4. The total of various heads of income is called:
Correct : B. Gross Total Income
5. Income tax was introduced in India for the first time by:
Correct : B. Sir James Wilson
6. According to Income Tax Act, there are.................heads of income.
Correct : C. Five
7. Income tax is a .................tax.
Correct : A. Direct
8. Under Income Tax Act, which of the following entities comes under the term “Person”:
Correct : D. All of these
9. Income Tax Department works under:
Correct : C. State Government
10. For Income Tax purpose, a senior citizen is an individual who the age of :
Correct : C. 60 year or more but less than 80 years
11. The income tax rate for short term capital gains specified in Sec.111A is:
Correct : B. 15%
12. Which of the following section of Income Tax Act is termed as “Charging Section”:
Correct : B. Section 4
13. For the A.Y , the tax exemption limit of income for BOI is:
Correct : C. Rs: 2,50,000
14. For the A.Y 2019-20, an individual who is resident in India, is eligible for rebate if his total
income does not exceed:
Correct : C. Rs: 3,50,000
15. The income tax rate for long term capital gains is:
Correct : C. 20%
16. The income tax rate for long term capital gains is:
Correct : D. 30%
17. Health and education Cess is charged on the amount of:
Correct : D. Income tax and Surcharge
18. Which among the following is included in income?
Correct : A. Sum received under Key man Insurance Policy
19. A citizen of India who goes abroad for the purpose of employment, must stay in India for a
period of at least ..................... days during the P.Y. to become ordinarily resident.
Correct : B. 182 days
20. Income accruing in India is assessable for :
Correct : D. All the above
21. Agricultural income from China is assessable for:
Correct : A. Ordinarily resident
22. Every year the residential status of an assessee:
Correct : C. may change
23. interest credited to a recognised provident fund account is exempt up to:
Correct : D. 9.5%
24. The amount of exemption in respect of academic allowance is limited to:
Correct : B. Actual amount spent
25. Children education allowance is exempted for.............. children.
Correct : B. Two
26. Which among the following is a fully exempted allowance?
Correct : C. Foreign allowance
27. Income from salary includes:
Correct : D. All of the above
28. Salary received by a partner from his firm is an income under the head:
Correct : B. Profits and gains from business or profession
29. Salary received by MLA or MP is treated as income under the head:
Correct : D. Other sources
30. Family pension received by a widow is treated as an income under the head:
Correct : D. Other sources
31. Salary received from a former employer is treated as an income under the head:
Correct : A. Salaries
32. Remuneration received from a person other than employer is treated an income under the head:
Correct : D. Other sources
33. Which among the following is a deduction allowed under section 16 :
Correct : D. All of the above
34. Pension is treated as an income under the head:
Correct : A. Salaries
35. Annuity received from the present employer is treated as income under:
Correct : A. Salary under section 17(1)
36. Annuity received from former employer is treated as income under:
Correct : B. Profit in lieu of salary
37. Annual accretion is taxable under:
Correct : A. Salary under section 17(1)
38. Per-diem allowance given for the purpose of lodging facilities is :
Correct : B. Fully exempted
39. Sumptuary allowance to Judges of Supreme Court and High Court is:
Correct : B. Fully exempted
40. Festival allowance is :
Correct : A. Fully taxable
41. HRA received by an employee who is living in own house is:
Correct : A. Fully taxable
42. Standard deduction allowed from salary for A. Y 2019-20 is:
Correct : B. Rs: 40,000
43. Entertainment allowance received by an employee of statutory corporation is:
Correct : B. Fully taxable
44. Children education allowance is exempt up to .................. per month per child for a maximum
of two children.
Correct : A. Rs: 100
45. Rent free accommodation is an example for:
Correct : C. Perquisites
46. Children hostel allowance is exempt up to .................. per month per child for a maximum of
two children.
Correct : C. Rs: 300
47. Underground allowance is exempt up to:
Correct : C. Rs: 800 p.m
48. In case of an orthopedically handicapped employee, transport allowance is exempt up to:
Correct : A. Rs: 3200 p.m
49. The amount of exemption in respect of tribal area allowance is:
Correct : B. Rs: 200 p.m
50. Value of facility of a house, owned by the employer, provided to an employee in the city where
the population is 15 lakh, shall be:
