MCQ’s for MAY/NOV 2021
INDEX
CHAPTER NAME OF CHAPTER NO. OF
NO. MCQ’S
1. Basic concepts 71
2. Residential Status 60
3. Exemptions 45
4. Salaries 100
5. House Property 54
6. Profits and Gains from Business or Profession 136
7. Capital Gains 112
8. Income from Other Sources 34
9. Income of Other Persons included in Assessee's Total 30
Income
10. Set-Off and Carry forward of Losses 30
11. Deductions under Chapter VI-A 100
12. Relief for Salaried Employees 7
13. Agricultural Income 24
14. Tax Planning 20
15. Taxation of Individuals 0
16. Taxation of Partnership Firms 39
17. Taxation of Companies 54
18. Taxation of Co-operative Societies 10
19. Taxation of Association of Persons 22
20. Assessment of Trusts 84
21. Taxation of OTHER PERSONS 11
22. Taxation of Non-Residents 44
23. Transfer Pricing 21
24. Double Taxation Avoidance Agreement 31
25. ICDS 7
26. Assessment Procedure - Duties of Assessee 52
27. Assessment Procedure - Powers of the Department 20
28. Assessment Procedure - Various Assessment 28
29. Assessment Procedure - Income Escaping Assessment 20
30. Assessment Procedure - Search Assessment 28
31. Settlement Commission 51
32. Rectification and Revision 34
33. Appeals to Various Authorities 35
,34. Authority for Advance Rulings 18
35. Tax Deducted at Source 71
36. Advance Tax, Collection and Recovery of Tax 16
37. Interest 20
38. Penalties and Prosecution 35
39. Overview of Model Tax Conventions 14
40. Application and Interpretation of Tax Treaties 10
41. Fundamentals of Base Erosion and Profit Shifting 10
42. MCQ’S TEST (Mixture of different Chapters having 140
7 SET of MCQ’s)
TOTAL NUMBER OF MCQ’s 1748
CA Aarish Khan, FCA.
,Basic Concepts CA Aarish Khan AJ Education NeXt
CHAPTER 1 – BASIC CONCEPTS
1. Income- Tax Act extends to –
(a) whole of India
(b) whole of India except Jammu & Kashmir
(c) whole of India except Sikkim
(d) option(a) except Jammu & Kashmir and Sikkim
2. Finance Bill becomes Finance Act when it is passed by –
(a) the Lok Sabha
(b) both Lok Sabha and Rajya Sabha
(c) both Houses of parliament and given the assent of the President
(d) Rajya Sabha
3. A person follows calendar year for accounting. For taxation, he has to follow –
(a) Calendar year only 1st Januay to 31st December
(b) Financial year only 1st April to 31st March
(c) Any of the Calendar or Financial year as per his choice
(d) He will follow extended year from 1st January to next 31st March (a period of 15
months)
4. Assessee is always a person but a person may or may not be an assessee.
(a) True (b) False
5. A Person may not have assessable income but may still be assessee.
(a) True (b) False
6. Wlhich one of the following is not treated as Deemed Assessee
(a) Legal representative of deceased person
(b) Agent of a Non-resident
(c) Trustee of a Trust
(d) None of the above
7. Person u/s 2(31) does not include
(a) Minor (b) Local Authority
(c) Unsound Person (d) None of the above
8. In some cases Assessment Year and Previous Year can be the same financial year.
(a) True (b) False
9. Which of the following are Revenue Receipts?
(a) Bonus Shares received by a dealer of shares
(b) Money received by a tyre manufacturing Company for sale of technical know-
how regarding manufacturing of tyres
(c) Premium on issue of new shares
(d) All of the above
1.1
, Basic Concepts CA Aarish Khan AJ Education NeXt
10. Which of the following are Revenue Receipts?
(a) Interest from investments
(b) A claim of Rs. 1,50,000 received from Insurance Company for loss of profits
(c) Annuity received from former employer
(d) All of the above.
11. Which of the following is a Capital Receipt?
(a) Perquisites received by a professional during the course of carrying on profession
(b) Compensation received in respect of permanent disablement due to an accident
(c) Compensation received in respect of temporary disablement due to an accident
(d) All of the above
12. Which of the following is not a Capital Expenditure?
(a) Expenditure incurred in connection with the acquisition or installation of a Fixed
Asset
(b) Expenditure incurred in raising capital
(c) Expenditure incurred for improving the profit earning capacity of an asset
(d) Expenditure incurred for repairing an asset
13. Which of the following is a revenue Expenditure?
(a) Lumpsum payment made by a employer as a gratuity to the employee
(b) Legal expenses incurred by a person in defending or maintaining his right or title
to the propert used for business
(c) Expenditure incurred for the purchase of goods for resale
(d) All of the above
14. Which of the following is a Revenue Expenditure?
(a) Assessee took over the business of another & paid bonus to staff of that business
in respect of period before takeover
(b) Fee paid for increasing the Authorized Capital of the Company
(c) Advance paid for purchase of an asset, later on forfeited as the assessee did not
wish to purchase that asset.
(d) Advance paid for purchase of goods for resale, later on forfeited as the assessee
did not wish to purchase those goods.
