Top 150+ Solved Income Tax Law and Practices MCQ Questions Answer
Q. Capital gain tax shall not be chargeable on disposal of securities which are held for a periodof __________.
a. one year
b. two years
c. three years
d. six months
Q. ‘Derivatives’ is a general term for financial assets that are “derived” from other_______________.
a. fixed assets
b. current assets
c. financial assets
d. income
Q. A loss on the sale of jewellery is _______ under the head capital gain.
a. recognized
b. not recognized
c. taxable
d. none of above
Q. Maximum limit for the deduction of Life insurance premia from the gross total income is .
a. Rs. 2,00,000
b. Rs 1,50,000
c. R s 1,00,000
d. Rs 1,25,000
Q. The deduction of life insurance premia, contribution to provident fund, etc. will is done under of Income Tax Act, 1961.
a. Section 80C
b. Section 80U
c. Section 80D
d. Section 80E
Q. Gross Total Income is arrived after .
a. Only adding Income under five heads of Income
b. Adding Income under five heads of Income excluding losses
c. Adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses
d. Adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses and after allowing deduction under sections 80C to 80U
Q. In Income Tax Act, 1961, deduction under sections 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 aggregate amount of deduction under sections 80C, 80CCC and 80CCD cannot exceed .
a. Rs 1,10,000
b. Rs 2,00,000
c. Rs 1,50,000
d. Nil
Q. Deduction in respect of contribution to political party will .
a. Be allowed in respect of sum paid by way of cash
b. Not be allowed if payment made in cash
c. This type of deduction is not allowed whether payment is in cash or not
d. Be allowed if payment made in cash, subject to certain conditions
Q. Maximum amount of deduction in case of a person with severe disability under section 80U will be .
a. 50,000
b. 75,000
c. 80,000
d. 1,00,000
Q. Government’s contribution to the new pension scheme referred to in Section 80CCD is
a. An exempt income
b. Income chargeable to tax as salaries in full
c. 50% thereof is income chargeable to tax as Salaries
d. Income chargeable to tax as income from other sources in full
Q. In case of a hospital built in specified area after 31.3.2008 fulfilling the required conditions laid down in Section 80IB-(11C), the profits and gains derived from running the hospital are
a. Deductible in full
b. Deduction up to 50%
c. Taxable in full
d. Deductible up to 75%
Q. Deduction in respect of contribution to pension scheme of central government comes under _____________of Income Tax Act, 1961.
a. Section 80CCD
b. Section 80U
c. Section 80EE
d. Section 80G