Income Tax Multiple Choice Questions
MCQ on Income from Salary
1. The assesses can claim relief under which section for arrears or advance salary.
A) Section89(2) B) Section 89(1) C) Section89(4) D) None of the Above
… Answer is B) Section 89(1) Show Answer
2. The Payment of Gratuity Act came into force from
A) 1982 B) 1947 C) 1991 D) 1972
… Answer is D) 1972 Show Answer
3. In income tax, Profits earned from an illegal business are
A) Taxable B) Exempted C) Ignored by Tax dept. D) Company assesse
… Answer is A) Taxable Show Answer
4. Gratuity comes under which section
A) sec 10(10) B) sec 5(12) C) sec 7(2) D) None of the Above
… Answer is A) sec 10(10) . Show Answer 5. Maximum exempt limit of gratuity is
A) 15 lakhs B) 7 lakhs C) 10 lakhs D) None of the Above
… Answer is C) 10 lakhs Show Answer
6. In income tax, Regular pension is taxable for ?
A) government employee B) government and private both C) private employee D) Noneof the Above
… Answer is B) government and private both Show Answer
7. Gratuity received by a government employee is ?
A) fully taxable B) partly taxable C) fully exempted D) None of Above
… Answer is c) fully exempted Show Answer
8. Medical reimbursement is exempt upto …….. ? if treatment is done in a private hospital
A) Rs: 10,000 B) Rs: 15,000 C) Rs: 7,000 D) None of Above
… Answer is B) Rs: 15,000 Show Answer
9. Which of the following is exempted……….
A) Foreign Allowance B) Medical Allowance C) All of the Above D) None of these
… Answer is A) Foreign Allowance Show Answer
10. Free food provided to employees is exempted upto ……. per meal.
A) Rs: 50 B) Rs: 60 C) Rs: 15 D) None of the above
… Answer is A) Rs: 50 Show Answer
11. The entertainment allowance is applicable to Whom ?
A) Private employees B) Government employees C) Both D) None of the above
… Answer is B) Government employees Show Answer
12. Income accrued outside India and received outside India is taxable in case of
A) Resident and ordinary resident (ROR)only B) Non-resident only C) Resident but not ordinary resident (RNOR)only D) None of the above
… Answer is A) Resident and ordinary resident (ROR)only Show Answer
13. Encashment of earned leave is comes under……………………… of Income TaxAct 1961.
A) Section 10(10AA) B) Section12(10A) C) Section 15(10B) D) None of the Above
… Answer is A) Section 10(10AA) Show Answer
14. Compensation received on voluntary retirement is comes under …………… of Income Tax Act,1961.
A) Section 11(10D) B) Section 10(10E) C) Section 10(10C) D) None of the Above
… Answer is C) Section 10(10C) Show Answer
15. The following is not taxable as income under the head of Salaries
A) Allowances received by an employee B) Remuneration received by a partner C) Free accommodation given to an employee D) None of the Above
… Answer is B) Remuneration received by a partner Show Answer
16. Which of The following is exempt income from Income Tax:
A) None B) Both of below C) Travel concession to employee D) Perquisites in India
… Answer is D) Perquisites in India Show Answer
17. Gift to employee up to …….. p.a. will not be treated as perquisite taxable.
A) 5,000 B) 10,000 C) 15,000 D) None
… Answer is A) 5,000 Show Answer
18. Salary received by the manager of an agricultural farm is …..
A) A salary income B) A business income C) An agricultural income D) None of the Above
… Answer is A) A salary income Show Answer
19. Any benefits attached to an office or position in addition to salary or wages is ……
A) Allowances B) Perquisites C) Benefits D) None of the Above
… Answer is B) Perquisites Show Answer
20. Leave travel concession comes under section ………?
A) 10(10) B) 7(5) C) 10(5) D) None of the Above
… Answer is C) 10(5) Show Answer
Also Read Income Tax MCQ / Multiple Choice Questions on Taxation with Answers :
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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.
