Q1. Taxes can be broadly divided into ____ taxes.

C
(a) Direct (b) Indirect (c) Direct & Indirect (d) Ancillary
Q2. Direct Taxes are taxes that are _____. A
(a) Directly paid by taxpayer to government (b) levied on supply of goods & services
(c) Both (a) & (b) (d) Either (a) or (b)
Q3. Indirect Taxes are taxes that are ________. B
(a) Directly paid by taxpayer to government (b) levied on supply of goods & services
(c) Both (a) & (b) (d) Either (a) or (b)
Q4. Direct & Indirect Tax is ___& ___ in nature respectively. C
(a) Progressive; Progressive (b) Regressive; Regressive
(c) Progressive; Regressive (d) Regressive; Progressive
Q5. Income tax is _____. C
(a) Quarterly Tax (b) A “Half Yearly Tax”
(c) Annual Tax which may be paid in instalments (d) Annual Tax paid at the end of FY
Q6. Which of the following is the characteristic of Income Tax? D
(a) Direct tax is on the person on whom it is levied, i.e its burden cannot be shifted.
(b) Various kinds of income on which income tax is levied are divided into five heads.
(c) Rate of tax could be different for different kind of income (d) All of the above
Q7. Which of the following is not a characteristic of Income Tax? D
(a) Direct tax on the person on whom it is levied, ie. its burden cannot be shifted
(b) There could be certain deductions or entire income may be taxed at a flat rate.
(c) Income tax is collected by the Government department, called Income tax Department.
(d) None of the above
Q8. Which Entry of Union List gives the power to Parliament to levy tax on incomes? C
(a) Entry 81 of List I to Seventh schedule (b) Entry 81 of List II to Seventh schedule
(c) Entry 82 of List I to Seventh schedule (d) Entry 82 of List II to Seventh schedule
Q9. Power to levy Tax on agriculture Income is given in entry no ____ of state list. A
(a) Entry 46 (b) Entry 47 (c) Entry 48 (d) Entry 49
Q10. Parliament has the power to levy tax on incomes other than ___ Income. B
(a) Exempt (b) Agricultural (c) All Incomes are taxable (d) Special
Q11. Income Tax Act came into force on _____ B
(a) 1.4.1961 (b) 1.4.1962 (c) 1.4.1956 (d) 1.4.1965
Q12. Income-tax Act, 1961 is divided into ______ A
(a) 298 section & 14 Schedules (b) 14 section & 298 Schedules
(c) 291 section & 14 Schedules (d) 298 section & 24 Schedules
Q13. Basic source of income-tax law is ____. A
(a) Income-tax Act, 1961 (b) Income-tax Rules, 1962
(c) Circulars/Notifications (d) Judgments of Courts
Q14. Income-tax Act provisions are applicable _____. A
(a) Whole of India including J&K (b) Whole of India excluding J&K

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 (c) India & country where NR who earns from India lives (d) All of the above
Q15. Proviso gives _____ to the main provision. B
(a) Clarification (b) Exceptions (c) Administration (d) None
Q16. Explanation gives _____ to the main provision. A
(a) Clarification (b) Exceptions (c) Administration (d) None
Q17. Income-tax Act contains provisions relating to _______ D
(a) Determination of taxable income (b) Determination of tax liability
(c) Procedures relating to assessment, appeal & penalty (d) All of the above
Q18. Finance Bill is presented by the ________ C
(a) Prime Minister (b) Defence Minister (c) Finance Minister (d) Any
Q19. Finance Bill becomes the Finance Act when it is passed by ____ C
(a) Lok Sabha (b) Both Lok Sabha & Rajya Sabha
(c) Both House of Parliament & signed by President.
(d) Both House of Parliament & signed by Prime Minister.
