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

Tax Laws MCQ on Return of Income

1. 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

2. 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

3. Regular assessment means assessment made under
(A) Section 143(3)
(B) Section 144
(C) Both (A) and (B) above
(D) None of the above

4. 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

5. 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

6. 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

7. 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

8. 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 

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

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By Team Learning Mantras