Income Tax Multiple Choice Questions

MCQ on Income from salary
1. Foreign allowance is
… Answer is A)
Fully Exempted Allowance
2. which income is exempted
… Answer is c)
Foreign Allowance
3. An individual must stay in India at least for howmany days to become a resident ?
… Answer is B)
182 days
4. Previous year is the financial year immediately preceding the
… Answer is A)
Assessment Year
5. The periodic payment of money for the past service, after the retairment of services is known as
… Answer is A)
Pension
6. Pension is taxable under which head ?
… Answer is c)
Salary
7. Salary received by a Member of Parliament is taxable under the which head ?
… Answer is c)
Income from other sources
8. which is exempted from income tax?
… Answer is A)
Dividend from Indian company
9. Which is not included in salary income ?
… Answer is C)
Family pension
10. In case of Tax free salary which following is taken in to acccount
… Answer is A)
Tax is to be paid by employer
11. Dearness allowance is taxable in case of
… Answer is C)
All employees
12. A Perk is ?
… Answer is A)
Facility provided by employer to employee
13. Perquisites to employees are comes income tax Act 1961 u/s ?
… Answer is A)
Sec. 17b.
14. in case of Govt. employee Value of rent free accommodation shall be taxable up to
… Answer is A)
License fee fixed by Govt.
15. Interest on RPF is exempted up to
… Answer is B)
9.5%.
16. Employers contribution to RPF is exempted up to……?
… Answer is c)
12% of salary.
17. The income of previous year is chargeable to tax in which year ?
… Answer is B)
Immediately succeeding assessment year
18. The interest on loan paid by the Government of India to a non-resident outside of India is ?
… Answer is A)
Not taxable
19. The salary, remuneration or compensation received by the partners is taxable under which head ?
… Answer is A)
Income from Business
20. Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is taxable ?
… Answer is C)
yes, Taxable
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