Deck 3: Taxation and Deductions: A Guide to Income From House Property and Business Expenses

Question 1

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

Answer 1

15% of salary or actual rent whichever is less

Question 2

The periodic payment of money for past service is called.......................

A)Gratuity
B)Pension
C)Commute pension
D)Retrenchment compensation

Answer 2

Pension

Question 3

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

Answer 3

Fully

Question 4

The maximum amount of exemption in respect of gratuity received by an employee covered by the 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

Question 5

Commuted pension received by a non-government employee, who has not received gratuity shall be exempt:

A)¼ of total pension
B)½ of total pension
C)1/3 of total pension
D)2/3 of total pension

Question 6

Leave salary received by a government employee during service is:

A)Fully taxable
B)Fully exempted
C)Partly taxable
D)None of these

Question 7

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

Question 8

The exemption of leave salary received by a non-government employee at the time of retirement shall not exceed:

A)Rs: 2,50,000
B)Rs: 3,00,000
C)Rs: 5,00,000
D)Rs: 10,00,000

Question 9

The exemption of retrenchment compensation received by an employee under Industrial Dispute Act shall not exceed:

A)Rs: 2,50,000
B)Rs: 3,00,000
C)Rs: 5,00,000
D)Rs: 10,00,000

Question 10

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

Question 11

Employee's contribution to which of the following is eligible for deduction u/s 80C:

A)Statutory Provident Fund
B)Recognised Provident Fund
C)Unrecognised Provident Fund
D)All of these

Question 12

Unrecognised Provident Fund is a provident fund which is not recognised by:

A)Commissioner of Provident Fund
B)Commissioner of Income Tax
C)Both a and b
D)None of these

Question 13

Annual value of self occupied house is:

A)Fair rent
B)Municipal valuation
C)Lower of a and b
D)Zero

Question 14

Standard deduction allowed on annual value of let out house property is:

A)30%
B)20%
C)40%
D)None of these

Question 15

The annual value of a house property is Rs:1,40,000. Mr. X and Mr. Y are equal co- owners of the house. X's income from house property shall be:

A)Rs: 70,000
B)Rs: 1,40,000
C)Rs: 49,000
D)Zero

Question 16

The annual value of the vacant H.P. referred in section 23(2)(b) shall be:

A)Fair rent
B)Municipal value
C)Standard rent
D)Zero

Question 17

An assessee paid Rs: 64,000 as interest on a loan taken in the P.Y 2018-19 for the renovation of self-occupied house. While computing income from H.P, he is eligible for deduction to the extent of:

A)Rs: 64,000
B)Rs: 30,000
C)Rs: 1,20,000
D)Zero

Question 18

is the base of computation of income under the head "income from H.P"

A)Annual value
B)Municipal rental value
C)Standard rent
D)Rent received

Question 19

Municipal tax paid by the owner during the P.Y. on house property is deducted from:

A)Annual value
B)Gross annual value
C)Standard rent
D)None of these

Question 20

Municipal tax paid by the owner during the P.Y.on self-occupied house property is:

A)Deducted from Annual value
B)Deducted from Gross annual value
C)Deducted from Standard rent
D)Not deductible

Question 21

The standard deduction u/s 24(a) shall be................. , if the Annual Value of the H.P. is Rs: 60,000.

A)Rs: 18,000
B)Rs: 30,000
C)Rs: 15,000
D)Rs: 60,000

Question 22

The work of a doctor is covered by the term:

A)Business
B)Trade
C)Profession
D)None of these

Question 23

If a businessman spends certain amount for advertisement in a souvenir of a political party, he is eligible for deduction from:

A)Income from other sources
B)Profits and gains from business or profession
C)Gross total income
D)None f these

Question 24

If a company spent Rs: 80,000 as preliminary expenses on 31st March, 2018, the allowable deduction is:

A)Rs: 8,000
B)Rs: 16,000
C)Rs: 20,000
D)Rs: 40,000

Question 25

While computing the income of a business, which among the following is allowed:

A)Doubtful debts
B)Provision for doubtful debts
C)Actual bad debts
D)All the above