{"id":10902,"date":"2021-11-11T11:44:41","date_gmt":"2021-11-11T06:14:41","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=10902"},"modified":"2025-10-09T16:47:21","modified_gmt":"2025-10-09T11:17:21","slug":"basic-concepts-of-income-tax-mcq","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/basic-concepts-of-income-tax-mcq\/","title":{"rendered":"Basic Concepts of Income Tax MCQ | 50 Free MCQs"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\">Basic Concepts of Income Tax MCQ<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/marketing-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>MCQs on other topics of Taxation<\/strong><\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. Income tax extends to &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. of India.<\/strong><br>a. Whole of India<br>b. Whole of India except Jammu &amp; Kashmir<br>c. Whole of Maharashtra only<br>d. None of those<\/p>\n\n\n\n<p><strong>2. Income tax is a tax on \u2026\u2026\u2026\u2026\u2026\u2026 <br><\/strong>a. Salary<br>b. Income<br>c. House Property<br>d. Profit<\/p>\n\n\n\n<p><strong>3. In all there are<strong> &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;<\/strong> number of section under the Income-tax Act, 1961.<br><\/strong>a. 298 <br>b. 290<br>c. 304<br>d. 398<\/p>\n\n\n\n<p><strong>4. The rate of tax on Income is decided every year by the .\u2026\u2026\u2026\u2026\u2026. <br><\/strong>a. GST Act<br>b. Income Tax Act<br>c. Finance Act<br>d. Income Tax Rules<\/p>\n\n\n\n<p><strong>5. Income tax Act came into force from &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.<\/strong><br>a. 31st March 1960<br>b. 1st April 1947<br>c. 1st April 1969<br>d. 1st April 1961<\/p>\n\n\n\n<p><strong>6. Constitution is the &#8230;&#8230;&#8230;&#8230;&#8230;.. in India. <br><\/strong>a. Parent Law<br>b. Univeral Law<br>c. Main Law<br>d. None of the above<\/p>\n\n\n\n<p><strong>7. The constitution of India empowers &#8230;&#8230;&#8230;&#8230;&#8230; to levy tax on income.<br><\/strong>a. State Government<br>b. Central Government<br>c. Local Government<br>d. None of the above<\/p>\n\n\n\n<p><strong>8. Gross Tax Liability \u2013 &#8230;&#8230;&#8230;&#8230;. = Net Tax Liability. <\/strong>  <strong><br><\/strong>a. Tax Deducted at Source (TDS)<br>b. GST<br>c. VAT<br>d. House Tax<\/p>\n\n\n\n<p><strong>9. The Finance Bill is introduced by &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. .<br><\/strong>a. Finance Secretary<br>b. Commerce Minister<br>c. Finance Minister<br>d. None of the above<\/p>\n\n\n\n<p><strong>10. Finance Bill, once approved, becomes &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.<\/strong><br>a. Finance Act<br>b. Finance Law<br>c. Finance Ordinance<br>d. None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">1)Whole of India  2)Income<\/span>  <span class=\"has-inline-color has-vivid-red-color\">3)298  4)Finance Act<\/span>  <span class=\"has-inline-color has-vivid-red-color\">5)1st April 1961  6)Parent Law<\/span>  <span class=\"has-inline-color has-vivid-red-color\">7)Central Government<\/span>  <span class=\"has-inline-color has-vivid-red-color\">8)Tax Deducted at Source (TDS)<\/span>  <span class=\"has-inline-color has-vivid-red-color\">9)Finance Minister<\/span>  <span class=\"has-inline-color has-vivid-red-color\">10)Finance Act<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/11\/Basic-Concepts-of-Income-Tax-MCQ-1024x576.jpg\" alt=\"Basic Concepts of Income Tax MCQ\" class=\"wp-image-10942 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/11\/Basic-Concepts-of-Income-Tax-MCQ-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/11\/Basic-Concepts-of-Income-Tax-MCQ-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/11\/Basic-Concepts-of-Income-Tax-MCQ-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/11\/Basic-Concepts-of-Income-Tax-MCQ-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/11\/Basic-Concepts-of-Income-Tax-MCQ-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/11\/Basic-Concepts-of-Income-Tax-MCQ.