Q1. The basic exemption limit for a non-resident woman above the age of 60 years for the assessment year 2012-13 is
(a) Rs.1,90,000 [Ans]
Q2. When a person retires from a profession and receives any amount towards self-generated goodwill, it is
(a) Taxable as income from profession
(b) Exempt income under section 10
(c) Not taxable since there is no cost of acquisition [Ans]
(d) Taxable as capital gain
Q3. Mr. Xavier received Rs.2,00,000 from the prospective employer before joining duty in order to resign from the present employer. Subsequently, he joined the new employer. The amount received is
(a) Taxable as income from business
(b) Taxable as salary income [Ans]
(c) Exempt from tax u/s 10
(d) Exempt being capital receipt
Q4. Jain introduced his motor car costing Rs.3,00,000 acquired in April, 2009 into the business newly commenced by him from 01.04.2011. The actual cost of car for the purpose of depreciation would be:
(a) Rs.3,00,000 [Ans]
(d) Rs.‘Nil’ not eligible for depreciation
Q5. For non-Government employee governed by Payment to Gratuity Act, 1972, the monetary limit for exemption is
(c) Rs.10,00,000 [Ans]
Q6. Unrealised rent of Rs.50,000 was received in June, 2011. The property was sold before April, 2011. How much of unrealized rent is taxable?
(a) Rs.50,000 [Ans]
(d) Not taxable
Q7. A registered charitable trust meant for educational purpose has annual aggregate receipt of Rs.80,00,000. Its income after expenses is Rs.20,00,000. The income liable to income-tax would be
(c) ‘Nil’ [Ans]
Q8. Pravin received Rs.1,000 per month as transport allowance. The amount eligible for exemption would be
(a) Rs.1,000 p.m.
(b) Rs.200 p.m.
(c) Rs.800 p.m. [Ans]
(d) Rs.‘Nil’ fully taxable
Q9. Jayant working in a college received Rs.2,000 per month as research allowance for pursuing
research. The taxable portion of allowance would be
(a) Rs.2,000 pm.
(c) Rs.1,000 p.m.
(d) Rs.‘Nil’ fully exempt [Ans]
Q10. Pankaj was provided accommodation in a hotel by the employer for 10 days consequent to his transfer from Mumbai to Kolkata. The cost of accommodation was Rs.30,000 to the employer. The value of perquisite is
(a) Rs.‘Nil’ [Ans]
Q11. A & Co., a partnership firm, contributed Rs.1,00,000 towards family planning programme among the employees. The amount eligible for deduction would be
(a) Rs.1,00,000 [Ans]
(d) Rs.‘Nil’ not eligible for deduction
Q12. A sum of Rs.50,000 was written off as bad debt in the assessment year 2008-09 and was disallowed. During financial year 2011-12 Rs.20,000 was recovered. Out of the recovery how much is taxable?
(b) Rs.‘Nil’ [Ans]
Q13. Pon Ltd. incurred Rs.35,00,000 towards voluntary retirement compensation paid to its employees in the financial year 2011-12. How much is deductible for the assessment year 2012-13 out of the said payment?
(a) Rs.7,00,000 [Ans]
Fill up the blanks :
Q1. Salary expenditure not recorded in the books is taxable as unexplained expenditure and at the same time it is _____________ (deductible/not deductible) for computing total income as per section 69C.
Ans: Not deductible
Q2. Amount received under keyman insurance policy including bonus thereon is _____________ (income/exempted income) under the Income-tax Act, 1961.
Q3. Income of minor child when subjected to clubbing, a sum of Rs. _____________ is exempt.
Q4. Deposit in public provident fund in the name of minor child is _____________ (deductible/not deductible) under section 80C in the hands of contributing parent.
Q5. An individual can avail the benefit of exemption in respect of leave travel concession offered by his employer _____________ in a block of four years.
Q6. The maximum amount of exemption in respect of encashment of earned leave is Rs. _____________.
Q7. A charge created consequent to the decree of a Court of law is _____________ (application/diversion) of income.
Q8. Amount recovered by an employer from the employees towards the latter’s share of provident fund contribution is _____________ (income/not an income) of the assessee-employer.
Q9. Loss from non-speculation business _____________ (can/cannot) be set off against profits derived from speculation business.
Q10. Salary foregone is _____________ (taxable/not taxable) in computing the income from salaries in the hands of the concerned employee.
Q11. The monetary ceiling limit for exemption for gratuity received w.e.f. 21.05.2011 under the Payment of Gratuity Act, 1972 is Rs. _____________ .
Q12. Fixed medical allowance of Rs.2,000 per month paid by an employer is _____________ (taxable/exempt) in the hands of the employee.