📘 MCQs (1–50) — Advanced Level
Topics: Finance Act Amendments | Computerization | Vigilance | Training
🔹 Recent Amendments (Finance Act – Advanced)
1.
Updated return under Section 139(8A) can be filed within:
A. 12 months
B. 24 months
C. 36 months
D. 48 months
Answer: B
2.
Updated return cannot be filed if:
A. Loss is declared
B. Income increased
C. Tax paid
D. Filed voluntarily
Answer: A
3.
Tax on updated return includes:
A. Normal tax
B. Additional tax
C. Interest
D. All
Answer: D
4.
Additional tax for updated return (within 12 months):
A. 10%
B. 25%
C. 50%
D. 75%
Answer: B
5.
Additional tax (after 12 months but within 24 months):
A. 25%
B. 50%
C. 75%
D. 100%
Answer: B
6.
Virtual Digital Assets (VDA) taxed under:
A. 30%
B. 20%
C. Slab rate
D. 15%
Answer: A
7.
Loss from VDA can be:
A. Set off
B. Carried forward
C. Not allowed
D. Partially allowed
Answer: C
8.
TDS on VDA transactions is under:
A. 194Q
B. 194S
C. 194C
D. 206C
Answer: B
9.
Rate of TDS on VDA:
A. 0.1%
B. 1%
C. 5%
D. 10%
Answer: B
10.
New tax regime under Section 115BAC is:
A. Mandatory
B. Optional
C. Applicable only to companies
D. Not applicable
Answer: B
11.
Standard deduction allowed in new regime (latest amendment):
A. Not allowed
B. ₹25,000
C. ₹50,000
D. ₹75,000
Answer: C
12.
Rebate under 87A in new regime extended up to:
A. ₹5 lakh
B. ₹6 lakh
C. ₹7 lakh
D. ₹10 lakh
Answer: C
13.
Angel tax now applies to:
A. Residents only
B. Non-residents also
C. Companies only
D. Firms only
Answer: B
14.
Section dealing with unexplained credits:
A. 68
B. 69
C. 70
D. 80C
Answer: A
15.
TCS on foreign remittance increased to:
A. 5%
B. 10%
C. 20%
D. 30%
Answer: C
🔹 Computerization in Income Tax Department
16.
Project Insight is related to:
A. Refund processing
B. Data analytics
C. TDS
D. Appeals
Answer: B
17.
CPC stands for:
A. Central Processing Centre
B. Central Payment Cell
C. Computer Processing Cell
D. Central Portal Centre
Answer: A
18.
CPC Bengaluru handles:
A. Appeals
B. Return processing
C. Search cases
D. Prosecution
Answer: B
19.
E-filing portal enables:
A. Return filing
B. Grievance
C. Rectification
D. All
Answer: D
20.
AIS stands for:
A. Annual Information Statement
B. Account Information System
C. Audit Information Sheet
D. Assessment Info Statement
Answer: A
21.
Form 26AS shows:
A. Income
B. Tax credits
C. Deductions
D. Refunds
Answer: B
22.
Faceless appeal scheme ensures:
A. Transparency
B. Speed
C. No human interaction
D. All
Answer: D
23.
DIN (Document Identification Number) ensures:
A. Tracking
B. Transparency
C. Authenticity
D. All
Answer: D
24.
TRACES portal relates to:
A. Returns
B. TDS
C. Appeals
D. Refunds
Answer: B
25.
E-proceedings eliminate:
A. Notices
B. Physical interface
C. Assessment
D. Appeals
Answer: B
🔹 Vigilance (Advanced)
26.
Vigilance in IT Dept is handled by:
A. CBDT
B. CVC
C. Both
D. ITAT
Answer: C
27.
Preventive vigilance focuses on:
A. Punishment
B. Prevention
C. Prosecution
D. Recovery
Answer: B
28.
CVC stands for:
A. Central Vigilance Commission
B. Central Verification Cell
C. Chief Vigilance Council
D. Central Vigilance Committee
Answer: A
29.
Whistleblower protection is governed by:
A. IT Act
B. CVC guidelines
C. CBDT circular
D. Income Tax Act
Answer: B
30.
Vigilance angle includes:
A. Corruption
B. Misconduct
C. Abuse of power
D. All
Answer: D
31.
Departmental inquiry is initiated for:
A. Criminal offence
B. Service misconduct
C. Tax evasion
D. Audit
Answer: B
32.