Correct : B. 10% of salary
51. Value of unfurnished house, hired by employer, provided to an employee shall be:
Correct : C. 15% of salary or actual rent whichever is less
52. The periodic payment of money for past service is called.......................
Correct : B. Pension
53. Gratuity received by a government employee is exempted:
Correct : C. Fully
54. The maximum amount of exemption in respect of gratuity received by an employee covered by
the Payment of Gratuity Act is:
Correct : D. Rs: 20,00,000
55. Commuted pension received by a non-government employee, who has not received gratuity
shall be exempt:
Correct : B. ½ of total pension
56. Leave salary received by a government employee during service is:
Correct : A. Fully taxable
57. Leave salary received by a government employee at the time of retirement is:
Correct : B. Fully exempted
58. The exemption of leave salary received by a non-government employee at the time of
retirement shall not exceed:
Correct : B. Rs: 3,00,000
59. The exemption of retrenchment compensation received by an employee under Industrial
Dispute Act shall not exceed:
Correct : C. Rs: 5,00,000
60. The exemption of payment received under VRS shall not exceed:
Correct : C. Rs: 5,00,000
61. Employee’s contribution to which of the following is eligible for deduction u/s 80C:
Correct : C. Unrecognised Provident Fund
62. Unrecognised Provident Fund is a provident fund which is not recognised by:
Correct : B. Commissioner of Income Tax
63. Annual value of self occupied house is:
Correct : D. Zero
64. Standard deduction allowed on annual value of let out house property is:
Correct : A. 30%
65. The annual value of a house property is Rs:1,40,000. Mr. X and Mr. Y are equal co- owners of
the house. X’s income from house property shall be:
Correct : C. Rs: 49,000
66. The annual value of the vacant H.P. referred in section 23(2)(b) shall be:
Correct : D. Zero
67. An assessee paid Rs: 64,000 as interest on a loan taken in the P.Y 2018-19 for the renovation of
self-occupied house. While computing income from H.P, he is eligible for deduction to the extent of:
Correct : B. Rs: 30,000
68. is the base of computation of income under the head “income from H.P”
Correct : A. Annual value
69. Municipal tax paid by the owner during the P.Y. on house property is deducted from:
Correct : B. Gross annual value
70. Municipal tax paid by the owner during the P.Y.on self-occupied house property is:
Correct : D. Not deductible
71. The standard deduction u/s 24(a) shall be................. , if the Annual Value of the H.P.
is Rs: 60,000.
Correct : A. Rs: 18,000
72. The work of a doctor is covered by the term:
Correct : C. Profession
73. If a businessman spends certain amount for advertisement in a souvenir of a political party, he
is eligible for deduction from:
Correct : C. Gross total income
74. If a company spent Rs: 80,000 as preliminary expenses on 31st March, 2018, the allowable
deduction is:
Correct : B. Rs: 16,000
75. While computing the income of a business, which among the following is allowed:
Correct : C. Actual bad debts
76. Which among the following is not an admissible expense:
Correct : A. Income tax
77. While computing the profit of a firm, interest allowed on partners’ capital is allowed:
Correct : A. Up to 12%
78. The deduction allowed in respect of payment made to an approved university for social
research is:
Correct : D. 100%
79. For the purpose of income tax, depreciation is charged on:
Correct : C. WDV
80. Depreciation is not allowed on:
Correct : C. Land
81. Unabsorbed depreciation can be carried forward for set-off up to:
Correct : D. Any number of years
82. The rate of depreciation applicable to intangible asset is:
Correct : D. 25%
83. The rate of depreciation applicable to furniture is:
Correct : A. 10%
84. The allowable depreciation on motor car is:
Correct : C. 30%
85. What is the additional rate depreciation on new plant?
Correct : C. 20%
86. The allowable rate of depreciation on computer is:
Correct : B. 40%
87. Which among the following is not a capital asset?
Correct : B. Stock-in-trade
88. Under which section, a firm is eligible for exemption in respect of long term capital gain
arising from the sale of a residential house:
Correct : B. Sec. 54EC
89. Income from the sale of a house hold furniture is a/an:
Correct : A. Exempted income
90. Cost Inflation Index for the Financial Year 2018-19 is:
Correct : D. 280
91. For being long term capital gain, the asset should be retained by the assessee for a period of:
Correct : B. More than 36 months
92. Which among the following is not a capital asset?
Correct : D. All of these
93. Capital gain on depreciation assets is always:
Correct : B. STCG
94. For being a long term capital gain, the assessee should retain the shares for a period of:
Correct : C. More than 12 months
95. Capital gain arises from:
Correct : B. Stock
96. Which among the following is not a capital asset?
Correct : D. Agricultural land situated in a village
97. Which among the following is not chargeable to tax under the head, income from other
sources?
Correct : D. Profit on sale of the goodwill of a business
98. The deduction allowable in respect of family pension is:
Correct : C. 33 1/3 % of the family pension or Rs: 15,000 whichever is less
99. The inclusion of others’ income in the income of an assessee is called:
Correct : B. Clubbing
100. If marriage of parents subsists, the income of a minor child:
Correct : C. Shall included in the income of that parent whose total income is greater