Q41: Standard deduction allowed from salary for A. Y 2019-20 is:
- A. Rs: 35,000
- B. Rs: 40,000
- C. Rs: 50,000
- D. None of these
Answer
Answer B. Rs: 40,000
Q42: Entertainment allowance received by an employee of statutory corporation is:
- A. Fully exempted
- B. Fully taxable
- C. Partly Exempted
- D. None of these
Answer
Answer B. Fully taxable
Q43: Children education allowance is exempt up to___per month per child for a Maximumof two children.
- A. Rs: 100
- B. Rs: 200
- C. Rs: 300
- D. Rs: 500
Answer
Answer A. Rs: 100
Q44: Rent free accommodation is an example for:
- A. Allowance
- B. Profit in lieu of salary
- C. Perquisites
- D. None of these
Answer
Answer C. Perquisites
Q45: Children hostel allowance is exempt up to___per month per child for a maximum oftwo children.
- A. Rs: 100
- B. Rs: 200
- C. Rs: 300
- D. Rs: 500
Answer
Answer C. Rs: 300
Q46: Underground allowance is exempt up to:
- A. Rs: 3200 p.m
- B. Rs: 1600 p.m
- C. Rs: 800 p.m
- D. Rs: 900 p.m
Answer
Answer C. Rs: 800 p.m
Q47: In case of an orthopedically handicapped employee, transport allowance is exempt up to:
- A. Rs: 3200 p.m
- B. Rs: 1600 p.m
- C. Rs: 800 p.m
- D. Rs: 900 p.m
Answer
Answer A. Rs: 3200 p.m
Q48: The amount of exemption in respect of tribal area allowance is:
- A. Rs: 100 p.m
- B. Rs: 200 p.m
- C. Rs: 300 p.m
- D. Rs: 325 p.m
Answer
Answer B. Rs: 200 p.m
Q49: Value of facility of a house, owned by the employer, provided to an employee in the city where the population is 15 lakh, shall be:
- A. 7.5% of salary
- B. 10% of salary
- C. 15% of salary
- D. 24% of salary
Answer
Answer B. 10% of salary
Q50: Value of unfurnished house, hired by employer, provided to an employee shall be:
- A. 15% of salary
- B. Actual rent
- C. 15% of salary or actual rent whichever is less
- D. 15% of salary or actual rent whichever is more
Answer
Answer C. 15% of salary or actual rent whichever is less
Q51: The periodic payment of money for past service is called___
- A. Gratuity
- B. Pension
- C. Commute pension
- D. Retrenchment compensation
Answer
Answer B. Pension
Q52: Gratuity received by a government employee is exempted:
- A. Up to Rs:10,00,000
- B. Up to Rs:15,00,000
- C. Fully
- D. None of these
Answer
Answer C. Fully
Q53: The maximum amount of exemption in respect of gratuity received by an employee covered by the Payment of Gratuity Act is:
- A. Rs: 2,50,000
- B. Rs: 5,00,000
- C. Rs: 10,00,000
- D. Rs: 20,00,000
Answer
Answer D. Rs: 20,00,000
Q54: Commuted pension received by a non-government employee, who has not received Gratuity shall be exempt:
- A. 1/4 of total pension
- B. 1/2 of total pension
- C. 1/3 of total pension
- D. 2/3 of total pension
Answer
Answer B. 1/2 of total pension
Q55: Leave salary received by a government employee during service is:
- A. Fully taxable
- B. Fully exempted
- C. Partly taxable
- D. None of these
Answer
Answer A. Fully taxable
Q56: Leave salary received by a government employee at the time of retirement is:
- A. Fully taxable
- B. Fully exempted
- C. Partly taxable
- D. None of these
Answer
Answer B. Fully exempted
Q57: The exemption of leave salary received by a non-government employee at the time of retirement shall not exceed:
- A. Rs: 2,50,000
- B. Rs: 3,00,000
- C. Rs: 5,00,000
- D. Rs: 10,00,000
Answer
Answer B. Rs: 3,00,000
Q58: The exemption of retrenchment compensation received by an employee under Industrial Dispute Act shall not exceed:
- A. Rs: 2,50,000
- B. Rs: 3,00,000
- C. Rs: 5,00,000
- D. Rs: 10,00,000
Answer
Answer C. Rs: 5,00,000
Q59: The exemption of payment received under VRS shall not exceed:
- A. Rs: 2,50,000
- B. Rs: 3,00,000
- C. Rs: 5,00,000
- D. Rs: 10,00,000
Answer
Answer C. Rs: 5,00,000
Q60: Employee’s contribution to which of the following is eligible for deduction u/s 80C:
- A. Statutory Provident Fund
- B. Recognised Provident Fund
- C. un-recognised Provident Fund
