By Prof.

Pankaj Jagtap
(MCOM, NET, SET, GDC&A, DTL)
S. M. Joshi College Hadapsar Pune 28
Q1) The basic Source of Income-tax Law

a) Income tax Act, 1961

b) Income-tax Rules 1962
c) Circulars/Notification issued by CBDT
d) judgments of courts

Q2) The Income-tax Act, 1961 came into force w.e.f.

a) 1st April 1962
b) 31st March1961
c) 1st April 1961
d) None of the Above
Q3) Person defines in Section
a) 4
b) 2 (31)
c) 5
d) 2 (32)

Q4) A Person includes

a) Only individual
b) only individual & HUf,
c) Individual HUF,firm, company AOP or BOI Local
Authority, Artificial juridical persons.
d) None of the Above
Q5) As per Section 2(31)
The following is not included in the definition of
Person
a) HUF
b) Company
c) Individual
d) Minor

Q6) Brihanmumbai Municipal Corporation falls

under…………… Category of person
a) Individual
b) AssociaAbos of Person
c) Aritificial juridical Person
d) local Authority
Q7) Every assessee is a Person and ……….
a) Every person is also an assessee
b) Every person is need not be an assessee
c) An individual is always an assessee
d) HUf is always an assessee

Concept
Concept
Previous
Previousyearyear Assessment
Assessment year
year
2019
2019 -- 20
20 2020-21
2020-21

Q8) Previous year is defined in

a) Section 2(34)
b) Section 2(9)
c) Section 3
d) Section 4
Q9) Assessment year is defined in
a) Section 2(34)
b) Section 2(9)
c) Section 3
d) Section 4

Q10) Income Tax is charge in

a) Financial year
b) Assessment year
c) Previous year
d) Accounting year
Q11) Year in which income is taxable is known as
……………. and year in which income is earned is
Known as ………..
a) Previous year, Assessment year
b) Assessment year, Previous year
c) Assessment year, Assessment year
d) Previous year, Previous year

Q12) The rates of income tax are Mentioned in

a) The Income tax Act 1961 only
b) Both Income tax Act 1961 & Income tax rules 1962
c) The first schedule to the annual finance Act
d) Both Income tax Act 1961 and the first schedule to the
Annual finance act
 For individuals, AOP, Women
 (Normal person Below 60 yeors)

S. No. Particulars Rate

1 upto Rs 2,50,000 NIL
2 2,50,000-5,00,000 5%
3 5,00,000-10,00,000 20%
4 Above Rs 10,00,000 30%

 For Senior Citizen (60 to 80 years)

S. No. Particulars Rate

1 upto Rs 3,00,000 NIL
2 3,00,000-5,00,000 5%
3 5,00,000-10,00,000 20%
4 Above Rs 10,00,000 30%

 For very Senior Citizen (more than 80 years)

S. No. Particulars Rate

1 upto Rs 500000 NIL
2 5,00,000-10,00,000 20%
3 Above Rs 10,00,000 30%

Note:
 4% Health & education cess
 Rebate U/S 87A a resident individual whose taxable income does not exceed Rs 5,00,000
Q13) Mr. Punekar a computer engineer working in IBM Ltd. has Total taxable Income 4,37,750 & TDS is 9388
calculate the Net Taxable income
a) Tax Payable 8,500
b) Refund 12,000
c) Refund 9,388
d) Tax Payable 7,500

 Explanation
Computation of Tax Liability

Total Income Tax

Up to 250000 NIL
250000 to 500000
(437750-250000)=187750*5% 9388
Less: Rebate U/S87 9388
Tax Payable NIL
Add : Health & Education less 4% NIL
Total Tax Payable NIL
Less: TDS 9388
Refund 9388
Q14) mr. Ram is a Senior Citizen of pune employed in taxman Ltd. Have total taxable income is
5,46,300 & TDS 8000 , so calculate Net Tax Payable
a) Net Tax Payable 10,000
b) Net Tax Payable 12,030
c) Net Tax Payable 17,000
d) Net Tax Payable 18,500

 Explanation

Computation of Tax Liability

Total Income Tax

Upto 3,00,000 NIL

3,00,000 to 5,00,000 (2,00,000 *5 %) 10,000
5,00,000 to 5,46,300
(5,46,300-5,00,000)=46,300*20 % 9,260
Tax Payable 19,260
Add : Education cess 4% (19,260 *4 %) 770
Total Tax Payable 20,030
Less: TDS 8,000
Net Tax Payable 12,030
Q 15) Agricultral income is expmted from the income
tax under the following Section of income tax
a) 2 (1A)
b) 10 (1)
c) 10 (2)
d) 10 (4)

Q16) If an assessee is engaged in the business of

growing and manufacturing tea in India the
portion of agricultural income in that case shall
be
a) 100%
b) 60%
c) 50%
d) 40%
Concept:

Treatment of partly agricultural and partly business income

Crop Agricultural income Business income

 Growing and manufacturing of tea 60% 40%

 Rubber manufacture 65% 35%
 Coffee grown and sell 75% 25%
 Coffee grown, roasted and grounded 60% 40%
by the seller in India with or without
flavouring ingredient.