Income Tax MCQ QUIZ Set – 5 (Income from Salary)

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Income Tax Multiple Choice Questions

MCQ of Income from salary- Income Tax

MCQ on Income from Salary

1. The assesses can claim relief under which section for arrears or advance salary.

Answer is B)
Section 89(1)



2. The Payment of Gratuity Act came into force from

Answer is D)

3. In income tax, Profits earned from an illegal business are

Answer is A)



4. Gratuity comes under which section

Answer is A)
sec 10(10) .

5. Maximum exempt limit of gratuity is

Answer is C)
10 lakhs



6. In income tax, Regular pension is taxable for ?

Answer is B)
government and private both



7. Gratuity received by a government employee is ?

Answer is c)
fully exempted



8. Medical reimbursement is exempt upto …….. ? if treatment is done in a private hospital

Answer is B)
Rs: 15,000



9. Which of the following is exempted……….

Answer is A)
Foreign Allowance



10. Free food provided to employees is exempted upto ……. per meal.

Answer is A)
Rs: 50



11. The entertainment allowance is applicable to Whom ?

Answer is B)
Government employees



12. Income accrued outside India and received outside India is taxable in case of

Answer is A)
Resident and ordinary resident (ROR)only



13. Encashment of earned leave is comes under……………………… of Income TaxAct 1961.

Answer is A)
Section 10(10AA)



14. Compensation received on voluntary retirement is comes under …………… of Income Tax Act,1961.

Answer is C)
Section 10(10C)



15. The following is not taxable as income under the head of Salaries

Answer is B)
Remuneration received by a partner



16. Which of The following is exempt income from Income Tax:

Answer is D)
Perquisites in India



17. Gift to employee up to …….. p.a. will not be treated as perquisite taxable.

Answer is A)



18. Salary received by the manager of an agricultural farm is …..

Answer is A)
A salary income



19. Any benefits attached to an office or position in addition to salary or wages is ……

Answer is B)



20. Leave travel concession comes under section ………?

Answer is C)

Manturanjan Sa
Founder of  this Blog Income TaxPe . Professionally a Lecturer, by passion a Writer, Dancer, lyricist. fitness lover. Also a social worker co-founder of Kartabya Foundation & Digital Entrepreneur.

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