Tax Laws MCQ on Residential Status: Check the below Tax Laws MCQ on Residential Status with Answers Pdf free download. Tax Laws MCQ on Residential Status Questions with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Residential Status with Answers to help students understand the concept very well. Students should practice CS Executive Tax Laws MCQ on Residential Status Questions with Answers based on the latest syllabus.

Tax Laws MCQ on Residential Status

1. Alpha Ltd. is an Indian company. It carries its business in Delhi and London. Total control and management of the company is situated in London. More than 85% of its business income is from the business in England. If so, its residential status will be:
(A) Resident
(B) Non-resident
(C) Not ordinarily resident
(D) Foreign company

2. In the case of an individual who is not ordinarily resident the following income is chargeable to tax:
(A) Business income accruing outside India
(B) Property income accruing outside India
(C) Income accruing outside India if it is derived from a business controlled in India
(D) Interest income accruing outside India

3. Income of non-resident, when attributed from operations in India relating to the following, is taxable in India:
(A) Profits of business and Royalty
(B) Fee for technical services
(C) Income from house property in India
(D) All of the above

4. A company incorporated outside India having its place of effective management situated in India in the previous year will be treated as:
(A) Resident
(B) Not ordinarily resident
(C) Non-resident
(D) None of the above

5. HUF of Ashwin consisting of himself, his wife and 2 sons are assessed to income-tax. The residential status of HUF would be non-resident, when:
(A) The management and control of its affairs is wholly in India
(B) The management and control of its affairs is wholly outside India
(C) The status of Karta is non-resident for that year
(D) When the majority of the members are non-residents

6. The income earned during the previous year is subject to tax under the Act on the basis of the residential status of an assessee. However, the residential status of an assessee every year.
(A) Will not change
(B) Will certainly change
(C) May change
(D) None of the above

7. Following additional conditions are to be satisfied by a person to be resident and ordinarily resident in India:
(A) He is a resident in India at least any two out of the ten previous years immediately preceding the relevant previous year
(B) He has been in India for 730 days or more during the seven previous years immediately preceding the relevant previous year
(C) Both (A) and (B) or above
(D) None of the above

8. Agriculture income from agricultural land located in a foreign country is taxable in the case of:
(A) Non-resident
(B) Not ordinarily resident
(C) Resident
(D) In all cases stated in A, B & C

9. In the case of an individual who is not an ordinarily resident in India, the income chargeable to tax in India out of the following shall be:
(A) Rental income in a foreign country
(B) Interest income in a foreign country
(C) Income from outside India from a business controlled in India
(D) All the three above in (A), (B) & (C)

10. If Karta is resident and ordinarily resident in India but control and management of HUF are situated partly outside India in the previous year, the HUF is:
(A) Resident and ordinarily resident
(B) Not ordinarily resident
(C) Non-resident
(D) Resident

11. When a capital asset located in India is sold by a non-resident to another non-resident at a place outside India, the capital gain is taxable:
(A) at the place of the transferor
(B) at the place of the transferee
(C) at the place of location of asset
(D) at the place of both transferor and transferee

12. Mr Rajiv, born and brought up in India left for employment in Belgium on 15.10.2020 He has never gone out of India, previously. What is his residential status for the Assessment Year 2021-22?
(A) Non-resident
(B) Not ordinarily resident
(C) Resident
(D) Indian citizen

13. Paresh, a software engineer at ABC Ltd. left India on 10th August 2020 for the treatment of his wife. For income- tax purpose, his residential status for the AY 2021-22 will be:
(A) Resident
(B) Non-resident
(C) Not ordinarily resident
(D) Cannot be determined from the given information

14. Satish brought into India, in the previous year, past untaxed income which was earned in the UK The income will be taxable if Satish is:
(A) An ordinarily resident
(B) A not ordinarily resident
(C) A non-resident
(D) None of the above

15. The residential status of an Indian company is resident for the year [Dec. 2015]
(A) If the entire control and management is wholly in India
(B) If part of the control and management is in India
(C) Regardless of the place of control and management
(D) If it is listed on the recognised stock exchange

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By Team Learning Mantras