Q20. Income-tax Act is subject to amendments from time to time brought by various ____ A
(a) Finance Acts (b) Finance bill (c) Finance Minister (d) All of these
Q21. Tax is levied at rates of income tax, fixed by the relevant ______ D
(a) Finance Act (b) Finance Bill (c) None of (a) & (b) (d) Both (a) & (b)
Q22. Rates of Income Tax are mentioned in ________ D
(a) Income-tax Act, 1961 only (b) Income-tax Act, 1961 & Income-tax Rules, 1962
(c) First Schedule to the Annual FA (d) Income-tax Act, 1961 & 1st Schedule to Annual FA
Q23. Highest Administrative Authority for Income Tax in India is ____. B
(a) Finance Minister (b) CBDT (c) President (d) Director of Income Tax
Q24. Notifications issued by CBDT are binding on ____ C
(a) Assessee (b) Income Tax Authority (c) Both (a) & (b) (d) None (a) & (b)
Q25. Circulars issued by CBDT are binding on ___ B
(a) Assessee (b) Income Tax Authority (c) Both (a) & (b) (d) None (a) & (b)
Q26. Circular of the CBDT u/s 119 of the Income Tax Act,1961 ___ B
(a) Can override the Act (b) Cannot override the Act
(c) May override the Act (d) None of the above
Q27. CBDT has power to make rules which are necessary for the _______ D
(a) Administration of tax office (b) Manner in which the court has to give decisions
(c) Conduct of taxpayers (d) Implementation of the provisions of Income-tax Act
Q28. Notification is a subordinate legislation & is issued under powers delegated by _______ D
(a) Parliament (b) Supreme Court (c) High Court (d) CG
Q29. Income Tax Notifications can be issued by _________ C
(a) CG (b) CBDT (c) Either (a) or (b) (d) Both (a) & (b)
Q30. Circulars are issued by the CBDT to _____ the scope & meaning of the provisions of Law. A
(a) Clarification (b) Exceptions (c) Administration (d) None of these
Q31. Law as on ________ is applied for income tax purpose. D
(a) April 1 of the relevant AY (b) April 1 of the relevant PY
(c) March 31 of the relevant AY (d) March 31 of the relevant PY
Q32. In order to understand the Income Tax Law, a person has to study which of the following? D
(a) Income-tax Act, 1961 & the Income-tax Rules, 1962
(b) Notifications, Circulars & Clarifications issued by (Central Board of Direct taxes)
(c) Judicial decision by various Courts
(d) All of the above
Q33. Decisions pronounced by _____ becomes law. A
(a) Supreme Court (b) High Court (c) ITAT (d) None
Q34. Decision passed by Supreme Court is binding on _____ D
(a) All courts & tribunal (b) Income Tax Authorities (c) Assessee (d) All
Q35. CBDT to issue circulars from time to time, to _________ A
(a) Clarify doubts regarding meaning & scope of the provisions of Act
(b) Lay down procedural provisions (c) Both (a) & (b) (d) Neither (a) nor (b)
Q36. What will be the sequence of passing of Income-tax law? B
(i) FM presents Finance Bill (ii) Receives Assent of the President
(iii) Passed by Both Houses of Parliament (iv) Becomes Finance Act
(a) i, ii, iii, iv (b) i, iii, ii, iv (c) i, iv, ii, iii (d) iii, iv, ii, i
Q37. Charging section of Income Tax is _____. A
(a) Section 4 (b) Section 9 (c) Section 15 (d) Section 28
Q38. As per Section 2(7), “Assesses” means ____ a person D
(a) By whom any tax or other sum of money is payable
(b) Against whom proceeding has been taken under the act
(c) A person deemed to be assessee in default (d) All of the above
Q39. Assessee includes person i.r.o. whom any proceedings have been undertaken for _____ D
(a) Assessment of his income or loss incurred by him
(b) Assessment of income or loss incurred by any other person, for whom he is assessable
(c) Assessment of refund due to him or any other person (d) All of the above
Q40. Every assessee is a person, & every person is ____ B
(a) Also an assessee (b) Need not be an assessee
Q41. Assessee includes ___ C
(a) Any person by whom any tax is payable under the Income-tax Act
(b) Any person by whom penalty or interest is payable under the Income-tax Act
(c) Both (a) & (b) (d) None of the above
Q42. Assessee includes ____ C
(a) Persons deemed to be an assessee (e.g. representative assessee u/s 160 for NR)
(b) Persons deemed to be an assessee in default u/s 201(1) for non-deduction of tax
(c) Both (a) & (b) (d) Neither (a) nor (b)
Q43. Every assessee is a person, every person ___ be an assessee. B
(a) Must (b) Need not (c) Either (a) or (b) (d) None
Q44. A person includes_______ D
(a) Individual & HUF (b) Firm & Company (c) AOP/BOI, LA, Every AJP (d) All
Q45. As per section 2(31), person includes __________ D
(a) HUF (b) Local Authority (c) Company (d) All

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Q46. As per Section 2(31), the following is not included in the definition of ‘person’. D
(a) Individual (b) HUF (c) Company (d) Minor
Q47. The term “Person” includes ____ C
(a) Registered Firm (b) Unregistered Firm (c) Both (a) & (b) (d) None
Q48. As a general rule, income of minor is taxable in the hands of _____ B
(a) Minor (b) Legal guardian including Parents
(c) Either (a) or (b) (d) Both (a) & (b)
Q49. HUF includes __________ B
(a) All person vertically descended from a common ancestor
(b) All person lineally descended from a common ancestor
(c) All person upwardly descended from a common ancestor
(d) All of the above
Q50. In the case of an AOP, two or more persons join together for ______. C
(a) Common purpose (b) Earning income (c) Both (a) & (b) (d) Either (a) or (b)
Q51. Association of persons consists of ____ D
(a) Individuals (only) (b) Company
(c) Any Person other than (a) (d) Any kind of person
Q52. A & B are legal heirs of C. After death of C, A & B carry on his business without entering a C
partnership. What is their Status?
