RESIDENCE AND TAX LIABILITY [MCQ] English, Income Tax important chapter residence and tax liability, income tax mcq

1. Who may be not an ordinary resident from the following? 

  • a. Partnership Firm 
  • b. Company 
  • c. Association of persons 
  • d. Hindu undivided family 

2. Salary payable by the Government of India to an Indian citizen for services outside India: 

  1. a. is taxable in India 
  2. b. is not taxable in India 
  3. c. is includible in the total income for rate purposes only 
  4. d. none of these 

3. What are the classes of an assessee for: 

a. Indian and foreigners 

b. Resident Indians and Non-resident Indians 

c. Resident, Not ordinarily resident and Non-resident d. Persons, Firms & Companies 

4. Income accruing in India is assessable for: 

a. All assessees 

b. Resident in India 

c. Not ordinarily resident in India 

d. Non-resident in India 

 5. On the basis of residence, the assessees are divided into how many categories? 

a. Two 

b. Three 

c. Four 

d. Five 

6. Agricultural income in Pakistan is assessable for: 

a. Resident 

b. Not ordinarily resident 

c. Non – resident 

d. not taxable 

7. A citizen of India who goes abroad for the purpose of employment, he must stay in India to become a resident for at least: 

a. 182 days 

b. 90 days 

c. 60 days 

d. 180 days 

8. Every year the residential status of an assessee: 

a. may change 

b. will certainly change 

c. will not change 

d. none of these 

9. A company doesn’t become the following in the previous year:

a. Ordinarily resident 

b. Non-resident 

c. Not an ordinarily resident 

d. Resident 

10. Income from a business in foreign country not controlled from India is taxable in case of: 

a. Ordinarily resident 

b. Non ordinarily resident 

c. Non – resident 

d. All of these 

11. Income not taxable in case of resident in India: 

a. Income received in India 

b. Income accrued in India 

c. Foreign income 

d. Past untaxed foreign income brought into India during the previous year. 

12. Income accruing in Paris and received there is taxable in India in the case of: 

a. for resident and ordinarily resident only 

b. for both resident and ordinarily resident and resident but not ordinarily resident 

c. for both resident and non-resident 

d. for all resident, not ordinarily resident and non-resident 

[Ans. 1.(d), 2.(a), 3.(c), 4.(a), 5.(b), 6.(a), 7.(a), 8.(a), 9.(c), 10.(a), 11.(d), 12.(a)] 



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