Income Tax Law And Practice Set 2

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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