1. When Income tax was levied in India first time ? 

a. in 1860 

b. in 1886 

c. in 1918 

d. in 1961 

2. Income – Tax is: a. 

a direct tax 

b. an indirect tax 

c. business tax 

d. none of these 

3. Rate of Income Tax is fixed under: 

a. The Income Tax act 

b. The Finance Act 

c. An Ordinance 

dNotification of C.B.D.T. 

4. How many heads of income are there to compute Gross Total Income of an assessee? 

a. Three 

b. Four 

c. Five 

d. Six 

5. The Present Income Tax Act is known as: 

a. Income Tax Act,1922 

b. Income Tax Act,1886 

c. Income Tax Rule, 1962 

d. Income Tax Act, 1961 

6. The period of 12 months commencing on 1 st day of April every year is known as: 

a. The Previous Year 

b. The Accounting Year 

c. The Assessment Year 

d. The Financial Year 

7. The definition of income is: 

a. inclusive 

b. exhaustive 

c. complex 

d. simple 

8. Income Tax Act was passed in: 

a. 1961 

b. 1971 

c. 1981 

d. 1951 

9. The term previous year means: 

a. The Financial Year 

b. Calendar Year 

c. Accounting Year 

d. The Financial year before the assessment year 

10. Income Tax is computed on: 

a. Capital 

b. Fixed Assets 

c. Income 

d. Business Gains 

11. The period of assessment year is: 

a. 1st Jan to 31st Dec 

b. 1st Apr to 31st March 

c. 1st Apr to 31st Dec 

d. 1st July to 30th June 

12. Income Tax is levied on those individuals: 

a. Whose income is less than the exempted limit in any the previous year. 

b. Whose income is more than the exempted limit in any the previous year. 

c. Whose income is up to ` 2,45,000 in any the previous year. 

d. Whose income is up to ` 2,50,000 in any the previous year. 

13. Income tax was levied in India first time by the following: 

a. Sir James Wilson 

b. Sir James 

c. Sir Newton 

d. Sir Lucas Paciolo 

14. Exemption limit for the Assessment Year 2020-21 for a non-resident individual is: 

a. ` 1,50,000 

b. ` 1,60,000 

c. ` 2,50,000 

d. ` 2,20,000 

15. Exemption limit for the Assessment Year 2020-21 for a super senior citizen resident of India is: 

a. 2,50,000 

b. 3,00,000 

c. 4,00,000 

d. 5,00,000 

16. Exemption limit for the Assessment Year 2020-21 for a woman (resident in India and who is of the age of 60 years or more but less than 80 years) is: 

a. 1,90,000 

b. 2,40,000 

c. 3,00,000 

d. 3,50,000 

17. Income Tax department works under: 

a. Central Government 

b. State Government 

c. Central Board of Direct Taxes 

d. Chief Commissioner of I.T. 

18. Under the Income Tax Act ‘Person’ means: 

a. Hindu undivided family

b. Company 

c. Local Authority 

d. All of these 

19. Sum of various heads of income is called: 

a. Gross total income 

b. Total income 

c. Taxable Income 

d. Aggregate income 

20. A very senior citizen shall be that individual for purpose of Income Tax whose age is more than the following: 

a. 60 years 

b. 65 years 

c. 80 years 

d. none of these 

21. The previous year always ends on: 

a. 31st March 

b. 30th April 

c. 30th June 

d. 31st Dec 

22. What would be the Assessment Year of the Financial Year 2019-20: 

a. 2018-19 

b. 2019-20 

c. 2020-21 

d. none of these 

23. An Individual is liable to pay a surcharge for the Assessment Year 2020- 21: 

a. 12% of tax payable 

b. 12% tax payable if total income exceeds ` 10 lakhs 

c. 12% of tax payable if total income exceeds ` 50 lakhs 

d. 10% of tax payable if total income exceeds ` 50 lakhs does not exceed ` 1 Crore or 15% of tax payable if total income exceeds ` 1 Crore but does not exceed ` 2 Crores. 

[Ans.1.(a), 2.(a), 3.(b), 4.(c), 5.(d), 6.(c), 7.(a), 8.(a), 9.(d), 10.(c), 11.(b), 12. (b), 13.(a), 14. (c), 15.(d), 16. (c), 17. (c), 18. (d), 19. (a), 20. (c), 21. (a), 22.(c), 23.(d).]

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