Deck 5: Income Tax Act, 1961: Deductions and Rates

Question 1

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

Answer 1

Section 80C

Question 2

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

Answer 2

Adding Income under five heads of Income, after applying clubbing provisions and making adjustment of set off and carry forward of losses

Question 3

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

Answer 3

Rs 1,50,000

Question 4

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

Question 5

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

Question 6

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%

Question 7

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

Question 8

In case of assessees other than companies, the following is advance tax rate to be payable on or before of 15th September:

A)45%
B)30%
C)15%
D)10%

Question 9

For the purposes of computing minimum alternate tax under Section 115B(a) of the Income Tax Act, 1961, the book profit need not to be increased by inter alia, the amount of deferred tax debited to the profit and loss account.

A)True
B)False
C)Can't say
D)none

Question 10

Which of the following is covered under section 80D of the Income Tax Act, 1961?

A)Medical treatment of handicapped dependent
B)Medical insurance premium
C)Reimbursement of medical expenses
D)Repayment of loan taken for higher education

Question 11

The deduction available under section 80QQB in respect of royalty income of authors shall not exceed _____________in previous year.

A)1,50,000
B)2,50,000
C)3,00,000
D)1,00,000

Question 12

For the purpose of deduction under section 80DD, which of the following statements is/are true?

A)Assessee is either and individual or a HUF
B)Assessee is resident of India
C)Assessee has a dependent disable relative
D)All of the above

Question 13

The maximum deduction one can clam under section 80D is .

A)30,000
B)50,000
C)40,000
D)60,000

Question 14

Amount of deduction in case of a person with severe disability under section 80U will be______________ .

A) 75,000
B) 85,000
C) 1,50,000
D)1,25,000

Question 15

Aggregate amount of deduction under 80C, 80CCC and 80CCD cannot exceed_________..

A)1,10,000
B)1,20,000
C)1,30,000
D)1,50,000

Question 16

In the case of every senior citizen resident in India, tax rebate under section 87A is ______.

A)5,000
B)2,000
C)1,000
D)Nil

Question 17

The provisions regarding TDS on Salaries are contained in .

A)Section 190
B)Section 191
C)Section 192
D)Section 193

Question 18

If the payee does not furnish PAN and TDS under section 194, dividends shall be made @__________ .

A) 20%
B) 15%
C)10%
D) Nil

Question 19

Deduction of tax at source for insurance commission is @ ___________________.

A)10%
B)15%
C)20%
D)12%