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This set of Income Tax Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Set 6

Q1 | Medical reimbursement is exempt up to .................. if treatment is done in a private hospital.
  • rs: 5,000
  • rs: 10,000
  • rs: 15,000
  • rs: 50,000
Q2 | Excise duty and sales tax are allowed as deduction if paid before......................
  • late date of filing of return.
  • previous year end.
  • before 31 st december of the previous year.
  • after 31 st december of previous year.
Q3 | Technical know-how acquired after 1.4.98 is eligible for depreciation at...............
  • 10% p.a.
  • 20% p.a.
  • 25% p.a.
  • 40% p.a.
Q4 | Which of the following is exempted.
  • c.c.a
  • d.a
  • foreign allowance
  • medical allowance
Q5 | Free food provided to employees is exempted upto ...................... per meal.
  • rs: 40
  • rs: 50
  • rs: 60
  • rs: 15
Q6 | The income from the sale of house hold furniture is ......................
  • taxable income
  • exempted income
  • capital gain
  • business income
Q7 | Deduction for other expenses except interest in the computation of income from house property isallowable to the extent of .........................
  • 1/5th of annual value
  • 30% of annual value
  • 25% of annual value
  • 20% of annual value
Q8 | Preliminary expenses shall be allowed as deduction in...............
  • 5 instalments.
  • 10 instalments.
  • 15 instalments
  • 12 instalments.
Q9 | Bad debts allowed earlier and recovered latter on is....................
  • business income.
  • non business income.
  • exempted income.
  • income from other sources.
Q10 | Under valuation of opening stock is....................
  • deducted from net profit.
  • added to net profit.
  • credited to p & l a/c
  • none of these.
Q11 | Under section 44AB the audit of accounts is compulsory if total sales exceed ..........................
  • rs: 40 lakhs
  • rs: 50 lakhs
  • rs: one crore
  • rs: five crores
Q12 | Gifts from clients are...................
  • professional income.
  • income from other sources.
  • non taxable item.
  • none of these.
Q13 | Repairs incurred before installation of an assets is..................
  • capital expenditure.
  • revenue expenditure.
  • non business expenditure.
  • none of these.
Q14 | If a depreciable asset is acquired and used for less than 180 days in a financial year, depreciationallowed on it is..............
  • normal rate.
  • 50% of normal rate.
  • nil.
  • none of these.
Q15 | Rate of depreciation on residential building is.................
  • 5%.
  • 10%
  • 15%
  • 20%.
Q16 | The Total income of an individual is Rs: 3,46,994. The rounded off total income will be........................
  • rs: 3,46,000
  • rs: 3,47,000
  • rs: 3,46,990
  • rs: 3,50,000
Q17 | The income tax payable by an individual is Rs:8,562.55. The rounded off tax payable will be.........................
  • rs: 8,562
  • rs: 8,563
  • rs: 8,560
  • rs: 8,570
Q18 | The maximum tax exemption to a senior citizen for the assessment year is ......................
  • rs: 3,00,000
  • rs: 2,00,000
  • rs: 1,00,000
  • rs: 2,50,000
Q19 | If STT is paid, then STCG tax on the transfer of capital asset is ..............................
  • 10%
  • 15%
  • 20%
  • 25%
Q20 | Education cess for the A.Y is ................................
  • 3%
  • 5%
  • 10%
  • 15%
Q21 | According to section ........................ , TDS shall be payable during the financial year in respect of thetotal income of the assessee.
  • 206
  • 207
  • 208
  • 210
Q22 | .................. must be paid according to the provisions of “ Pay As You Earn” Scheme.
  • income tax
  • tds
  • advance tax
  • education cess
Q23 | Advance tax is payable when tax payable by an assessee is ........................or more.
  • rs: 5,000
  • rs: 10,000
  • rs: 15,000
  • rs: 1,00,000
Q24 | The rate of surcharge payable on tax for the A.Y. 2013-14 is ......................
  • 5%
  • 10%
  • 3%
  • nil
Q25 | The non-taxable income for the woman assessee is .................................
  • rs: 1,00,000
  • rs: 1,90,000
  • rs: 2,50,000
  • rs: 3,00,000