Income Tax Objective Questions And Answers Pdf : Today we have brought Income Tax Question Quiz for you. Which will prove to be very useful for all One Day Exams. Income Tax Objective Questions and Answers are given in this post for those students who are preparing for competitive exams. So read these questions carefully, it will be beneficial for your exam
Question 1. Under which section of Income Tax, individuals are taxed?
(A) Section 10
(B) Section 12
(C) Section 24
(D) Section 44
Answer: Section 24
Question 2. Under which chapter of Income Tax is property taxed?
(A) Chapter 5
(B) Chapter 6
(C) Chapter 7
(D) Chapter 10
Answer: Chapter 10
Question 3. Under which section of “Companies Tax” tax is determined?
(A) Section 115
(B) Section 134
(C) Section 143
(D) Section 151
Answer: Section 115
Question 4. What is the last date for filing income tax return?
(A) 30 June
(B) 31 March
(C) 30 September
(D) 31 December
Answer: 30 September
Question 5. What is the general exemption limit for an individual taxpayer?
(A) ₹2 lakh
(B) ₹2.5 lakh
(C) ₹3 lakh
(D) ₹5 lakh
Answer: ₹2.5 lakh
Question 6. What is the definition of “global income”?
(A) Only Indian income
(B) Foreign income
(C) Both Indian and foreign
(D) Only foreign income
Ans: Both Indian and foreign
Question 7. How is “taxable income per annum” defined under the Income Tax Act?
(A) Total income less all exemptions
(B) Total income less personal exemptions only
(C) Total income less business expenses only
(D) Total income less tax exemptions only
Ans: Total income less all exemptions
Question 8. What is the abbreviation of “HRA”?
(A) Home Rent Allowance
(B) House Rent Allowance
(C) House Rent Order
(D) Home Rent Order
Answer: House Rent Allowance
Question 9. Under which section is exemption provided on medical treatment expenses?
(A) Section 80D
(B) Section 80C
(C) Section 80E
(D) Section 80G
Answer: Section 80D
Question 10. What is meant by “tax at source” in income tax return?
(A) Additional tax levied on income
(B) Primary tax on income
(C) Tax on interest or dividend
(D) Additional tax of any kind
Ans: Tax on interest or dividend
Question 11. What is the amount of exemption that any taxpayer can get under the “Income Tax Act 1961”?
(A) ₹10,000
(B) ₹20,000
(C) ₹50,000
(D) ₹1 lakh
Answer: ₹50,000
Question 12. How is business income defined?
(A) Income from business only
(B) Income from business and professional services
(C) Income from business and property
(D) Income from professional services only
Ans: Income from business and professional services
Q.13. What is the abbreviation of “CEASE”?
(A) Tax exemption limit
(B) Exemption limit of tax
(C) Special cell of tax
(D) No specific description
Ans: Tax exemption limit
Question 14. Who is not included in the definition of “individual taxpayer”?
(A) Government servant
(B) Company director
(C) Non-profit organisation
(D) Businessman
Answer: Non-profit organisation
Question 15. The biggest income tax exemption is available under which section?
(A) Section 80G
(B) Section 80C
(C) Section 80E
(D) Section 80U
Answer: Section 80C
Question 16. Income tax is levied on which type of property?
(A) Only immovable property
(B) Only movable property
(C) Both immovable and immovable properties
(D) Only investment property
Answer: Both immovable and immovable properties
Question 17. What is included in the tax assessment of “second house”?
(A) Cost of property
(B) Selling price of property
(C) Rental value of property
(D) Market value of property
Answer: Rental value of property
Question 18. When is “Audit” required for Income Tax Return?
(A) Income exceeding ₹50 lakh
(B) Income exceeding ₹1 crore
(C) Income exceeding ₹2 crore
(D) Income exceeding ₹5 crore
Answer: Income exceeding ₹1 crore
Question 19. What is the abbreviation of “TDS”?
(A) Tax Deducted at Source
(B) Tax Deducted at Stage
(C) Tax Deducted at Subscription
(D) Tax Deducted at Source
Answer: Tax Deducted at Source
Question 20. Under which chapter of Income Tax, profit earned from share investment is taxed?
(A) Chapter 5
(B) Chapter 6
(C) Chapter 10
(D) Chapter 12
Answer: Chapter 12
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Question 21. What type of income is included in “Salary”?
(A) Regular salary only
(B) Salary and allowances
(C) Allowances and bonus
(D) Bonus only
Answer: Salary and allowances
Question 22. How is “net income” defined?
(A) Total income minus all exemptions
(B) Total income minus only tax exemptions
(C) Total income minus all business expenses
(D) Total income minus only personal exemptions
Ans: Total income minus all exemptions
Question 23. Which benefit is not included in “employee benefits”?
(A) Medical Benefit
(B) Traveling Allowance
(C) House Allowance
(D) Investment Benefit
Answer: Investment Benefit
Question 24. Under which Act of Income Tax, tax is levied on land?
(A) Land Acquisition Act
(B) Income Tax Act
(C) Property Tax Act
(D) Land Tax Act
Answer: Property Tax Act
Question 25. What is done in the process of “Return of Income”?
(A) Calculation of tax
(B) Payment of tax
(C) Report of income
(D) Tax appeal
Answer: Report of income
Q26. Which exemption comes under “Special exemptions”?
(A) Interest exemption
(B) Capital gains exemption
(C) Housing allowance exemption
(D) Medical allowance exemption
Ans: Capital gains exemption
Q27. What is the purpose of “Form 16” under the Income Tax Act?
(A) Filing tax return
(B) Salary slip
(C) Availing tax exemption
(D) Information regarding tax deduction
Ans: Salary slip
Question 28. “Income Tax Return” is prepared by whom?
(A) Taxpayer
(B) Tax Consultant
(C) Income Tax Officer
(D) Companies only
Ans: Taxpayer
Question 29. “Investment exemption” is given under which section?
(A) Section 80C
(B) Section 80D
(C) Section 80E
(D) Section 80G
Answer: Section 80C
Question 30. On what basis is “company tax” calculated?
(A) On income
(B) On property
(C) On sales
(D) On profit
Answer: On income
Question 31. Who is given exemption of “Professional Tax”?
(A) Government employees
(B) Teachers
(C) All employees
(D) No one
Answer: Government employees
Question 32. “Service tax” is levied on which type of transactions?
(A) Sale of products
(B) Sale of services
(C) Land transactions
(D) Financial transactions
Answer: Sale of services
Question 33. What is meant by “exempt income”?
(A) Tax free income
(B) Tax exemption only
(C) Exemption of income
(D) Tax penalty
Ans: Tax free income
Question 34. What is included in “investment” under the Income Tax Act?
(A) Land only
(B) Shares only
(C) Both land and shares
(D) Bonds only
Ans: Both land and shares
Question 35. “International income” is taxed under
(A) Domestic Tax Act
(B) Foreign Tax Act
(C) International Tax Act
(D) No specific Act
Ans: Foreign Tax Act
Q36. What is included in the definition of “pay allowances”?
(A) Bonus
(B) Pay and allowances
(C) Allowances and travel
(D) Travel and medical
Answer: Pay and allowances
Question 37. How is “Income Tax Penalty” calculated?
(A) On monthly basis
(B) On yearly basis
(C) On quarterly basis
(D) Only at the end of financial year
Ans: On yearly basis
Question 38. Which section is responsible for calculating “Salary Tax”?
(A) Section 192
(B) Section 195
(C) Section 198
(D) Section 200
Answer: Section 192
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