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. |
If a partner lets out his buildings to the firm, the rent received by him will be taxed under: |
| A. | Profits and gains from business |
| B. | Income from house property |
| C. | Income from other sources |
| D. | None of these |
| Answer» C. Income from other sources | |
| 2. |
For the purpose of income tax, depreciation is charged on: |
| A. | Market value |
| B. | Cost price |
| C. | WDV |
| D. | Book value |
| Answer» D. Book value | |
| 3. |
Depreciation is not allowed on: |
| A. | Computer |
| B. | Furniture |
| C. | Land |
| D. | Machinery |
| Answer» D. Machinery | |
| 4. |
What is the additional rate depreciation on new plant? |
| A. | 5% |
| B. | 10% |
| C. | 20% |
| D. | 25% |
| Answer» D. 25% | |
| 5. |
The maximum amount of exemption in respect of gratuity received by an employee covered bythe Payment of Gratuity Act is: |
| A. | Rs: 2,50,000 |
| B. | Rs: 5,00,000 |
| C. | Rs: 10,00,000 |
| D. | Rs: 20,00,000 |
| Answer» E. | |
| 6. |
For being a long term capital gain, the assessee should retain the shares for a period of: |
| A. | 12 months |
| B. | Less than 12 months |
| C. | More than 12 months |
| D. | None of these |
| Answer» D. None of these | |
| 7. |
The deduction allowable in respect of family pension is: |
| A. | Entire amount of family pension |
| B. | 33 1/3 % of the family pension |
| C. | 33 1/3 % of the family pension or Rs: 15,000 whichever is less |
| D. | 30 % of the family pension or Rs: 15,000 whichever is less |
| Answer» D. 30 % of the family pension or Rs: 15,000 whichever is less | |
| 8. |
Hill allowance given to an employee is fully taxable, if the place is located at: |
| A. | Less than 1,000 metre height from sea level |
| B. | Less than 1,200 metre height from sea level |
| C. | Less than 1,500 metre height from sea level |
| D. | Less than 1,800 metre height from sea level |
| Answer» B. Less than 1,200 metre height from sea level | |
| 9. |
Standard deduction allowed from salary for A. Y 2019-20 is: |
| A. | Rs: 35,000 |
| B. | Rs: 40,000 |
| C. | Rs: 50,000 |
| D. | None of these |
| Answer» C. Rs: 50,000 | |
| 10. |
The total of various heads of income is called: |
| A. | Total Income |
| B. | Gross Total Income |
| C. | Taxable Income |
| D. | Aggregate Income |
| Answer» C. Taxable Income | |
| 11. |
For the A.Y , the tax exemption limit of income for BOI is: |
| A. | Rs: 5,00,000 |
| B. | Rs: 3,00,000 |
| C. | Rs: 2,50,000 |
| D. | Rs: 2,00,000 |
| Answer» D. Rs: 2,00,000 | |
| 12. |
Loss in respect of speculation business can be: |
| A. | Set-off with profit from non-speculation business. |
| B. | Set-off with profit from another speculation business |
| C. | Set-off with income from house property |
| D. | Set-off with income from other sources |
| Answer» C. Set-off with income from house property | |
| 13. |
The rate of depreciation applicable to furniture is: |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 5% |
| Answer» B. 15% | |
| 14. |
Which among the following is a deduction allowed under section 16 : |
| A. | Employment tax |
| B. | Standard deduction |
| C. | Entertainment Allowance |
| D. | All of the above |
| Answer» E. | |
| 15. |
Which among the following is not chargeable to tax under the head, income from othersources? |
| A. | Winnings from lottery |
| B. | Interest from bank |
| C. | Dividend from co-operative society |
| D. | Profit on sale of the goodwill of a business |
| Answer» E. | |
| 16. |
The deduction allowed in respect of payment made to an approved university for socialresearch is: |
| A. | 200% |
| B. | 150% |
| C. | 125% |
| D. | 100% |
| Answer» E. | |
| 17. |
For Income Tax purpose, a senior citizen is an individual who the age of : |
| A. | 60 years |
| B. | 60 years or more |
| C. | 60 year or more but less than 80 years |
| D. | 65 years or more |
| Answer» D. 65 years or more | |
| 18. |
Family pension received by a widow is treated as an income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» E. | |
| 19. |
The annual value of the vacant H.P. referred in section 23(2)(b) shall be: |
| A. | Fair rent |
| B. | Municipal value |
| C. | Standard rent |
| D. | Zero |
| Answer» E. | |
| 20. |
An assessee paid Rs: 64,000 as interest on a loan taken in the P.Y 2018-19 for the renovation ofself-occupied house. While computing income from H.P, he is eligible for deduction to the extent of: |
| A. | Rs: 64,000 |
| B. | Rs: 30,000 |
| C. | Rs: 1,20,000 |
| D. | Zero |
| Answer» C. Rs: 1,20,000 | |
| 21. |
The allowable depreciation on motor car is: |
| A. | 5% |
| B. | 25% |
| C. | 30% |
| D. | 40% |
| Answer» D. 40% | |
| 22. |
Salary received by a partner from his firm is an income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» C. Capital gains | |
| 23. |
The exemption of payment received under VRS 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 | |
| 24. |
Income from the sale of a house hold furniture is a/an: |
| A. | Exempted income |
| B. | Taxable income |
| C. | Capital gain |
| D. | Income from house property |
