Professional Documents
Culture Documents
MCQ - Unit 2
MCQ - Unit 2
2
3
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Sample MCQ for unit 2
Note :Kindly practice numericals also.
To be an Ordinarily resident in India, an individual must satisfy ………………………. A) Both Basic Conditions and One Additional Co
Condition and Both Additional Conditions C) One Basic Condition and One Additional Condition D) Both Basic Conditions and B
Conditions
A person is said to be a non resident when he is _______________. A. not fulfilling any one of the basic conditions B. fulfilling
fulfilling only additional conditions D. fulfilling both basic and additional conditions
A Company has …………. types of residential status. A) 2 B) 3 C) 1 D) 4
The Residential Status of the following parties can be classified into only two
categories- Resident of India and Non- Resident in the previous year
a) Company, Firm
b) Association of persons
c) Both a and b d)Only a
If the ‘karta’ of a resident HUF satisfies _____ condition(s) given u/s _____, HUF is said to be an ordinarily resident.
A)both; 6(1)
b)one; 6(1)
c)both; 6(6)
d)one; 6(6)
As per section 5, the following is not included in the total income of a non-resident company —
A.Income which arises or accrues outside India
B.Income which deemed to accrue or arise in India
C.Income which accrues or arise in India during the previous year
D.Income which is received or deemed to be received in India.
An individual (aged 28 Years) born in India left for first time for employment in France on 30.10.2019. His visit outside India is
residential status for the assessment ye ar 2020-21 will be –
A.Non-resident
B.Residential Status is not applicable
C.Resident and ordinarily resident
D.Resident but not ordinarily resident
Which section of the Income-tax Act deals with determination of residential status of the person?
A.5
B.2
C.4
D.6
An individual who is a resident will become resident and ordinarily resident if ------------
a) He has been resident in India at least 2 out of 10 preceding years and
stayed in India for at least 730 days in preceding 7 years
b) He has been the resident in India for 3 out of 10 preceding
c) He has been in India for 765 days in preceding 7 years
Income received in India during the previous year is
taxable in the case of .
(a) ROR (b) RNOR (c) NR (d) All
Incomes which accrues in India but received outside
India are taxable in case of .
(a) ROR (b) RNOR (c) NR (d) All
Income which are not includible in the total income of the assessee are called .
(a) Exempt Incomes (c) Taxable
Incomes
(b) Incomes deductibleu/c VI-A. (d) None ofthe
above
Mr, Z working in XYZ ltd, along with the salary was offered accommodation at a
concessional rate. The compensation can be termed as ------------------ under the head
income from salary
a) Allowance
b) Bonus
c) Perquisite
Mr. Z working in a private organization was given education allowance of Rs 400 per
month per child for his three children. Maximum amount he can claim exemption for
children education allowance is ----------.
a) Rupees Two Thousand Four Hundred p.a.
b) Rupees Four Thousand Eight Hundred p.a.
c) Rupees Three Thousand Six Hundred p.a.
Income received in India whether occurred in India or outside India, the tax incidence
in case of resident is …………………………...
A) Taxable as per slabs B) Exempted from tax
C) Partly exempted D) None of the above
Pension is taxable under ..........................head.
A) Salary B) House property
C) Capital gains D) other sources
The Income TaxAct,1961 broadly covers ………………………...
A) Basic charging income B) Rebates and reliefs
C) Incomes exempted from income tax D) All of the above
A Perk is.........................
A) Cash paid by employer to employee
B) Facility provided by employer to employee
C) Amount credited to employees.
D) None of these accounts.
Perquisites to employees are covered in the I.T. Act 1961 under...................
A) Sec 2a. B) Sec. 17b. C) Sec 28a. D) Sec. 36 c.
The value of Interest free concessional loans to employees is determined on the basis
of lending rates of ..................... for the same purpose.
A) S.B.I. B) R.B.I. C) Central govt. D) State
govt.
Under Section 15 of Income Tax Act, the salary due in previous years and even if it is
not received is ………………………...
A) Taxable B) Not taxable
C) Partially taxable D) None of the above
The Payment of Gratuity Act came into force in ……………………..
A) 1973 B) 1980 C) 1991 D) 1972
In accordance with the provisions of Section 17(1) of Income Tax Act, 1961, the term
salary includes ……………………..
A) Any annuity or pension
B) Any gratuity
C) Any fees, commission, perquisite or profits in lieu of or in addition to any salary or
wages D) All of the above
The family pension received by the family members of armed forces after death of
employee is ……………………………….
A) Exempt fully B) Exempted after fulfilling of certain
conditions
C) Not exempted D) None of the above
The entertainment tax allowed as a deduction under Section 16 of Income Tax Act is
the least of ………………………….
A) Actual amount of entertainment allowance received
B) 20% of basic salary of the individual
C) 50,00
D) All of the above
The assesses can claim relief under ………………………… for arrears or advance
salary.
A) Section 89(1) B) Section89(2)
C) Section 89(3) D) Section89(4)
U/s 15 salary is taxable on __ basis.
(a) Receipt (b) Due (c) Earlier of (a) or (b) (d) None
Pension/leave salary paid abroad for services
rendered in India is deemed to accrue _____.
(a) In India (b) Outside India
Which of the following is not the condition for
claiming exemption for HRA ?
(a) Employee is in receipt of HRA.
(b) Location of the employer.
(c) Rent paid by employee > 10% of salary.
(d) Location of the accommodation of employees
Maximum Exemption in case of leave encashment is:
(a) Rs. 2.4 lac (b) Rs. 3.5 lac (c) Rs. 3 lac (d) Rs. 10 lac
A
A
A
C
A
B
B
B
A
B