SAMPLE MCQ -

1. Surcharge of 10 per cent is payable by an individual where the total income exceeds:
a) Rs.7,50,000 b) Rs.8,50,000 c) Rs.10,00,000 d) None of the three
Ans c

1. Additional surcharge (education cess) of 3% per cent is payable on
   a) Income tax b) Income tax plus surcharge c) Surcharge
   Ans b

2. Family pension received by a widow of a member of the armed forces where the death of the
   member has occurred in the course of the operational duties, is
   a) Exempt up to Rs.3,00,000 b) Exempt up to Rs. 3,50,000
   c) Totally exempt under section 10(19) d) Totally chargeable to tax
   Ans c

3. In respect of shares held as investment, while computing the capital gains, securities transaction
   tax paid in respect of sale of listed shares sold in a recognized stock exchange,
   a) Is deductible up to Rs.1,00,000 b) Is deductible up to Rs.2,00,000
   c) Is deductible if C.G.’s is < 5,00,000 d) Is not deductible at all
   Ans d

4. Gift of Rs 5,00,000 received on 10 July, 2008 through account payee cheque from a non-relative
   regularly assessed to income-tax, is
   a) A capital receipt not chargeable to tax b) Chargeable as other sources
   c) Chargeable to tax as business income
   d) Exempt up to Rs.50,000 and balance chargeable to tax as income from other source
   Ans b

5. The rate of tax that is leivable on STCG arising from transfer of Equity shares of a Company or
   units of an Equity oriented fund is
   a) 10% b) 15% c) 20%
   Ans b

6. For an employee in receipt of hostel expenditure allowance for his three children, the maximum
   annual allowance exempt under section 10(14) is
   a) Rs.10, 800 b) Rs.7,200 c) Rs.9,600 d) Rs.3,600
   Ans b

7. For an industrial undertaking fulfilling the conditions, additional depreciation in respect of a
   machinery costing Rs.10 lakh acquired and installed on October 3, 2005 is
   a) Rs.75,000 b) Rs.1,50,000 c) Rs.1,00,000 d) None of the above
   Ans c

8. Assessee is always a person but a person may or may not be an assessee.
   a) True b) False
   Ans a

9. A person may not have assessable income but may still be assessee.
   a) True b) False
   Ans a

10. In some cases assessment year and previous year can be same financial year.
    a) True b) False
    Ans a

11. A.O.P should consist of :
    a) Individual only b) Persons other than individual only c) Both the above
    Ans c

12. Body of individual should consist of :
    a) Individual only b) Persons other than individual only c) Both the above
    Ans a

13. A new business was set up on15-11-2008 and it commenced its business from 1-12-2008.The
    first previous year in this case shall be:
    a) 15-11-2008 to 31-3-2009 b) 1-12-2008 to 31-3-2009 c) 2008-2009
    Ans a

14. A person leaves India permanently on 15-11-2008.The assessment year for income earned till
    15-11-2008 in this case shall be:
    a) 2007-08 b) 2008-09 c) 2009-10
    Ans b
    CONTAIN ALL TOPICS OF INCOME TAX AS PER THE SYLLABUS OF COMMERCE UGC -NET

THE EAZY WAY TO PREPARATION THROUGH INCOME TAX MCQ