Question 1. Income of political parties is not to be included in total income if certain conditions are satisfied. The relevant section of IT Act 1961 is ______________.
(A) Sec.88G.
(B) Sec. 233B.
(C) Sec. 10D.
(D) Section 13A .
Question 2. Tax Holiday is ______________.
(A) Income tax on holiday income.
(B) Tax exemption for a specified period.
(C) Cancellation of tax for the entire country.
(D) None of the above.
Question 3. The existing Maximum Marginal Rate of tax of an individual assessee is ______________.
(A) 35%
(B) 30%
(C) 20%
(D) 10%
Question 4. Which of the following is not included in salary income.
(A) Leave salary
(B) Family pension
(C) Un commuted pension
(D) Commuted pension
Question 5. Share of income from firm is ______________.
(A) Taxable in the hands of partner.
(B) Exempted in the hands of firm.
(C) Exempted in the hands of partner.
(D) None of these.
Question 6. Casual income is ______________.
(A) Fully taxable.
(B) Fully exempted.
(C) Partly taxable.
(D) None of these.
Question 7. In case of Tax free salary, ______________.
(A) Govt, itself pays the tax at a future date.
(B) Tax is to be paid by the employee.
(C) No tax is payable on such salary.
(D) Tax is to be paid by employer.
Question 8. Salary received by a member of parliament is ______________.
(A) Taxable as salary income
(B) Taxable as income from other sources.
(C) Exempt from tax sources.
(D) None of these.
Question 9. Allowances received by a government employee posted abroad are ______________.
(A) Taxable by the country where posted.
(B) Fully taxable.
(C) Partly exempted.
(D) Fully exempted.
Question 10. Dearness allowance is taxable in the hands of ______________.
(A) Govt employees
(B) All employees.
(C) Non Govt employees
(D) None of these.
Question 11. House rent allowance is ______________.
(A) Actual rent paid alone is taxable.
(B) Fully taxable.
(C) Partly taxable.
(D) Fully exempted.
Question 12. Exempted limit of HRA in metropolitan cities is ______________.
(A) 50% of salary.
(B) 15% of salary. D
(C) 40% of salary.
(D) None of these.
Question 13. Education allowance is exempted for a maximum of ______________.
(A) Four children.
(B) Three children.
(C) Two children.
(D) One child.
Question 14. Children education allowance is exempted up to ______________.
(A) Rs. 400 p.m. per child.
(B) Rs. 100 p.m. per child.
(C) Rs. 300 p.m. per child.
(D) Rs. 200 p.m. per child.
Question 15. Hostel expenditure allowance is exempted up to ______________.
(A) Rs. 250 per month per child.
(B) Rs. 150 per month per child.
(C) Rs. 200 per month per child.
(D) Rs. 300 per month per child.
Question 16. Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actual allowance or ______________.
(A) Rs. 5,000.
(B) Rs. 20,000.
(C) Rs. 2,000.
(D) Rs. 1,000.
Question 17. A Perk is ______________.
(A) Cash paid by employer to employee
(B) Amount credited to employees.
(C) Facility provided by employer to employee
(D) None of these accounts.
Question 18. Perquisites to employees are covered in the I.T. Act 1961 under ______________.
(A) Sec. 36 c.
(B) Sec 28a.
(C) Sec. 17b.
(D) Sec 2a.
Question 19. The value of Interest free concessional loans to employees is determined on the basis of lending rates of ______________ for the same purpose.
(A) State govt.
(B) Central govt.
(C) R.B.I.
(D) S.B.I.
Question 20. An employee is deemed as a specified employee if he is a director in the company or has substantial in the company or his chargeable salary per annum exceeds.
(A) Rs. 50,000.
(B) Rs. 1,00,000.
(C) Rs. 2,00,000.
(D) Rs. 5,00,000.
Question 22. Value of rent free accommodation a house owned by employer in case of non- Govt. employees with above 25 lakhs population is ______________.
(A) 20% of employees salary
(B) 7.5% of employee salary
(C) 15% of employees salary
(D) 10% of employees salary
Question 23. Interest on RPF balance is exempted up to ______________.
(A) 12%.
(B) 10%.
(C) 9.5%.
(D) 9.75%.
Question 24. Employers contribution to RPF is exempted up to ______________.
(A) 11% of salary.
(B) 12% of salary.
(C) 13% of salary.
(D) 10% of salary.
Question 25. Commuted value of pension is fully exempted in case of ______________.
(A) an employee of the private sector.
(B) a Govt. employee.
(C) an employee of a public sector undertaking.
(D) none of these.