MCQs on Income Tax Act - 8

1. 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.



2. House rent allowance is.................... 

A. Fully exempted. 
B. Partly taxable. 
C. Fully taxable. 
D. Actual rent paid alone is taxable.



3. Exempted limit of HRA in metropolitan cities is. 

A. 50% of salary. 
B. 40% of salary. 
C. 15% of salary. 
D. none of these.



4. Education allowance is exempted for a maximum of................... 

A. One child. 
B. Two children. 
C. Three children. 
D. Four children.



5. Salary on which income tax is borne by the employer is called ................................

A. Foregoing salary 
B. Tax free salary 
C. Tax holiday 
D. None



6. ............................ section deals with exempted incomes. 

A. Section 80 
B. Section 17 
C. Section 10 
D. Section 23



7. Income tax is a form of .......................... tax 

A. Direct tax 
B. Indirect tax 
C. Value Added Tax
D. Deemed Tax



8. Any some received under key man insurance policy taken on the life of the employee shall be .......................... 

A. Taxable under the head Business or profession 
B. Taxable under the head income from other sources 
C. Taxable in the hands of employee 
D. Exempt from tax



9. The rent fixed as per municipal valuation is called ............................ 

A. Actual rent  
B. Fair rental Value 
C. Standard rent 
D. Municipal value



10. Rent free accommodation is an example for ..............................

A. Allowance 
B. Compensation 
C. Perquisite 
D. Profit in lieu of salary.



More MCQs on Income Tax Act
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2 comments:

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