MCQ ON Income Tax Law and Accounts(UNIT 4)
UNIVERSITY OF LUCKNOW
B.COM SEM VI
Q1. Paid by Government of India to a Citizen of India for rendering services outside India is Exempt u/s 10(7).
(a) Salary
(b) Allowance& perquisites
(c) Both (a) & (b)
(d) None of the above.
Q2. Government of India paid salary of Rs. 5 lacs & Allowances.perquisites of Rs. 2.20 lacs to a person who is citizen of India for services rendered by him outside India. His taxable income will be_.
(a) 7.2 Lacs
(b) 5 Lacs
(c) 6.1 Lacs
(d) Nil
Q3. Any compensation received or receivable by a victim of Bhopal Gas leak disaster is .
(a) Taxable
(b) Fully exempt
(c) Exempt upto Rs. 10 lacs.
(d) Exempt except to the extent of amount received or receivable which has been allowed as deduction for any loss.damage caused by such disaster.
Q4. Any amount received from CG.SG.LA by Individual or his legal heir as compensation for any disaster is .
(a) Taxable
(b) Fully exempt
(c) Exempt upto Rs. 10 lacs.
(d) Exempt except to the extent of amount received or receivable which has been allowed as deduction for any loss.damage caused by such disaster.
Q5. Tax paid by the employer on non-monetary perquisites provided to the employee is exempt u/s
(a) 17(2)
(b) 10(14)
(c) 10(10CC)
(d) None
Q6. Sum of various heads of income is called:
(A) Gross total income
(B) Total income
(C) Taxable income
(D) Adjusted income
Q7. Out of which income deduction u/s 80C is not allowed:
(A) Income from Salary
(B) Income from House Property
(C) Income from Business
(D) Long-term Capital Gains
Q8.. Number of heads in Income Tax Act are:
(A) 3
(B) 4
(C) 5
(D) 6
Q9. Out of which income deduction u/s 80G is not allowed:
(A) Income from Salary
(B) Income from House Propert
(C) Short-term capital gain u/s 111A
(D) Income from other sources.
Q10. If total income is
(A) 4,20,194
(B) 4,20,195
(C) 4,20,190
(D) 4,20,2006.
Q11. Which income is rounded off:
(A) Gross Total Income
(B) Total Income
(C) (A) & (B) both
(D) None of these
Q13. Ram paid the medical insurance premium on his health + 10,000 in cash. Deduction shall be ab
(A) 5,000
(B) 10,000
(C) 15,000
(D) Nil
Q14. Exemption limit in the case of a resident women
(A) 2,50,000
(8) 2,40,0000
(C) 1,60,000
(D) none of these
Q15. Exemption limit for the Assessment Year 2019-20 in case of resident senior citizen assessee is
(A) 3,00,000
(B) 2,40,000
(C) 2,60,000
(D) 2,50,000
Q16.. Under which section of the following an HUF is not entitled to a deduction from its Gross Total Income:
(A) 80 C
(B) 80 G
(C) 80 D
(D) 80 P
Q17. The rate of Health & Education Cess is:
(A) 2%
(B) 3 %
(C) 4%
(D) 5%
Q18. The rate of Tax on Lottery Winning is:
(A) 20
B)30%
C)25%
(D) 35%
Q19. A resident individual received
(A) 2,00,000
(B) 3,00,000
(C) 4,00,000
(D) 5,00,000
Q20. A non-resident individual received 4,00,000 as royalty on the artistic book. He will get deduction
(A) Nil
(B) 2,00,000
(C) 3,00,000
(D) 4,00,000
Q21. Health & Education Cess is calculated on:
(A) Total income
(B) Tax on total income
(C) Taxable income
(D) Agricultural income
Q22. The rate of Surcharge on tax payable when taxable income is 8,00,000:
(A) 5
(B) 2%
(C) 3%
(D) Zero (Nil)
Q23. An individual, resident in India, is liable to pay Income Tax if his income is more than:
(A) 1,00,000
(B) 1,50,000
(C) 2,00,000
(D) 2,50,000
Q24. What is the rate of surcharge applicable to individuals having total income exceeding 1 crore?
(A) 15 %
(B) 5%
(C) 2.5%
(D) Nil
Q25. What is the basic exemption limit for Mrs. X (resident in India), who is of the age of 80 years as on 31-3-2019?
