Explore topic-wise MCQs in Testing Subject.

This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.

1.

An individual assesses can show maximum loss of …………….from a selfoccupied residential house property.

A. 1,50,000
B. ` 30,000
C. 20,000
D. ` 5,00,000
Answer» B. ` 30,000
Discussion
2.

The Annual Value has been defined under of Income Tax Act, 1961.

A. section 20
B. section 22
C. section 23(1)
D. section 23
Answer» D. section 23
Discussion
3.

Deduction allowed from annual value is .

A. interest on loan for constitution
B. interest on loan for repair
C. statutory deduction
D. all of the above
Answer» E.
Discussion
4.

Interest on loan for self-occupied house taken before 1st April, 1999 will be allowed up to

A. ` 30,000
B. ` 1,50,000
C. ` 10,000
D. ` 50,000
Answer» B. ` 1,50,000
Discussion
5.

Deduction from annual value is allowed under .

A. section 24
B. section 25
C. section 27
D. section 28
Answer» B. section 25
Discussion
6.

Interest on capital, borrowed on 10.10.2000, for self-occupied property is deductible up to a maximum amount of .

A. ` 50,000
B. ` 1,50,000
C. ` 5,000
D. none of the above
Answer» C. ` 5,000
Discussion
7.

………………..standard deduction from annual value is allowed.

A. 10%
B. 20%
C. 30%
D. 15%
Answer» D. 15%
Discussion
8.

Expected rent shall be higher of .

A. municipal value and standard rent
B. fair rent and actual rent received
C. standard rent and fair rent
D. municipal value and fair rent
Answer» E.
Discussion
9.

Mr. Shushant is the owner of a house, the details of which are given below the gross annual value would be Municipal value ` 36,000 Actual rent ` 32,000 Fair Rent ` 36,000 Standard Rent ` 40,000

A. ` 36,000
B. 35,000
C. ` 30,000
D. ` 40,000
Answer» B. 35,000
Discussion
10.

Value of rent-free accommodation or a house owned by employer in case of non-government employees with above 25 lakh population is .

A. 15% of employee salary
B. 7.5% of employee salary
C. 20% of employee salary
D. 10% of employee salary
Answer» B. 7.5% of employee salary
Discussion
11.

Rate of depreciation on residential building is……………..

A. 10%
B. 20%
C. 25%
D. 5%
Answer» E.
Discussion
12.

House property held for less than 36 months is .

A. short-term capital asset
B. projected capital asset
C. exempted capital asset
D. long-term capital asset
Answer» D. long-term capital asset
Discussion
13.

Value of rent-free accommodation in case of Government employee shall be taxable up to

A. 15% of employee’s salary
B. 8% of employee’s salary
C. license fee fixed by government
D. 10% of employee’s salary
Answer» D. 10% of employee’s salary
Discussion
14.

The value of interest-free concessional loans to employees is determined on the basis of lending rates of for the same purpose.

A. sbi
B. ` rbi
C. central government
D. state government
Answer» E.
Discussion
15.

Arrear rent is taxable after deducting…………..as per Section 25B of the Income Tax Act, 1961.

A. 30%
B. 35%
C. 10%
D. 20%
Answer» B. 35%
Discussion
16.

Deduction for other expenses except interest in the computation of income from house property is allowable to the extent of .

A. 25% of annual value
B. 10% of annual value
C. 30% of annual value
D. 20% of annual value
Answer» D. 20% of annual value
Discussion
17.

Calculate the Gross Annual Value from the following details: Municipal Value ` 45,000 Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000

A. ` 50,000
B. 48,000
C. ` 45,000
D. 42,000
Answer» C. ` 45,000
Discussion
18.

,67,000. While computing income from house property, the deduction is allowable to the extent of .

A. ` 30,000
B. 1,00,000
C. ` 1,67,000
D. ` 1,50,000
Answer» E.
Discussion
19.

If the assesses let out the building or staff quarters to the employee of business, the rent collected from such employees is assessable as income from .

A. business
B. house property
C. other sources
D. none of the above
Answer» D. none of the above
Discussion
20.

Which of the following is not a case of deemed ownership of house property?

A. transfer to a spouse for inadequate consideration
B. transfer to a minor child for inadequate consideration
C. holder of an importable estate
D. co-owner of a property
Answer» E.
Discussion
21.

If the individual using the property for the business or professional purpose the income taxable under the……………..head.

A. income from house property
B. income from huf
C. income from other
D. income from business or proprietorship
Answer» E.
Discussion
22.

,000 as local taxes during the year. He uses this house for his residential purposes but lets out half of the house @ ` 3,000 p.m. The annual value of the house is .

A. 15,000
B. ` 16,000
C. ` 17,000
D. ` 18,000
Answer» C. ` 17,000
Discussion
23.

An individual who transfers house property without an adequate consideration to his owner spouse or to minor child is called as .

A. co-owner
B. deemed owner
C. owner himself
D. none of the above
Answer» C. owner himself
Discussion
24.

Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m. Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rental income of Laxman is taxable under the head .

A. income from salary
B. income from other sources
C. income from house property
D. income from business
Answer» C. income from house property
Discussion
25.

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
Answer» B. section 20
Discussion
26.

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
Answer» C. ` 100
Discussion
27.

Under the Head Income from House Property, the basis of charge is the of property.

A. annual value
B. quarterly value
C. half-quarterly value
D. none of the above
Answer» B. quarterly value
Discussion
28.

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
Answer» C. ` 10,000
Discussion
29.

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
Answer» C. ` 30,000
Discussion
30.

Advance salary is taxable and advance against salary is .

A. fully taxable
B. partially taxable
C. not taxable
D. none of the above
Answer» D. none of the above
Discussion
31.

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
Answer» E.
Discussion
32.

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
Answer» C. allowances received by an employee
Discussion
33.

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
Answer» B. 10% of total income minus ` 1,00,000
Discussion
34.

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%
Answer» D. 20%
Discussion
35.

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
Answer» E.
Discussion
36.

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
Answer» D. none of the above
Discussion
37.

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

A. section 18
B. section17
C. section 18(c)
D. section 17(c)
Answer» E.
Discussion
38.

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
Answer» C. section 11(13b)
Discussion
39.

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

A. 3%
B. 4%
C. 2.5%
D. 2%
Answer» B. 4%
Discussion
40.

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
Answer» B. upto ` 10 lakh is 10%
Discussion
41.

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%
Answer» B. ` 5,50,000 to ` 1,50,000 is 20%
Discussion
42.

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
Answer» B. section 12(10a)
Discussion
43.

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
Answer» C. up to ` 1,75,000
Discussion
44.

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)
Answer» C. section 10(10e)
Discussion
45.

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
Answer» B. total income
Discussion
46.

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
Answer» B. resident but not ordinary resident (rnor) only
Discussion
47.

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
Answer» D. rupee, rupee
Discussion
48.

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
Answer» D. 12 months and more than 12 months
Discussion
49.

The entertainment allowance is applicable to .

A. private sector employees
B. public sector employees
C. government employees
D. all of the above
Answer» D. all of the above
Discussion
50.

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
Answer» C. not exempted
Discussion