Income Tax Act MCQ - English

Set 2 MCQ Questions and Answers

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Income Tax MCQ Questions and Answers: Here learn quiz questions on Income Tax Act and download pdf 50 questions.

Page: 1/7

1) Allowances received by a government employee posted abroad are.....

    Fully exempted
    Partly exempted
    Fully taxable
    Taxable by the country where posted

Answer : A Discuss

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

    Fully exempted
    Partly taxable
    Fully taxable
    Actual rent paid alone is taxable

Answer : B Discuss

3) Exempted limit of HRA in metropolitan cities is

    50% of salary
    40% of salary
    15% of salary
    none of these

Answer : A Discuss

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

    One child
    Two children
    Three children
    Four children

Answer : B Discuss

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

    Foregoing salary
    Tax free salary
    Tax holiday
    None

Answer : B Discuss

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

    Section 80
    Section 17
    Section 10
    Section 23

Answer : C Discuss

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

    Direct tax
    Indirect tax
    Value Added Tax
    Deemed Tax

Answer : A Discuss

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

    Taxable under the head Business or profession
    Taxable under the head income from other sources
    Taxable in the hands of employee
    Exempt from tax

Answer : A Discuss

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

    Actual rent
    Fair rental Value
    Standard rent
    Municipal value

Answer : D Discuss

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

    Allowance
    Compensation
    Perquisite
    Profit in lieu of salary

Answer : C Discuss

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