Chapter:

20+ Computation of Taxable Income under the different Heads Solved MCQs

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Chapter: Computation of Taxable Income under the different Heads

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

discuss ⁽¹⁾

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

discuss

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

discuss

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

discuss ⁽²⁾

5.	The first income tax act was introduced in the year
A.	1918
B.	1861
C.	1860
D.	1886
Answer» B. 1861

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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

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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

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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

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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

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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)

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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)

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12.	Children Education allowance is exempted for ______ child/ children.
A.	One
B.	Two
C.	Three
D.	Four
Answer» B. Two

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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

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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

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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

discuss

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

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17.	Provident Fund Act was passed in the year ___________.
A.	1932
B.	1956
C.	1925
D.	1922
Answer» A. 1932

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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

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19.	The Payment of Gratuity Act came into force in…………..
A.	1973.
B.	1980
C.	1991
D.	1972
Answer» D. 1972

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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

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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

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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

discuss

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

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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

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25.	Deduction from annual value is allowed under ______________.
A.	Section 24
B.	Section 25
C.	Section 27
D.	Section 28
Answer» A. Section 24

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26.	………………………….% standard deduction is allowed on annual value.
A.	20
B.	30
C.	40
D.	50
Answer» B. 30

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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

discuss

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

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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

discuss

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20+ Computation of Taxable Income under the different Heads Solved MCQs

Surcharge of 10 per cent is payable by an individual where the total income exceeds:

For an employee in receipt of hostel expenditure allowance for his three children, the maximum annual allowance exempt under section 10(14) is

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

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

The first income tax act was introduced in the year

Income received or deemed to be received in India (whether accrued in or outside India) is taxable in case of

Pension is _______________ under the salary head.

The salary, remuneration or compensation received by the partners is taxable under the head _______________.

Rent Free Accommodation given to an employee by the employer is a _________

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………………..

The house rent allowance (HRA) under the salary head of Income Tax Act is given by_____________.

Children Education allowance is exempted for ______ child/ children.

Pension is _______________ under the salary head.

The salary, remuneration or compensation received by the partners is taxable under the head _______________.

The death-cum-retirement gratuity received by the Government Employee or employee of local authority is _______________.

Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is _______________.

Provident Fund Act was passed in the year ___________.

Rent Free Accommodation given to an employee by the employer is a ____________.

The Payment of Gratuity Act came into force in…………..

The entertainment allowance is applicable to_______________.

_______ is the rent fixed under Rent control Act.

Expected Rent can be determined in the following way

Under the Head Income from House Property, the basis of charge is the ______________ of property.

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______________.

Deduction from annual value is allowed under ______________.

………………………….% standard deduction is allowed on annual value.

For computation of Gross Annual Value, if actual rent is more than expected rent, then we select the ______________.

Under the Income Tax Act, 1961, depreciation on machinery is charged on _______________.

Income chargeable under the head ‘Profits and Gains from Business or Profession’ is covered under _______________.