Income Tax Law And Practices Set 6 MCQs

Q1 | The deduction of life insurance premia, contribution to provident fund, etc. will is done under of Income Tax Act, 1961.

Section 80C

Section 80U

Section 80D

Section 80E

Q2 | Gross Total Income is arrived after .

Only adding Income under five heads of Income

Adding Income under five heads of Income excluding losses

Adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses

Adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses and after allowing deduction under sections 80C to 80U

Q3 | In Income Tax Act, 1961, deduction under sections 80C to 80U cannot exceed .

Gross total income

Total income

Income from business or profession

Income from house property

Q4 | The maximum aggregate amount of deduction under sections 80C, 80CCC and 80CCD cannot exceed .

Rs 1,10,000

Rs 2,00,000

Rs 1,50,000

Nil

Q5 | Deduction in respect of contribution to political party will .

Be allowed in respect of sum paid by way of cash

Not be allowed if payment made in cash

This type of deduction is not allowed whether payment is in cash or not

Be allowed if payment made in cash, subject to certain conditions

Q6 | Maximum amount of deduction in case of a person with severe disability under section 80U will be .

50,000

75,000

80,000

1,00,000

Q7 | Government’s contribution to the new pension scheme referred to in Section 80CCD is

An exempt income

Income chargeable to tax as salaries in full

50% thereof is income chargeable to tax as Salaries

Income chargeable to tax as income from other sources in full

Q8 | In case of a hospital built in specified area after 31.3.2008 fulfilling the required conditions laid down in Section 80IB-(11C), the profits and gains derived from running the hospital are

Deductible in full

Deduction up to 50%

Taxable in full

Deductible up to 75%

Q9 | Deduction in respect of contribution to pension scheme of central government comes under _____________of Income Tax Act, 1961.

Section 80CCD

Section 80U

Section 80EE

Section 80G

Q10 | In case of assessees other than companies, the following is advance tax rate to be payable on or before of 15th September:

45%

30%

15%

10%

Q11 | For the purposes of computing minimum alternate tax under Section 115B(a) of the Income Tax Act, 1961, the book profit need not to be increased by inter alia, the amount of deferred tax debited to the profit and loss account.

TRUE

FALSE

Can’t say

none

Q12 | Deduction under Section 80C can be claimed for fixed deposit made in any scheduled bank, if the minimum period of deposit is .

10 Years

5 Years

12 Years

8 Years

Q13 | Which of the following is covered under section 80D of the Income Tax Act, 1961?

Medical treatment of handicapped dependent

Medical insurance premium

Reimbursement of medical expenses

Repayment of loan taken for higher education

Q14 | The deduction available under section 80QQB in respect of royalty income of authors shall not exceed _____________in previous year.

1,50,000

2,50,000

3,00,000

1,00,000

Q15 | For the purpose of deduction under section 80DD, which of the following statements is/are true?

Assessee is either and individual or a HUF

Assessee is resident of India

Assessee has a dependent disable relative

All of the above

Q16 | The maximum deduction one can clam under section 80D is .

30,000

50,000

40,000

60,000

Q17 | Amount of deduction in case of a person with severe disability under section 80U willbe______________ .

(a) 75,000

(b) 85,000

(c) 1,50,000

(d) 1,25,000

Q18 | Aggregate amount of deduction under 80C, 80CCC and 80CCD cannot exceed_________..

1,10,000

1,20,000

1,30,000

1,50,000

Q19 | In the case of every senior citizen resident in India, tax rebate under section 87A is ______.

5,000

2,000

1,000

Nil

Q20 | The provisions regarding TDS on Salaries are contained in .

Section 190

Section 191

Section 192

Section 193

Q21 | If the payee does not furnish PAN and TDS under section 194, dividends shall be made @__________ .

(a) 20%

(b) 15%

(c) 10%

(d) Nil

Q22 | Deduction of tax at source for insurance commission is @ ___________________.

10%

15%

20%

12%