INCOME TAX MCQ
Q. Under how many heads income of a Person is classified as
per Income tax of India?
a) 3
Heads
b) 4
Heads
c) 5
heads
d) 6
Heads Ans.(c)
Q. What percentage of net annual value of a let out property
can be claimed as a deduction under section 24 of income tax Act in old regime?
a) 33%
b) 40%
c) 25%
d) 30%
Ans.(d)
Q. To what extent is the HRA received by an employee living
in his own house exempt from Income tax?
a) 50%
of HRA received
b) 20%
of HRA received
c) No
exemption
d) Actual
amount of HRA received Ans. (c)
Q. During the financial year 2023-24, what is the quantum of
taxable income which is fully exempt from Income Tax in respect of all the
assesses as per New and old tax regime?
a) Rs.2,00,000
b) Rs.3,00,000
c) Rs.1,50,000
d) Rs.2,50,000 Ans(d)
Q. What is the extent of tax rebate that is admissible to an
individual whose total taxable income does not exceed Rs.5,00,000
as per u/s 87-A of Income tax in old regime?
a) Rs.5,000
b) Rs.2,500
c) Rs.7,500
d) Rs.12,500 Ans(d)
Q. Which of the following is not treated as part of the
salary as per the Income tax Act/ Rules?
a) Overtime
allowance
b) Travelling
allowance granted on transfer /Tour
c) Leave
salary
d) House
rent Ans.(b)
Q. What is the extent of taxable income of an 81 year old
pensioner, which is fully exempt from income tax as per old tax regime?
a) Upto
Rs. 3,00,000
b) Upto
Rs. 4,00,000
c) Upto
Rs. 5,00,000
d) Upto
Rs. 2,50,000 Ans.(c)
Q. Which is exempted from tax while calculation of tax
liability on income from salary of a physically handicapped employee as per the
Income tax Act/ Rules for FY 2021-22
a) Leave
salary
b) Compensatory
allowance
c) Honoraria
d) Transport
Allowance upto Rs.3,200 P.M. Ans.(d)
Q. What is the maximum amount of transport allowances per
month granted to handicapped employee exempted from income tax FY 2021-22
a) ₹
3200
b) ₹
1800
c) ₹
2400
d) ₹
2700 Ans.(a)
Q. What is the maximum amount of transport allowances per
month granted to a Central Govt Employee, exempted from income tax FY 2021-22
a) ₹
0
b) ₹
3200
c) ₹
1800
d) ₹
2700 Ans.(a)
Q. Which is not taxable salary as per the Income tax act/
Rule?
a) Salary
received from any United Nation organisation
b) Overtime
allowance/ salary
c) Receipt
of arrear salary
d) Advance
salary Ans.(a)
Q. Which income is fully exempted from Income tax as per
Income tax Act?
a) Commuted
value of pension
b) Death/Retirement
gratuity
c) Cash
equivalent of leave salary paid on quitting service
d) All
of these Ans.(d)
Q. Which income is not taxable as per the income tax
rules?
(i) Income received from Sukanya
Samridhi Accounts (ii) Income received
from Swachh Bharat Kosh (iii) Leave travel concession
(iv) T.A granted on transfer and tour
a) Only(i)
and (ii)
b) Only
(iv)
c) Only
(iii)
d) All
of these Ans.(d)
Q. Which of the following amounts is not deductible from the
total income of an assessee to the extent permissible as per Income Tax rules?
a) Subsistence
allowance
b) Subscription
to equity shares/Debentures forming part of any eligible issue of capital
c) Contribution
to unit linked Insurance plan
d) Professional
tax paid Ans.(a)
Q. What percentage of employer contribution to the New
Pension Scheme should be excluded from the limit of Rs.1,50,000 provided
under section 80CCE of Income tax Act under old regime?
a) 14%
b) 15%
c) 20%
d) 10% Ans.(a)
Q. Up to what amount of deduction is available in respect
interest from saving bank account as per income tax rules under Old regime?
a) Up
to Rs. 12,000
b) Up
to Rs. 10,000
c) Up
to Rs. 7,500
d) Up
to Rs. 15,000 Ans.(b)
Q. Up to what amount of deduction is available in respect
interest on Deposit for senior citizen as per income tax rules under old
regime?
a) Up
to Rs.10,000
b) Up
to Rs. 40,000
c) Up
to Rs.50,000
d) Up
to Rs.15,000 Ans.(c)
Q. What amount of deduction is available to an assesses who
incur expenditure in medical treatment (Including nursing), training and
rehabilitation of any dependent being a person with disability as per Income Tax Section
80-DD under old regime?
a) Rs.
