MCQOPTIONS
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MCQOPTIONS
This section includes 410 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Which of the following is not included in salary income. |
| A. | commuted pension |
| B. | un commuted pension |
| C. | family pension |
| D. | leave salary |
| Answer» D. leave salary | |
| 52. |
The existing Maximum Marginal Rate of tax of an individual assessee is......................... |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | 35% |
| Answer» D. 35% | |
| 53. |
Share of income from firm is................ |
| A. | taxable in the hands of partner |
| B. | exempted in the hands of partner. |
| C. | exempted in the hands of firm. |
| D. | none of these. |
| Answer» C. exempted in the hands of firm. | |
| 54. |
The periodic payment of money for the past service is known as ........................ |
| A. | gratuity |
| B. | pension |
| C. | commuted pension |
| D. | leave salary |
| Answer» C. commuted pension | |
| 55. |
Pension is taxable under ..........................head. |
| A. | salary |
| B. | house property |
| C. | capital gains |
| D. | other sources |
| Answer» B. house property | |
| 56. |
. Salary received by a partner from the firm in which he is a partner is taxable under the head................ |
| A. | income from salary |
| B. | capital gains |
| C. | profits and gains of business or profession |
| D. | income from other sources |
| Answer» D. income from other sources | |
| 57. |
Family pension received by the widow of a deceased employee is taxable under the head............ |
| A. | income from salary |
| B. | capital gains |
| C. | profits and gains of business or profession |
| D. | income from other sources |
| Answer» E. | |
| 58. |
Salary paid by an employer out of capital will be................ |
| A. | a revenue receipt in the hands of employee |
| B. | a capital receipt in the hands of employee |
| C. | a casual receipt |
| D. | none of the above. |
| Answer» B. a capital receipt in the hands of employee | |
| 59. |
Interest on capital paid by the firm to its partners is allowed up to ................... |
| A. | 6% |
| B. | 12% |
| C. | 15% |
| D. | 16% |
| Answer» C. 15% | |
| 60. |
Salary received by a Member of Parliament is taxable under the head......................... |
| A. | income from salary |
| B. | capital gains |
| C. | profits and gains of business or profession |
| D. | income from other sources |
| Answer» E. | |
| 61. |
Under Income Tax Act depreciation is allowed on .................. |
| A. | purchase price |
| B. | market price |
| C. | w d v |
| D. | face value |
| Answer» D. face value | |
| 62. |
The rate of depreciation on intangible asset is ...................... |
| A. | 5% |
| B. | 15% |
| C. | 20% |
| D. | 25% |
| Answer» E. | |
| 63. |
Residential status of an assessee is ascertained as per the provisions of........................ |
| A. | sec. 6. |
| B. | s |
| C. | 7. c. sec. 9. |
| D. | sec. 11. |
| Answer» B. s | |
| 64. |
The income tax rate on long term capital gains for an individual is ................................. |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 25% |
| Answer» D. 25% | |
| 65. |
As per the first basic condition to determine residential status, a person should have been in India duringthe previous year concerned for.................. |
| A. | 60 days or more |
| B. | 120 days or more. |
| C. | 182 days or more. |
| D. | 240 days or more. |
| Answer» D. 240 days or more. | |
| 66. |
Residential status of taxable entities is.......................... |
| A. | fixed in nature. |
| B. | can change from year to year. |
| C. | fixed once in 5 years. |
| D. | none of these. |
| Answer» C. fixed once in 5 years. | |
| 67. |
An individual who wants to be resident of India must satisfy at least................... |
| A. | one of the two basic conditions. |
| B. | both the basic conditions. |
