Income Tax Set 3 MCQs

Q1 | Exempted incomes are defined under section................

15 of income tax act.

18 of income tax act

10 of income tax act.

20 of income tax act.

Q2 | Incomes absolutely exempt from Tax are listed under.............................

sec 2.

sec 10.

sec 38.

sec. 80c.

Q3 | Scholarship granted is...................

fully exempted.

fully taxable.

partly exempt

Q4 | Any payments made under and awards instituted by central or state Governments are..............

fully exempted

fully taxable

partly exempt

Q5 | Allowances of MP/M.L.A / or M.L.C are.

fully exempted.

fully taxable.

partly exempt

Q6 | Income of political parties is not to be included in total income if certain conditions are satisfied. Therelevant section of IT Act 1961 is.

section 13a .

s

1

Q7 | Tax Holiday is.

income tax on holiday income.

cancellation of tax for the entire country.

tax exemption for a specified peri

Q8 | The existing Maximum Marginal Rate of tax of an individual assessee is.........................

10%

20%

30%

35%

Q9 | Which of the following is not included in salary income.

commuted pension

un commuted pension

family pension

leave salary

Q10 | Share of income from firm is................

taxable in the hands of partner

exempted in the hands of partner.

exempted in the hands of firm.

none of these.

Q11 | The periodic payment of money for the past service is known as ........................

gratuity

pension

commuted pension

leave salary

Q12 | When a receipt is determined as Capital Receipt or Revenue receipt.

at the time it is received

while preparing final accounts.

when the received amount is us

Q13 | Pension is taxable under ..........................head.

salary

house property

capital gains

other sources

Q14 | . Salary received by a partner from the firm in which he is a partner is taxable under the head................

income from salary

capital gains

profits and gains of business or profession

income from other sources

Q15 | Family pension received by the widow of a deceased employee is taxable under the head............

income from salary

capital gains

profits and gains of business or profession

income from other sources

Q16 | Salary paid by an employer out of capital will be................

a revenue receipt in the hands of employee

a capital receipt in the hands of employee

a casual receipt

none of the above.

Q17 | Which of the following is not a capital expense?

installation expenditure of plant of a company.

legal expenses for reduction of capital.

commission to employees to achieve sales targets.

expenses of promoting a company.

Q18 | Salary received by a Member of Parliament is taxable under the head.........................

income from salary

capital gains

profits and gains of business or profession

income from other sources

Q19 | Interest on capital paid by the firm to its partners is allowed up to ...................

6%

12%

15%

16%

Q20 | Under Income Tax Act depreciation is allowed on ..................

purchase price

market price

w d v

face value

Q21 | The rate of depreciation on intangible asset is ......................

5%

15%

20%

25%

Q22 | Residential status of an assessee is ascertained as per the provisions of........................

sec. 6.

s

7. c. sec. 9.

sec. 11.

Q23 | The income tax rate on long term capital gains for an individual is .................................

10%

15%

20%

25%

Q24 | Residential status of taxable entities is..........................

fixed in nature.

can change from year to year.

fixed once in 5 years.

none of these.

Q25 | As per the first basic condition to determine residential status, a person should have been in India duringthe previous year concerned for..................

60 days or more

120 days or more.

182 days or more.

240 days or more.