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><\/figure>\n\n\n\n<p><strong>11. The act provides for &#8230;&#8230;&#8230;&#8230;&#8230;.. of the assessee. <\/strong><br>a. determination of income<br>b. determination of total income<br>c. None of the above<\/p>\n\n\n\n<p><strong>12. The &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. on the total income is decided every year by passing the finance act.<\/strong><br>a. rate of tax<br>b. Amount of tax<br>c. Tax<br>d. None of the above<\/p>\n\n\n\n<p><strong><b>13. <\/b>The constitution of India empowers &#8230;&#8230;&#8230;&#8230;&#8230;.. to levy tax on income.<br><\/strong>a) State Government <br>b) Central Government <br>c) Parliament <br>d) Finance Minister<\/p>\n\n\n\n<p><strong>14. Income Tax is a tax on &#8230;&#8230;&#8230;&#8230;&#8230;. .<br><\/strong>a) Income <br>b) Profit <br>c) Turnover <br>d) Expenditure<\/p>\n\n\n\n<p><strong>15. The Income Tax Act, 1961 has 298 &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230; .<\/strong><br>a) Sections <br>b) Sub-sections <br>c) Clauses <br>d) Sub-clauses<\/p>\n\n\n\n<p><strong>16. The &#8230;&#8230;&#8230;&#8230; makes the amendment in the form of omission, insertions and substitutions in the Income Tax Act.<\/strong><br>a) Finance Bill <br>b) Finance Minister <br>c) Finance Act <br>d) Parliament<\/p>\n\n\n\n<p><strong>17. The Income Tax Act extends to &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.. of India.<\/strong><br>a) States <br>b) Union Territories <br>c) Citizens <br>d) Whole<\/p>\n\n\n\n<p><strong>18. Gross Tax Liability is calculated on<\/strong> <strong>&#8230;&#8230;&#8230;&#8230;&#8230; .<br><\/strong>a) Gross Total Income <br>b) Net Taxable Income <br>c) Income <br>d) Salary<\/p>\n\n\n\n<p><strong>19. Shivaji University is assessable under the Income Tax Act as<br><\/strong>a. An Individual <br>b. An artificial juridical person<br>c. A local authority<br>d. None of these <\/p>\n\n\n\n<p><strong>20. AOP should cosists of :<\/strong><br>a. Individual only<br>b. Person other than individual only<br>c. Both the above<br>d. None of these <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">11)determination of total income<\/span>  <span class=\"has-inline-color has-vivid-red-color\">12)rate of tax<\/span>  <span class=\"has-inline-color has-vivid-red-color\">13)Central Government<\/span>  <span class=\"has-inline-color has-vivid-red-color\">14)Income<\/span>  <span class=\"has-inline-color has-vivid-red-color\">15)Sections<\/span>  <span class=\"has-inline-color has-vivid-red-color\">16)Finance Act<\/span>  <span class=\"has-inline-color has-vivid-red-color\">17)Whole<\/span>  <span class=\"has-inline-color has-vivid-red-color\">18)Net Taxable Income<\/span>  <span class=\"has-inline-color has-vivid-red-color\">19)An artificial juridical person<\/span>  <span class=\"has-inline-color has-vivid-red-color\">20)Both the above<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. The term H.U.F. stands for:<\/strong><br>a) Hindu divided family <br>b) Human undivided family <br>c) Hindu undivided family <br>d) Human divided family<\/p>\n\n\n\n<p><strong>22. Residential has nothing to do with:<br><\/strong>a) Constitution <br>b) Citizenship <br>c) Censorship <br>d) Change<\/p>\n\n\n\n<p><strong>23. A.O.P. is the abbreviation used for:<\/strong><br>a) Association of persons <br>b) Association of professors <br>c) Association of Panchayats <br>d) Associate of person<\/p>\n\n\n\n<p><strong>24. A.O.P. should consist of:<br><\/strong>a) Individual only<br>b) Persons other than individual only<br>c) Both of the above<br>d) None of the above<\/p>\n\n\n\n<p><strong><span>25. Body of individual should consist of :<\/span><br><\/strong>a) Individual only <br>b) Persons other than individual only <br>c) Both of the above <br>d) None of the above<\/p>\n\n\n\n<p><strong>26. Residential status of an individual depends on the stay of the assesses in India during the:<br><\/strong>a) Calendar year <br>b) Accounting year <br>c) Assessment year <br>d) Previous year<\/p>\n\n\n\n<p><strong>27. A person by whom any tax is payable under Income Tax Act 1961 is called as:<\/strong><br>a) Individual <br>b) Tax Receiver <br>c) Assessee <br>d) None of the above<\/p>\n\n\n\n<p><strong>28. The financial year in which the income is earned is called as the:<\/strong><br>a) Assessment year <br>b) Present year <br>c) Previous year <br>d) Current year<\/p>\n\n\n\n<p><strong>29. An company is always resident in India:<br><\/strong>a) Industrial <br>b) Individual <br>c) Indian <br>d) Investment<\/p>\n\n\n\n<p><strong>30. Income Tax Act extends to<\/strong>:<strong><br><\/strong>a) Whole of India <br>b) Whole of India except Jammu &amp; Kashmir <br>c) India and Sri Lanka <br>d) None of these<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>21)Hindu undivided family<\/span>  <span class=\"has-inline-color has-vivid-red-color\">22)Citizenship<\/span>  <span class=\"has-inline-color has-vivid-red-color\">23)Association of persons<\/span>  <span class=\"has-inline-color has-vivid-red-color\">24)Both of the above<\/span>  <span class=\"has-inline-color has-vivid-red-color\">25)Individual only<\/span>  <span class=\"has-inline-color has-vivid-red-color\">26)Previous year<\/span>  <span class=\"has-inline-color has-vivid-red-color\">27)Assessee<\/span>  <span class=\"has-inline-color has-vivid-red-color\">28)Previous year<\/span>  <span class=\"has-inline-color has-vivid-red-color\">29)Indian<\/span>  <span class=\"has-inline-color has-vivid-red-color\">30)Whole of India<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>31. A new business was set up on 15-11-2019 and it commended its business from 1-12-2019. The first previous year, in this case, shall be :<\/strong><br>a) 15-11-2019 to 31-3-2020 <br>b) 1-12-2019 to 31-3-2020 <br>c) 2017-2020 <br>d) None of these<\/p>\n\n\n\n<p><strong>32. Shivaji University is assessable under the Income Tax Act as<\/strong>:<strong><br><\/strong>a) An Individual <br>b) An Artificial Juridical Person <br>c) A Local Authority <br>d) None of these<\/p>\n\n\n\n<p><strong>33. Income Tax Act has &#8230;&#8230;&#8230;&#8230;. schedules.<\/strong><br>a) 23 <br>b) 14 <br>c) 298 <br>d) 40<\/p>\n\n\n\n<p><strong>34. 58 (1) (a) (ii) is read as &#8230;&#8230;&#8230;&#8230;&#8230;.<br><\/strong>a) Section 58 schedule (1) clause (a) sub-clause (ii) <br>b) Section 58 clause (1) sub-section (a) schedule (ii) <br>c) Section 58 sub-section (1) clause (a) sub-clause (ii) <br>d) Section 58 sub-section (1) clause (a) schedule (ii)<\/p>\n\n\n\n<p><strong><span>35. In 59 (3) (b) (iv), (b) is &#8230;&#8230;&#8230;&#8230;&#8230;<\/span><br><\/strong>a) Section <br>c) Sub-section <br>c) Clause <br>d) Sub-clause<\/p>\n\n\n\n<p><strong>36. &#8230;&#8230;&#8230;&#8230;&#8230; are definite, specific, complete and full.<br><\/strong>a) Exhaustive definition <br>b) Inclusive definition <br>c) Sections <br>d) Clauses<\/p>\n\n\n\n<p><strong>37. A firm is regarded as a unit of assessment as per &#8230;&#8230;&#8230;&#8230;&#8230;.. .<\/strong><br>a) Income Tax Act <br>b) Partnership Act <br>c) Companies Act <br>d) Finance Act<\/p>\n\n\n\n<p><strong>38. &#8230;&#8230;&#8230;&#8230;.. is chargeable u\/s 45.<\/strong><br>a) Capital Gains <br>b) Profit and Gains <br>c) Dividend <br>d) Voluntary Contribution<\/p>\n\n\n\n<p><strong>39. Income includes &#8230;&#8230;&#8230;&#8230;..<br><\/strong>a) Dividend <br>b) Voluntary Contribution <br>c) Capital Gains <br>d) All of the above<\/p>\n\n\n\n<p><strong>40. Any sum of money received in excess of &#8230;&#8230;&#8230;.. without consideration is chargeable to tax.