Multiple Choice Questions: Statutory Compliance
Compiled by: Dr Bhupendra Jain; 9811255704
Choose the correct answer
Q.1: Income tax is a
A. Direct tax
B. Indirect tax
C. Neither of the above
D. Both of the above
Q.2: Income tax is collected by
A. state government
B. central government
C. Semi-Government
D. All of the above
Q.3: CBDT stands for.
A. Chief Board of Direct Taxes
B. Central Board of Direct Taxes
C. Central Board of Duplicate Taxes
D. None of the above
Q.4: Circulars are binding on the
A. Central Board of Direct Taxes (CBDT)
B. Assessee
C. Income Tax Appellate Tribunal (ITAT)
D. Income Tax Authorities
Q.5: Income Tax is charged in –
A. Financial Year
B. Assessment Year
C. Previous Year
D. Accounting Year
Q.6: A person includes:
A. Only Individual
B. Only Individual and HUF
C. Individuals, HUF, Firm, Company only
D. Individuals, HUF, Company, Firm, AOP or BOI, Local Authority, Every Artificial
Juridical Person
Q.7: Describe the status of the following person (i.e. individual, HUF, Firm, Company etc.) X
and Yare legal heirs of Z. Z died in 2022 and X and Y carried on his business without
entering into a partnership.
A. Firm
B. Limited Liability Partnership
C. Company
D. Body of Individual
Q.8: Every assessee is a person, and –
A. every person is also an assessee
B. every person need not be an assessee
C. an individual is always an assessee
D. A HUF is always an assessee
Q.9: Assessment year can be a period of:
A. only more than 12 months
B. 12 months and less than 12 months
C. only 12 months
D. 12 months and more than 12 months
Q.10: The year in which income is taxable is known as ___________ and the year in which
income is earned is known as ----
A. Previous year, Assessment year
B. Assessment year, Previous year
C. Assessment year, Assessment year
D. Previous year, Previous year
Q.11: The year in which the income is earned is known as
A. Previous year
B. Financial year
C. Both (A) or (B)
D. None of the above.
Q.12: Municipality of Delhi falls under the ----- category of person
A. Artificial juridical person
B. Local authority
C. Individual
D. Association of Person
Q.13: Under the Income Tax Act partnership firm include –
A. Limited liability partnership
B. Limited liability company
C. One-person company
D. Association of person
Q.14: A.O.P should consist of :
A. Individual only
B. Persons other than individuals only
C. Both individual and non-individual persons.
D. None of these
Q.15: The body of an Individual should consist of:
A. Individual only
B. Persons other than individuals only
C. Both individual and non-individual persons.
D. None of these
Q.16: Financial year means a year commencing on –
A. 31st March of the period
B. 1" day of the April
C. Mid of the year
D. None of these
Q.17: Mr Raj commenced business on 1st September 2023. The previous year for the
business for the assessment year 2024-24 would be
A. 1st April, 2023 to 31st March 2024
B. 1st September, 2023 to 31st March, 2024
C. 1st April 2024 to 31st March, 2025
D. 1st September 2024 to 31st January 2025
Q.18: The business income commenced on 1st February 2024 will be assessed in the
assessment year.
A. 2022-23
B. 2023-24
C. 2024-25
D. None of the above
Q.19: Income Tax is levied on the ___________ of a person.
A. Total Income
B. Total Income-Debt
C. Gross Total Income
D. Net Income-Debt Perquisites
Q.20: Income tax in India is charged at the rates prescribed by –
A. The Finance Act of the assessment year
B. The Income-tax Act, 1961
C. The Central Board of Direct Taxes
D. The Finance Act of the previous year
Q.21: Income is divided in ___________ heads of Income.
A. 4
B. 5
C. 6
D. 3
Q.22: Income includes –
A. Profits or Gains
B. Capital gains
C. Lottery winnings
D. All of the above
Q.23: The term' income' includes the following types of income –
A. ' Legal
B. Illegal
C. Legal and illegal both
D. None of the above
Q.24: Which amongst the following is not a head of Income?
A. Salaries
B. Income from House Property
C. Capital gains
D. Income from exports