- D. All of these
Answer
Answer C. un-recognised Provident Fund
Q61: un-recognised Provident Fund is a provident fund which is not recognised by:
- A. Commissioner of Provident Fund
- B. Commissioner of Income Tax
- C. Both a and b
- D. None of these
Answer
Answer B. Commissioner of Income Tax
Q62: Annual value of self occupied house is:
- A. Fair rent
- B. Municipal valuation
- C. Lower of a and b
- D. Zero
Answer
Answer D. Zero
Q63: Standard deduction allowed on annual value of let out house property is:
- A. 30%
- B. 20%
- C. 40%
- D. None of these
Answer
Answer A. 30%
Q64: The annual value of a house property is Rs:1,40,000. Mr. X and Mr. Y are equal co- owners of the house. X’s income from house property shall be:
- A. Rs: 70,000
- B. Rs: 1,40,000
- C. Rs: 49,000
- D. Zero
Answer
Answer C. Rs: 49,000
Q65: The annual value of the vacant H.P. referred in section 23(2)(b) shall be:
- A. Fair rent
- B. Municipal value
- C. Standard rent
- D. Zero
Answer
Answer D. Zero
Q66: An assessee paid Rs: 64,000 as interest on a loan taken in the P.Y 2018-19 for the renovation ofself-occupied house. While computing income from H.P, he is eligible for deduction to the extent of:
- A. Rs: 64,000
- B. Rs: 30,000
- C. Rs: 1,20,000
- D. Zero
Answer
Answer B. Rs: 30,000
Q67: is the base of computation of income under the head “income from H.P”
- A. Annual value
- B. Municipal rental value
- C. Standard rent
- D. Rent received
Answer
Answer A. Annual value
Q68: Municipal tax paid by the owner during the P.Y. on house property is deducted from:
- A. Annual value
- B. Gross annual value
- C. Standard rent
- D. None of these
Answer
Answer B. Gross annual value
Q69: Municipal tax paid by the owner during the P.Y.on self-occupied house property is:
- A. Deducted from Annual value
- B. Deducted from Gross annual value
- C. Deducted from Standard rent
- D. Not deductible
Answer
Answer D. Not deductible
Q70: The standard deduction u/s 24(a) shall be___, if the Annual Value of the H.P.is Rs: 60,000.
- A. Rs: 18,000
- B. Rs: 30,000
- C. Rs: 15,000
- D. Rs: 60,000
Answer
Answer A. Rs: 18,000
Q71: The work of a doctor is covered by the term:
- A. Business
- B. Trade
- C. Profession
- D. None of these
Answer
Answer C. Profession
Q72: If a businessman spends certain amount for advertisement in a souvenir of a political party, heis eligible for deduction from:
- A. Income from other sources
- B. Profits and gains from business or profession
- C. Gross total income
- D. None f these
Answer
Answer C. Gross total income
Q73: If a company spent Rs: 80,000 as preliminary expenses on 31st March, 2018, the allowable deduction is:
- A. Rs: 8,000
- B. Rs: 16,000
- C. Rs: 20,000
- D. Rs: 40,000
Answer
Answer B. Rs: 16,000
Q74: While computing the income of a business, which among the following is allowed:
- A. Doubtful debts
- B. Provision for doubtful debts
- C. Actual bad debts
- D. All the above
Answer
Answer C. Actual bad debts
Q75: Which among the following is not an admissible expense:
- A. Income tax
- B. GST
- C. Bad debt
- D. Excise duty
Answer
Answer A. Income tax
Q76: While computing the profit of a firm, interest allowed on partners’ capital is allowed:
- A. Up to 12%
- B. Up to 15%
- C. Up to 18%
- D. Up to 20%
Answer
Answer A. Up to 12%
Q77: The deduction allowed in respect of payment made to an approved university for Social research is:
- A. 200%
- B. 150%
- C. 125%
- D. 100%
Answer
Answer D. 100%
Q78: For the purpose of income tax, depreciation is charged on:
- A. Market value
- B. Cost price
- C. WDV
- D. Book value
Answer
Answer C. WDV
Q79: Depreciation is not allowed on:
- A. Computer
- B. Furniture
- C. Land
- D. Machinery
Answer
Answer C. Land
Q80: Unabsorbed depreciation can be carried forward for set-off up to:
- A. 5 years
- B. 8 years
- C. 10 years
- D. Any number of years
Answer
Answer D. Any number of years
