Deck 3: Income Tax Act and Taxable Incomes

Question 1

Exempted incomes are defined under section................

A)15 of income tax act.
B)18 of income tax act
C)10 of income tax act.
D)20 of income tax act.

Answer 1

10 of income tax act.

Question 2

Incomes absolutely exempt from Tax are listed under.............................

A)sec 2.
B)sec 10.
C)sec 38.
D)sec. 80c.

Answer 2

sec 10.

Question 3

Scholarship granted is...................

A)fully exempted.
B)fully taxable.
C)partly exempt

Answer 3

fully exempted.

Question 4

Any payments made under and awards instituted by central or state Governments are..............

A)fully exempted
B)fully taxable
C)partly exempt

Question 5

Allowances of MP/M.L.A / or M.L.C are.

A)fully exempted.
B)fully taxable.
C)partly exempt

Question 6

The existing Maximum Marginal Rate of tax of an individual assessee is.........................

A)10%
B)20%
C)30%
D)35%

Question 7

Which of the following is not included in salary income.

A)commuted pension
B)un commuted pension
C)family pension
D)leave salary

Question 8

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.

Question 9

The periodic payment of money for the past service is known as ........................

A)gratuity
B)pension
C)commuted pension
D)leave salary

Question 10

Pension is taxable under ..........................head.

A)salary
B)house property
C)capital gains
D)other sources

Question 11

. 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

Question 12

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

Question 13

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.

Question 14

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

Question 15

Interest on capital paid by the firm to its partners is allowed up to ...................

A)6%
B)12%
C)15%
D)16%

Question 16

Under Income Tax Act depreciation is allowed on ..................

A)purchase price
B)market price
C)w d v
D)face value

Question 17

The rate of depreciation on intangible asset is ......................

A)5%
B)15%
C)20%
D)25%

Question 18

Residential status of an assessee is ascertained as per the provisions of........................

A)sec. 6.
B)sec.7.
C)sec. 9.
D)sec. 11.

Question 19

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.

Question 20

As per the first basic condition to determine residential status, a person should have been in India during the previous year concerned for..................

A)60 days or more
B)120 days or more.
C)182 days or more.
D)240 days or more.