Top 80+ Solved Direct Tax MCQ Questions Answer
Q. M is entitled to children education allowance @80 p.m per child for 3 children amountingRs.240p.m. It will be exempt to the extent of ___________
a. Rs.200 p.m
b. Rs.160 p.m
c. Rs.240 p.m
d. Rs.250 pm
Q. Entertainment allowance in case of government employee is _________________
a. Fully exempt
b. Fully taxable
c. Exempt up to certain limits mentioned in se16
d. First included in full in gross salary and thereafter deduction allowed from gross salary under section 16 (ii)
Q. Pension received by an employee of the central or state government who has been awarded “ParamVir Chakra” _____________
a. Is taxable as income from salary
b. Is exempt from tax
c. Is taxed after deducting Rs.15,000 or 1/3 whichever is lower
d. Is taxable as income from other sources
Q. Children education allowance is ____________
a. Exempt upto lower of the amount actually spent or the prescribed limits.
b. Exempt fully to the extent actually spent or the prescribed limits
c. Exempt to the extent of lower of allowance received or the lump sum amount prescribed, irrespective of actual expenditure.
d. Fully taxable
Q. Leave travel concession is _________
a. Exempt up to lower of the amount actually spent or the prescribed limits.
b. Exempt fully to the extent actually spent
c. Exempt to the extent of lower of allowance received or the lump sum amount prescribed, irrespective of actual expenditure.
d. Fully taxable
Q. M.has taken a house on rent and sublets the same to A, income of M from such house property shallbe taxable under the head _____________
a. Income from house property
b. Income from other sources
c. Business income
d. Income
Q. A has two house properties. Both are self-occupied. The annual value of ____
a. Both houses shall be nil
b. One house shall be nil
c. No house shall be nil
d. Single house
Q. A has two house properties. Both are self-occupied. The annual value of _________
a. Both houses shall be nil
b. One house shall be nil
c. No house shall be nil
d. None of the above
Q. An assessee has borrowed money for purchase of house and interest is payable outside India. Suchas interest shall ____________
a. Be allowed as deduction
b. Not to be allowed as deduction
c. Be allowed as deduction if the tax is deducted at source
d. None of the above
Q. Municipal tax is deducted from__________
a. Net annual value
b. Gross annual value
c. Municipal valuation
d. Amount value
Q. In case the property is owned by co -owners and it is self-occupied by all co -owners. The annualvalue of such house property ____________
a. Be nil
b. For each co-owner shall be nil
c. Only for co -one owner will be nil
d. None of the above
Q. A house property with fair rent Rs.1,20,000 is neither let out nor self-occupied throughout theprevious year. Its annual value shall be ________
a. Rs.1,20,000
b. Nil
c. Rs.60,000
d. None of the above
Q. Unrealized rent is a deduction from ______-
a. Gross annual value
b. Net annual value
c. Municipal value
d. District