Top 150+ Solved Business Taxation MCQ Questions Answer
Q. The salary of Member of Parliament is taxable under the head .
a. salary
b. income from other sources
c. income from business
d. all of the above
Q. The death-cum-retirement gratuity received by the Government Employeeor employee of local authority is .
a. partially exempted
b. fully exempted
c. half taxable
d. none of the above
Q. Under Section 15 of Income Tax Act, the salary due in previous years andeven if it is not received is .
a. taxable
b. not taxable
c. partially taxable
d. none of the above
Q. The assesses can claim relief under…………….for arrears or advance salary.
a. section 89(1)
b. section 89(2)
c. section 89(3)
d. section 89(4)
Q. Which of the following is not taxable under the head Salary?
a. remuneration paid to the lecturer of a college for setting a question paper
b. salary received by a member of parliament
c. commission received by an employee director of a company
d. both (a) and (b)
Q. The children education allowance, the amount exempted from taxable income is limited to
a. 100 per month per child upto 3 children
b. 1,000 per year per child upto 2 children
c. 100 per month per child upto 2 children
d. none of the above
Q. If the employee receives retirement gratuity from more than one employer,he can claim exemption in respect of .
a. current employer
b. previous employer
c. both employer
d. not from single employer
Q. The family pension received by the family members of armed forces afterdeath of employee is .
a. exempt fully
b. exempted after fulfilling of certain conditions
c. not exempted
d. none of the above
Q. The entertainment allowance is applicable to .
a. private sector employees
b. public sector employees
c. government employees
d. all of the above
Q. The assessment period for income tax on salary is .
a. only more than 12 months
b. 12 months and less than 12 months
c. only 12 months
d. 12 months and more than 12 months
Q. Total income is to be rounded off to nearest multiple of …………….and taxis to be rounded off to nearest multiple of .
a. ten rupee
b. hundred, ten
c. ten, ten
d. rupee, rupee
Q. Income accrued outside India and received outside India is taxable in caseof.
a. resident and ordinary resident (ror) only
b. resident but not ordinary resident (rnor) only
c. non-resident only
d. ror, rnor and non-resident
Q. Deduction under section 80C to 80U cannot exceed .
a. gross total income
b. total income
c. income from business or profession
d. income from house property
Q. The maximum limit for the claim of deduction under salary headContributions to certain pension funds of LIC or any other insurer is .
a. up to ` 2,00,000
b. up to ` 1,50,000
c. up to ` 1,75,000
d. none of the above