15. Which of the following is a Capital receipt?
(a) Compensation received for loss of profit
(b) Profit from sale of trading asset
(c) Compensation received for surrendering rights of ownership
(d) Amount received by outgoing partner
16. Which of the following is a revenue receipt?
(a) Receipt towards substitution of Income
(b) Amount received towards fixed capital
(c) Receipt towards substitution of source of Income
(d) Liquidated damages
1.2
INDEX
CHAPTER NAME OF CHAPTER NO. OF
NO. MCQ’S
1. Basic concepts 71
2. Residential Status 60
3. Exemptions 45
4. Salaries 100
5. House Property 54
6. Profits and Gains from Business or Profession 136
7. Capital Gains 112
8. Income from Other Sources 34
9. Income of Other Persons included in Assessee's Total 30
Income
10. Set-Off and Carry forward of Losses 30
11. Deductions under Chapter VI-A 100
12. Relief for Salaried Employees 7
13. Agricultural Income 24
14. Tax Planning 20
15. Taxation of Individuals 0
16. Taxation of Partnership Firms 39
17. Taxation of Companies 54
18. Taxation of Co-operative Societies 10
19. Taxation of Association of Persons 22
20. Assessment of Trusts 84
21. Taxation of OTHER PERSONS 11
22. Taxation of Non-Residents 44
23. Transfer Pricing 21
24. Double Taxation Avoidance Agreement 31
25. ICDS 7
26. Assessment Procedure - Duties of Assessee 52
27. Assessment Procedure - Powers of the Department 20
28. Assessment Procedure - Various Assessment 28
29. Assessment Procedure - Income Escaping Assessment 20
30. Assessment Procedure - Search Assessment 28
31. Settlement Commission 51
32. Rectification and Revision 34
33. Appeals to Various Authorities 35
,34. Authority for Advance Rulings 18
35. Tax Deducted at Source 71
36. Advance Tax, Collection and Recovery of Tax 16
37. Interest 20
38. Penalties and Prosecution 35
39. Overview of Model Tax Conventions 14
40. Application and Interpretation of Tax Treaties 10
41. Fundamentals of Base Erosion and Profit Shifting 10
42. MCQ’S TEST (Mixture of different Chapters having 140
7 SET of MCQ’s)
TOTAL NUMBER OF MCQ’s 1748
CA Aarish Khan, FCA.
,Basic Concepts CA Aarish Khan AJ Education NeXt
CHAPTER 1 – BASIC CONCEPTS
1. Income- Tax Act extends to –
(a) whole of India
(b) whole of India except Jammu & Kashmir
(c) whole of India except Sikkim
(d) option(a) except Jammu & Kashmir and Sikkim
2. Finance Bill becomes Finance Act when it is passed by –
(a) the Lok Sabha
(b) both Lok Sabha and Rajya Sabha
(c) both Houses of parliament and given the assent of the President
(d) Rajya Sabha
3. A person follows calendar year for accounting. For taxation, he has to follow –
(a) Calendar year only 1st Januay to 31st December
(b) Financial year only 1st April to 31st March
(c) Any of the Calendar or Financial year as per his choice
(d) He will follow extended year from 1st January to next 31st March (a period of 15
months)
4. Assessee is always a person but a person may or may not be an assessee.
(a) True (b) False
5. A Person may not have assessable income but may still be assessee.
(a) True (b) False
6. Wlhich one of the following is not treated as Deemed Assessee
(a) Legal representative of deceased person
(b) Agent of a Non-resident
(c) Trustee of a Trust
(d) None of the above
7. Person u/s 2(31) does not include
(a) Minor (b) Local Authority
(c) Unsound Person (d) None of the above
8. In some cases Assessment Year and Previous Year can be the same financial year.
(a) True (b) False
9. Which of the following are Revenue Receipts?
(a) Bonus Shares received by a dealer of shares
(b) Money received by a tyre manufacturing Company for sale of technical know-
how regarding manufacturing of tyres
(c) Premium on issue of new shares
(d) All of the above
1.1
, Basic Concepts CA Aarish Khan AJ Education NeXt
10. Which of the following are Revenue Receipts?
(a) Interest from investments
(b) A claim of Rs. 1,50,000 received from Insurance Company for loss of profits
(c) Annuity received from former employer
(d) All of the above.
11. Which of the following is a Capital Receipt?
(a) Perquisites received by a professional during the course of carrying on profession
(b) Compensation received in respect of permanent disablement due to an accident
(c) Compensation received in respect of temporary disablement due to an accident
(d) All of the above
12. Which of the following is not a Capital Expenditure?
(a) Expenditure incurred in connection with the acquisition or installation of a Fixed
Asset
(b) Expenditure incurred in raising capital
(c) Expenditure incurred for improving the profit earning capacity of an asset
(d) Expenditure incurred for repairing an asset
13. Which of the following is a revenue Expenditure?
(a) Lumpsum payment made by a employer as a gratuity to the employee
(b) Legal expenses incurred by a person in defending or maintaining his right or title
to the propert used for business
(c) Expenditure incurred for the purchase of goods for resale
(d) All of the above
14. Which of the following is a Revenue Expenditure?
(a) Assessee took over the business of another & paid bonus to staff of that business
in respect of period before takeover
(b) Fee paid for increasing the Authorized Capital of the Company
(c) Advance paid for purchase of an asset, later on forfeited as the assessee did not
wish to purchase that asset.
(d) Advance paid for purchase of goods for resale, later on forfeited as the assessee
did not wish to purchase those goods.
15. Which of the following is a Capital receipt?
(a) Compensation received for loss of profit
(b) Profit from sale of trading asset
(c) Compensation received for surrendering rights of ownership
(d) Amount received by outgoing partner
16. Which of the following is a revenue receipt?
(a) Receipt towards substitution of Income
(b) Amount received towards fixed capital
(c) Receipt towards substitution of source of Income
(d) Liquidated damages
1.2
