Students should practice Return of Income – CS Executive Tax Laws MCQ Questions with Answers based on the latest syllabus.
Return of Income – CS Executive Tax Laws MCQ Questions
Question 1.
Regular assessment means assessment made under
(A) Section 143(3)
(B) Section 144
(C) Both (A) and (B) above
(D) None of the above [Dec. 2014]
Answer:
(A) Section 143(3)
Question 2.
It is not mandatory for an assessee to file a return of loss if it pertains to
(A) Loss under the head ‘profits and gains from business or profession’
(B) Loss from maintenance of racehorses
(C) Loss under the head capital gains’
(D) Loss under the head income from house property’ [Dec. 2014]
Answer:
(D) Loss under the head income from house property
Question 3.
Any person who has not filed the return within the time allowed under section 139(1), 139(4) or within the time allowed under a notice issued by the Assessing Officer under section 142(1), may file a belated return u/s 139(4)
(A) Before the end of the relevant assessment year
(B) Before the completion of the assessment
(C) (A) or (B) above, whichever is earlier
(D) (A) or (B) above, whichever is later [Dec. 2014]
Answer:
(C) (A) or (B) above, whichever is earlier
Question 4.
In the case of an individual assessee, the return of income must be signed and verified by the following, except
(A) Individual himself
(B) Where he is absent from India, by some person duly authorized by him on this behalf
(C) Where he is mentally incapacitated from attending to his affairs, by his guardian or any other person competent to act on his behalf
(D) Spouse [Dec. 2014]
Answer:
(D) Spouse
Question 5.
If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may initiate proceedings of
(A) Re-assessment
(B) Regular assessment
(C) Self-assessment
(D) Best judgment assessment [Dec. 2014]
Answer:
(A) Re-assessment
Question 6.
A partnership firm whose sales turnover is ₹ 90 lakh has derived income from an industrial undertaking entitled to deduction u/s 80-IB.
The due date for filing the return of income for the A.Y. 2021-22 will be
(A) 31st July 2017
(B) 30th September 2017
(C) 31st October 2017
(D) None of the above [June 2015]
Answer:
(A) 31st July 2017
Question 7.
The ‘due date’ specified u/s 139(1) for filing the return of income in case of companies engaged in international transactions and who have to furnish a report u/s 92E is
(A) 31st July
(B) 31st August
(C) 30th September
(D) 30th November [Dec. 2015]
Answer:
(D) 30th November
Question 8.
A return of income when notified as defective, has to be rectified within
(A) 30 Days
(B) The financial year
(C) 15 Days
(D) 60 Days [Dec. 2015]
Answer:
(D) 60 Days
Question 9.
As per Section 234F of the Income Tax Act, 1961, where a person required to furnish a return of income u/s 139, fails to do so within the time prescribed time, he shall pay, by way of fee, a sum of if the return is furnished on or before the 31st day of December of the assessment year.
(A) ₹ 1,000
(B) ₹ 10,000
(C) ₹ 5,000
(D) ₹ 2,000 [Dec. 2015]
Answer:
(C) ₹ 5,000
Question 10.
Quoting of PAN is mandatory when a person is entering into the following transactions:
(A) Sale of immovable property of ₹ 5 lakhs or more
(B) Deposit of ₹ 50,000 or more in Post Office Savings Bank
(C) Deposit of cash aggregating ₹ 40,000 in one day in a bank
(D) Contract of sale and purchase of securities exceeding ₹ 2 lakhs [Dec. 2015]
Answer:
(C) Deposit of cash aggregating ₹ 40,000 in one day in a bank
Question 11.
XYZ Ltd. filed its return of income for the A.Y. 2021-22 on 1st February 2022. The return was selected for scrutiny assessment u/s 143(3).
The Assessing Officer is required to serve upon the assessee a notice u/s 143(2) up to
(A) 31st July 2022
(B) 30th September 2022
(C) 31st July 2022
(D) 30th September 2022 [Dec. 2015]
Answer:
(B) 30th September 2022
Question 12.
A partnership firm having 9 trucks engaged in the business of plying these trucks on hire is to file its return of income for the AY 2021-22 on the basis of provisions of Section 44AE.
The partnership firm is required to file its return of income in
(A) Form ITR-4
(B) Form ITR-3
(C) Form ITR-2
(D) Form ITR-4S [Dec. 2015]
Answer:
(B) Form ITR-3
Question 13.
A return filed by Ms. Mala was found to be defective. The Assessing Officer gave notice of the defect to the assessee.
The time limit for rectification of the defect is
(A) 30 Days
(B) 15 Days
(C) 45 Days
(D) 60 Days
Answer:
(D) 60 Days
Question 14.
Chand Ltd. filed its return of income on 7th December 2020 declaring a loss of ₹ 3,50,000.