(A) 5,00,000
(B) 3,00,000
(C) 2,50,000
(D) 2,00,000
26. What amount is accepted for deduction under section 80DD regarding disability:
(A) 50,000
(8) 75,000
(C) Zero
(D) Actual expenses
27. Which of the following donations is eligible for 100% deduction?
(A) P. M. Drought Relief Fund
(b) National Sports Fund
(C) Rajeev Gandhi Foundation.
(D) J. L. Nehru Memorial Fund
28. Section 80C applies on:
1. Individual and Hindu undivided family
2. Firm
3. Co-operative Societies
4. Company
29. Donation to Prime Minister’s National Relief Fund is deductible 100% out of the Gross Total Income of the assessee, under which section of Income Tax Act:
1. Section 80C
2. Section 80G
3. Section 80GG
4. Section 80D
30. For the Assessment Year 2019-20 the maximum permissible deduction w/s 80C is
1. 79,000
2. 1,12,000
3. 1,50,000
4. 80,0006.
31. Which of the following item is covered u/s 80D?
1. Repayment of loan taken for higher education
2. Medical treatment of handicapped
3. Medical Insurance Premium
4. None of the above
32. Under Section 80E deduction in respect of payment of interest on loan is taken for the higher education shall be allowed up to:
1. 25,000
2. No limit
3. 30,000
4. 20,000
33. Maximum deduction in respect of medical insurance premium paid for a senior citizen is:
1. 15,000
2. 25,000
3. 50,000
4. 10,000
Q34. Gross Total Income means Aggregate of Incomes
under all heads of Income .
(a) After claiming deduction u/c VI-A
(b) Before claiming deduction u/c VI-A.
(c) Income for which no deduction u/c VI-A.
(d) None of the above.
Q35. Total (taxable) Income means Aggregate of Incomes under all heads of Income .
(a) After claiming deduction u/c VI-A
(b) Before claiming deduction u/c VI-A.
(c) Income for which no deduction u/c VI-A.
(d) None of the above.
Q36. Any Expenditure incurred to earn Exempt Income shall be allowed as while computing income under any head.
(a) Deduction
(b) not allowed as deduction
(c) Exemption.
(d) None of the above
Q37. Any sum received by an Individual as a member of HUF from the income of HUF shall be .
(a) Fully taxable
(b) Fully exempt u/s 10(2)
(c) Fully taxable u/h “Salary”
(d) Taxable @ 15%.
Q38. Share of the profits from the firm by the partner is:
(a) Fully taxable
(b) Fully Exempt u/s 10(2A)
(c) Fully taxable u/h “Salary”
(d) Exempt upto Rs. 2.5 lacs
Q39. Interest on any money standing to any Individual’scredit in Non-Resident External A/c in any bank in India is:
(a) Taxable to person in whose name A/c is being operated
(b) Exempt to person in whose name A/c is being operated
(c) Taxable to person who withdraws Amt from such A/c
(d) Exempt to person who withdraws Amt from such A/c
Q40. Deductions u/s 80C to 80U are not allowed from
(a) LTCG taxable u/s 112/u/s 112A
(b) Casual incomes
(c) STCG taxable u/s 111A
(d) All of the above
Q42. Deduction u/s. 80C in respect of Life Insurance Policy, Contribution of employee to Provident Fund, etc. is allowed to
(a) Any Assesse
(b) Individual assessee only
(c) individual ar HUF who may be resident or non-resident
(d) Individual or HUF who is resident in India
Q43. Deduction u/s 80C is allowed to the maximum of
(a) Rs. 2,00,000
(b) Rs. 1,00,000
(c) Rs. 1.50.000
(d) Rs. 2,50,000
Q44. For claiming deduction u/s 80C in respect of Sukanya Samridhi scheme, contribution must be paid by the individual in the name of
(a) Himself only
(b) Wife & Mother
(c) Any child of such individual
(d) Girls child of such individual (d) of such
Q45. Max. Deduction u/s 80CCC is
(a) Rs. 2,00,000
(b) Rs. 1,00,000
(c) Rs. 1,50,000
(d) Rs. 2,50,000
Q46. Deduction u/s 80D is allowed if it is paid
(a) by cheque
(b) by any mode other than cash
(c) in any mode
(d) in cash
Q47. Deduction u/s 80D is allowed on account of payment of preventive health check-up of
(a) Assessee or his dependent spouse or his dependent parents or dependent children
(b) Assessee or his dependent spouse or his parents or dependent children
(c) Assessee or his spouse or his dependent parents or dependent children
(d) Assessee or his spouse or his parents or dependent children
Q48. Maximum deduction u/s BOD on amount of preventive health check-up is:
(a) Rs. 25,000
(b) Rs. 5,000
(c) Rs. 5,000 which is in addition to Rs. 25,000
(d) Rs. 5,000 which is part of Rs. 25,0
Q49. Deduction u/s 8000 allowed shall be.
