McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 1. |
The income is chargeable under the head of salary under ……………of Income Tax Act, 1961. |
| A. | section 15 |
| B. | section 20 |
| C. | section 14 |
| D. | section 16 |
| Answer» A. section 15 | |
| 2. |
Pension is ……………under the salary head. |
| A. | fully taxable |
| B. | partially taxable |
| C. | not taxable |
| D. | none of the above |
| Answer» A. fully taxable | |
| 3. |
The salary of Member of Parliament is taxable under the head . |
| A. | salary |
| B. | income from other sources |
| C. | income from business |
| D. | all of the above |
| Answer» B. income from other sources | |
| 4. |
The death-c um-retirement gratuity received by the Government Employee or employee of the local authority is. |
| A. | partially exempted |
| B. | fully exempted |
| C. | half taxable |
| D. | none of the above |
| Answer» B. fully exempted | |
| 5. |
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» A. taxable | |
| 6. |
The assesses can claim relief under…………….for arrears or advance salary. |
| A. | section 89(1) |
| B. | section 89(2) |
| C. | section 89(3) |
| D. | section 89(4) |
| Answer» A. section 89(1) | |
| 7. |
The Payment of Gratuity Act came into force in…………... |
| A. | 1973 |
| B. | 1980 |
| C. | 1991 |
| D. | 1972 |
| Answer» D. 1972 | |
| 8. |
Which of the following is not taxable under the head Salary? |
| A. | remuneration paid to the lecturer of a college for setting a question paper |
| B. | salary received by a member of parliament |
| C. | commission received by an employee director of a company |
| D. | both (a) and (b) |
| Answer» D. both (a) and (b) | |
| 9. |
The children education allowance, the amount exempted from taxable income is limited to |
| A. | 100 per month per child upto 3 children |
| B. | 1,000 per year per child upto 2 children |
| C. | 100 per month per child upto 2 children |
| D. | none of the above |
| Answer» C. 100 per month per child upto 2 children | |
| 10. |
If the employee receives retirement gratuity from more than one employer, he can claim exemption in respect of . |
| A. | current employer |
| B. | previous employer |
| C. | both employer |
| D. | not from single employer |
| Answer» C. both employer | |
| 11. |
The family pension received by the family members of armed forces after death of employee is . |
| A. | exempt fully |
| B. | exempted after fulfilling of certain conditions |
| C. | not exempted |
| D. | none of the above |
| Answer» B. exempted after fulfilling of certain conditions | |
| 12. |
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 | |
| 13. |
The assessment period for income tax on salary is . |
| A. | only more than 12 months |
| B. | 12 months and less than 12 months |
| C. | only 12 months |
| D. | 12 months and more than 12 months |
| Answer» C. only 12 months | |
| 14. |
Total income is to be rounded off to nearest multiple of …………….and tax is to be rounded off to nearest multiple of . |
| A. | ten rupee |
| B. | hundred, ten |
| C. | ten, ten |
| D. | rupee, rupee |
| Answer» C. ten, ten | |
| 15. |
Income accrued outside India and received outside India is taxable in case of. |
| A. | resident and ordinary resident (ror) only |
| B. | resident but not ordinary resident (rnor) only |
| C. | non-resident only |
| D. | ror, rnor and non-resident |
| Answer» A. resident and ordinary resident (ror) only | |
| 16. |
Deduction under section 80C to 80U cannot exceed . |
| A. | gross total income |
| B. | total income |
| C. | income from business or profession |
| D. | income from house property |
| Answer» A. gross total income | |
| 17. |
The maximum limit for the claim of deduction under salary head Contributions to certain pension funds of LIC or any other insurer is . |
| A. | up to ` 2,00,000 |
| B. | up to ` 1,50,000 |
| C. | up to ` 1,75,000 |
| D. | none of the above |
| Answer» B. up to ` 1,50,000 | |
| 18. |
Encashment of earned leave is given by………………. of Income Tax Act, 1961. |
| A. | section 10(10aa) |
| B. | section 12(10a) |
| C. | section 15(10b) |
| D. | none of the above |
