Part A – Chapter 1 – Basic Concepts MCQs

Income Tax Act came into force on-

Highest Administrative Authority for Income Tax in India is

What are the components of income tax law.

Income Tax is imposed by

Income tax act is applicable to

Finance minister of India introduces the finance bill in the Parliament’s budget session

who is empowered to make rules for carrying out the purpose of the Act

Which Entry of Union List gives the power to Parliament to levy tax on incomes?

assesse means

Which of the following is not included in the definition of person

Types of Income tax assessment

As per section 2(31) Person includes

The term “Person” includes

A person becomes a member of HUF by

Some members of HUF are called as

Under Income tax act 1961, which of the following would also be assessed as a HUF

AOP should consist of

Which amongst the following is Artificial Juridical Person?

Which of the following statement is covered under the definition of company as per section 2(17)

The expression ‘Indian Company’ also includes the following provided their registered or principal office is in India:
i. a corporation established by or under a Central, State or Provincial Act (like Financial Corporation or a State Road Transport Corporation);
ii. an institution or association or body which is declared by the Board to be a company under section 2(17)(iv):
iii. a company formed and registered under any law relating to companies which was or is in force in any part of India [other than Jammu and Kashmir and Union territories mentioned in (v) below):
iv. in the case of Jammu and Kashmir, a company formed and registered under any law for the time being in force in Jammu and Kashmir,
v. in the case of any of the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry, a company formed and registered under any law for the time being in force in that Union territory.

“Average rate of tax” means-

The maximum marginal rate for A.Y. 2021-22 is

Assessment Year as per 2(9) is-

Previous year as per section 3 is-

All Assesses are required to follow-

KIWI is running a business from 1995 onwards. Determine the previous year for the assessment year 2022-23

A chartered accountant sets up his profession on 1st July, 2021. Determine the previous year for assessment year 2022-2023.

Pick-the correct one.

As per sec. 2(24) definition of ‘income’ is-

Income of previous year is assessed in the assessment year following the previous year. Which of the following are not the exception to this rule are-

Income tax is to be charged at the rates fixed for the year by the-

A senior citizens as per Income Tax Act is a person who is of the age of –

A very senior citizens as per Income Tax Act is a person who is of the age of

Basic exemption limit for senior citizens

Basic exemption limit for very senior citizens

Mr. Ajay has a total income of 13,00,000 for P.Y. 2021-22, comprising of income from house property and interest on fixed deposit. Compute his tax liability for A.Y. 2022-23 assuming his age is 37 years

Mr. Vijay has a total income of 13,00,000 for P.Y. 2021-22, comprising of income from house property and interest on fixed deposit. Compute his tax liability for A.Y. 2022-23 assuming his age is 65 years.

Mr. Cijay has a total income of 13,00,000 for P.Y. 2020-21, comprising of income from house property and interest on fixed deposit. Compute his tax liability for A.Y. 2021-22 assuming his age is 83 years

Tax rate for Firm/LLP is-

Tax rate for Local Authority is-

Compute the tax liability of Mr. Rajan (aged 42 years), having total income of 51.5 lakhs for the Assessment Year 2021-22.

Compute the marginal relief if income of assessee (age 57) is 51.5 Lakhs

Compute the marginal relief of income ₹10200000, assessee age 52 years

Compute the marginal relief of YOLO Ltd. a domestic company. Total Income ₹100100000.Gross receipts for the P.Y. 2018-19 is 409 Crore.

Rebate from the tax payable by an assessee, being an individual resident in India, whose total income does not exceed ₹500000 is-

Mr. Ajju age 37 years, has a total income of ₹460000. Compute his tax liability.

The rate of health and education cess in AY 2021-2022 is-

Compute the marginal relief available to XOXO Ltd., A domestic company having total income of ₹10100000 for A.Y. 2021-22-

Finance Bill becomes the Finance Act when it is Passed by .

Compute the marginal relief available to Laala Ltd., A domestic company having total income of ₹50200000 for A.Y. 2021-22.

Compute the Tax Liability of Leela Ltd., A domestic company having total income of ₹50200000 for A.Y. 2021-22.