McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 51. |
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) | |
| 52. |
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 | |
| 53. |
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 | |
| 54. |
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 | |
| 55. |
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 | |
| 56. |
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 | |
| 57. |
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 | |
| 58. |
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 | |
| 59. |
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 | |
| 60. |
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 | |
| 61. |
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) | |
| 62. |
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) | |
| 63. |
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) | |
| 64. |
……………….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) | |
| 65. |
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% | |
| 66. |
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 | |
| 67. |
For computation for Income tax liability for individual, the Education Cess is |
| A. | 3% |
| B. | 4% |
| C. | 2.5% |
| D. | 2% |
| Answer» A. 3% | |
| 68. |
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 | |
| 69. |
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 | |
| 70. |
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% | |
| 71. |
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 | |
| 72. |
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 | |
| 73. |
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 | |
| 74. |
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 | |
| 75. |
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 | |
| 76. |
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 | |
| 77. |
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 | |
| 78. |
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 | |
| 79. |
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 | |
| 80. |
Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m.
|
| A. | income from salary |
| B. | income from other sources |
| C. | income from house property |
| D. | income from business |
| Answer» B. income from other sources | |
| 81. |
An individual who transfers house property without an adequate consideration to his owner spouse or to minor child is called as . |
| A. | co-owner |
| B. | deemed owner |
| C. | owner himself |
| D. | none of the above |
| Answer» B. deemed owner | |
| 82. |
Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid `
|
| A. | 15,000 |
| B. | ` 16,000 |
| C. | ` 17,000 |
| D. | ` 18,000 |
| Answer» B. ` 16,000 | |
| 83. |
If the individual using the property for the business or professional purpose the income taxable under the……………..head. |
| A. | income from house property |
| B. | income from huf |
| C. | income from other |
| D. | income from business or proprietorship |
| Answer» D. income from business or proprietorship | |
| 84. |
If the assesses let out the building or staff quarters to the employee of
|
| A. | business |
| B. | house property |
| C. | other sources |
| D. | none of the above |
| Answer» C. other sources | |
| 85. |
Calculate the Gross Annual Value from the following details: Municipal
|
| A. | ` 50,000 |
| B. | 48,000 |
| C. | ` 45,000 |
| D. | 42,000 |
| Answer» B. 48,000 | |
| 86. |
Which of the following is not a case of deemed ownership of house property? |
| A. | transfer to a spouse for inadequate consideration |
| B. | transfer to a minor child for inadequate consideration |
| C. | holder of an importable estate |
| D. | co-owner of a property |
| Answer» D. co-owner of a property | |
| 87. |
,67,000. While computing income from house property, the deduction is allowable to the extent of . |
| A. | ` 30,000 |
| B. | 1,00,000 |
| C. | ` 1,67,000 |
| D. | ` 1,50,000 |
| Answer» D. ` 1,50,000 | |
| 88. |
Deduction for other expenses except interest in the computation of income from house property is allowable to the extent of . |
| A. | 25% of annual value |
| B. | 10% of annual value |
| C. | 30% of annual value |
| D. | 20% of annual value |
| Answer» C. 30% of annual value | |
| 89. |
Arrear rent is taxable after deducting…………..as per Section 25B of the Income Tax Act, 1961. |
| A. | 30% |
| B. | 35% |
| C. | 10% |
| D. | 20% |
| Answer» A. 30% | |
| 90. |
The value of interest-free concessional loans to employees is determined on the basis of lending rates of for the same purpose. |
| A. | sbi |
| B. | ` rbi |
| C. | central government |
| D. | state government |
| Answer» D. state government | |
| 91. |
Value of rent-free accommodation in case of Government employee shall be taxable up to |
| A. | 15% of employee’s salary |
| B. | 8% of employee’s salary |
| C. | license fee fixed by government |
| D. | 10% of employee’s salary |
| Answer» C. license fee fixed by government | |
| 92. |
Value of rent-free accommodation or a house owned by employer in case of non-government employees with above 25 lakh population is . |
| A. | 15% of employee salary |
| B. | 7.5% of employee salary |
| C. | 20% of employee salary |
| D. | 10% of employee salary |
| Answer» A. 15% of employee salary | |
| 93. |
Rate of depreciation on residential building is…………….. |
| A. | 10% |
| B. | 20% |
| C. | 25% |
| D. | 5% |
| Answer» D. 5% | |
| 94. |
House property held for less than 36 months is . |
| A. | short-term capital asset |
| B. | projected capital asset |
| C. | exempted capital asset |
| D. | long-term capital asset |
| Answer» C. exempted capital asset | |
| 95. |
Mr. Shushant is the owner of a house, the details of which are given below
|
| A. | ` 36,000 |
| B. | 35,000 |
| C. | ` 30,000 |
| D. | ` 40,000 |
| Answer» A. ` 36,000 | |
| 96. |
Expected rent shall be higher of . |
| A. | municipal value and standard rent |
| B. | fair rent and actual rent received |
| C. | standard rent and fair rent |
| D. | municipal value and fair rent |
| Answer» D. municipal value and fair rent | |
| 97. |
Interest on capital, borrowed on 10.10.2000, for self-occupied property is deductible up to a maximum amount of . |
| A. | ` 50,000 |
| B. | ` 1,50,000 |
| C. | ` 5,000 |
| D. | none of the above |
| Answer» B. ` 1,50,000 | |
| 98. |
Deduction from annual value is allowed under . |
| A. | section 24 |
| B. | section 25 |
| C. | section 27 |
| D. | section 28 |
| Answer» A. section 24 | |
| 99. |
………………..standard deduction from annual value is allowed. |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | 15% |
| Answer» C. 30% | |
| 100. |
Interest on loan for self-occupied house taken before 1st April, 1999 will be allowed up to |
| A. | ` 30,000 |
| B. | ` 1,50,000 |
| C. | ` 10,000 |
| D. | ` 50,000 |
| Answer» A. ` 30,000 | |
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