Later, it noticed a claim of expenditure omitted in the return filed. The revised return
(A) Must be filed before 31st March 2022
(B) Cannot be filed
(C) Must be filed before 31st March 2021
(D) Can be filed before completion of the assessment [June 2016]
Answer:
(C) Must be filed before 31st March 2021
Question 15.
Rose Ltd. filed its return of income for the assessment year 2021-22 on 10th August 2021.
The notice under Section 143(2) for scrutiny assessment should be served on the assessee by
(A) 31st March 2022
(B) 31st March 2023
(C) 10th February 2022
(D) 30th September 2022 [June 2016]
Answer:
(D) 30th September 2022
Question 16.
Zeit Ltd. engaged in the manufacturing of cement also had windmills to generate power. The entire power generated by it was used by its wholly-owned subsidiary Zoom Ltd. The amount received for the said power supply was ₹ 7 Crore. Zeit Ltd. disclosed a total income of ₹ 10 Crore for the assessment year 2021-2022.
The due date for filing return of income by Zeit Ltd. is
(A) 31st July 2021
(B) 30th September 2021
(C) 31st October 2021
(D) 30th November 2021 [June 2016]
Answer:
(B) 30th September 2021
Question 17.
As per Section 139( 1), an individual other than an individual of the age of 60 years or more shall have to file a return of income if
(A) His total income exceeds ₹ 2,50,000
(B) His total income exceeds ₹ 3,00,000
(C) His total income exceeds ₹ 2,00,000
(D) His total income before allowing deduction under Sections 80C to 80U exceeds ₹ 2,50,000 [June 2016]
Answer:
(D) His total income before allowing deduction under Sections 80C to 80U exceeds ₹ 2,50,000
Question 18.
The due date of filing return of income for the assessment year 2021-22 in case of a working partner of a firm whose accounts are liable to be audited shall be
(A) 31 st July of the assessment year
(B) 30thSeptemberoftheassessment year
(C) 30th June of the assessment year
(D) 3 0th November of the assessment year in case it is required to furnish report referred to in Section 92E and 30th September of the assessment year in any other case [June 2016]
Answer:
(D) 3 0th November of the assessment year in case it is required to furnish report referred to in Section 92E and 30th September of the assessment year in any other case
Question 19.
For the previous year 2020-21, an assessee suffered a business loss of ₹ 2,50,000. His income from other sources is ₹ 1,80,000. His due date of return was 31st July 2021 but he submitted the return on 9th September 2021.
The assessee in this case
(A) Shall be allowed to carry forward the loss of ₹ 70,000
(B) Shall not be allowed to carry forward any loss
(C) Shall be allowed to set-off current year business loss to the extent of ₹ 1,80,000 but shall not be allowed to carry forward the balance loss of ₹ 70,000
(D) Shall not be allowed to set-off the business loss to the extent of ₹ 1,80,000 and would be liable to tax on ₹ 1,80,000 [June 2016]
Answer:
(C) Shall be allowed to set-off current year business loss to the extent of ₹ 1,80,000 but shall not be allowed to carry forward the balance loss of ₹ 70,000
Question 20.
The notice under Section 143(2) must be served within
(A) 12 months from the date of filing of return
(B) 12 months from the due date of filing the return under Section 139(1) or from the date of filing of return of income
(C) 6 months from the end of the financial year in which the return was furnished
(D) 6 months from the end of the month in which the return was furnished [June 2016]
Answer:
(C) 6 months from the end of the financial year in which the return was furnished
Question 21.
If there is an apparent error in the intimation dated 11th June 2020 issued u/s 143(1), the time limit for filing an application for rectification u/s 154 is available up to
(A) 31st March 2024
(B) 31st March 2025
(C) 31st March 2021
(D) 31st October 2020 [Dec. 2016]
Answer:
(B) 31st March 2025
Question 22.
Quoting of PAN is not necessary in the case of
(A) Purchase of immovable property valued at ₹ 50 lakhs
(B) Payment of hotel bills ₹ 10,000
(C) Deposit of ₹ 75,000 into a bank in a day
(D) Payment of ₹ 5,00,000 for purchase of shares of a company [Dec. 2016]
Answer:
(B) Payment of hotel bills ₹ 10,000
Question 23.
The last date of filing return by a company which is required to furnish report referred to in Section 92E is
(A) 31st July of the relevant assessment year
(B) 30th September of the relevant assessment year
(C) 30th November of the relevant assessment year
(D) 31st of the relevant assessment year [Dec. 2016]
Answer:
(C) 30th November of the relevant assessment year
Question 24.
Zeit & Co. is a partnership firm whose turnover for the previous year 2020-21 was ₹ 220 lakhs.
The ‘due date’ for filing the return of income of the firm is:
(A) 31st July 2021
(B) 30th September 2021
(C) 30th November 2021
(D) 31st March 2021 [June 2017]
Answer:
(B) 30th September 2021
Question 25.
