Income Tax Set 8

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 8

Q1 | Section C applies on ...................
  • individual and huf
  • co-operative society
  • firm
  • company
Answer: individual and huf
Q2 | Donation on PM’s National Relief Fund is deductible 100% out of the gross total income of theassessee, under section ...................................
  • 80c
  • 80cc
  • 80g
  • 80gg
Answer: 80g
Q3 | For the P.Y , 2012-13, the maximum permissible deduction under section 80C is ..............
  • rs: 80,000
  • rs: 1,00,000
  • rs: 2,00,000
  • 1,12,000
Answer: rs: 1,00,000
Q4 | The rate of surcharge on tax payable is ......................% when taxable income is Rs: 5,57, 500.
  • 3%
  • 5%
  • 10%
  • nil
Answer: nil
Q5 | The basic exemption up to which income is not taxable for an individual resident is ..............
  • rs: 1,00,000
  • rs: 2,00,000
  • rs: 5,00,000
  • none of the above
Answer: rs: 1,00,000
Q6 | STCL can be set off in the same assessment year from ...............................
  • stcg
  • ltcg
  • both
  • not possible
Answer: both
Q7 | Maximum amount of deduction allowable under section 80CCF is ......................
  • rs: 10,000
  • rs: 20,000
  • rs: 25,000
  • rs: 1,00,000
Answer: rs: 20,000
Q8 | Maximum Marginal Rate for the current A.Y. ( 2013-14) is ..................................
  • 25%
  • 20%
  • 30%
  • 35%
Answer: 30%
Q9 | Interest n loan taken before 1-4-1999 for construction or repairs of self occupied house shall bededucted up to Rs: .......................................
  • rs: 25,000
  • rs: 30,000
  • rs: 1,00,000
  • rs: 1,50,000
Answer: rs: 30,000
Q10 | For claiming exemption u/s 54, the assessee should construct the residential property within.........................
  • one year before or 2 years after the date of transfer
  • one year before or 3 years after the date of transfer
  • within 3 years after the date of transfer
  • within 2 years after the date of transfer.
Answer: within 3 years after the date of transfer
Q11 | The cost of acquisition of bonus shares allotted on or after 1-4-1981 is ..........................
  • fair market value of that shares on 1-4-1981
  • fair market value on the date of issue of shares
  • nil
  • none of these
Answer: nil
Q12 | Any some received under key man insurance policy taken on the life of the employee shall be..........................
  • taxable under the head business or profession
  • taxable under the head income from other sources
  • taxable in the hands of employee
  • exempt from tax
Answer: taxable under the head business or profession
Q13 | The rent fixed as per municipal valuation is called ............................
  • municipal value
  • fair rental value
  • standard rent
  • actual rent
Answer: municipal value
Q14 | Rent free accommodation is an example for .....................................
  • allowance
  • compensation
  • perquisite
  • profit in lieu of salary.
Answer: perquisite
Q15 | The amount deductible for severe disability u/s 80U is ..........................
  • rs: 1,00,000
  • rs: 1,20,000
  • rs: 50,000
  • rs: 90,000
Answer: rs: 1,00,000
Q16 | When a loan is taken for the education of a child, the father is entitled to deduction u/s..........................
  • 80 c
  • 80 g
  • 80 e
  • 80 u
Answer: 80 e
Q17 | Income of a minor child is exempted up to..........................
  • rs: 1,000
  • rs: 1,500
  • rs: 1,200
  • rs: 2,000
Answer: rs: 1,500
Q18 | Loss from business can be carried for ...................... years.
  • 6
  • 8
  • 12
  • 16
Answer: 8
Q19 | Income of Benami transactions shall be included in the income of .........................
  • real owner
  • transferor
  • transferee
  • none of these
Answer: real owner
Q20 | Dividend from an Indian company is ......................
  • fully taxablbe
  • fully exempted
  • partly taxable
  • none of the above
Answer: fully exempted
Q21 | The amount received from URPF is ..........................
  • taxable
  • exempted
  • exempted, subject to certain conditions
  • none of the above
Answer: taxable
Q22 | ............................ section deals with exempted incomes.
  • section 80
  • section 17
  • section 10
  • section 23
Answer: section 10
Q23 | There will be no partial integration, if the agricultural income does not exceed ............................
  • rs: 15,000
  • rs: 25,000
  • rs: 50,000
  • rs: 5,000
Answer: rs: 5,000
Q24 | Salary on which income tax is borne by the employer is called ....................................
  • foregoing salary
  • tax free salary
  • tax holiday
  • none
Answer: tax free salary
Q25 | Secondary and higher education cess is charged at the rate of .......................... of the amount ofincome tax.
  • 1%
  • 2%
  • 3%
  • 5%
Answer: 1%
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