Top 150+ Solved Income Tax Law and Practice MCQ Questions Answer
Q. Children hostel allowance is exempt up to .................. per month per child for a maximum oftwo children.
a. Rs: 100
b. Rs: 200
c. Rs: 300
d. Rs: 500
Q. Underground allowance is exempt up to:
a. Rs: 3200 p.m
b. Rs: 1600 p.m
c. Rs: 800 p.m
d. Rs: 900 p.m
Q. In case of an orthopedically handicapped employee, transport allowance is exempt up to:
a. Rs: 3200 p.m
b. Rs: 1600 p.m
c. Rs: 800 p.m
d. Rs: 900 p.m
Q. The amount of exemption in respect of tribal area allowance is:
a. Rs: 100 p.m
b. Rs: 200 p.m
c. Rs: 300 p.m
d. Rs: 325 p.m
Q. Value of facility of a house, owned by the employer, provided to an employee in the city wherethe population is 15 lakh, shall be:
a. 7.5% of salary
b. 10% of salary
c. 15% of salary
d. 24% of salary
Q. Value of unfurnished house, hired by employer, provided to an employee shall be:
a. 15% of salary
b. Actual rent
c. 15% of salary or actual rent whichever is less
d. 15% of salary or actual rent whichever is more
Q. The periodic payment of money for past service is called.......................
a. Gratuity
b. Pension
c. Commute pension
d. Retrenchment compensation
Q. Gratuity received by a government employee is exempted:
a. Up to Rs:10,00,000
b. Up to Rs:15,00,000
c. Fully
d. None of these
Q. The maximum amount of exemption in respect of gratuity received by an employee covered bythe Payment of Gratuity Act is:
a. Rs: 2,50,000
b. Rs: 5,00,000
c. Rs: 10,00,000
d. Rs: 20,00,000
Q. Commuted pension received by a non-government employee, who has not received gratuityshall be exempt:
a. ¼ of total pension
b. ½ of total pension
c. 1/3 of total pension
d. 2/3 of total pension
Q. Leave salary received by a government employee during service is:
a. Fully taxable
b. Fully exempted
c. Partly taxable
d. None of these
Q. Leave salary received by a government employee at the time of retirement is:
a. Fully taxable
b. Fully exempted
c. Partly taxable
d. None of these
Q. The exemption of leave salary received by a non-government employee at the time ofretirement shall not exceed:
a. Rs: 2,50,000
b. Rs: 3,00,000
c. Rs: 5,00,000
d. Rs: 10,00,000
Q. The exemption of retrenchment compensation received by an employee under IndustrialDispute Act shall not exceed:
a. Rs: 2,50,000
b. Rs: 3,00,000
c. Rs: 5,00,000
d. Rs: 10,00,000
Q. The exemption of payment received under VRS shall not exceed:
a. Rs: 2,50,000
b. Rs: 3,00,000
c. Rs: 5,00,000
d. Rs: 10,00,000