MCQOPTIONS
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MCQOPTIONS
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. |
The losses of speculation business can be carried forward for: |
| A. | 4 years |
| B. | 8 years |
| C. | 12 years |
| D. | None of these |
| Answer» B. 8 years | |
| 2. |
The income tax rate for long term capital gains is: |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 30% |
| Answer» D. 30% | |
| 3. |
Sumptuary allowance to Judges of Supreme Court and High Court is: |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» C. Partly taxable | |
| 4. |
The allowable rate of depreciation on computer is: |
| A. | 30% |
| B. | 40% |
| C. | 50% |
| D. | 60% |
| Answer» C. 50% | |
| 5. |
The standard deduction u/s 24(a) shall be................. , if the Annual Value of the H.P.is Rs: 60,000. |
| A. | Rs: 18,000 |
| B. | Rs: 30,000 |
| C. | Rs: 15,000 |
| D. | Rs: 60,000 |
| Answer» B. Rs: 30,000 | |
| 6. |
Income tax was levied in India first time in: |
| A. | 1960 |
| B. | 1860 |
| C. | 1921 |
| D. | 1961 |
| Answer» C. 1921 | |
| 7. |
Children education allowance is exempt up to .................. per month per child for a maximumof two children. |
| A. | Rs: 100 |
| B. | Rs: 200 |
| C. | Rs: 300 |
| D. | Rs: 500 |
| Answer» B. Rs: 200 | |
| 8. |
Underground allowance is exempt up to: |
| A. | Rs: 3200 p.m |
| B. | Rs: 1600 p.m |
| C. | Rs: 800 p.m |
| D. | Rs: 900 p.m |
| Answer» D. Rs: 900 p.m | |
| 9. |
If marriage of parents subsists, the income of a minor child: |
| A. | Shall be included in the income of mother |
| B. | Shall be included in the income of father |
| C. | Shall included in the income of that parent whose total income is greater |
| D. | Shall included in the income of that parent whose total income is less |
| Answer» D. Shall included in the income of that parent whose total income is less | |
| 10. |
Income tax is a .................tax. |
| A. | Direct |
| B. | Indirect |
| C. | Business |
| D. | None of these |
| Answer» B. Indirect | |
| 11. |
HRA received by an employee who is living in own house is: |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» B. Fully exempted | |
| 12. |
The losses of non-speculation business can be carried forward for: |
| A. | 6 years |
| B. | 8 years |
| C. | 10 years |
| D. | Any number of years |
| Answer» C. 10 years | |
| 13. |
The losses from specified business can be carried forward and can be set-off againstprofits of: |
| A. | Specified business only |
| B. | Speculative business only |
| C. | Non-speculative business only |
| D. | Any business |
| Answer» B. Speculative business only | |
| 14. |
Which among the following is not a capital asset? |
| A. | Household furniture |
| B. | Car for personal use |
| C. | Stock-in-trade |
| D. | All of these |
| Answer» E. | |
| 15. |
L T C L can be carried forward and set-off against: |
| A. | L T C G only |
| B. | S T C G only |
| C. | S T C G or L T C G |
| D. | Income under any head |
| Answer» B. S T C G only | |
| 16. |
If a businessman spends certain amount for advertisement in a souvenir of a political party, heis eligible for deduction from: |
| A. | Income from other sources |
| B. | Profits and gains from business or profession |
| C. | Gross total income |
| D. | None f these |
| Answer» D. None f these | |
| 17. |
Commuted pension received by a non-government employee, who has not received gratuityshall be exempt: |
| A. | ¼ of total pension |
| B. | ½ of total pension |
| C. | 1/3 of total pension |
| D. | 2/3 of total pension |
| Answer» C. 1/3 of total pension | |
| 18. |
The exemption of retrenchment compensation received by an employee under IndustrialDispute Act shall not exceed: |
| A. | Rs: 2,50,000 |
| B. | Rs: 3,00,000 |
| C. | Rs: 5,00,000 |
| D. | Rs: 10,00,000 |
| Answer» D. Rs: 10,00,000 | |
| 19. |
The aggregate amount of deduction under section 80 C, section 80 CCC and section 80CCD(1) shall not exceed: |
| A. | Rs: 1,00,000 |
| B. | Rs: 1,50,000 |
| C. | Rs: 2,00,000 |
| D. | Rs: 5,00,000 |
| Answer» C. Rs: 2,00,000 | |
| 20. |
Municipal tax paid by the owner during the P.Y.on self-occupied house property is: |
| A. | Deducted from Annual value |
| B. | Deducted from Gross annual value |
| C. | Deducted from Standard rent |
| D. | Not deductible |
| Answer» E. | |
| 21. |
Which of the following section of Income Tax Act is termed as “Charging Section”: |
| A. | Section 3 |
| B. | Section 4 |
| C. | Section 5 |
| D. | None of these |
| Answer» C. Section 5 | |
| 22. |
The rate of income tax is fixed under: |
| A. | Income Tax Act |
| B. | Notification of CBDT |
| C. | Finance Act |
| D. | Ordinance of Govt. |
| Answer» D. Ordinance of Govt. | |
| 23. |
The deduction in respect of medical treatment of a dependent who is a person withdisability is: |
| A. | Rs: 1,50,000 |
| B. | Rs: 1,25,000 |
| C. | Rs: 75,000 |
| D. | None of these |
| Answer» D. None of these | |
| 24. |
interest credited to a recognised provident fund account is exempt up to: |
