Income Tax Multiple Choice Questions
MCQ on Income from salary
1. Foreign allowance is
A) Fully Exempted Allowance B) Fully Taxable Allowance C) Partly Exempted Allowance D) None of these
… Answer is A) Fully Exempted Allowance Show Answer
2. which income is exempted
A) City Compensatory Allowance B) Dearness Allowance C) Foreign Allowance D) Medical Allowance
… Answer is c) Foreign Allowance Show Answer
3. An individual must stay in India at least for howmany days to become a resident ?
A) 360 days B) 182 days C) 90 days D) 150 days
… Answer is B) 182 days Show Answer
4. Previous year is the financial year immediately preceding the
A) Assessment Year B) Accounting Year C) All of the above D) None of this
… Answer is A) Assessment Year Show Answer
5. The periodic payment of money for the past service, after the retairment of services is known as
A) Pension B) Gratuity C) Leave salary D) None of the Above
… Answer is A) Pension Show Answer
6. Pension is taxable under which head ?
A) Capital gains B) House property C) Salary D) All of the above
… Answer is c) Salary Show Answer
7. Salary received by a Member of Parliament is taxable under the which head ?
A) Income from salary B) Capital gains C) Income from other sources D) None of the Above
… Answer is c) Income from other sources Show Answer
8. which is exempted from income tax?
A) Dividend from Indian company B) Dividend from foreign company C) Cooperative dividend D) None of the Above
… Answer is A) Dividend from Indian company Show Answer
9. Which is not included in salary income ?
A) Un commuted pension B) Commuted pension C) Family pension D) None of the above
… Answer is C) Family pension Show Answer
10. In case of Tax free salary which following is taken in to acccount
A) Tax is to be paid by employer B) Tax is to be paid by the employee C) No tax is payable on such salary D) None of the above
… Answer is A) Tax is to be paid by employer Show Answer
11. Dearness allowance is taxable in case of
A) Non Govt employees B) Govt employees C) All employees D) None of the above
… Answer is C) All employees Show Answer
12. A Perk is ?
A) Facility provided by employer to employee B) Cash paid by employer to employee C) Amount credited to employees D) None of the above
… Answer is A) Facility provided by employer to employee Show Answer
13. Perquisites to employees are comes income tax Act 1961 u/s ?
A) Sec. 17b. B) Sec 28a. C) Sec 2a D) None of the aobve
… Answer is A) Sec. 17b. Show Answer
14. in case of Govt. employee Value of rent free accommodation shall be taxable up to
A) License fee fixed by Govt. B) 7.5% of employees salary C) 15% of employees salary D) None of the Above
… Answer is A) License fee fixed by Govt. Show Answer
15. Interest on RPF is exempted up to
A) 10%. B) 9.5%. C) 12%. D) None of the Above
… Answer is B) 9.5%. Show Answer
16. Employers contribution to RPF is exempted up to……?
A) 9.5% of salary B) 10% of salary. C) 12% of salary. D) None of the above
… Answer is c) 12% of salary. Show Answer
17. The income of previous year is chargeable to tax in which year ?
A) Academic year B) Immediately succeeding assessment year C) Same previous year D) Accounting year
… Answer is B) Immediately succeeding assessment year Show Answer
18. The interest on loan paid by the Government of India to a non-resident outside of India is ?
A) Not taxable B) Partially taxable C) Can’t say D) None of the above
… Answer is A) Not taxable Show Answer
19. The salary, remuneration or compensation received by the partners is taxable under which head ?
A) Income from Business B) Income from Other Sources C) Income from Salary D) None of the above
… Answer is A) Income from Business Show Answer
20. Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is taxable ?
A) No B) Doubt C) Yes D) Can’t say
… Answer is C) yes, Taxable Show Answer
Also Read Income Tax MCQ / Multiple Choice Questions on Taxation with Answers :
