CMA Inter · Free
Direct and Indirect Taxation MCQs for CMA Inter
Chapter-wise Direct and Indirect Taxation MCQs with answers and explanations. Try the sample questions below, then practise a set of 10 with instant right/wrong.
Practise 10 Tax MCQsSample Direct and Indirect Taxation MCQs with answers
Q1 · Heads of Income
Under the Income-tax Act, 1961, which head of income is charged on income from letting out house property?
- (a) Income from salaries
- (b) Income from house property
- (c) Profits and gains of business or profession
- (d) Income from other sources
Show answer ↓
Answer: (b) Income from house property
(b) is correct: rent received or receivable from letting out a building or land appurtenant to it is taxed under the head Income from House Property. Business profits and other sources are separate heads, so they are wrong.
Q2 · Goods and Services Tax (GST) Laws
Which of the following is NOT a component of Goods and Services Tax (GST) in India?
- (a) Central Goods and Services Tax (CGST)
- (b) State Goods and Services Tax (SGST)
- (c) Integrated Goods and Services Tax (IGST)
- (d) Customs Duty Goods and Services Tax (CDGST)
Show answer ↓
Answer: (d) Customs Duty Goods and Services Tax (CDGST)
(d) is correct: CDGST is not a component of GST. The components are CGST, SGST/UTGST and IGST, and Customs duty on imports is levied separately under the Customs Act, 1962. The other three options are actual GST components.
Q3 · Basics of Income Tax Act
Who among the following is considered a 'Resident' for the purposes of Income-tax in India for an individual?
- (a) An individual who is in India for 182 days or more in the previous year
- (b) An individual who is a citizen of India but never visited India
- (c) An individual who is a foreign national with no stay in India
- (d) An individual who stays in India only for 30 days in the previous year
Show answer ↓
Answer: (a) An individual who is in India for 182 days or more in the previous year
(a) is correct: an individual is resident if present in India for 182 days or more in the previous year, which is one of the basic residential tests. The other options do not meet the residence conditions, so they are wrong.
Q4 · Heads of Income
Under the Income-tax Act, 1961, which head of income would rent received from letting out a house property be taxed under, when the property is let out and not used for the owner's own business?
- (a) Income from house property
- (b) Profits and gains of business or profession
- (c) Income from other sources
- (d) Capital gains
Show answer ↓
Answer: (a) Income from house property
(a) is correct: rent from letting out a house property is taxed under 'Income from house property'. (b) is wrong because business income applies only where property is used for business; (c) applies to residual income not covered by other heads.
Q5 · Basics of Income Tax Act
Which of the following is the correct basis of charge for an individual who is a resident in India under the Income-tax Act, 1961?
- (a) Income received or deemed to be received in India only
- (b) Global income (income from all sources, in India and outside India)
- (c) Income accruing in India only
- (d) Income earned outside India only
Show answer ↓
Answer: (b) Global income (income from all sources, in India and outside India)
(b) is correct: a resident and ordinarily resident individual is taxed on global income. (a) and (c) describe the basis for non-residents, and (d) is never the basis for a resident.
Practise Direct and Indirect Taxation MCQs
Pick a chapter or practise all chapters. Your score card and analysis open in the free app.
Featured · Today
Daily MCQ set · CMA Inter
Today's question of the day plus quick questions from your level.
Course
Level
Subject
Chapter
Free · no sign-up · questions checked by Bruno, the Studycaller AI
More CMA Inter MCQs
Free app · 5 lakh+ learners
Unlimited Tax MCQs in the app
Score cards, weak-topic analysis, timer, ICAI-level questions and case studies — free on Android and iPhone.