(a) Company (b) LLP (c) AOP (d) Firm
Q53. Body of Individuals consists of _________ A
(a) Individuals (only) (b) Company
(c) Any Person other than (a) (d) Any kind of person
Q54. Aryan & Ansh are legal heirs of Shekhar. Shekhar died in 2018 & Aryan & Ansh carried on D
his business without entering into partnership. What is the status of Aryan & Ansh?
(a) Individual (b) AOP (c) Firm (d) BOI
Q55. AOP may consist of ______ but BOI has to consist of _____. B
(a) Individuals, Non-individuals (b) Non-individuals, Individuals
(c) Either (a) or (b) (d) None of the above
Q56. Which of the following are considered as a "Local Authority’’? D
(a) Panchayat (b) Municipality & Cantonment Board
(c) Municipal committee entrusted by Government to control Municipal Funds
(d) All of the above
Q57. Municipal corporation legally entitled to manage & control a municipal fund is taxable in C
status of _____.
(a) Individual (b) AOP (c) LA (d) AJP
Q58. Delhi University is considered as _________. A
(a) Artificial Juridical Person (b) Association of Persons
(c) Body of Individuals (d) Local Authority
Q59. A domestic company means ____ D
(a) Indian company only (b) Both Indian company & foreign company
(c) Both Indian company & a foreign company having business connection in India
 (d) Both Indian company & a foreign company which has made the prescribed arrangement
for declaration & payment of dividends in India out of the income chargeable to tax in India.
Q60. Domestic company means a company which is ____ C
(a) An Indian company
(b) Company has made prescribed arrangements for declaration & payment of dividends
(including dividend on preference shares) within India, out of its income taxable in India
(c) Both (a) & (b) (d) None of the above
Q61. Alpha Inc., a company incorporated in USA, has made prescribed arrangement for B
declaration & payment of dividends within India. Alpha Inc. would be a ______
(a) Foreign company for Indian Income-tax Act purpose
(b) Domestic company for Indian Income-tax Act purpose
(c) Indian company for Indian Income-tax Act purpose
(d) Indo-Foreign company for Indian Income-tax Act purpose
Q62. XYZ India Private Limited, is a company incorporated in India, but its POEM is in UAE. XYZ B
India would be a ____
(a) Foreign company for Indian Income-tax Act purpose
(b) Domestic company for Indian Income-tax Act purpose
Q63. As per sec. 2(24) definition of ‘income’ is ______. A
(a) Inclusive (b) Exhaustive (c) Exclusive (d) Descriptive
Q64. ‘Income’ includes the following types _________ C
(a) Legal (b) Illegal (c) Both (d) None
Q65. ‘Income’ u/s 2(24) includes ____ A
(i) Profits of any business carried on by a person.
(ii) Any advance money forfeited in the course of negotiations for transfer of capital asset.
Choose the correct option:
(a) Both (i) & (ii) (b) Neither (i) nor (ii) (c) (ii) (d) (i)
Q66. Which of the following income is not included in the term ‘income’? D
(a) Profit & gains (b) Dividend
(c) Profit in lieu of salary (d) Reimbersement of travelling exp.
Q67. Cash gift received from a non-relative is regarded as income. But Exempt amount is ____p.a. C
(a) Rs. 25,000 (b) Rs. 75,000 (c) Rs. 50,000 (d) Rs. 25,000
Q68. What is not included in taxable Income? D
(a) Smuggling Income (b) Casual income (c) Income received in kind.
