Top 150+ Solved Business Taxation MCQ Questions Answer
Q. Encashment of earned leave is given by………………. of Income Tax Act, 19
a. section 10(10aa)
b. section 12(10a)
c. section 15(10b)
d. none of the above
Q. Compensation received on voluntary retirement is given by of IncomeTax Act, 1961.
a. section 10(10d)
b. section 10(10c)
c. section 10(10e)
d. section 11(10d)
Q. The house rent allowance (HRA) under the salary head of Income Tax Act isgiven by
a. section 10
b. sec 10(13a)
c. section 11(13b)
d. section 11
Q. ……………….of Income Tax Act defines the perquisites and their valuation.
a. section 18
b. section17
c. section 18(c)
d. section 17(c)
Q. The Income tax rate for the financial year 2016-17 for individual is…………..
a. ` 5,00,000 to ` 10,00,000 is 20%
b. ` 5,50,000 to ` 1,50,000 is 20%
c. ` 5,00,000 to ` 10,00,000 is 30%
d. ` 5,00,000 to ` 10,00,000 is 10%
Q. Income tax rate for the senior citizens for year 2016-17 is .
a. upto ` 5 lakh is nil
b. upto ` 10 lakh is 10%
c. upto ` 5 lakh is 10%
d. none of the above
Q. For computation for Income tax liability for individual, the Education Cess is
a. 3%
b. 4%
c. 2.5%
d. 2%
Q. The rate of tax for the financial year 2016-17 for the foreign companies is
a. 45%
b. 30%
c. 40% flat
d. none of the above
Q. Which of the following are true regarding taxing the rich?
a. additional 10% tax on dividends in excess of ` 10 lakh per annum
b. surcharge on persons decreased to 12% from 15%
c. tds at 1% on purchase of luxury cars exceeding value of ` 10 lakh
d. all of the above
Q. Surcharge is levied at the rate …………….if the income exceeds ` 1 crore ofthe financial year 2016-17.
a. 10%
b. 12%
c. 15%
d. 20%
Q. Tax Liability for the individual for 2016-17 who is not the resident of theIndia whose income ` 2,50,000 to ` 5,00,000 is……………….
a. 10% of total income minus ` 2,00,000
b. 10% of total income minus ` 1,00,000
c. 15% of total income minus ` 1,00,000
d. none of the above
Q. The following is not taxable as income under the head “Salaries”:
a. commission received by a full-time director
b. remuneration received by a partner
c. allowances received by an employee
d. free accommodation given to an employee
Q. The following is exempt income from Income Tax:.
a. travel concession to employee
b. remuneration received for valuation of answer scripts
c. encashment of leave salary whilst in service
d. perquisites in india
Q. Advance salary is taxable and advance against salary is .
a. fully taxable
b. partially taxable
c. not taxable
d. none of the above
Q. If loan granted by employer to employee does not exceed …………., it is nottreated as perquisite to employee for purpose of income tax.
a. ` 20,000
b. 40,000
c. ` 30,000
d. ` 25,000