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This set of Income Tax Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Set 3

Q1 | Exempted incomes are defined under section................
  • 15 of income tax act.
  • 18 of income tax act
  • 10 of income tax act.
  • 20 of income tax act.
Q2 | Incomes absolutely exempt from Tax are listed under.............................
  • sec 2.
  • sec 10.
  • sec 38.
  • sec. 80c.
Q3 | Scholarship granted is...................
  • fully exempted.
  • fully taxable.
  • partly exempt
Q4 | Any payments made under and awards instituted by central or state Governments are..............
  • fully exempted
  • fully taxable
  • partly exempt
Q5 | Allowances of MP/M.L.A / or M.L.C are.
  • fully exempted.
  • fully taxable.
  • partly exempt
Q6 | Income of political parties is not to be included in total income if certain conditions are satisfied. Therelevant section of IT Act 1961 is.
  • section 13a .
  • s
  • 1
Q7 | Tax Holiday is.
  • income tax on holiday income.
  • cancellation of tax for the entire country.
  • tax exemption for a specified peri
Q8 | The existing Maximum Marginal Rate of tax of an individual assessee is.........................
  • 10%
  • 20%
  • 30%
  • 35%
Q9 | Which of the following is not included in salary income.
  • commuted pension
  • un commuted pension
  • family pension
  • leave salary
Q10 | Share of income from firm is................
  • taxable in the hands of partner
  • exempted in the hands of partner.
  • exempted in the hands of firm.
  • none of these.
Q11 | The periodic payment of money for the past service is known as ........................
  • gratuity
  • pension
  • commuted pension
  • leave salary
Q12 | When a receipt is determined as Capital Receipt or Revenue receipt.
  • at the time it is received
  • while preparing final accounts.
  • when the received amount is us
Q13 | Pension is taxable under ..........................head.
  • salary
  • house property
  • capital gains
  • other sources
Q14 | . Salary received by a partner from the firm in which he is a partner is taxable under the head................
  • income from salary
  • capital gains
  • profits and gains of business or profession
  • income from other sources
Q15 | Family pension received by the widow of a deceased employee is taxable under the head............
  • income from salary
  • capital gains
  • profits and gains of business or profession
  • income from other sources
Q16 | Salary paid by an employer out of capital will be................
  • a revenue receipt in the hands of employee
  • a capital receipt in the hands of employee
  • a casual receipt
  • none of the above.
Q17 | Which of the following is not a capital expense?
  • installation expenditure of plant of a company.
  • legal expenses for reduction of capital.
  • commission to employees to achieve sales targets.
  • expenses of promoting a company.
Q18 | Salary received by a Member of Parliament is taxable under the head.........................
  • income from salary
  • capital gains
  • profits and gains of business or profession
  • income from other sources
Q19 | Interest on capital paid by the firm to its partners is allowed up to ...................
  • 6%
  • 12%
  • 15%
  • 16%
Q20 | Under Income Tax Act depreciation is allowed on ..................
  • purchase price
  • market price
  • w d v
  • face value
Q21 | The rate of depreciation on intangible asset is ......................
  • 5%
  • 15%
  • 20%
  • 25%
Q22 | Residential status of an assessee is ascertained as per the provisions of........................
  • sec. 6.
  • s
  • 7. c. sec. 9.
  • sec. 11.
Q23 | The income tax rate on long term capital gains for an individual is .................................
  • 10%
  • 15%
  • 20%
  • 25%
Q24 | Residential status of taxable entities is..........................
  • fixed in nature.
  • can change from year to year.
  • fixed once in 5 years.
  • none of these.
Q25 | As per the first basic condition to determine residential status, a person should have been in India duringthe previous year concerned for..................
  • 60 days or more
  • 120 days or more.
  • 182 days or more.
  • 240 days or more.