(c) Capital Receipt, except gains on transfer of capital asset
Q69. PCA Educators Pvt. Ltd received Rs. 2 lacs as compensation from SS & Co. for premature A
termination of contract of agency. Amount so received is ____
(a) Capital receipt & taxable (b) Capital receipt & not taxable
(c) Revenue receipt & taxable (d) Revenue receipt & not taxable
Q70. Mr. Pranav has taken a loan of Rs. 5,00,000 from HDFC bank for purchasing a car. His rental B
income is Rs. 50,000 pm out of which Rs. 5000 pm directly goes to the bank as an instalment
of loan. Tax treatment?
(a) Rs. 5,000 p.m is treated as diversion of Income.
(b) Rs. 5,000 p.m is an application of income

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 (c) Rs. 5,000 p.m is not treated as his income. (d) None of the above
Q71. Year in which income is taxable is known as __& year in which income is earned is known B
as__.
(a) PY, AY (b) AY, PY (c) AY, AY (d) PY, PY
Q72. Pick the correct one. B
(a) AY & PY are same concepts. (b) AY is the year next to the PY.
(c) PY is the year next to the AY. (d) None of the above
Q73. AY is the period of 12 month commencing on 1st day of ___ A
(a) April every year (b) December every year
(c) July every year (d) January every year
Q74. PY can be a period of _____ C
(a) Greater than 12 months or than 12 months (b) only 12 months
(c) 12 months or less than 12 months (d) Greater than or equals to 12 months
Q75. AY can be a period of ____ B
(a) > 12 months or < 12 months (b) only 12 months
(c) 12 months or < 12 months (d) ≥ 12 months
Q76. Generally, PY is a period of _____ A
(a) 12 months before the AY (b) 12 months after the AY
(c) 12 months parallel to the AY (d) 12 months coinciding with the AY
Q77. What would be the "AY" if income is received on September 30, 2020? C
(a) 2018-19 (b) 2019-20 (c) 2021-22 (d) 2020-21
Q78. What would be the "AY” if income is received on March 30, 2021? B
(a) 2018-19 (b) 2021-22 (c) 2019-20 (d) None
Q79. First PY of a newly started business _____ C
(a) Must be equal to 12 months (b) Can exceed 12 months
(c) Can be equal to or less than 12 months (d) None of the above
Q80. CA Anup sharma started a business on 12.10.2020. The first PY of his business will be ____ C
(a) Period starting from 1st April 2020 & ending on 31st March 2021
(b) Period starting from 1st April 2021 & ending on 31st March 2022
(c) Period starting on 12th October 2020 & ending on 31st March 2021
(d) None of the above
Q81. Mr. Pranav sets up a new business on 26.01.2020 & he commenced his business from D
24.2.2020. First PY shall be ____.
(a) PY 2021-22 (b) 24.02.2020 to 31.3.2021
(c) PY 2021-22 (d) 26.01.2020 to 31.3.2020
Q82. All Assessees are required to follow: B
(a) Uniform PY which must be calendar year (b) Uniform PY which must be FY only
(c) Any period of 12 months as PY (d) Any of the above
Q83. A person follows Calendar year for accounting purpose. For taxation, he has to follow ___ B
(a) Calendar year only – 1 Jan to 31 December (b) FY only - 1 April to 31 March
(c) Any Calendar or FY as per his choice (d) 1 Jan - Next 31 March (15 months)
Q84. Mr. Pranav maintains his A/c on the basis of calendar year. For PY 2021-22, his AY shall be: C
(a) AY 2021-22 (b) 2019 (c) AY 2022-23 (d) 2020-21
Q85. AY always _____ PY. B
(a) Precedes (b) Succeeds (c) Is simultaneous with
Q86. Miss Neha leaves India permanently on 1.9.2021. AY for incomes earned till 1.9.2021 is B
(a) PY 2021-22 (b) AY 2021-22 (c) AY 2022-23 (d) PY 2022-23
Q87. A & B formed an Association of Person, which was proposed to be dissolved from 13.12.2021. D
Income for PY 2021-22 can be taxed by the Assessing Officer during AY _____
(a) PY 2020-21 (b) PY 2021-22 (c) AY 2020-21 (d) AY 2021-22
Q88. Mr. SPS had not been paying regular taxes for long time. Search was conducted in his C
premises & 10 Lacs was found payable by him. To prevent the recovery, he was planning to
sell his house in cash on 11.10.2021. AO can do assessment for Mr. SPS for PY 2021-22 upto
11.10.2021 in AY ___
(a) AY 2018-19 (b) AY 2019-20 (c) AY 2021-22 (d) AY 2022-23
Q89. In which of the following cases, Assessing Officer has the discretion to assess the income D
of previous year in the previous year itself or in the subsequent assessment year:
(a) Shipping business of non-residents
(b) Assessment of AOP/BOI formed for a particular event or purpose
(c) Assessment of persons likely to transfer property to avoid tax
(d) None of the above [Hint: Discontinued Business]
Q90. Section 172 deals with the taxation of shipping business of NR, casts an obligation on ____ A
to file return of full amount earned from India.