| Answer» B. Taxable income | |
| 25. |
is the base of computation of income under the head “income from H.P” |
| A. | Annual value |
| B. | Municipal rental value |
| C. | Standard rent |
| D. | Rent received |
| Answer» B. Municipal rental value | |
| 26. |
When the income of minor child is included in the income of parent, then parent isentitled to an exemption up to: |
| A. | Rs: 1,000 per child |
| B. | Rs: 1,500 per child |
| C. | Rs: 3,000 per child |
| D. | None of these |
| Answer» C. Rs: 3,000 per child | |
| 27. |
Only................are entitled to deduction under section 80 U. |
| A. | Firms |
| B. | Individuals |
| C. | Companies |
| D. | Co-operative societies |
| Answer» C. Companies | |
| 28. |
While computing the income of a business, which among the following is allowed: |
| A. | Doubtful debts |
| B. | Provision for doubtful debts |
| C. | Actual bad debts |
| D. | All the above |
| Answer» D. All the above | |
| 29. |
Income from salary includes: |
| A. | Profit in lieu of salary |
| B. | Perquisites |
| C. | Allowances |
| D. | All of the above |
| Answer» E. | |
| 30. |
Per-diem allowance given for the purpose of lodging facilities is : |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» C. Partly taxable | |
| 31. |
Agricultural income from China is assessable for: |
| A. | Ordinarily resident |
| B. | Not ordinarily resident |
| C. | Non resident |
| D. | All the above |
| Answer» B. Not ordinarily resident | |
| 32. |
According to Income Tax Act, there are.................heads of income. |
| A. | Three |
| B. | Four |
| C. | Five |
| D. | Six |
| Answer» D. Six | |
| 33. |
The inclusion of others’ income in the income of an assessee is called: |
| A. | Aggregation |
| B. | Clubbing |
| C. | Set-off |
| D. | None of these |
| Answer» C. Set-off | |
| 34. |
Capital gain arises from: |
| A. | Capital |
| B. | Stock |
| C. | Transfer of capital assets |
| D. | None of these |
| Answer» C. Transfer of capital assets | |
| 35. |
Which among the following deals with deduction in respect persons with disability? |
| A. | 80G |
| B. | 80E |
| C. | 80D |
| D. | 80U |
| Answer» E. | |
| 36. |
Entertainment allowance received by an employee of statutory corporation is: |
| A. | Fully exempted |
| B. | Fully taxable |
| C. | Partly Exempted |
| D. | None of these |
| Answer» C. Partly Exempted | |
| 37. |
Salary received from a former employer is treated as an income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» B. Profits and gains from business or profession | |
| 38. |
Income Tax Department works under: |
| A. | Central Government |
| B. | CBDT |
| C. | State Government |
| D. | Chief Commissioner of Income Tax |
| Answer» D. Chief Commissioner of Income Tax | |
| 39. |
In case of an orthopedically handicapped employee, transport 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» B. Rs: 1600 p.m | |
| 40. |
Which among the following deals with deduction in respect of royalty income ofauthors? |
| A. | 80JJA |
| B. | 80QQB |
| C. | 80TTB |
| D. | 80P |
| Answer» C. 80TTB | |
| 41. |
Under which section, a firm is eligible for exemption in respect of long term capital gainarising from the sale of a residential house: |
| A. | Sec. 54 |
| B. | S |
| C. | 54EC c. Sec. 54D |
| D. | Sec. 54F |
| Answer» C. 54EC c. Sec. 54D | |
| 42. |
Leave salary received by a government employee at the time of retirement is: |
| A. | Fully taxable |
| B. | Fully exempted |
| C. | Partly taxable |
| D. | None of these |
| Answer» C. Partly taxable | |
| 43. |
Municipal tax paid by the owner during the P.Y. on house property is deducted from: |
| A. | Annual value |
| B. | Gross annual value |
| C. | Standard rent |
| D. | None of these |
| Answer» C. Standard rent | |
| 44. |
Remuneration received from a person other than employer is treated an income under the head: |
| A. | Salaries |
| B. | Profits and gains from business or profession |
| C. | Capital gains |
| D. | Other sources |
| Answer» E. | |
| 45. |
Standard deduction allowed on annual value of let out house property is: |
| A. | 30% |
| B. | 20% |
| C. | 40% |
| D. | None of these |
| Answer» B. 20% | |
| 46. |
Unabsorbed depreciation can be carried forward for set-off up to: |
| A. | 5 years |
| B. | 8 years |
| C. | 10 years |
| D. | Any number of years |
| Answer» E. | |
| 47. |
Which among the following is a fully exempted allowance? |
| A. | Uniform allowance |
| B. | HRA |
| C. | Foreign allowance |
| D. | CCA |
| Answer» D. CCA | |
| 48. |
The income tax rate for short term capital gains specified in Sec.111A is: |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 30% |
| Answer» C. 20% | |
| 49. |
Loss from the activity of owning and maintaining race horses can be carried forward for: |
| A. | 4 years |
| B. | 6 years |
| C. | 8 years |
| D. | None of these |
| Answer» B. 6 years | |
| 50. |
The rate of surcharge if total income of an individual assessee exceeds Rs:fifty lakh butdoes not exceed Rs: one crore is: |
| A. | 7.5% |
| B. | 10% |
| C. | 15% |
| D. | 20% |
| Answer» C. 15% | |