Chatterjee filed his return of income for the assessment year 2021-22 on 10.6.2021. He is eligible to revise his return:
(A) Up to the end of the assessment year 2022-23
(B) Before the end of the assessment year 2021-22
(C) Before completion of assessment u/s 153
(D) Before issuing of notice u/s 148 [June 2017]
Answer:
(B) Before the end of the assessment year 2021-22
Question 26.
A fixed deposit of ₹ 90,000 made by Mr. P on 5.11.2015 was detected on 7.9.2020. The time limit for issue of notice u/s 148 is:
(A) 31.3.2021
(B) 31.3.2023
(C) 31.3.2025
(D) 31.3.2027 [June 2017]
Answer:
(A) 31.3.2021
Question 27.
An apparent error in the assessment order passed u/s 143(3) dated 15.11.2020 was noticed by the assessee in February 2021.
The time limit for seeking rectification of mistake is available up to:
(A) 31.3.2025
(B) 31.3.2024
(C) 31.3.2021
(D) 31.3.2022 [June 2017]
Answer:
(A) 31.3.2025
Question 28.
Mandatory filing of return of income by individuals will apply when the total income before deduction under the following section exceeds the basic limit chargeable to tax.
(A) Deduction under Chapter VI-A
(B) Deduction under section 35
(C) Deduction under section 86
(D) Deduction under section 37 [Dec. 2017]
Answer:
(A) Deduction under Chapter VI-A
Question 29.
Quoting of Permanent Account Number (PAN) mandatory when the cash deposit in a bank account exceeds:
(A) ₹ 9,999
(B) ₹ 19,999
(C) ₹ 49,999
(D) ₹ 99,999 [Dec. 2017]
Answer:
(C) ₹ 49,999
Question 30.
The assessee who has filed a return of income for A.Y. 2021-22 as per section 139(1) can file a revised return any time:
(A) Before 1 year from the end of the relevant assessment year.
(B) Before the end of the relevant assessment year or before the completion of the assessment whichever is earlier.
(C) Before the expiry of the relevant assessment year or before the completion of the assessment whichever is later.
(D) Before the completion of the assessment year. [Dec. 2018]
Answer:
(B) Before the end of the relevant assessment year or before the completion of the assessment whichever is earlier.
Question 31.
The due date for e-filing of return of income by a Charitable Trust claiming exemption under sections 11 and 12 for the assessment year 2021-22 is:
(A) 31 st March 2021
(B) 30th September 2021
(C) 31 st August 2021
(D) Between any time specified in (B) and (C) [Dec. 2018]
Answer:
(B) 30th September 2021
Question 32.
Any person who has not filed the return within the time allowed under section 139(1) may file a belated return:
(A) At any time before the end of the relevant previous year
(B) At any time before the end of the relevant assessment year
(C) Before the completion of the assessment
(D) At any time before the end of the relevant assessment year or before the completion of the assessment whichever is earlier [Dec. 2018]
Answer:
(D) At any time before the end of the relevant assessment year or before the completion of the assessment whichever is earlier
Question 33.
What are the items taken into consideration by the Assessing Officer (AO) while processing a return at the Centralised Processing Centre (CPC)?
(A) The total income or loss after making adjustments for any arithmetical error in the return
(B) An incorrect claim, if such incorrect claim is apparent from any information in the return
(C) The fee payable under section 234F (fee for default in furnishing return of income) in computing the tax
(D) All of the above
Answer:
(D) All of the above
Question 34.
Anil made the following transaction for the year ended 31st March, 20,19:
(a) acquired the immovable property for ₹ 6 lakh;
(b) made a term deposit (TDR) of ₹ 30,000 in a bank;
(c) paid ₹ 75,000 to a hotel for his birthday party and
(d) deposited ₹ 45,000 cash in his
Savings Bank (SB) account.
Quoting of PAN is mandatory in which of these transactions:
(A) Purchase of immovable property
(B) TDR with bank and deposit of cash in the bank
(C) Payment to the hotel for birthday party
(D) All the three above in A, B & C [June 2019]
Answer:
(C) Payment to the hotel for birthday party
Question 35.
A non-resident is not required to furnish return of income under section 139(1) if his total income during the previous year consists of:
(A) Income from Technical fee
(B) Income from Interest / Dividends
(C) Income from Royalty
(D) Income from House Rent [June 2019]
Answer:
(B) Income from Interest / Dividends
Question 36.
Hindu Undivided Family (HUF) of Vinay consisted of himself, his major son, minor son, and his wife. At the time of filing of return of income of the HUF for A.Y. 2021-22, Vinay was out of the country.
The return of income of the HUF can be signed in this case by:
(A) Karta
(B) Authorized Tax Consultant
(C) Major Son
(D) Minor Son [June 2019]
Answer:
(C) Major Son