(a) Master of ship (b) Taxpayer (c) Owner of ship (d) All of the above
Q91. If master of the ship belonging to a NR could not file return of income before the departure A
of ship from India, then it can be filed after the ship has left India but within ____ days.
(a) 30 days (b) 45 days (c) 60 days (d) 90 days
Q92. In case of shipping business of NR, Income = D
(a) 10% of fare & freight collected by ship (b) 20% of fare & freight collected by ship
(c) 25% of fare & freight collected by ship (d) 7.5% of fare & freight collected by ship
Q93. In which of the following case/s, income of the PY is assessed in the same year? D
(a) Shipping business of non-residents
(b) Income of persons leaving India not having intention to return to India
(c) Assessment of persons likely to transfer property to avoid tax
(d) All of the above
Q94. Sunil intends to permanently settle in USA & intends to depart on 13 th December 2020. The A
AO, having jurisdiction on Sunil, came to know about this fact & proceeded to tax Sunil on
the current financial year income. Action of the AO is ________
(a) Justified (b) Not justified (c) Cannot say (d) Depends on AO
Q95. In which of the following cases, income of PY is assessable in the PY itself. D
(a) Salaried Person (b) Illegal business (c) Trust (d) Persons leaving India
Q96. Undisclosed Sources of Income is taxable u/s 115BBE @ ____ % D
(a) 30% (b) MMR (c) 10% (d) 78%
Q97. Mr. Amol Chandak is found to be the owner of 4 gold rings of 5 gms each (market value of C
which is Rs. 6,00,000) during PY 2021-22. He could offer satisfactory explanation for Rs.
2,00,000 spent on acquiring these gold rings. As per section 115BBE, Mr. Amol Chandak would
be liable to pay tax of:

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 (a) Rs. 4,68,000 (b) Rs. 4,86,720 (c) Rs. 3,12,000 (d) Rs. 1,56,000
Q98. Mr. Ajay is found to be the owner of two gold chains of 50 gms each (market value of which A
is Rs. 1,45,000 each) during PY 2021-22 but he could offer satisfactory explanation for Rs.
50,000 spent on acquiring these gold chains. As per section 115BBE, Mr. Ajay would be liable
to pay tax of____.
(a) Rs. 1,87,200 (b) Rs. 2,26,200 (c) Rs. 1,49,760 (d) Rs. 1,80,960
Q99. Maximum amount on which income tax is not chargeable for AY 2022-23 in case of an A
individual who is resident in India other than senior citizens is ____
(a) Rs. 2.5 lacs (b) Rs. 3 lacs (c) Rs. 5 lacs (d) Nil
Q100. Maximum amount on which income tax is not chargeable for AY 2022-23 in case HUF is __. A
(a) Rs. 2.5 lacs (b) Rs. 3 lacs (c) Rs. 5 lacs (d) Nil
Q101. Mr. Pramod Chandak is 55 years old & is a resident of India & has earned a total income of B
Rs. 7,12,500. Calculate his tax liability for AY 2022-23.
(a) Rs. 51,000 (b) Rs. 57,200 (c) Rs. 40,820 (d) None
Q102. Tax liability for AY 2022-23 of Mr. John aged 35 years, NR in India having Total income of D
Rs. 4,50,000 is ___.
