McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
Surcharge of 10 per cent is payable by an individual where the total income exceeds: |
| A. | Rs.7,50,000 |
| B. | Rs.8,50,000 |
| C. | Rs.10,00,000 |
| D. | None of the three |
| Answer» C. Rs.10,00,000 | |
| 2. |
For an employee in receipt of hostel expenditure allowance for his three children, the maximum annual allowance exempt under section 10(14) is |
| A. | Rs.10, 800 |
| B. | Rs.7,200 |
| C. | Rs.9,600 |
| D. | Rs.3,600 |
| Answer» B. Rs.7,200 | |
| 3. |
Calculate the Gross Annual value from the following details: Municipal Value - Rs. 45,000 Fair rental value - Rs. 50,000 Standard rent - Rs. 48,000 Actual Rent - Rs. 42,000 |
| A. | Rs. 50,000 |
| B. | Rs. 48,000 |
| C. | Rs. 45,000 |
| D. | Rs. 42,000 |
| Answer» B. Rs. 48,000 | |
| 4. |
M took a loan of Rs. 6,00,000 on 1.4.2011 from a bank for construction of a house. The loan carries an interest @ 10% p.a. The construction is completed on 15.6.2013. The entire loan is still outstanding. Compute the interest allowable for the assessment year 2020- 21 |
| A. | Rs. 60,000 |
| B. | Rs. 1,80,000 |
| C. | Rs. 84,000 |
| D. | Rs. 24,000 |
| Answer» C. Rs. 84,000 | |
| 5. |
The first income tax act was introduced in the year |
| A. | 1918 |
| B. | 1861 |
| C. | 1860 |
| D. | 1886 |
| Answer» B. 1861 | |
| 6. |
Income received or deemed to be received in India (whether accrued in or outside India) is taxable in case of |
| A. | Resident |
| B. | Not Ordinarily Resident |
| C. | Non Resident |
| D. | All of the above |
| Answer» A. Resident | |
| 7. |
Pension is _______________ under the salary head. |
| A. | Fully taxable |
| B. | Partially taxable |
| C. | Not taxable |
| D. | None of the above |
| Answer» B. Partially taxable | |
| 8. |
The salary, remuneration or compensation received by the partners is taxable under the head _______________. |
| A. | Income from Other Sources |
| B. | Income from Business |
| C. | Salary |
| D. | None of the above |
| Answer» C. Salary | |
| 9. |
Rent Free Accommodation given to an employee by the employer is a _________ |
| A. | Allowance |
| B. | Perquisite |
| C. | Profit in lieu of salary |
| D. | None of the above |
| Answer» A. Allowance | |
| 10. |
Family pension received by a widow of a member of the armed forces where the death of the member has occurred in the course of the operational duties, is……………….. |
| A. | Exempt up to Rs.3,00,000 |
| B. | Exempt up to Rs. 3,50,000 |
| C. | Totally exempt under section 10(19) |
| D. | Totally chargeable to tax |
| Answer» C. Totally exempt under section 10(19) | |
| 11. |
The house rent allowance (HRA) under the salary head of Income Tax Act is given by_____________. |
| A. | Section 10 |
| B. | Section 10(13A) |
| C. | Section11(13B) |
| D. | Section11 |
| Answer» B. Section 10(13A) | |
| 12. |
Children Education allowance is exempted for ______ child/ children. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» B. Two | |
| 13. |
Pension is _______________ under the salary head. |
| A. | Fully taxable |
| B. | Partially taxable |
| C. | Not taxable |
| D. | None of the above |
| Answer» A. Fully taxable | |
| 14. |
The salary, remuneration or compensation received by the partners is taxable under the head _______________. |
| A. | Income from Other Sources |
| B. | Income from Business |
| C. | Salary |
| D. | None of the above |
| Answer» B. Income from Business | |
| 15. |
The death-cum-retirement gratuity received by the Government Employee or employee of local authority is _______________. |
| A. | Partially exempted |
| B. | Fully exempted |
| C. | Half taxable |
| D. | None of the above |
| Answer» B. Fully exempted | |
| 16. |
Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is _______________. |
| A. | Taxable |
| B. | Not taxable |
| C. | Partially taxable |
| D. | None of the above |
| Answer» B. Not taxable | |
| 17. |
Provident Fund Act was passed in the year ___________. |
| A. | 1932 |
| B. | 1956 |
| C. | 1925 |
| D. | 1922 |
| Answer» A. 1932 | |
| 18. |
Rent Free Accommodation given to an employee by the employer is a ____________. |
| A. | Allowance |
| B. | Perquisite |
| C. | Profit in lieu of salary |
| D. | None of the above |
| Answer» B. Perquisite | |
| 19. |
The Payment of Gratuity Act came into force in………….. |
| A. | 1973. |
| B. | 1980 |
| C. | 1991 |
| D. | 1972 |
| Answer» D. 1972 | |
| 20. |
The entertainment allowance is applicable to_______________. |
| A. | Private sector employees |
| B. | Public sector employees |
| C. | Government employees |
| D. | All of the above |
| Answer» C. Government employees | |
| 21. |
_______ is the rent fixed under Rent control Act. |
| A. | Municipal rental value |
| B. | Fair rental value |
| C. | Standard rent |
| D. | Real rent |
| Answer» C. Standard rent | |
| 22. |
Expected Rent can be determined in the following way |
| A. | Higher of Municipal Value & Fair Rent |
| B. | Lower of Municipal Value & Fair Rent |
| C. | Higher of Municipal Value & Fair Rent subject to maximum of Standard Rent |
| D. | Any of the above |
| Answer» C. Higher of Municipal Value & Fair Rent subject to maximum of Standard Rent | |
| 23. |
Under the Head Income from House Property, the basis of charge is the ______________ of property. |
| A. | Annual value |
| B. | Quarterly value |
| C. | Half-quarterly value |
| D. | None of the above |
| Answer» A. Annual value | |
| 24. |
Mr. Ram owns a house property. He lent it to Laxman at`10,000 p.m. Laxman sublet it to Mr. Maruti on monthly rent of`20,000 p.m. Rental income of Ram is taxable under the head______________. |
| A. | Income from Salary |
| B. | Income from Other Sources |
| C. | Income from House Property |
| D. | Income from Business |
| Answer» C. Income from House Property | |
| 25. |
Deduction from annual value is allowed under ______________. |
| A. | Section 24 |
| B. | Section 25 |
| C. | Section 27 |
| D. | Section 28 |
| Answer» A. Section 24 | |
| 26. |
………………………….% standard deduction is allowed on annual value. |
| A. | 20 |
| B. | 30 |
| C. | 40 |
| D. | 50 |
| Answer» B. 30 | |
| 27. |
For computation of Gross Annual Value, if actual rent is more than expected rent, then we select the ______________. |
| A. | Actual rent |
| B. | Expected rent |
| C. | Any of the above |
| D. | None of the above |
| Answer» A. Actual rent | |
| 28. |
Under the Income Tax Act, 1961, depreciation on machinery is charged on _______________. |
| A. | Purchase price of the machinery |
| B. | Written down value of the machinery |
| C. | Market price of the machinery |
| D. | All of the above |
| Answer» B. Written down value of the machinery | |
| 29. |
Income chargeable under the head ‘Profits and Gains from Business or Profession’ is covered under _______________. |
| A. | Section 23 |
| B. | Section 24 |
| C. | Section 28 |
| D. | Section 27 |
| Answer» C. Section 28 | |
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