In this topic, we will discuss some important Multichoice Questions (MCQs) of Income-tax and corporate tax planning for UGC NET Commerce. It is also useful for UGC NET Management, MBA, BBA, B.COM, M.COM, and CA, CPA, CS Students.

Income-tax and corporate tax planning MCQs for UGC NET Commerce

1. Tax is imposed irrespective of the exact amount of service rendered to the tax payer in return and not imposed as a for any legal offence.

a) penalty

b) rule

c) law

d) cost

2. Which types of taxes are levied directly on the entity meant to bear the burden?

a) Indirect tax

b) Direct tax

c) Custom tax

d) Export duty

3. Income tax is levied on the “income” of a/an .

a) total amount

b) capital

c) entity

d) living being

4. In order to recover the expenses/losses of the great revolt, the introduced the ‘Law of taxation on income.’

a) Swedish Government

b) American Government

c) Indian Government

d) British Government

5. is the capital which is turned over and in the process of being turned over, yields profit or loss.


a) Compensating capital

b) Revenue capital

c) Non-revenue capital

d) Circulating capital

6. Receipt to be of a need not necessarily be repetitive or recurring.

a) capital nature

b) non-revenue nature

c) revenue nature

d) expenditure nature

7. Must be one in which two or more persons join in a common purpose or common action.

a) Firm

b) An association of persons

c) Company

d) Body of individuals

8. is a person by whom any tax or any other sum of money is payable under the Income Tax Act.

a) An assessee

An individual

An employee

A manager

9. The income of the previous year is taxed in at the rates prescribed by the relevant finance Act.

a) assessment year

b) previous year

c) action year

d) last year

10. What is the person known when no amount is payable by him under the Income Tax Act?

a) Individual

b) Assessee

c) Tax payer

d) Non taxpayer



11. In most countries with income taxation, corporate entities are subject to tax on their profits and, in addition, are taxed in the hands of shareholders.

a) surcharges

b) dividends

c) shares

d) assets

12. The base of the corporate income tax is commonly the accounting profits derived with reference to…….

a) historical costs

b) records

c) registers

d) databases

13. The company is not a citizen so as to claim granted to citizens.

a) profits

b) shares

c) fundamental rights

d) asset

14. What is the tax levied on a company’s income-based?

a) Company name

b) Company profile

c) Industry type

d) Legal residence

15. Which of the following is true?

a) International companies have levied a tax on earnings from their Indian operations.

b) Indian companies have levied a tax on earnings from their Indian operations.

c) International companies gain profits on earnings from their Indian operations.

d) International companies have levied a tax on earnings from their foreign operations.

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Answer Keys

  1. a
  2. b
  3. c
  4. d
  5. d
  6. c
  7. b
  8. a
  9. a
  10. b
  11. b
  12. a
  13. c
  14. d
  15. a