Direct tax (INTRODUCTION & DEDUCTION)

1) In which year is the income tax liability computed ?

a. Assessment year
b. Previous year
c. Financial year
d. Calendar year
2) one who is liable to pay the income tax in india
a. Indian citizen
b. Resident in India
c. Any person
d. An assessee
3) Assessment year is the period of twelve months commencing on
a. The first day of march every year
b. The first day of January every year
c.Financial year immediately preceding the previous year
d. The first day of April every year
4)A club is treated under income tax law as
a. A company
b. An association of person
c. A body of individuals
d. An artificial juridical person
5) Income Tax is a tax on
a. Good
b. Service
c. Income
d. Capital
6) The rates of income tax are laid down by
a. The income tax act
b. The income tax rules
c. The finance act1994
d. The finance Act passed by the parliament every year
7) A person by whom any tax,interest, penality etc. is due is known as
a. A defaulter
b. A resident
c. A citizen
d. An assessee
8)A company joining with two other companies in joint venture is treated under income tax
laws as
a. A company
b. An association of person
c. A body of individuals
d. An artificial juridical person

9) The rates of income tax are laid down

a. For each calendar year
b. For each assessment year
c. For each previous year
d. For each head of income
10)The law governing income tax is specified in The Income tax act
a. 1961
b. 1962
c. 1960
d. 1965
11) Income Tax Act extends to
a.whole of India
b.India and Pakistan
c.India and china
d.Whole of Maharashtra
12)A person includes
a.Only Individual
b.Only Individual and HUF
c.Individuals, HUF, Firm, Company only
d.Individuals, HUF, Company, Firm, AOP or BO, Local Authority, Every Artificial
person.
13)As per section 2(31), the following is not included in the definition of 'person'
a.An individual
b.A Hindu undivided family
c.A company
d.A minor
14)XYZ LLP falls under which category of perso
a.Individual
b.Partnership firm
c.Company
d. Association of person
15) Mumbai university is treated under income tax law as
a. A company
b. An association of person
c. A body of individuals
d. An artificial juridical person
16)Which amongst the following is not a head of income?
a. Salaries
b.Income from house Property
c. Capital gains
d.Income from exports
17) The deduction under section 80C is allowed for payment of interest to the extended of
a. Rupees 50,000
b. Rupees 1,50,000
c. Rupees 15,000
d. Rupees 2,00,000
18) Tirupati Devsthanam
a. A company
b. An association of person
c. A body of individuals
d. An artificial juridical person
19) Deduction under section 80CCC is allowed to the extent of
a.Rupees 50,000
 b. Rupees 1,50,000
c. Rupees 15,000
d. Rupees 2,00,000
20)The quantum of deduction allowed under section 80D for self and spouse shall be limited
to
a. Rupees 25,000
b. Rupees 10,000
c. Rupees 15,000
d. Rupees 20,000
21)The quantum of deduction allowed under section 80U is
a. Rupees 40,000
b. Rupees 70,000
c. Rupees 60,000
d. Rupees 75,000
22) Deduction based on contribution to pension fund
a.Sec.80 U
b.Sec 80 D
c.Sec 80 E
d.Sec 80 CCC
23) Deduction based on interest paid on loan for higher education
a.Sec.80 U
b.Sec 80 D
c.Sec 80 E
d.Sec 80 C
24) Deduction for handicapped individual
a.Sec.80 U
b.Sec 80 D
c.Sec 80 E
d.Sec 80 C
25) The deduction under section 80E shall be allowed for the higher education of
a. Assessee himself
b. Assessee, spouse and children
c. Assessee and dependent children
d. Assessee and minor children
26) Mediclaim insurance policies
a.Sec.80 U
b.Sec 80 D
c.Sec 80 E
d.Sec 80 C
27)Deduction under section 80C for tuition fees shall be allowed for the purpose of
a.Any full time education in a school or a college
b. Any full or part-time education
c. Any part time education in a college or university
d. Any part time education in school
28) Deduction under section 80E shall be allowed in respect of amount paid by way of
interest on loan taken from
a. Any person
b. Any relative
 c. Financial institution
d. Spouse
29)The payment for insurance premium under section 80Dshall be
a. In cash
b. In cheque
c. By any mode other than cash
d. By any mode other than cheque
30) Deduction under section 80C in respect of LIP, contribution to provident fund,etc. is
allowed to
a. Any assessee
b. Any individual
c. Any individual or HUF
d. Any individual or HUF who is resident in India
31)Deduction under section 80DD in respect of medical insurance premium is allowed to
a. Any assessee
b. Individual only
c. Individual or HUF
d. Any individual or HUF who is resident in India
32) Life insurance corporation is treated under Income Tax law as
a. A company
b. An association of person
c. A body of individuals
d. An artificial juridical person
33) Solapur gram Panchayat
a. A company
b. An association of person
c. A body of individuals
d. Local authority

34)Amount deductible u/s 80U in respect of a person with severe disability is

a. Rupees 1,40,000
b. Rupees 1,70,000
c. Rupees 1,60,000
d. Rupees 1,25,000
35) Deduction under section 80 of the chapter VI A of the Income Tax Act are allowed from
a. Gross total income
b. Net total income
c. Capital income
d. Long term income
36)Maximum amount of deduction u/s 80D for a mediclaim insurance premium of a resident
senior citizen is rupees
a. 50,000
b. 1,50,000
c. 15,000
d. 2,00,000
37)Mr. Mohit Kumar has income under the head salary of rupee 75,000 income from long
term capital gains rupees 2,10,000 and Lottery price is rupees 35,000. Maximum amount of
deduction under chapter VI A Shall be
 a. Rupees 2,85,000
b. Rupees 3,20,000
c. Rupees 75,000
d. Rupees 15,000
38) The standard deduction on family pension of rupees 1,50,000 will be
a. Rupees 50,000
b. Rupees 15,000
c. Rupees 75,000
d. Rupees 25,000
39) Interest received on public provident fund is
a. Tax free income
b. Taxable income
c. Not an income
d. Free income
40)Mr. Desai contributed for his girl child under the sukanya samridhi account scheme.He is
entitled to a deduction under section
a.80C
b.80D
c.80CCC
d.80U
41) Deduction under section 80DD in the case of dependent with severe disability (85%)
shall be allowed to
a. The extent of actual expenditure
b. Rupees 1,25,000 in respect of the actual expenditure
c. Rupees 75,000
d. Rupees 50,000

42) Whose income is chargeable to Income Tax ?

a. Income of only Indian citizen
b. Income of only resident
c. Income of all person
d. Income only assessee
43) Capital receipt is
a. Always exempt
b. Always taxable
c. Always taxable unless specifically exempted under the Income Tax Act
d.Exempt unless specifically made taxable under the Income Tax Act
44)A revenue receipt
a. Always exempt
b. Always taxable
c. Always taxable unless specifically exempted under the Income Tax Act
d.Exempt unless specifically made taxable under the Income Tax Act

45) Total income of

a. One calendar year is charged to tax in the succeeding year
b.One financial year is charged to tax in the succeeding calendar year
c.One financial year is charged to tax in the succeeding financial year
d.One financial year is charged to tax in the preceding financial year