| C. | both the additional conditions. |
| D. | both the basic conditions and the additional conditions |
| Answer» B. both the basic conditions. | |
| 68. |
An individual who wants to be resident of India must stay in India for at least................ |
| A. | 730 days in 10 previous years. |
| B. | 182 days in the previous year. |
| C. | 365 days in the previous year. |
| D. | 150 days in the previous year. |
| Answer» C. 365 days in the previous year. | |
| 69. |
A person who is of Indian origin visiting India during the previous year to be called resident must stay inIndia for at least..................... |
| A. | 60 days in py. |
| B. | 6 days in py and 365 days or more during 4 years preceding the py. |
| C. | 182 days in py. |
| D. | 730 days during 7 years preceding the py. |
| Answer» D. 730 days during 7 years preceding the py. | |
| 70. |
As per Second additional condition, a resident will be an ordinarily resident if stay in India for at least......................... days during the seven previous years preceding the relevant . |
| A. | 182 days. |
| B. | 365 days. |
| C. | 60 days. |
| D. | 730 days. |
| Answer» E. | |
| 71. |
Allowances received by a government employee posted abroad are............. |
| A. | fully exempted. |
| B. | partly exempted. |
| C. | fully taxable. |
| D. | taxable by the country where posted. |
| Answer» B. partly exempted. | |
| 72. |
A person is Non resident if he fails to fulfil..................... |
| A. | the additional conditions. |
| B. | at least on of the basic conditions. |
| C. | both basic conditions. |
| D. | none of these. |
| Answer» C. both basic conditions. | |
| 73. |
Casual income is. |
| A. | fully taxable. |
| B. | partly taxable. |
| C. | fully exempt |
| D. | d. none of these. |
| Answer» B. partly taxable. | |
| 74. |
In case of Tax free salary, ....................................... |
| A. | tax is to be paid by employer |
| B. | no tax is payable on such salary |
| C. | tax is to be paid by the employee. |
| D. | govt, itself pays the tax at a future date. |
| Answer» B. no tax is payable on such salary | |
| 75. |
Salary received by a member of parliament is. |
| A. | taxable as salary income |
| B. | exempt from tax sources. |
| C. | taxable as income from other sources. |
| D. | none of these. |
| Answer» D. none of these. | |
| 76. |
Dearness allowance is taxable in the hands of................. |
| A. | govt employees |
| B. | non govt employees |
| C. | all employees. |
| D. | none of these. |
| Answer» D. none of these. | |
| 77. |
House rent allowance is.................... |
| A. | fully exempted. |
| B. | partly taxable. |
| C. | fully taxable. |
| D. | actual rent paid alone is taxable. |
| Answer» C. fully taxable. | |
| 78. |
Exempted limit of HRA in metropolitan cities is. |
| A. | 50% of salary. |
| B. | 40% of salary. |
| C. | 15% of salary. |
| D. | none of these. |
| Answer» B. 40% of salary. | |
| 79. |
Education allowance is exempted for a maximum of................... |
| A. | one child. |
| B. | two children. |
| C. | three children. |
| D. | four children. |
| Answer» C. three children. | |
| 80. |
Children education allowance is exempted up to.................. |
| A. | rs. 200 p.m. per child. |
| B. | rs. 300 p.m. per child. |
| C. | rs. 100 p.m. per chi |
| Answer» D. | |
| 81. |
Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actualallowance or................. |
| A. | rs. 1,000. |
| B. | rs. 2,000. |
| C. | rs. 20,000. |
| D. | rs. 5,000. |
| Answer» E. | |
| 82. |
Hostel expenditure allowance is exempted up to.................. |
| A. | rs. 300 per month per child. |
| B. | rs. 200 per month per child. |
| C. | rs. 150 per month per chi |
| Answer» B. rs. 200 per month per child. | |
| 83. |
A Perk is......................... |
| A. | cash paid by employer to employee |
| B. | facility provided by employer to employee |