| A. | 8% |
| B. | 8.5% |
| C. | 9% |
| D. | 9.5% |
| Answer» E. | |
| 25. |
Annual accretion is taxable under: |
| A. | Salary under section 17(1) |
| B. | Perquisites |
| C. | Allowances |
| D. | Profit in lieu of salary |
| Answer» B. Perquisites | |
| 26. |
Unrecognised Provident Fund is a provident fund which is not recognised by: |
| A. | Commissioner of Provident Fund |
| B. | Commissioner of Income Tax |
| C. | Both a and b |
| D. | None of these |
| Answer» C. Both a and b | |
| 27. |
L T C L can be carried forward for: |
| A. | 4 years |
| B. | 6 years |
| C. | 8 years |
| D. | Any number of years |
| Answer» D. Any number of years | |
| 28. |
Annual value of self occupied house is: |
| A. | Fair rent |
| B. | Municipal valuation |
| C. | Lower of a and b |
| D. | Zero |
| Answer» E. | |
| 29. |
Leave salary received by a government employee during service is: |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» B. Fully exempted | |
| 30. |
The amount of exemption in respect of academic allowance is limited to: |
| A. | Rs: 5,000 p.a. |
| B. | Actual amount spent |
| C. | a or b whichever is less |
| D. | None of the above |
| Answer» C. a or b whichever is less | |
| 31. |
Value of facility of a house, owned by the employer, provided to an employee in the city wherethe population is 15 lakh, shall be: |
| A. | 7.5% of salary |
| B. | 10% of salary |
| C. | 15% of salary |
| D. | 24% of salary |
| Answer» C. 15% of salary | |
| 32. |
An individual assessee with severe disability is entitled to a deduction of................. while computing his total income. |
| A. | Rs: 50,000 |
| B. | Rs: 75,000 |
| C. | Rs: 1,25,000 |
| D. | Rs: 1,50,000 |
| Answer» D. Rs: 1,50,000 | |
| 33. |
Which among the following is not an admissible expense: |
| A. | Income tax |
| B. | GST |
| C. | Bad debt |
| D. | Excise duty |
| Answer» B. GST | |
| 34. |
A citizen of India who goes abroad for the purpose of employment, must stay in India for aperiod of at least ..................... days during the P.Y. to become ordinarily resident. |
| A. | 60 days |
| B. | 182 days |
| C. | 90 days |
| D. | 180 days |
| Answer» C. 90 days | |
| 35. |
Capital gain on depreciation assets is always: |
| A. | LTCG |
| B. | STCG |
| C. | Tax free |
| D. | None of these |
| Answer» C. Tax free | |
| 36. |
Festival allowance is : |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» B. Fully exempted | |
| 37. |
The exemption of leave salary received by a non-government employee at the time ofretirement shall not exceed: |
| A. | Rs: 2,50,000 |
| B. | Rs: 3,00,000 |
| C. | Rs: 5,00,000 |
| D. | Rs: 10,00,000 |
| Answer» C. Rs: 5,00,000 | |
| 38. |
The rate of depreciation applicable to intangible asset is: |
| A. | 5% |
| B. | 15% |
| C. | 20% |
| D. | 25% |
| Answer» E. | |
| 39. |
Pension is treated as an income under the head: |
| A. | Salaries |
| B. | Capital gains |
| C. | Other sources |
| D. | None of these |
| Answer» B. Capital gains | |
| 40. |
The periodic payment of money for past service is called....................... |
| A. | Gratuity |
| B. | Pension |
| C. | Commute pension |
| D. | Retrenchment compensation |
| Answer» C. Commute pension | |
| 41. |
Every year the residential status of an assessee: |
| A. | will certainly change |
| B. | will not change |
| C. | may change |
| D. | none of the above |
| Answer» D. none of the above | |
| 42. |
Annuity received from the present employer is treated as income under: |
| A. | Salary under section 17(1) |
| B. | Perquisites |
| C. | Allowances |
| D. | Profit in lieu of salary |
| Answer» B. Perquisites | |
| 43. |
The work of a doctor is covered by the term: |
| A. | Business |
| B. | Trade |
| C. | Profession |
| D. | None of these |
| Answer» D. None of these | |
| 44. |
S T C L can be carried forward and set-off against: |
| A. | S T C G only |
| B. | L T C G only |
| C. | S T C G or L T C G |
| D. | Income under any head |
| Answer» D. Income under any head | |
| 45. |
Cost Inflation Index for the Financial Year 2018-19 is: |
| A. | 1024 |
| B. | 272 |
| C. | 1081 |
| D. | 280 |
| Answer» E. | |
| 46. |
S T C L can be carried forward for: |
| A. | 4 years |
| B. | 6 years |
| C. | 8 years |
| D. | Any number of years |
| Answer» D. Any number of years | |
| 47. |
Salary received by MLA or MP is treated as income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» E. | |
| 48. |
Children hostel allowance is exempt up to .................. per month per child for a maximum oftwo children. |
| A. | Rs: 100 |
| B. | Rs: 200 |
| C. | Rs: 300 |
| D. | Rs: 500 |
| Answer» D. Rs: 500 | |
| 49. |
Income accruing in India is assessable for : |
| A. | Ordinarily resident |
| B. | Not ordinarily resident |
| C. | Non resident |
| D. | All the above |
| Answer» E. | |
| 50. |
Which among the following deals with deduction in respect of donation to certain funds,charitable institution, etc? |
| A. | 80E |
| B. | 80EE |
| C. | 80G |
| D. | 80GG |
| Answer» D. 80GG | |