Minor penalty includes:
A. Dismissal
B. Suspension
C. Warning
D. Removal
Answer: C
33.
Major penalty includes:
A. Warning
B. Censure
C. Dismissal
D. Advice
Answer: C
34.
Charge sheet is issued under:
A. Criminal law
B. Service rules
C. Income Tax Act
D. CPC
Answer: B
35.
Vigilance clearance required for:
A. Promotion
B. Posting
C. Deputation
D. All
Answer: D
🔹 Training (Advanced)
36.
Training institute for IRS officers:
A. NACIN
B. NADT
C. LBSNAA
D. RBI
Answer: B
37.
NADT is located at:
A. Delhi
B. Mumbai
C. Nagpur
D. Chennai
Answer: C
38.
Foundation course conducted at:
A. NADT
B. LBSNAA
C. NACIN
D. CBDT
Answer: B
39.
In-service training aims at:
A. Recruitment
B. Skill upgradation
C. Promotion
D. Retirement
Answer: B
40.
Capacity building commission deals with:
A. Taxation
B. Training
C. Vigilance
D. Audit
Answer: B
41.
Mid-career training is for:
A. New recruits
B. Experienced officers
C. Retired officers
D. Students
Answer: B
42.
Training includes:
A. Law
B. IT systems
C. Soft skills
D. All
Answer: D
43.
E-learning platforms are used for:
A. Recruitment
B. Training
C. Audit
D. Appeals
Answer: B
44.
Competency-based training focuses on:
A. Theory
B. Skills
C. Exams
D. Promotion
Answer: B
45.
CBDT controls:
A. Customs
B. Direct taxes
C. GST
D. RBI
Answer: B
46.
Digital India initiative impacts:
A. Manual filing
B. E-governance
C. Paperwork increase
D. Delay
Answer: B
47.
AI in tax administration is used for:
A. Data mining
B. Risk assessment
C. Compliance monitoring
D. All
Answer: D
48.
Pre-filled return data comes from:
A. AIS
B. 26AS
C. Third-party data
D. All
Answer: D
49.
Faceless penalty scheme ensures:
A. Bias
B. Transparency
C. Delay
D. Manual work
Answer: B
50.
E-verification can be done through:
A. Aadhaar OTP
B. Net banking
C. DSC
D. All
Answer: D
🔹 Recent Amendments (Advanced + Case-Based)
51.
An assessee files updated return after 18 months. Additional tax payable will be:
A. 25%
B. 50%
C. 75%
D. 100%
Answer: B
52.
Updated return cannot be filed if:
A. Search initiated
B. Survey initiated
C. Both
D. None
Answer: C
53.
If updated return reduces tax liability:
A. Allowed
B. Not allowed
C. Allowed with penalty
D. Allowed with approval
Answer: B
54.
VDA taxation disallows deduction of:
A. Brokerage
B. Mining cost
C. Transaction fee
D. All
Answer: D
55.
Gift of VDA is taxable in hands of:
A. Donor
B. Donee
C. Both
D. None
Answer: B
56.
TDS u/s 194S not applicable when transaction below:
A. ₹10,000
B. ₹50,000
C. ₹1,00,000
D. ₹5,000
Answer: B
57.
New regime default for individuals is:
A. Old regime
B. New regime
C. Optional only
D. Not applicable
Answer: B
58.
Switching between regimes allowed:
A. Every year (non-business income)
B. Once only
C. Not allowed
D. Only companies
Answer: A
59.
Angel tax amendment impacts:
A. Listed companies
B. Startups
C. Private companies
D. Both B & C
Answer: D
60.
TCS on LRS applies to:
A. Domestic payments
B. Foreign remittances
C. Salary
D. Interest
Answer: B
🔹 Computerization (Advanced + Application)
61.
AIS includes:
A. Bank interest
B. Securities transactions
C. Foreign remittances
D. All
Answer: D
62.
Mismatch between AIS and return leads to:
A. Automatic penalty
B. Risk flagging
C. Refund rejection
D. Assessment cancellation
Answer: B
63.
DIN is mandatory for:
A. All communications
B. Only notices
C. Only orders
D. Appeals
Answer: A
64.
If communication without DIN:
A. Valid
B. Invalid
C. Partially valid
D. Subject to approval
Answer: B
65.
CPC processes returns using:
A. Manual system
B. Automated system
C. Hybrid
D. None
Answer: B
66.