| Answer» A. section 10(10aa) | |
| 19. |
Compensation received on voluntary retirement is given by of Income Tax Act, 1961. |
| A. | section 10(10d) |
| B. | section 10(10c) |
| C. | section 10(10e) |
| D. | section 11(10d) |
| Answer» B. section 10(10c) | |
| 20. |
The house rent allowance (HRA) under the salary head of Income Tax Act is given by |
| A. | section 10 |
| B. | sec 10(13a) |
| C. | section 11(13b) |
| D. | section 11 |
| Answer» B. sec 10(13a) | |
| 21. |
……………….of Income Tax Act defines the perquisites and their valuation. |
| A. | section 18 |
| B. | section17 |
| C. | section 18(c) |
| D. | section 17(c) |
| Answer» D. section 17(c) | |
| 22. |
The Income tax rate for the financial year 2016-17 for individual is………….. |
| A. | ` 5,00,000 to ` 10,00,000 is 20% |
| B. | ` 5,50,000 to ` 1,50,000 is 20% |
| C. | ` 5,00,000 to ` 10,00,000 is 30% |
| D. | ` 5,00,000 to ` 10,00,000 is 10% |
| Answer» A. ` 5,00,000 to ` 10,00,000 is 20% | |
| 23. |
Income tax rate for the senior citizens for year 2016-17 is . |
| A. | upto ` 5 lakh is nil |
| B. | upto ` 10 lakh is 10% |
| C. | upto ` 5 lakh is 10% |
| D. | none of the above |
| Answer» A. upto ` 5 lakh is nil | |
| 24. |
For computation for Income tax liability for individual, the Education Cess is |
| A. | 3% |
| B. | 4% |
| C. | 2.5% |
| D. | 2% |
| Answer» A. 3% | |
| 25. |
The rate of tax for the financial year 2016-17 for the foreign companies is |
| A. | 45% |
| B. | 30% |
| C. | 40% flat |
| D. | none of the above |
| Answer» C. 40% flat | |
| 26. |
Which of the following are true regarding taxing the rich? |
| A. | additional 10% tax on dividends in excess of ` 10 lakh per annum |
| B. | surcharge on persons decreased to 12% from 15% |
| C. | tds at 1% on purchase of luxury cars exceeding value of ` 10 lakh |
| D. | all of the above |
| Answer» D. all of the above | |
| 27. |
Surcharge is levied at the rate …………….if the income exceeds ` 1 crore of the financial year 2016-17. |
| A. | 10% |
| B. | 12% |
| C. | 15% |
| D. | 20% |
| Answer» C. 15% | |
| 28. |
Tax Liability for the individual for 2016-17 who is not the resident of the India whose income ` 2,50,000 to ` 5,00,000 is………………. |
| A. | 10% of total income minus ` 2,00,000 |
| B. | 10% of total income minus ` 1,00,000 |
| C. | 15% of total income minus ` 1,00,000 |
| D. | none of the above |
| Answer» A. 10% of total income minus ` 2,00,000 | |
| 29. |
The following is not taxable as income under the head “Salaries”: |
| A. | commission received by a full-time director |
| B. | remuneration received by a partner |
| C. | allowances received by an employee |
| D. | free accommodation given to an employee |
| Answer» B. remuneration received by a partner | |
| 30. |
The following is exempt income from Income Tax:. |
| A. | travel concession to employee |
| B. | remuneration received for valuation of answer scripts |
| C. | encashment of leave salary whilst in service |
| D. | perquisites in india |
| Answer» D. perquisites in india | |
| 31. |
Advance salary is taxable and advance against salary is . |
| A. | fully taxable |
| B. | partially taxable |
| C. | not taxable |
| D. | none of the above |
| Answer» C. not taxable | |
| 32. |
If loan granted by employer to employee does not exceed …………., it is not treated as perquisite to employee for purpose of income tax. |
| A. | ` 20,000 |
| B. | 40,000 |
| C. | ` 30,000 |
| D. | ` 25,000 |
| Answer» B. 40,000 | |
| 33. |
Gift to employee up to p.a. will not be treated as perquisite taxable in the hands of employee. |
| A. | ` 4,000 |
| B. | ` 5,000 |
| C. | ` 10,000 |
| D. | 2,500 |
| Answer» B. ` 5,000 | |
| 34. |
Expenditure on free meals to employee in excess of………………per meal will be treated as perquisite of employee. |
| A. | ` 25 |
| B. | 50 |
| C. | ` 100 |
| D. | ` 55 |
| Answer» B. 50 | |
| 35. |
Any commission due or received by a partner of a firm from the firm shall not be regarded as salary income under . |
| A. | section 15 |
| B. | section 20 |
| C. | section 17 |
| D. | section 19 |
| Answer» A. section 15 | |
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