25,000
b) Rs.
40,000
c) Rs.
50,000
d) Rs.
7,5000 Ans.(c)
Q. What amount of deduction is available to an assesses who
incur expenditure in medical treatment (Including nursing), training and
rehabilitation of any dependent being a person with severe disability as per
Income tax Section 80-DD under old regime?
a) Rs.
1,40,000
b) Rs.
1,25,000
c) Rs.
1,50,000
d) Rs.
75,000 Ans.(b)
Q. What amount of special deduction of actual expenditure is
available to the assesses as a patient or a dependent suffering from Cancer or
AIDS for individual and senior citizen respectively under old regime?
a) Rs,
50,000; Rs.75,000
b) Rs,
50,000; Rs.60,000
c) Rs,
40,000; Rs.50,000
d) Rs,
40,000; Rs.1,00,000 Ans.(d)
Q. Which one is not true in respect of interest on loan
taken for residential house property as per old tax regime?
i) The Loan has been sanctioned during the period from 1.4.2016 to
31.03.2017
ii) Amount of loan sanctioned must not exceed Rs. 35,00,000
iii) Value of residential property must not exceed Rs. 50,00,000
iv) The assesse may own any residential property on the date of sanction of the
loan
a) None
of these
b) All
of these
c) Only
i
d) Only
iv Ans.(d)
Q. Which donation whole amount is not deducted from the
taxable income of the assesse as per the Income tax rule as per old tax regime?
a) The
Andhra Pradesh chief Minister cyclone relief fund
b) National
defence fund
c) Prime
minister’s National relief fund
d) Prime
Minister’s Drought relief fund Ans.(d)
Q. What is the extent of taxable income of an 72 year old
pensioner, which is fully exempt from income tax as per old tax regime?
a) Upto
Rs. 3,00,000
b) Upto
Rs. 4,00,000
c) Upto
Rs. 5,00,000
d) Upto
Rs. 2,50,000 Ans.(a)
Q. What is the rate of Health and education Cess on Income
tax payable for all assesses?
a) 4%
b) 3%
c) 2%
d) 5% Ans(a)
Q. What is the rate of surcharge on Income tax of a
person having a total income Rs.50,00,000 but not exceeding Rupees one
crore (Rs.1,00,00,000)?
a) 20%
b) 15%
c) 10%
d) 3% Ans.(c)
Q. What is the rate of surcharge on Income tax of a person
having a total income exceeding Rupees one crore (Rs.1,00,00,000) to 2 crore?
a) 10%
b) 3%
c) 20%
d) 15% Ans.(d)
Q. In case of let out house property if the net income
happens to be a loss it can be set off against the income of other heads up to
as old tax regime?
a) Rs.
40,000
b) Rs.
50,000
c) Rs.
20,000
d) Rs.
30,000 Ans.(d)
Q. What is the limit of standard deduction permissible from
taxable income of assesse as per old tax regime?
a) ₹
50000 or Amount of salary whichever is less
b) ₹
75000 or Amount of salary whichever is less
c) ₹
40000 or Amount of salary whichever is less
d) ₹
30000 or Amount of salary whichever is less Ans.(a)
Q. What is the
deductible amount of entertainment allowance received by a govt servant from
his total income FY 2023-24 as per old tax regime?
a) 1/5th
of salary or ₹ 7500 whichever is less
b) 1/5th
of salary or ₹ 5000 whichever is less
c) 1/4th
of salary or ₹ 5000 whichever is less
d) 1/5th
of salary or ₹ 10000 whichever is less Ans.(b)
Q. Which among the following has entrusted the task of
administration of direct taxes like Income-tax, Wealth tax, etc., by The
Finance Ministry ?
a) Central
Board of Direct Taxes (CBDT).
b) Central
Board of Indirect Taxes (CBIT)
c) Central
Board of Excise and Customs(CBES)
d) Central
Board of Finance affairs(CBFA) Ans. (a)
Q. As per Income Tax Act, Person includes ..
a) Individual
b) HUF
c) Local
Authority
d) All
of these Ans. (a)
Q. What is the nature
of Income tax .......
