Income Tax Questions and Answers Part-2

1. When the income earned in an year is taxed in the same year, it is called ………………….
a) Advanced Assessment
b) Super Assessment
c) Accelerated Assessment
d) None of the above

Answer: c

2. Surcharge is levied when the total income exceeds ………………….
a) 5 Crore
b) 10 Crore
c) 1 Crore
d) 2 Crore

Answer: c

3. Educational cess is charges at the rate of …….
a) 2%
b) 1%
c) 3%
d) 5%

Answer: c

4. As per Income tax Act, Person includes ……………
a) Individual
b) HUF
c) Local Authority
d) All of the above

Answer: d

5. CBDT stands for ………………………….
a) Central Bureau of Direct Taxes
b) Central Board of Direct Taxes
c) Citizen’s Board of Direct Taxes
d) Citizen’s Bureau of Direct Taxes

Answer: b

6. CBDT is control by ………………………………….
a) Central Government
b) State Government
c) Both (A) and (B)
d) None of this above

Answer: a

7. To be an Ordinarily resident in India, an individual must satisfy ……………………….
a) Both Basic Conditions and One Additional Condition
b) One Basic Condition and Both Additional Conditions
c) One Basic Condition and One Additional Condition
d) Both Basic Conditions and Both Additional Conditions

Answer: b

8. A Company has ………… types of residential status.
a) 2
b) 3
c) 1
d) 4

Answer: a

9. A citizen of India who goes abroad for the purpose of employment, he must stay in India in the previous year for at least .............. days to become a resident
a) 90 days
b) 162 days
c) 180 days
d) 182 days

Answer: d

10. Who is assessee in case of a HUF?
a) Karta
b) Coparceners
c) Deemed Karta
d) None of these

Answer: a