(a) Nil (b) Rs. 45,000 (c) Rs. 10,000 (d) Rs. 10,400
Q103. Mr. Junior is a software professional of 30 years. Basic Exemption limit for AY 2022-23 is _? B
(a) Rs. 1,80,000 (b) Rs. 2,50,000 (c) Rs. 3,00,000 (d) Rs. 5,00,000
Q104. Mrs. Angelina, 45 years of age, is a NR of India & has earned total income of Rs. 2,70,000. C
Calculate her tax liability for AY 2022-23.
(a) Rs. Nil (b) Rs. 2,080 (c) Rs. 1,040 (d) None
Q105. Mrs. Aliya (age 87) is a NR & has earned total income of Rs. 4,00,000. Calculate her tax C
liability for AY 2022-23.
(a) Rs. Nil (b) Rs. 5,200 (c) Rs. 7,800 (d) None
Q106. Steve is a NR individual of 78 years. Basic Exemption limit for AY 2022-23 is ___? B
(a) Rs. 1,80,000 (b) Rs. 2,50,000 (c) Rs. 3,00,000 (d) Rs. 5,00,000
Q107. Maximum amount which is not taxable for AY 2022-23 in case of individual who is resident in B
India & is more than 60 years old but is less than 80 years old is ____
(a) Rs. 2.5 lacs (b) Rs. 3 lacs (c) Rs. 5 lacs (d) Nil
Q108. Ankita is a medical professional of 61 years. Basic Exemption limit for AY 2022-23 is ______? C
(a) Rs. 1,80,000 (b) Rs. 2,50,000 (c) Rs. 3,00,000 (d) Rs. 5,00,000
Q109. Maximum amount on which income tax is not chargeable for AY 2022-23 in case of an C
individual who is resident in India & is more than 80 years old is ____
(a) Rs. 2.5 lacs (b) Rs. 3 lacs (c) Rs. 5 lacs (d) Nil
Q110. Daddu is a retired teacher of 85 years. Basic Exemption limit for AY 2022-23 is ______? D
(a) Rs. 1,80,000 (b) Rs. 2,50,000 (c) Rs. 3,00,000 (d) Rs. 5,00,000
Q111. Applicable rate of Income-tax in case of a firm is _____ C
(a) 10% (b) 25% (c) 30% (d) 40%
Q112. Maximum amount on which income tax is not chargeable for AY 2022-23 in case of firm is__. D
(a) Rs. 2.5 lacs (b) Rs. 3 lacs (c) Rs. 5 lacs (d) Nil
Q113. Rate of tax applicable to a partnership firm for AY 2022-23 i.e., PY 2021-22 is ____. B
(a) 25% (b) 30% (c) 35% (d) 40%
Q114. BEL in case of co-operative society is ___ D
 (a) Rs. 2.5 lacs (b) Rs. 3 lacs (c) Rs. 5 lacs (d) Nil
Q115. Domestic company whose gross receipt for PY 2019-20 is Rs. 399 Cr, rate for AY 2022-23 is B
(a) 29% (b) 25% (c) 30% (d) None
Q116. Tax rate for PCA Educators Pvt. Ltd, an Indian company, whose POEM is outside India is __ C
(a) 10% (b) 25% (c) 30% (d) 40%
Q117. Applicable rate of Income-tax in case of SAPS Inc., a foreign company is _______? D
(a) 10% (b) 25% (c) 30% (d) 40%
Q118. Applicable rate of Income-tax in case of Branch office of SAPS Inc., a foreign company is? D
(a) 10% (b) 25% (c) 30% (d) 40%
Q119. Applicable rate of tax PCA Educators Pvt. Ltd (Indian Company) whose revenue for FY 2019- B
20 is Rs. 400 crores, for PY 2021-22 is _____?
(a) 10% (b) 25% (c) 30% (d) 40%
Q120. Rate of tax for Domestic Manufacturing company exercising option u/s 115BAB is ______. A
(a) 15% (b) 22% (c) 25% (d) 30%
Q121. Rate of tax for Domestic company exercising option u/s 115BAA is ______. B
(a) 15% (b) 22% (c) 25% (d) 30%
Q122. Which statements are correct for companies exercising option u/s 115BAA or 115BAB? D
(a) No Tax is payable by such companies. (b) No surcharge is payble by such companies
(c) Provisions of MAT are applicable (d) Provisions of MAT are not applicable
Q123. Tax rate for PCA Educators Pvt. Ltd, an Indian company, whose POEM is outside India is __ C
(a) 10% (b) 25% (c) 30% (d) 40%
Q124. Rebate under section 87A is allowed to _____. A
(a) Resident individual (b) Any individual (resident or non-resident)
(c) Resident individual & HUF (d) All assessee
Q125. Mr. Ajay is a recently qualified doctor. He joined a reputed hospital in Delhi on 01.01.2022. C
He earned total income of Rs. 3,40,000 till 31.03.2022. His employer advised him to claim
rebate u/s 87A while filing return of income for AY 2022-23. He approached his father to
enquire regarding what is rebate u/s 87A of the Act. His father told him:
(i) An individual who is resident in India & whose total income does not exceed Rs.
