Income Tax Law Quiz Questions and Answers Set – 8

income tax law and practice mcq

This blog post will provide you with a list of quiz questions and answers related to Income Tax Law.

Take our free Income Tax Law quizzes to brush up on your tax law knowledge. These quizzes cover a variety of topics, from tax brackets to tax deductions.

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Question 1. Contribution to RPF is deducted u/s _________.

(A) 80G

(B) 80E

(C) 80D

(D) 80C

View Answer
(D) 80C

Question 2. The maximum amount of deduction under section 80D in the case of a senior citizen is __________.

(A) Rs: 25,000

(B) Rs: 20,000

(C) Rs: 15,000

(D) Rs: 10,000

View Answer
(B) Rs: 20,000

Question 3. Which among the following deduction is available only to disabled persons :

(A) 80 U

(B) 80 Q

(C) 80 G

(D) 80 C

View Answer
(A) 80 U

Question 4. Section 80C provides for deduction in respect of tuition fee to _______ children.

(A) None

(B) Three

(C) Two

(D) One

View Answer
(C) Two

Question 5. The maximum amount deductible u/s 80GG in respect of rent paid is ___________.

(A) Rs: 24,000

(B) Rs: 20,000

(C) Rs: 12,000

(D) Rs: 10,000

View Answer
(A) Rs: 24,000

Question 6. The amount deductible for severe disability u/s 80U is _________.

(A) Rs: 90,000

(B) Rs: 50,000

(C) Rs: 1,20,000

(D) Rs: 1,00,000

View Answer
(D) Rs: 1,00,000 

Question 7. When a loan is taken for the education of a child, the father is entitled to deduction u/s ___________.

(A) 80 U

(B) 80 E

(C) 80 G

(D) 80 C

View Answer
(B) 80 E

Question 8. Income of a minor child is exempted up to _____________.

(A) Rs: 2,000

(B) Rs: 1,200

(C) Rs: 1,500

(D) Rs: 1,000

View Answer
(C) Rs: 1,500

Question 9. Loss from business can be carried for __________ years.

(A) 16

(B) 12

(C) 8

(D) 6

View Answer
(C) 8

Question 10. Income of Benami transactions shall be included in the income of __________.

(A) transferee

(B) Transferor

(C) Real owner

(D) None of these

View Answer
(C) Real owner

Question 11. Dividend from an Indian company is ____________.

(A) Fully Taxablbe

(B) Partly Taxable

(C) Fully Exempted

(D)  None of the above

View Answer
(C) Fully Exempted

Question 12. The amount received from URPF is __________.

(A) Taxable

(B) Exempted, subject to certain conditions

(C) Exempted

(D) None of the above

View Answer
(A) Taxablbe

Question 13. ________ section deals with exempted incomes.

(A) Section 23

(B) Section 10

(C) Section 17

(D) Section 80

View Answer
(B) Section 10

Question 14. There will be no partial integration if the agricultural income does not exceed _________.

(A) Rs: 5,000

(B) Rs: 50,000

(C) Rs: 25,000

(D) Rs: 15,000

View Answer
(A) Rs: 5,000

Question 15. Salary on which income tax is borne by the employer is called __________.

(A) Foregoing salary

(B) Tax holiday

(C) Tax-free salary

(D)  None

View Answer
(C) Tax free salary

Question 16. STCL can be set off in the same assessment year from ___________.

(A) Not possible

(B) both

(C) LTCG

(D) STCG

View Answer
(B) both

Question 17. Maximum amount of deduction allowable under section 80CCF is __________.

(A) Rs: 1,00,000

(B) Rs: 25,000

(C) Rs: 20,000

(D) Rs: 10,000

View Answer
(C) Rs: 20,000

Question 18. For claiming exemption u/s 54, the assessee should construct the residential property within _________.

(A) Within 2 years after the date of transfer.

(B) Within 3 years after the date of transfer

(C) One year before or 3 years after the date of transfer

(D) One year before or 2 years after the date of transfer

View Answer
(B) Within 3 years after the date of transfer

Question 19. The cost of acquisition of bonus shares allotted on or after 1-4-1981 is _________.

(A) Fair market value of that shares on 1-4-1981

(B) Fair market value on the date of issue of shares

(C) Nil

(D) None of these

View Answer
(A) Fair market value of that shares on 1-4-1981

Question 20. Any some received under a key man insurance policy taken on the life of the employee shall be _________. 

(A) Exempt from tax

(B) Taxable in the hands of the employee

(C) Taxable under the head income from other sources

(D) Taxable under the head Business or profession

View Answer
(C) Taxable under the head income from other sources

Question 21. The rent fixed as per municipal valuation is called _________.

(A) Actual rent

(B) Standard rent

(C) Fair rental Value

(D) Municipal value

View Answer
(D) Municipal value

Question 22. Rent free accommodation is an example for ____________.

(A) Profit in lieu of salary.

(B) Perquisite

(C) Compensation

(D) Allowance

View Answer
(B) Perquisite

Question 23. Income tax is a form of ____________ tax.

(A) Indirect tax

(B) Value Added Tax

(C) Indirect tax

(D) Direct tax

View Answer
(D) Direct tax

Question 24. Interest n loan taken before 1-4-1999 for construction or repairs of self occupied house shall be deducted upto Rs: ____________.

(A) Rs: 1,50,000

(B) RS: 1,00,000

(C) Rs: 30,000

(D) Rs: 25,000

View Answer
(C) Rs: 30,000

Question 25. Maximum Marginal Rate for the current A.Y. ( 2013-14) is _________.

(A) 35%

(B) 30%

(C) 20%

(D) 25%

View Answer
(B) 30% 
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