E-verification failure results in:
A. Invalid return
B. Late fee
C. Penalty
D. Prosecution
Answer: A
67.
Faceless assessment units include:
A. Assessment unit
B. Verification unit
C. Technical unit
D. All
Answer: D
68.
Risk Management Strategy (RMS) is used for:
A. Refund
B. Case selection
C. Appeal
D. Training
Answer: B
69.
Pre-filled ITR data sourced from:
A. AIS
B. 26AS
C. TDS returns
D. All
Answer: D
70.
E-campaign is used for:
A. Enforcement
B. Voluntary compliance
C. Penalty
D. Appeal
Answer: B
🔹 Vigilance (Advanced + Scenario-Based)
71.
Accepting gifts by tax officer leads to:
A. Minor misconduct
B. Major misconduct
C. No issue
D. Warning only
Answer: B
72.
Delay in passing order without reason may attract:
A. Vigilance angle
B. Administrative action
C. Both
D. None
Answer: C
73.
Integrity in public service means:
A. Efficiency
B. Honesty
C. Skill
D. Knowledge
Answer: B
74.
Disproportionate assets case is handled by:
A. CBDT
B. CVC
C. CBI
D. AO
Answer: C
75.
Preventive vigilance includes:
A. Rotation of staff
B. Surprise inspection
C. System improvement
D. All
Answer: D
76.
Vigilance clearance denied if:
A. Pending inquiry
B. Complaint received
C. Charge sheet issued
D. All
Answer: D
77.
Trap cases are related to:
A. Tax evasion
B. Corruption
C. Audit
D. Refund
Answer: B
78.
Departmental proceedings follow:
A. Criminal law
B. Service rules
C. Civil law
D. Tax law
Answer: B
79.
Penalty for misconduct depends on:
A. Severity
B. Intent
C. Evidence
D. All
Answer: D
80.
Suspension is:
A. Punishment
B. Interim measure
C. Final order
D. Advisory
Answer: B
🔹 Training (Advanced + Practical)
81.
Role-based training focuses on:
A. Generic knowledge
B. Job-specific skills
C. Exams
D. Promotion
Answer: B
82.
NADT provides training for:
A. Customs officers
B. IRS officers
C. GST officers
D. Bankers
Answer: B
83.
Continuous learning is essential due to:
A. Static laws
B. Frequent amendments
C. No change
D. Fixed rules
Answer: B
84.
Blended learning includes:
A. Classroom
B. Online
C. Both
D. None
Answer: C
85.
Soft skills training includes:
A. Law
B. Communication
C. Audit
D. Taxation
Answer: B
86.
Capacity building improves:
A. Efficiency
B. Accountability
C. Transparency
D. All
Answer: D
87.
Knowledge management system helps in:
A. Storage
B. Sharing
C. Retrieval
D. All
Answer: D
88.
Training evaluation ensures:
A. Effectiveness
B. Attendance
C. Salary
D. Promotion
Answer: A
89.
Skill gap analysis identifies:
A. Strengths
B. Weaknesses
C. Training needs
D. All
Answer: D
90.
Leadership training focuses on:
A. Control
B. Decision-making
C. Routine work
D. Filing
Answer: B
91.
Ethics training aims to:
A. Improve knowledge
B. Reduce corruption
C. Increase revenue
D. Speed assessment
Answer: B
92.
Digital literacy in tax officers is needed for:
A. Manual work
B. IT systems
C. Filing only
D. Audit only
Answer: B
93.
On-the-job training means:
A. Classroom
B. Practical work
C. Online
D. Theory
Answer: B
94.
Refresher training is for:
A. New recruits
B. Existing staff
C. Retired staff
D. Students
Answer: B
95.
E-office system promotes:
A. Paperwork
B. Digital workflow
C. Delay
D. Manual process
Answer: B
96.
Cybersecurity training is needed due to:
A. Digitalization
B. Manual systems
C. Audit
D. Appeals
Answer: A
97.
Performance appraisal linked training aims at:
A. Promotion
B. Skill improvement
C. Salary
D. Transfer
Answer: B
98.
Learning management system (LMS) is used for:
A. Tax filing
B. Training delivery
C. Audit
D. Recovery
Answer: B
99.
Digital signature ensures:
A. Identity
B. Authenticity
C. Security
D. All
Answer: D
100.
Future of tax administration is driven by:
A. Manual work
B. Technology
C. Paper filing
D. Delay
Answer: B
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