On This Page
This set of Income Tax Law and Practice Multiple Choice Questions & Answers (MCQs) focuses on Income Tax Law And Practice Set 2
Q1 | Which among the following is a fully exempted allowance?
- Uniform allowance
- HRA
- Foreign allowance
- CCA
Q2 | Income from salary includes:
- Profit in lieu of salary
- Perquisites
- Allowances
- All of the above
Q3 | Salary received by a partner from his firm is an income under the head:
- Salaries
- Profits and gains from business or profession
- Capital gains
- Other sources
Q4 | Salary received by MLA or MP is treated as income under the head:
- Salaries
- Profits and gains from business or profession
- Capital gains
- Other sources
Q5 | Family pension received by a widow is treated as an income under the head:
- Salaries
- Profits and gains from business or profession
- Capital gains
- Other sources
Q6 | Salary received from a former employer is treated as an income under the head:
- Salaries
- Profits and gains from business or profession
- Capital gains
- Other sources
Q7 | Remuneration received from a person other than employer is treated an income under the head:
- Salaries
- Profits and gains from business or profession
- Capital gains
- Other sources
Q8 | Which among the following is a deduction allowed under section 16 :
- Employment tax
- Standard deduction
- Entertainment Allowance
- All of the above
Q9 | Pension is treated as an income under the head:
- Salaries
- Capital gains
- Other sources
- None of these
Q10 | Annuity received from the present employer is treated as income under:
- Salary under section 17(1)
- Perquisites
- Allowances
- Profit in lieu of salary
Q11 | Annuity received from former employer is treated as income under:
- Salary under section 17(1)
- Profit in lieu of salary
- Allowances
- Perquisites
Q12 | Annual accretion is taxable under:
- Salary under section 17(1)
- Perquisites
- Allowances
- Profit in lieu of salary
Q13 | Per-diem allowance given for the purpose of lodging facilities is :
- Fully taxable
- Fully exempted
- Partly taxable
- None of these
Q14 | Sumptuary allowance to Judges of Supreme Court and High Court is:
- Fully taxable
- Fully exempted
- Partly taxable
- None of these
Q15 | Festival allowance is :
- Fully taxable
- Fully exempted
- Partly taxable
- None of these
Q16 | HRA received by an employee who is living in own house is:
- Fully taxable
- Fully exempted
- Partly taxable
- None of these
Q17 | Standard deduction allowed from salary for A. Y 2019-20 is:
- Rs: 35,000
- Rs: 40,000
- Rs: 50,000
- None of these
Q18 | Entertainment allowance received by an employee of statutory corporation is:
- Fully exempted
- Fully taxable
- Partly Exempted
- None of these
Q19 | Children education allowance is exempt up to .................. per month per child for a maximumof two children.
- Rs: 100
- Rs: 200
- Rs: 300
- Rs: 500
Q20 | Rent free accommodation is an example for:
- Allowance
- Profit in lieu of salary
- Perquisites
- None of these
Q21 | Children hostel allowance is exempt up to .................. per month per child for a maximum oftwo children.
- Rs: 100
- Rs: 200
- Rs: 300
- Rs: 500
Q22 | Underground allowance is exempt up to:
- Rs: 3200 p.m
- Rs: 1600 p.m
- Rs: 800 p.m
- Rs: 900 p.m
Q23 | In case of an orthopedically handicapped employee, transport allowance is exempt up to:
- Rs: 3200 p.m
- Rs: 1600 p.m
- Rs: 800 p.m
- Rs: 900 p.m
Q24 | The amount of exemption in respect of tribal area allowance is:
- Rs: 100 p.m
- Rs: 200 p.m
- Rs: 300 p.m
- Rs: 325 p.m
Q25 | Value of facility of a house, owned by the employer, provided to an employee in the city wherethe population is 15 lakh, shall be:
- 7.5% of salary
- 10% of salary
- 15% of salary
- 24% of salary