5,00,000 is entitled to claim rebate u/s 87A.
(ii) An individual who is resident in India & whose total income does not exceed Rs.
3,50,000 is entitled to claim rebate u/s 87A.
(iii) Maximum rebate allowable u/s 87A is Rs. 12,500.
(iv) Rebate u/s 87A is available in the form of exemption from total income.
(v) Maximum rebate allowable u/s 87A is Rs. 2,500.
(vi) Rebate u/s 87A is available in the form of deduction from tax liability.
As a tax expert, do you agree with the explanation given by Mr. Ajay’s father? Choose the
correct option from the following:
(a) (ii), (iii), (v) (b) (ii), (v), (vi) (c) (i), (iii), (vi) (d) (i), (iv), (v)
Q126. Which of the following statements are correct in relation to rebate u/s 87A? D
(a) Resident Individuals whose Total Income ≤ Rs. 5,00,000
(b) Rebate = Lower of (i) Income Tax payable on Total Income OR (ii) Rs. 12,500
(c) Rebate u/s 87A is not available on LTCG u/s 112A

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 (d) All of the above
Q127. Sunil wants to claim rebate u/s 87A of Rs. 12,500. It can be claimed if he is having total D
income upto?
(a) Rs. 3,00,000 (b) Rs. 3,50,000 (c) Rs. 4,00,000 (d) Rs. 5,00,000
Q128. Surcharge on income tax is payable by ____. D
(a) Company (b) Individual (c) Firm (d) All assesses
Q129. Surcharge applicable in the case of an Individual is: D
(a) 10% of tax payable if total income exceeds Rs. 50 Lacs but does not exceed Rs. 1 crore.
(b) 10% of tax payable if total income exceeds Rs. 1 crore.
(c) 15% of tax payable if total income exceeds Rs. 1 crore but is upto Rs. 2 crores & 25% if
total income exceeds Rs. 2 crores but is upto Rs. 5 crore & 37% on above Rs. 5 crores.
(d) Both (a) & (c)
Q130. Kalpesh has a taxable income of Rs. 85 Lacs. Surcharge is applicable @ _____ on his income. B
(a) 5% (b) 10% (c) 15% (d) 20%
Q131. Surcharge @ 15% is applicable, if taxable income of the individual exceeds ___. B
(a) Rs. 50 lacs (b) Rs. 1 crore (c) Rs. 5 crores (d) Rs. 10 crores
Q132. SC is payable by Domestic Company @ _____. D
(a) 7% of Tax provided its TI > Rs. 10,00,000.
(b) 7% of Tax irrespective of its income
(c) 7% of Tax provided its TI > Rs. 1 crore.
(d) 7% of Tax provided its TI > Rs. 1 crore & 12% of Tax if TI > Rs. 10 Crores.
Q133. SC is payable by foreign company @ ___. A
(a) 2% of Income Tax if Total Income > Rs. 1 cr or 5% of Income tax if Total Income > 10 Cr
(b) 5% of Income tax if Total Income > 1 Cr
(c) 2% of Income tax if Total Income > 1 Cr
(d) Always 10% of Income tax.
Q134. For AY 2022-23, rate of tax for firm is ___. A
(a) 30% + SC @ 12% if TI > Rs. 1 cr + 4% HEC (b) 30% + SC @ 10% if TI > Rs. 1 cr + 4% HEC
(c) 30% + SC @ 5% if TI > Rs. 1 cr + 4% HEC (d) 30% + SC @ 7% if TI > Rs. 1 cr + 4% HEC
Q135. M/s ABC is a partnership firm having business income of Rs. 6,00,000. IFOS is Rs. 1,50,000. C
Specified Donations eligible for deduction u/s 80G is Rs. 2.5 lacs. Calculate tax liability for
AY 2022-23.