a) Direct
Tax
b) Indirect
Tax
c) Professional
Tax
d) None
of the above Ans.(a)
Q. Income which are not fully exempt from Tax.
a) Death
Gratuity
b) Retirement
Gratuity
c) Cash
equivalent of leave salary on quitting service
d) Arrears
of salary Ans.(d)
Q. If the employee is
living in a rented house, exemption is allowed to the extent of the least of the following as per
old regime
a) The
actual amount of HRA received
b) Rent
paid in excess of 10% of the salary
c) 50%
of the salary if the residence is at Mumbai, Kolkata, Delhi or Chennai; 40% for
others
d) All
of the above Ans.(d)
Q. If an employee is living in a rent free accommodation,
what amount will be added in salary.
a) An
amount equal to the licence fee if accommodation is unfurnished,
b) Equal
to 10% per annum of the original cost of furniture, if such furniture provided
or actual hire charges payable to third party, if accommodation is furnished in
addition to the licence fee.
c) only
(a)
d) (a)
or (b) Ans.(d)
Q. An employee in receipt of a salary of Rs. 20,000 p.m. And
special allowances of Rs. 15,000p.m. Has been granted entertainment allowance
of Rs. 6000p.m. What amount will be exempt from Income Tax under Entertainment
Allowance?
a) Rs.
3000
b) Rs.
4000
c) Rs.
5000
d) Rs.
6000 Ans.(c)
Q. An employee in receipt of a salary of Rs. 20,000
And Traveling allowances of Rs. 15,000 in financial years 2023-24 Has been
granted entertainment allowance of Rs. 6000 What amount will be exempt from
Income Tax under Entertainment Allowance?
a) Rs.
3000
b) Rs.
4000
c) Rs.
5000
d) Rs.
6000 Ans.(b)
Q. An employee in receipt of a salary of Rs. 5,00,000
And special allowances of Rs. 15,000 in financial years 2023-24 Has been
granted entertainment allowance of Rs. 4000 What amount will be exempt from
Income Tax under Entertainment Allowance?
a) Rs.
3000
b) Rs.
4000
c) Rs.
5000
d) Rs.
6000 Ans.(b)
Q. An employee in receipt of a salary of Rs. 5,00,000
And Dearness allowances of Rs. 15,000 in financial years 2023-24 Has been
granted entertainment allowance of Rs. 40000 What amount will be exempt from
Income Tax under Entertainment Allowance?
a) Rs.
3000
b) Rs.
4000
c) Rs.
5000
d) Rs.
6000 Ans.(c)
Q. An employee in receipt of a salary of Rs. 40,000 p.m. And
special allowances of Rs. 10,000p.m. Has been granted entertainment allowance
of Rs. 7,000p.m. What amount will be exempt from Income Tax under Entertainment
Allowance?
a) Rs.
3000
b) Rs.
8000
c) Rs.4000
d) Rs.5,000 Ans.(d)
Q. Which is not counted in taxable income as per old regime?
a) Professional
Tax
b) Contribution
to Provident Fund
c) Tuition
fees paid limited to two children
d) All
of these Ans.(d)
Q. Which will be deducted from total salary for taxable
income as per old tax regime?
i)Senior Citizens Saving Scheme ii)
Post Office Five Year Time Deposit Scheme iii) Subscription to units of
any Mutual Fund iv)Life
insurance premium payment, limited to 10% of the sum assured and 15% in case of
person with disability v)Value of rent free accommodation
a) (i),
(ii), (iii), (iv)
b) (i),
(ii), (iii), (v)
c) (i),
(ii), (iii), (iv), (v)
d) (ii),
(iii), (iv), (v) Ans.(a)
Q. Contribution to the account under a Pension Scheme
notified by the Central Govt. …………. does not exceed as per old tax regime.
a) In
the case of an employee, 10% of his salary
b) 14%,
where such contribution is made by the Central Govt.
c) In
any other case, 20% of gross total
d) All
of the above Ans.(d)
Q. What is the maximum deduction towards Health insurance
under section 80-D for parents of individual (if none of them is a senior
citizen) as per old tax regime?
a) Rs.
25, 000
b) Rs.
50,000
c) Rs.
