculture income of 25,000 in Indonesia being invested there and income of a business in Burma controlled from India of 20,000 during the previous year ended on 31.3.2023. He has brought into India 45,000 in January, 2023 out of the past untaxed profits earned in UK. His total income for tax purpose for Asst. Year 2023-24 shall be: Show Answer

Q89) Chirag a resident individual of 67 years of age had total income earned from different sources during the previous year 2022-23 being computed as per provisions of Income-tax Act, 1961 of 4,75,000. His tax liability on such income for the Asst. Year 2023-24 will be --------- but tax payable shall be nil. Show Answer

Q90) Which of the following person's income would not be taxed in the previous year itself but would be taxed in the assessment year only? Show Answer

Q91) A company shall be deemed to be one as per section 2(18) of the Income Tax Act, 1961 in which public are substantially interested and is owned by the Government or Reserve Bank of India (RBI) or in which not less than.................. of the shares whether singly or taken together are being held by the Government or Reserve Bank of India or a Corporation owned by the RBI. Show Answer

Q92) "Assessee" as per section 2(7) of the Income Tax Act, 1961, means a person by whom income tax or super tax or any other sum of money is payable under this Act and includes: Show Answer

Q93) Income tax as per section 4 (1) of the Income Tax Act, 1961 shall be charged on the total income of the previous year of every person. The definition of person given in section 2(31) of the Act does not include in it:
(i) Association of person
(ii) Association of firms (iii) Body of Individuals
(iv) Notified Entities Show Answer

Q94) Tax as per provisions of Income Tax Act, 1961 is charged both on revenue and capital receipts by taking them as income. Find and state from the following items of receipts, which is specifically not included in the income: Show Answer

Q95) Pankaj kumar, a citizen of India having salaried employment received amount of dividend of Rs.42,725 from a Canadian Company credited in his bank account in Canada in March 2022. The amount of dividend of Rs.42,725 was remitted to India during the month of February, 2023. The amount of dividend so received shall be taxable in A.Y.2023-24 when the residential status of Pankaj Kumar is: Show Answer

Q96) The residential status of Raghav, born in Delhi and a citizen of India, who was staying in India during the period September, 2022 to March, 2023 for 125 days, for the A.Y. 2023-24 would be, if Raghav during the previous year 2022-23 was having income in India of 17,25,000 besides the income of 30 lacs from foreign sources which is not liable to tax in any other Country by reason of his domicile. Show Answer

Q97) Sarad is a Karta of HUF doing business at Delhi. Sarad is residing in USA for past 6 years and he visited India for 30 days every year for filing income tax return of HUF. His 3 sons and wife take care of the affairs of business in India. What will be the residential status of HUF ? Show Answer

Q98) Following are the income of Sudha for the Previous Year 2022-23:
(i) Dividend from foreign company received in Tokyo Rs 96,000
(ii) Profit earned from business in Indonesia which is controlled in India, 6 lakhs, 3/4th of the profit is received in India (iii) Fees from technical services received in India for technical services provided to run a business outside India of 9 lakhs (iv) Profit not taxed previously brought into India 2 lakhs
What is the gross total income of Sudha, if she is an ordinary resident and not ordinary Resident for the Assessment Year 2023-24 ? Show Answer

Q99) In which year Income Tax was levied first time - Show Answer

Q100) The administration of direct tax is vested with: Show Answer

Q101) Income-tax Act extends to: Show Answer

Q102) The Central Government has been empowered by entry of the Union list of Schedule VII of the Constitution of India to levy tax on income other
than agricultural income. Show Answer

Q103) Part I of Schedule I of the Finance Act, 2022 has given rates of income tax for the financial year: Show Answer

Q104) Section of the Income-tax Act, 1961 defines the term 'assessment year- Show Answer

Q105) The status of Ashni Paints Pvt. Ltd. is: Show Answer

Q106) Financial year means Show Answer

Q107) Method of Accounting is not relevant for - Show Answer

Q108) Surcharge on income tax is payable by: Show Answer

Q109) The maximum amount on which income-tax is not chargeable in case of firm is: Show Answer

Q110) The total income of the assessee has been computed at 4,83,494.90.
For rounding off, the total income will be taken as: Show Answer

Q111) Mrs. A, a resident of India, is 61 years old. Her total income for the assessment year 2023-24 is 4,50,000. Her tax liability shall be: Show Answer

Q112) Mrs. A a non-resident in India is 66 years old. Her total income for the assessment year 2023-24 is 6,35,440. Her tax liability shall be- Show Answer

Q113) What is the maximum amount of income not chargeable to tax in case
of AOP/BOI? Show Answer

Q114) The MMR of 30% for Assessment year 2023-24 is relevant in case of which of the following person- Show Answer

Q115) The income-tax payable by a Non Resident Individual (aged 62 years) for AY 2023-24 if his total income is 2,90,000 will be: Show Answer

Q116) Calculate the amount of rebate u/s 87A in case of a resident individual
having total income of 3,00,000. Show Answer

Q117) Unexplained cash credits are chargeable to tax @ ___________ . Show Answer

Q118) H&EC is leviable in case of: Show Answer

Q119) Health and Education cess is leviable on: Show Answer

Q120) Long term capital Gains are chargeable to tax @. Show Answer

Q121) Full form of ICDS is- Show Answer

Q122) Residential Status is to be determined for: Show Answer

Q123) Basic condition will be for a person who leaves India for employment- Show Answer

Q124) Total Income of a person is determined on the basis of his: Show Answer

Q125) Ashni was born in India in 1997. Her father was born in India in 1950 and her mother was born in England. Her grand father was born in England & her grand mother was born in South Africa. The parents of Ashni along with Ashni took the citizenship of England. Ashni is a: Show Answer

Q126) Ruchira was born in England, his parents were born in India in 1952. Her grand parents were born in South Africa. Ruchira shall be: Show Answer

Q127) Determine the residential status of Ms. Shruti, a US citizen who has been visiting India for 100 days every year since last 10 years - Show Answer

Q128) AB, a Foreign-National, visited India during previous year 2021-2022 for 180 days. Earlier to this he never visited India AB in this case shall be: Show Answer

Q129) AB was born 5th April 1999 in India and he later on took the citizenship of U.S.A Neither his parents nor his grand parents were born in divided/undivided India AB in this case shall be a: Show Answer

Q130) AB was born in India in 1998. His parents were born in India in 1953. His grand father was born in Lahore in 1938 but his grand mother was born in England in 1942. AB will be a: Show Answer

Q131) ABC Ltd. is registered in U.K. The place of effective management of its affairs is situated in India. ABC Ltd. Shall be: Show Answer

Q132) ABC Ltd. is an Indian Company whose place of effective management of its affairs is situated outside India. ABC Ltd. shall be: Show Answer

Q133) AB, a Foreign National, but a person of Indian origin visited India during previous year 2022-23 for 181 days. During 4 preceding previous year he was in India for 400 days. AB shall be: Show Answer

Q134) Incomes which accrue or arise out side India but are received directly into India are taxable in case of: Show Answer

Q135) Income deemed to accrue or arise in India is taxable in case of: Show Answer

Q136) Income which accrue or arise outside India from a business controlled from India is taxable in case of: Show Answer

Q137) Income which accrue or arise outside India and also received outside
India is taxable in case of: Show Answer

Q138) AB & Co. received Rs.2,00,000 as compensation from CD & Co. for premature termination of contract of agency. Amount so received is- Show Answer