(a) Rs. 13,000 (b) Rs. 65,000 (c) Rs. 1,56,000 (d) Nil
Q136. Rate of surcharge for AY 2022-23 for companies opting for section 115BAA or 115BAB is ___? D
(a) 2% of IT if TI > Rs. 1 Crore or 5% of income tax if TI > 10 crores
(b) 5% of IT if TI > Rs. 1 Crore. (c) 2 % of IT if TI > Rs. 1 Crore
(d) Always 10% of Income Tax
Q137. SC in case of PCA Educators Pvt. Ltd (Indian com.), whose total income is Rs. 12 Cr is ___. D
(a) 5% (b) 7% (c) 2% (d) 12%
Q138. During PY 2021-22, Mr. Shubham Sharma has STCG of Rs. 75 lacs taxable u/s 111A, LTCG of C
Rs. 50 lacs taxable u/s 112A & business income of Rs. 550 lacs. Which of the following
statements is correct?
(a) Surcharge @ 25% is leviable on income-tax computed on total income of Rs. 6.75 crore,
since total income exceeds Rs. 5 crores.
 (b) Surcharge @ 15% is leviable on income-tax computed on total income of Rs. 6.75 crore.
(c) Surcharge @ 15% is leviable i.r.o income-tax computed on capital gains of Rs. 1.25 crore,
i.r.o business income of Rs. 5.5 Crores, surcharge is leviable @ 37% on income- tax, since
total income exceeds Rs. 5 crores.
(d) Surcharge @ 37% is leviable on total income of Rs. 5.5 crores.
Q139. Mr. Pranav Chandak gives you the details of his income. Advise him about the rate of D
surcharge that will be applicable on his income.
Details of Mr. Pranav Chandak’s Income for PY 2021-22:
▪ Dividend - Rs. 60 lacs;
▪ STCG u/s 111A - Rs. 50 lacs;
▪ LTCG u/s 112A - Rs. 65 lacs;
▪ PGBP Income - Rs. 6 Cr.
(a) Rate of Surcharge = 37% on income-tax computed on all incomes since his total
income exceeds Rs. 6 crores.
(b) No surcharge is leviable on his income.
(c) Rate of Surcharge = 15% on income-tax computed on other income of Rs. 6 crores;
Surcharge @ 37% would be levied on Dividend - Rs. 60 lacs; STCG u/s 111A - Rs. 50
lacs; LTCG u/s 112A - Rs. 65 lacs;
(d) Rate of Surcharge = 37% on income-tax computed on other income of Rs. 6 crores;
Surcharge @ 15% would be levied on Dividend - Rs. 60 lacs; STCG u/s 111A - Rs. 50 lacs; LTCG
u/s 112A - Rs. 65 lacs;
Q140. If total income of an AJP is Rs. 3,25,000, income-tax payable is__ & Surcharge payable is__ A
(a) Rs. 3,750; SC – Nil (b) Rs. 7,500; SC - Nil (c) Rs. 1,250; SC – Nil (d) 75,000; SC - Rs. 3,750.
Q141. Tax liability of Mr. A (Age 25), having total income of Rs. 51 Lacs for AY 2022-23 is _____. C
(a) Rs 14,76,750 (b) Rs. 14,12,500 (c) Rs. 14,69,000 (d) Rs. 13,12,500
Q142. Tax liability of Mr. B (Age 42), having total income of Rs. 1,01,00,000 for AY 2022-23 is ____. D
(a) Rs. 32,68,875 (b) Rs. 30,93,750 (c) Rs. 31,93,750 (d) Rs. 33,21,500
Q143. Tax payable by Y Ltd., a domestic company for AY 2022-23 having Total Income of Rs. D
10,01,00,000 is ____.
Note: Total Income of Y Ltd. does not include any capital gains & Y. Ltd has not exercised
option u/s 115BAA or 115BAB. Gross Receipts of Y Ltd. for PY 2019-20 is Rs. 410 Cr.
(a) Rs. 3,00,30,000 (b) Rs. 3,49,78,944 (c) Rs. 3,22,00,000 (d) Rs. 3,34,88,000
Q144. Average rate of tax for the income of Rs. 5,00,000 for AY 2022-23 is _____. C
(a) 5% (b) 20% (c) Nil (d) 2.5%
Q145. Average rate of tax for the income of Rs. 10,00,000 for AY 2022-23 is _____. D
(a) 5% (b) 20% (c) Nil (d) 11.25%

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