McqMate
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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