INCOME TAX

- QUIZ -
Question 1
Income tax act,?

A 1956
B 1958
C 1961
D 1964
Answer

C 1961
Question 2
What is the basic exemption in tax slab?

A 1,50,000
B 2,50,000
C 3,00,000
D 3,50,000
 Answer

B 2,50,000
Question 3
What is the exemption for a resident in
India, who is of the age of 80 years or
more at any time during the previous
year.
A 3,00,000
B 4,00,000
C 2,50,000
D 5,00,000
 Answer

D 5,00,000
Question 4
What is the rate of Education Cess and
Secondary and Higher Education Cess
(SHEC) on income tax

A 2% and 1% respectively
B 2.5% and 1% respectively
C 2% and 1.5% respectively
D 3% and 1% respectively
 Answer

A 2% and 1% respectively
Question 5
. One of the following is not a major
business internal revenue tax in the Tax
Code.
A Value-Added Tax
B Excise Tax
C Income Tax
D Percentage Tax
 Answer

C Income Tax
Question 6
Which one is NOT a Fully taxable
allowances without any exemptions ?

A City Compensatory Allowance

B Conveyance Allowance
C Dearness Allowance / Pay
D Overtime Allowance
 Answer

B Conveyance Allowance
Question 7
The basis of chargeability under the head
income from house property is

A Annual Value
B Monthly
C Half yearly
D Quarterly
 Answer

A Annual Value
Question 8
Under income from house property Standard
deduction of _____ % of NAV (Net Annual Value)
shall be allowed to the assesse in respect of
(i)maintenance charges, (ii) repairs, (iii) collection
charges, (iv) electricity, (v) fire insurance premium,
(vi)ground rent, and (vii) depreciation.

A 12%
B 20%
C 30%
D 40%
 Answer

C 30%
Question 9
Computation of Income from Business or
Profession is stated under section? [Sec. ?]

A [Sec. 28]
B [Sec. 29]
C [Sec. 26]
D [Sec. 30]
 Answer

B [Sec. 29]
Question 10

Expand HRA in income tax?

 House Rent Allowance
Question 11
Expand LTA ?
 Answer

LEAVE TRAVEL ASSISTANCE (LTA)

Question 12

Any person employed gets compensated

by way of remuneration for services
rendered is called ?
 Answer

Salary
Question 13
Following are the example for the
_______ types of assets
Know-how, patents, copyright, trademarks,
licences ?
 Answer

Intangible assets
Question 14
The gradual dimunition of the useful value
of tangible property resulting from
ordinary wear and tear
A Depletion
B Depreciation
C Declination
D Deduction
 Answer

B Depreciation
Question 15
The objective of taxation by the
Government are

A Raising revenue for the state

B To maintain economic stability
C To remove disparities in the
distribution of income
D All of the above
 Answer

D All of the above

Question 16
Which of the following is not a direct tax?

A Personal Income Tax

B Service tax
C Wealth Tax
D Corporate Income Tax
 Answer

B Service tax
Question 17
Transfer Payments include

A Old Age Pension

B Subsidies
C Wealth Tax
D Corporate Income tax
 Answer

D Corporate Income tax

Question 18
The following is an example of
commercial non-tax revenue

A Gifts and Grants

B Fees
C Fines
D Surpluses
 Answer

D Surpluses
Question 19
The following is an example of
administrative non-tax revenue,

A Surplus of public undertaking

B Gifts
C Fees
D Grants
 Answer

C Fees
Question 20
On what broad aspect of commodities
are indirect taxes imposed,

A Production
B Sales
C Movement
D All of the above
 Answer

D All of the above

Question 21
The following is not a characteristic of a
tax.

A It is a compulsory payment
B Every tax involves a sacrifice by tax
payer
C There is a quid-pro-quo between the
tax payer and the Government.
D Refusal to pay tax is a punishable
offence.
 Answer

C There is a quid-pro-quo between the

tax payer and the Government.
Question 22
The following is a characteristic of
indirect tax

A The impact and incidence are not on

the same person.
B It is levied on income.
C Taxes are progressive in nature.
D All of the above
 Answer

A The impact and incidence are not on

the same person.
Question 23
The following is a characteristic of a
direct tax-

A Incidence may be shifted

B Imposes more burden on poor
C The impact and incidence are on the
same person
D All of the above
 Answer

C The impact and incidence are on the

same person
Question 24
In India service tax was introduced in

A 1991-92
B 1994-95
C 1999-2000
D 2005-06
 Answer

B 1994-95
Question 25
Special assessment is also known as

A Tax Revenue
B Battement Levy
C VAT
D None of the above
 Answer

B Battement Levy
Question 26
Impact of a tax refers to

A Final money burden

B Immediate money burden
C Indirect real burden
D None of the above
 Answer

B Immediate money burden

Question 27
After levying of a tax, if the price does not
rise at all, it means that

A Incidence of the tax remains with

producer
B Tax has been shifted backward
C Shifting has taken place
D Any of the above
 Answer

D Any of the above

Question 28
Which factor has no role in the shifting of
a tax?

A Change in prices
B Elasticity of demand and supply
C Nature of Demand
D Income of the consumer
 Answer

D Income of the consumer

Question 29
Pick out the statement which is not true
with regard to tax shifting.

A A purely local tax can be shifted if it is

heavy.
B A purely local tax shifted if it is light
C Shifting becomes difficult if the people
purchase from outside the locality.
D None of the above
 Answer

A A purely local tax can be shifted if it is

heavy.
Question 30
Pick out the incorrect statement.

A In the short period, shifting of a tax is

easy.
B In the long period shifting of a tax is
easy.
C When supply is elastic, shifting is easy.
D None of the above.
 Answer

A In the short period, shifting of a tax is

easy.
Question 31
Pick out the tax which is not a part of
indirect tax.

A Excise Duty
B Sales Tax
C Entertainment Tax
D Corporate Tax
 Answer

D Corporate Tax
Question 32
Pick out the characteristic which is not
true of direct tax.

A Simplicity
B Elasticity
C Creates Civic Consciousness
D Encourages savings and investment
 Answer

D Encourages savings and investment

Question 33
Pick out the factor which is not a feature
of indirect taxes.

A Convenience
B Tax evasion is difficult
C Fair to the poor
D Powerful tool of economic policy
 Answer

C Fair to the poor

Question 34
Pick out the factor which is not a demerit
of indirect taxes.

A Unjust to poor
B Inflationary in nature
C A tool of economic policy
D High administrative cost
 Answer

C A tool of economic policy