(a) Actual expenditure or Rs. 75,000 whichever is less
(b) Rs. 1,25,00 irrespective of actual expenditure
(c) Rs. 75,000 irrespective of actual expenditure
(d) Flat deduction of Rs. 75,000 pa or Rs. 1,25,0000 pa depending on % of disability
Q50. For the deduction u/s 80DD a person shall be known as severely disabled if he has disability of more than
(a) 50 % disability
(b) 75 % disability
(c) 80 % disability
(d) 25 % disability
Q60. Deduction u/s 80E is allowed on account of
(a) Repayment of loan taken from certain specified institutions for higher education
(b) Repayment of loan & interest on loan taken from certain specified institutions for higher education
(c) Payment of interest on loan taken from certain specified institutions for higher education
(d) None of the above
Q61. The deduction u/s 80E is allowed for payment by way of interest on loan to the extent of
(a) Rs. 2,00,000
(b) Rs. 1,50,000
(c) Rs. 1,00,000
(d) Any amount
Q62. Donation u/s 80G should be paid out of
(a) any taxable income
(b) any exempted income
(c) Income of earlier years
(d) All of the above
Q63. Deduction u/s 80TTA allowed to is
(a) Any Individual
(b) Any individual who is a senior citizen
(c) Any individual who is a super senior citizen
(d) Any individual who is not a resident senior citizen
Q64. Deduction u/s 80TTA shall be allowed if the Total income includes interest on
(a) Savings Account with a Bank
(b) Fixed Deposit
(c) Time Deposit
(d) All of the above
Q65. Maximum Deduction allowed u/s 80TTA shall be
(a) Rs. 10,000 pa
(b) Rs. 50,000 p.a.
(c) Rs. 40,000 p.a.
(d) Rs. 20,000 p.a.
Q67. Deduction allowed u/s 80U to Individual who has disability of less than 40%
(a) Rs. 30,000
(b) Rs. 50,000
(c) Rs. 75,000
(d) Nil
68. On which income deduction under section 80G is not allowed:
(a) House property
(b) None
(c) Salary
(d) Long term Capital Gains
69. Mr. Rajat is completely blind, he will avail deduction u/s 800:
(a) 75,000
(b) 1,25,000
(c) 50,000
(d) 1,00,000
70. Deduction admissible under section 80E:
(A) In relation to Donation
(B) In relation to Medical Expenses
(C) In relation to interest on Loan for higher education paid
(D) None of these
71. How much maximum amount can a person deposit to Public Provident Fund (P. P. F.) in a financial year to earn interes on it:
(A) 50,000
(B) 60,000
(C) 1,00,000
(D) 1,50,000
72. Deduction u/s 80C is not available to:
(A) Individual
(B) Hindu Undivided Family
(C) Company
(D) All of these
73. Deduction w/s 80G is allowed in connection with:
(A) Charity
(B) Computer Software
(C) Royalty
D) Donation
74. Mr. A pays a rent of 7 7,000 per month. His adjusted total income is 3,80,000. He is also in receipt of HRA. He would be eligible for a deduction under section 80GG of an amount of:
(A) 24,000
(B) 32,000
(C) 60,000
(D) Nil
Q75. Amount received from recognized provident fund after 5 years of continuous service is –
(a) Exempt u/s 10(12)
(b) Fully taxable
Q76. Which of the following payment received from Sukanya Samriddhi scheme is.are Exempt?
(a) Interest
(b) Maturity amount (withdrawals)
(c) Both (a) & (b)
(d) None of the above.
Q77. Amount payable at the time of closure or opting out of National Pension Scheme referred to in section 80CCD shall be exempt to the extent of total amount payable
(a) 30%
(b) 100%
(c) 40%
(d) 25%