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Income tax - basic concepts, residence & heads of income MCQs with Answers

Practise Income tax - basic concepts, residence & heads of income and check your answers.

Question 1

Consider the given statements:
(I) On amalgamation, the business of the transferor company does not cease, but is deemed to continue.
(II) Under various provisions of the Income Tax Act, transferee is deemed to carry on the enterprise as that of the transferor.

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Question 2

In case of a co-operative society the maximum amount on which income tax is not chargeable is:

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Question 3

Which of the following is a common objective of progressive taxation?

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Question 4

Which is NOT an objective of taxation?

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Question 5

Under section 3(1) of the Income-tax Act, 2025, "tax year" means

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Question 6

Under the Income-tax Act, 1961, the income of a "previous year" was charged to tax in the following "assessment year". How does the Income-tax Act, 2025 deal with this?

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Question 7

Which statement correctly describes the charge of income-tax under section 4 of the Income-tax Act, 2025?

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Question 8

Under section 530 of the Income-tax Act, 2025, if on 1 April of a tax year no Central Act has yet provided for the charging of income-tax for that tax year, the Act has effect until such provision is made as if

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Question 9

Section 6(4) and (5) of the Income-tax Act, 2025 deal with a citizen of India or a person of Indian origin who, being outside India, comes on a visit to India. If such a person's total income, other than income from foreign sources, exceeds fifteen lakh rupees in the tax year, the words "sixty days" in section 6(2)(b) are read as

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Question 10

Consider the following statements about the deemed residence rule in section 6(7) of the Income-tax Act, 2025:
Statement 1: It can apply to a person of Indian origin who is not a citizen of India.
Statement 2: It applies only if the individual is not liable to tax in any other country or territory by reason of his domicile, residence or similar criteria.
Statement 3: The fifteen lakh rupees threshold is applied to total income other than income from foreign sources.
Which of the statements are correct?

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