| C. | amount credited to employees. |
| D. | none of these accounts. |
| Answer» C. amount credited to employees. | |
| 84. |
Perquisites to employees are covered in the I.T. Act 1961 under................... |
| A. | sec 2a. |
| B. | s |
| C. | 17b. c. sec 28a. |
| D. | sec. 36 c. |
| Answer» C. 17b. c. sec 28a. | |
| 85. |
The value of Interest free concessional loans to employees is determined on the basis of lending rates of ..................... for the same purpose. |
| A. | s |
| B. | i. b. r.b.i. |
| C. | central govt. |
| D. | state govt. |
| Answer» B. i. b. r.b.i. | |
| 86. |
An employee is deemed as 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. 5,00,000. |
| B. | rs. 2,00,000. |
| C. | rs. 1,00,000. |
| D. | rs. 50,000. |
| Answer» E. | |
| 87. |
Value of rent free accommodation in case of Govt. employee shall be taxable up to....................... |
| A. | 15% of employees salary. |
| B. | 7.5% of employees salary. |
| C. | license fee fixed by govt. |
| D. | 10% of employees salary. |
| Answer» D. 10% of employees salary. | |
| 88. |
Value of rent free accommodation a house owned by employer in case of non- Govt. employees withabove 25 lakhs population is........................... |
| A. | 10% of employees salary |
| B. | 15% of employees salary |
| C. | 7.5% of employee salary |
| D. | 20% of employees salary |
| Answer» C. 7.5% of employee salary | |
| 89. |
Interest on RPF balance is exempted up to....................... |
| A. | 9.75%. |
| B. | 9.5%. |
| C. | 10%. |
| D. | 12%. |
| Answer» C. 10%. | |
| 90. |
Commuted value of pension is fully exempted in case of...................... |
| A. | an employee of private sector. |
| B. | an employee of a public sector undertaking. |
| C. | a govt. employee. |
| D. | none of these. |
| Answer» D. none of these. | |
| 91. |
Employers contribution to RPF is exempted up to................... |
| A. | 10% of salary. |
| B. | 13% of salary. |
| C. | 12% of salary. |
| D. | 11% of salary. |
| Answer» D. 11% of salary. | |
| 92. |
Rate of depreciation on non residential building is....................... |
| A. | 10%. |
| B. | 15%. |
| C. | 20%. |
| D. | 25% |
| Answer» B. 15%. | |
| 93. |
Rate of depreciation on furniture is........................ |
| A. | 5% |
| B. | 15% |
| C. | 10% |
| D. | 20% |
| Answer» D. 20% | |
| 94. |
Additional depreciation is allowed at half the rate, if the asset is used in the initial yearfor................................. |
| A. | 195 days. |
| B. | 199 days. |
| C. | 360 days. |
| D. | less than 180 days. |
| Answer» E. | |
| 95. |
Under section 44AB ‘specified date’ means, ............................... |
| A. | 30th june |
| B. | 30th september |
| C. | 30th november |
| D. | 31st december |
| Answer» C. 30th november | |
| 96. |
Income from sale of rural Agricultural land is.................. |
| A. | taxable capital gain. |
| B. | exempted capital gain. |
| C. | taxable income. |
| D. | none of these. |
| Answer» C. taxable income. | |
| 97. |
To be a long term capital asset, a non financial asset should be held more than................ |
| A. | 12 months. |
| B. | 24 months. |
| C. | 36 months. |
| D. | 60 months. |
| Answer» D. 60 months. | |
| 98. |
Shares held for less than 12 months are...................... |
| A. | short term capital asset. |
| B. | long term capital asset. |
| C. | exempted capital asset. |
| D. | projected capital asset. |
| Answer» B. long term capital asset. | |
| 99. |
House property held for less than 36 months is........................ |
| A. | long term capital asset. |
| B. | short term capital asset. |
| C. | exempted capital asset. |
| D. | projected capital asset. |
| Answer» C. exempted capital asset. | |
| 100. |
. Cost of long term debentures are..................... |
| A. | eligible for indexing. |
| B. | not eligible for indexing. |
| C. | none of these. |
| D. | all the above. |
| Answer» C. none of these. | |