Deck 2: Income From Salary

Question 1

The income is chargeable under the head of salary under ……………of Income Tax Act, 1961.

A)section 15
B)section 20
C)section 14
D)section 16

Answer 1

section 15

Question 2

Pension is ……………under the salary head.

A)fully taxable
B)partially taxable
C)not taxable
D)none of the above

Answer 2

fully taxable

Question 3

The salary of Member of Parliament is taxable under the head .

A)salary
B)income from other sources
C)income from business
D)all of the above

Answer 3

income from other sources

Question 4

The death-cum-retirement gratuity received by the Government Employee or employee of local authority is .

A)partially exempted
B)fully exempted
C)half taxable
D)none of the above

Question 5

Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is .

A)taxable
B)not taxable
C)partially taxable
D)none of the above

Question 6

The assesses can claim relief under…………….for arrears or advance salary.

A)section 89(1)
B)section 89(2)
C)section 89(3)
D)section 89(4)

Question 7

The Payment of Gratuity Act came into force in…………...

A)1973
B)1980
C)1991
D)1972

Question 8

Which of the following is not taxable under the head Salary?

A)remuneration paid to the lecturer of a college for setting a question paper
B)salary received by a member of parliament
C)commission received by an employee director of a company
D)both (a) and (b)

Question 9

The children education allowance, the amount exempted from taxable income is limited to

A)100 per month per child upto 3 children
B)1,000 per year per child upto 2 children
C)100 per month per child upto 2 children
D)none of the above

Question 10

If the employee receives retirement gratuity from more than one employer, he can claim exemption in respect of .

A)current employer
B)previous employer
C)both employer
D)not from single employer

Question 11

The family pension received by the family members of armed forces after death of employee is .

A)exempt fully
B)exempted after fulfilling of certain conditions
C)not exempted
D)none of the above

Question 12

The entertainment allowance is applicable to .

A)private sector employees
B)public sector employees
C)government employees
D)all of the above

Question 13

The assessment period for income tax on salary is .

A)only more than 12 months
B)12 months and less than 12 months
C)only 12 months
D)12 months and more than 12 months

Question 14

Total income is to be rounded off to nearest multiple of …………….and tax is to be rounded off to nearest multiple of .

A)ten rupee
B)hundred, ten
C)ten, ten
D)rupee, rupee

Question 15

Income accrued outside India and received outside India is taxable in case of.

A)resident and ordinary resident (ror) only
B)resident but not ordinary resident (rnor) only
C)non-resident only
D)ror, rnor and non-resident

Question 16

Deduction under section 80C to 80U cannot exceed .

A)gross total income
B)total income
C)income from business or profession
D)income from house property

Question 17

The maximum limit for the claim of deduction under salary head Contributions to certain pension funds of LIC or any other insurer is .

A)up to ` 2,00,000
B)up to ` 1,50,000
C)up to ` 1,75,000
D)none of the above

Question 18

Encashment of earned leave is given by………………. of Income Tax Act, 1961.

A)section 10(10aa)
B)section 12(10a)
C)section 15(10b)
D)none of the above

Question 19

Compensation received on voluntary retirement is given by of Income Tax Act, 1961.

A)section 10(10d)
B)section 10(10c)
C)section 10(10e)
D)section 11(10d)

Question 20

The house rent allowance (HRA) under the salary head of Income Tax Act is given by

A)section 10
B)sec 10(13a)
C)section 11(13b)
D)section 11

Question 21

……………….of Income Tax Act defines the perquisites and their valuation.

A)section 18
B)section17
C)section 18(c)
D)section 17(c)

Question 22

The Income tax rate for the financial year 2016-17 for individual is…………..

A)` 5,00,000 to ` 10,00,000 is 20%
B)` 5,50,000 to ` 1,50,000 is 20%
C)` 5,00,000 to ` 10,00,000 is 30%
D)` 5,00,000 to ` 10,00,000 is 10%

Question 23

Income tax rate for the senior citizens for year 2016-17 is .

A)upto ` 5 lakh is nil
B)upto ` 10 lakh is 10%
C)upto ` 5 lakh is 10%
D)none of the above

Question 24

For computation for Income tax liability for individual, the Education Cess is

A)3%
B)4%
C)2.5%
D)2%

Question 25

The rate of tax for the financial year 2016-17 for the foreign companies is

A)45%
B)30%
C)40% flat
D)none of the above

Question 26

Which of the following are true regarding taxing the rich?

A)additional 10% tax on dividends in excess of ` 10 lakh per annum
B)surcharge on persons decreased to 12% from 15%
C)tds at 1% on purchase of luxury cars exceeding value of ` 10 lakh
D)all of the above

Question 27

Surcharge is levied at the rate …………….if the income exceeds ` 1 crore of the financial year 2016-17.

A)10%
B)12%
C)15%
D)20%

Question 28

Tax Liability for the individual for 2016-17 who is not the resident of the India whose income ` 2,50,000 to ` 5,00,000 is……………….

A)10% of total income minus ` 2,00,000
B)10% of total income minus ` 1,00,000
C)15% of total income minus ` 1,00,000
D)none of the above

Question 29

The following is not taxable as income under the head "Salaries":

A)commission received by a full-time director
B)remuneration received by a partner
C)allowances received by an employee
D)free accommodation given to an employee

Question 30

The following is exempt income from Income Tax:.

A)travel concession to employee
B)remuneration received for valuation of answer scripts
C)encashment of leave salary whilst in service
D)perquisites in india

Question 31

Advance salary is taxable and advance against salary is .

A)fully taxable
B)partially taxable
C)not taxable
D)none of the above

Question 32

If loan granted by employer to employee does not exceed …………., it is not treated as perquisite to employee for purpose of income tax.

A)` 20,000
B)40,000
C)` 30,000
D)` 25,000

Question 33

Gift to employee up to p.a. will not be treated as perquisite taxable in the hands of employee.

A)` 4,000
B)` 5,000
C)` 10,000
D)2,500

Question 34

Expenditure on free meals to employee in excess of………………per meal will be treated as perquisite of employee.

A)` 25
B)50
C)` 100
D)` 55

Question 35

Any commission due or received by a partner of a firm from the firm shall not be regarded as salary income under .

A)section 15
B)section 20
C)section 17
D)section 19