5,000
d) None
of these Ans.(d)
Q. What is the deduction in respect of Health Insurance for
Individual and his family (if senior citizen) as per old tax regime?
a) Rs.
25,000
b) Rs.
30,000
c) Rs.
45, 000
d) Rs.
50,000 Ans.(d)
Q. Within what period of time the amount of interest on loan
taken from any financial institution or charitable institution for purpose of
higher education of his/spouse/children/student to whom assessee is a legal
guardian, the assessee can get deduction from taxable income under
Section 80-E?
a) Up
to 5 years
b) Till
the loan including interest is cleared
c) Till
the loan including interest is cleared or for a period of 8 years whichever is
earlier
d) Up
to 7 years Ans.(c)
Q. What amount of deduction is available to an assesse in
respect of interest payable on loan taken for acquisition of a residential
house if loan taken during the period 1-4-2019 to 31-03-2022 and the
stamp value of property not exceed Rs.45 Lakhs? Under section 80-EEA as per old
tax regime?
a) Rs.50,000
b) Rs.1,50,000
c) Rs.2,00,000
d) Rs.3,50,000 Ans.(b)
Q. What is the amount of Deduction in respect of interest
payable on loan taken for purchase of an electric vehicle, shall not exceed
Rs.____________ as per old tax regime
a) Rs.
50,000
b) Rs.
1,00,000
c) Rs.
1,50,000
d) None
of these Ans.(c)
Q. When the Income earned in an year is taxed in the same
year. It is called........
a) Advanced
Assessment
b) Self
Assessment
c) Accelerated
Assessment
d) None
of the above Ans.(c)
Q. Surcharge is levied when the total income exceeds ...
a) 50
Lakhs
b) 20
Lakhs
c) 30
Lakhs
d) 40
Lakhs Ans.(a)
Q. What is the rate of surcharge on Income tax of a person
having a total income exceeding Rupees Rs.5,00,00,000 (5 Crore)?
a) 15%
b) 20%
c) 25%
d) 37% Ans.(d)
Q. Net Annual value (NAV) of Income from Let out House
property is calculated as …..?
a) Gross
Annual value + Municipal tax/Corporation Tax
b) Gross
Annual value - Municipal tax/Corporation Tax
c) Gross
Annual value - Municipal tax/Corporation Tax- Interest on Loan for House
construction
d) Gross
Annual value - Municipal tax/Corporation Tax- Repairs and Maintenance charges Ans.(c)
Q. Gross Annual value(NAV) of Income from Let out House
property is taken as …..?
a) Amount
for which the property might reasonably be let out
b) Amount
of Annual municipal valuation
c) Actual
Rent received
d) Amount
for which the property might reasonably be let out or Amount of Annual
municipal valuation or Actual Rent received whichever is less
e) Amount
for which the property might reasonably be let out or Amount of Annual
municipal valuation or Actual Rent received whichever is higher Ans.(d)
Q. If an assessees dependent is suffering from serious
disability, an amount of …….. is deductible from the taxable Income as per
Finance Act, 2018 as per old tax regime.
a) Rs.
50,000
b) Rs.
75,000
c) Rs.
7.5% for taxable income
d) Rs.
1,25,000 Ans.(d)
Q. Which of the following is not a permissible way of filing
of return of a person having income chargeable to “Salaries”?
a) Furnishing
return electronically under digital signature
b) Furnishing
return in paper form to his employer
c) Furnishing
paper return to Income Tax
d) Furnishing
paper return to CPC of Income Tax Ans.(b)
Q. A sum not exceeding which of the following is allowed as
deduction for preventive health check-up of the assessee as per I-Tax Act:
a) Rs.
10,000
b) Rs.
5,000
c) Rs.
25,000
d) Rs.
40,000 Ans.(b)
Q. Verification of
Income Tax Return filed is required to be submitted through Form ITR-V if the
return has been filed :
a) Through
transmitting data electronically
b) In
a paper form
c) Electronically
under digital signature
d) Electronically
under electronic verification code Ans.(b)
Q. In which of the following cases filing of Income Tax
Return is not obligatory for a Govt. Servant?
a) Tax
liability has been discharged through self-assessment.
b) Income
Tax has been duly deducted by the DDO and certificate issued
c) Total
Income during the previous year is less than the maximum amount not chargeable
to Income Tax
d) No
tax is due to be paid Ans.(c)