<br><\/strong>a) 5,000\/- <br>b) 50,000\/- <br>c) 5,00,000\/- <br>d) 55,000\/-<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>31)15-11-2019 to 31-3-2020<\/span>  <span class=\"has-inline-color has-vivid-red-color\">32)An Artificial Juridical Person<\/span>  <span class=\"has-inline-color has-vivid-red-color\">33)14<\/span>  <span class=\"has-inline-color has-vivid-red-color\">34)Section 58 sub-section (1) clause (a) sub-clause (ii)<\/span>  <span class=\"has-inline-color has-vivid-red-color\">35)Clause<\/span>  <span class=\"has-inline-color has-vivid-red-color\">36)Exhaustive definition<\/span>  <span class=\"has-inline-color has-vivid-red-color\">37)Income Tax Act<\/span>  <span class=\"has-inline-color has-vivid-red-color\">38)Capital Gains<\/span>  <span class=\"has-inline-color has-vivid-red-color\">39)All of the above  40)50,000\/-<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>41. Previous year can be of &#8230;&#8230;&#8230;&#8230; 12 months.<\/strong><br>a) More than <br>b) Less than <br>c) Only <br>d) Any<\/p>\n\n\n\n<p><strong>42. Any sum received or receivable in cash or kind under an agreement for not carrying out an activity in relation to a business is called as &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.<br><\/strong>a) Pin Money <br>b) Mutual Activity <br>c) No Competition Deal <br>d) Non-compete Agreement<\/p>\n\n\n\n<p><strong>43. &#8230;&#8230;&#8230;&#8230;.. is expected to be a periodical monetary return.<\/strong><br>a) Salary <br>b) Profit <br>c) Income <br>d) Interest<\/p>\n\n\n\n<p><strong>44. &#8230;&#8230;&#8230;&#8230;&#8230; are not taxable.<br><\/strong>a) Losses <br>b) Personal Gifts <br>c) Illegal Income <br>d) Awards<\/p>\n\n\n\n<p><strong><span>45. &#8230;&#8230;&#8230;&#8230; received by the wife is not taxable.<\/span><br><\/strong>a) Pin Money <br>b) Compensation <br>c) Gift <br>d) Salary<\/p>\n\n\n\n<p><strong>46. The term \u2018Person\u2019 includes &#8230;&#8230;&#8230;&#8230;&#8230;.<br><\/strong>a) HUF <br>b) AOP <br>c) BOI <br>d) All of them<\/p>\n\n\n\n<p><strong>47. Partners are liable to pay tax on &#8230;&#8230;&#8230;&#8230;. received from firm.<\/strong><br>a) Salary <br>b) Profit <br>c) Income <br>d) Both (a) &amp; (c)<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>41)Less than<\/span>  <span class=\"has-inline-color has-vivid-red-color\">42)Non-compete Agreement<\/span>  <span class=\"has-inline-color has-vivid-red-color\">43)Income<\/span> <span class=\"has-inline-color has-vivid-red-color\"> 44)Personal Gifts<\/span>  <span class=\"has-inline-color has-vivid-red-color\">45)Pin Money<\/span>  <span class=\"has-inline-color has-vivid-red-color\">46)All of them<\/span>  <span class=\"has-inline-color has-vivid-red-color\">47)Both (a) &amp; (c)<\/span> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Learn the chapters on TYBCOM from our <a href=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" data-type=\"link\" data-id=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" target=\"_blank\" rel=\"noopener\">YouTube channel<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":10942,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[3690],"class_list":["post-10902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-basic-concepts-of-income-tax-mcq"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/10902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=10902"}],"version-history":[{"count":7,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/10902\/revisions"}],"predecessor-version":[{"id":39731,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/10902\/revisions\/39731"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/10942"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=10902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=10902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=10902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}