Income Tax Set 4

Bachelor of Business Administration in Finance (BBA Finance),

Staff Selection Commission (SSC)

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This set of Income Tax Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Set 4

Q1 | An individual who wants to be resident of India must satisfy at least...................
  • one of the two basic conditions.
  • both the basic conditions.
  • both the additional conditions.
  • both the basic conditions and the additional conditions
Answer: one of the two basic conditions.
Q2 | An individual who wants to be resident of India must stay in India for at least................
  • 730 days in 10 previous years.
  • 182 days in the previous year.
  • 365 days in the previous year.
  • 150 days in the previous year.
Answer: 182 days in the previous year.
Q3 | A person who is of Indian origin visiting India during the previous year to be called resident must stay inIndia for at least.....................
  • 60 days in py.
  • 6 days in py and 365 days or more during 4 years preceding the py.
  • 182 days in py.
  • 730 days during 7 years preceding the py.
Answer: 182 days in py.
Q4 | As per Second additional condition, a resident will be an ordinarily resident if stay in India for at least......................... days during the seven previous years preceding the relevant .
  • 182 days.
  • 365 days.
  • 60 days.
  • 730 days.
Answer: 730 days.
Q5 | A person is Non resident if he fails to fulfil.....................
  • the additional conditions.
  • at least on of the basic conditions.
  • both basic conditions.
  • none of these.
Answer: at least on of the basic conditions.
Q6 | Casual income is.
  • fully taxable.
  • partly taxable.
  • fully exempt
  • d. none of these.
Answer: fully taxable.
Q7 | In case of Tax free salary, .......................................
  • tax is to be paid by employer
  • no tax is payable on such salary
  • tax is to be paid by the employee.
  • govt, itself pays the tax at a future date.
Answer: tax is to be paid by employer
Q8 | Salary received by a member of parliament is.
  • taxable as salary income
  • exempt from tax sources.
  • taxable as income from other sources.
  • none of these.
Answer: taxable as income from other sources.
Q9 | Allowances received by a government employee posted abroad are.............
  • fully exempted.
  • partly exempted.
  • fully taxable.
  • taxable by the country where posted.
Answer: fully exempted.
Q10 | Dearness allowance is taxable in the hands of.................
  • govt employees
  • non govt employees
  • all employees.
  • none of these.
Answer: all employees.
Q11 | House rent allowance is....................
  • fully exempted.
  • partly taxable.
  • fully taxable.
  • actual rent paid alone is taxable.
Answer: partly taxable.
Q12 | Exempted limit of HRA in metropolitan cities is.
  • 50% of salary.
  • 40% of salary.
  • 15% of salary.
  • none of these.
Answer: 50% of salary.
Q13 | Education allowance is exempted for a maximum of...................
  • one child.
  • two children.
  • three children.
  • four children.
Answer: two children.
Q14 | Children education allowance is exempted up to..................
  • rs. 200 p.m. per child.
  • rs. 300 p.m. per child.
  • rs. 100 p.m. per chi
Answer: rs. 100 p.m. per chi
Q15 | Hostel expenditure allowance is exempted up to..................
  • rs. 300 per month per child.
  • rs. 200 per month per child.
  • rs. 150 per month per chi
Answer: rs. 300 per month per child.
Q16 | Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actualallowance or.................
  • rs. 1,000.
  • rs. 2,000.
  • rs. 20,000.
  • rs. 5,000.
Answer: rs. 5,000.
Q17 | A Perk is.........................
  • cash paid by employer to employee
  • facility provided by employer to employee
  • amount credited to employees.
  • none of these accounts.
Answer: facility provided by employer to employee
Q18 | Perquisites to employees are covered in the I.T. Act 1961 under...................
  • sec 2a.
  • s
  • 17b. c. sec 28a.
  • sec. 36 c.
Answer: s
Q19 | The value of Interest free concessional loans to employees is determined on the basis of lending rates of ..................... for the same purpose.
  • s
  • i. b. r.b.i.
  • central govt.
  • state govt.
Answer: s
Q20 | An employee is deemed as specified employee if he is a director in the company or has substantial in the company or his chargeable salary per annum exceeds.
  • rs. 5,00,000.
  • rs. 2,00,000.
  • rs. 1,00,000.
  • rs. 50,000.
Answer: rs. 50,000.
Q21 | Value of rent free accommodation in case of Govt. employee shall be taxable up to.......................
  • 15% of employees salary.
  • 7.5% of employees salary.
  • license fee fixed by govt.
  • 10% of employees salary.
Answer: license fee fixed by govt.
Q22 | Value of rent free accommodation a house owned by employer in case of non- Govt. employees withabove 25 lakhs population is...........................
  • 10% of employees salary
  • 15% of employees salary
  • 7.5% of employee salary
  • 20% of employees salary
Answer: 15% of employees salary
Q23 | Interest on RPF balance is exempted up to.......................
  • 9.75%.
  • 9.5%.
  • 10%.
  • 12%.
Answer: 9.5%.
Q24 | Employers contribution to RPF is exempted up to...................
  • 10% of salary.
  • 13% of salary.
  • 12% of salary.
  • 11% of salary.
Answer: 12% of salary.
Q25 | Commuted value of pension is fully exempted in case of......................
  • an employee of private sector.
  • an employee of a public sector undertaking.
  • a govt. employee.
  • none of these.
Answer: a govt. employee.
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