Income Tax Set 3
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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.