Question 1

Value of unfurnished house, hired by employer, provided to an employee shall be:

Accepted Answer

The value of an unfurnished house provided to an employee by the employer is considered as the lower of 15% of salary or the actual rent paid by the employer. This is done to calculate the perquisite value for tax purposes.

Question 2

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

Accepted Answer

Pension is the term used to describe the periodic payment of money received by individuals following retirement, typically as a result of their past service or contributions to a pension plan.

Question 3

Gratuity received by a government employee is exempted:

Accepted Answer

Gratuity received by a government employee is fully exempt from tax under the Income Tax Act.

Question 4

The maximum amount of exemption in respect of gratuity received by an employee covered by the Payment of Gratuity Act is:

Accepted Answer

The maximum exemption limit for gratuity under the Payment of Gratuity Act was increased to Rs. 20,00,000.

Question 5

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

Accepted Answer

For a non-government employee who has not received gratuity, 1/2 of the total pension received as a commuted pension is exempt from tax.

Question 6

Leave salary received by a government employee during service is:

Accepted Answer

Leave salary received by a government employee during service is fully taxable under the Income Tax Act.

Question 7

Leave salary received by a government employee at the time of retirement is:

Accepted Answer

Leave salary received by a government employee at the time of retirement is fully exempted from income tax.

Question 8

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

Accepted Answer

The answer of The exemption of leave salary received by...

Question 9

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

Accepted Answer

The exemption of retrenchment compensation under the Industrial Dispute Act is capped at Rs: 5,00,000. This means that any retrenchment compensation received by an employee up to this amount is not taxable.

Question 10

The exemption of payment received under VRS shall not exceed:

Accepted Answer

The answer of The exemption of payment received under VRS...

Question 11

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

Accepted Answer

The answer of Employee's contribution to which of the following...

Question 12

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

Accepted Answer

An Unrecognised Provident Fund is one that is not recognised by the Commissioner of Income Tax, which means it does not meet the requirements set by the Income Tax Act to receive tax benefits.

Question 13

Annual value of self occupied house is:

Accepted Answer

The annual value of a self-occupied house is considered to be zero since it does not generate any rental income for the owner.

Question 14

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

Accepted Answer

The standard deduction allowed on the annual value of let-out house property is 30%. This deduction is allowed for expenses related to the maintenance of the property.

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:

Accepted Answer

The answer of The annual value of a house property...

Question 16

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

Accepted Answer

According to section 23(2)(b) of the Income Tax Act, the annual value of a house property that is vacant throughout the year is considered to be 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:

Accepted Answer

For the renovation of a self-occupied house, the deduction limit on interest paid on a loan is Rs. 30,000 under the Income Tax Act of India.

Question 18

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

Accepted Answer

The base of computation of income under the head "Income from House Property" (H.P) in many tax jurisdictions is the Annual Value of the property. This is often determined by the property's potential to generate income, not necessarily the actual rent received.

Question 19

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

Accepted Answer

Municipal tax paid by the owner during the previous year on house property is deducted from the Gross Annual Value (GAV) to arrive at the Net Annual Value, which is used for calculating income from house property for tax purposes.

Question 20

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

Accepted Answer

The answer of Municipal tax paid by the owner during...

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