Deck 4: Taxation and Residency Requirements in India

Question 1

An individual who wants to be resident of India must satisfy at least...................

A)one of the two basic conditions.
B)both the basic conditions.
C)both the additional conditions.
D)both the basic conditions and the additional conditions

Answer 1

one of the two basic conditions.

Question 2

An individual who wants to be resident of India must stay in India for at least................

A)730 days in 10 previous years.
B)182 days in the previous year.
C)365 days in the previous year.
D)150 days in the previous year.

Answer 2

182 days in the previous year.

Question 3

A person who is of Indian origin visiting India during the previous year to be called resident must stay in India for at least.....................

A)60 days in py.
B)6 days in py and 365 days or more during 4 years preceding the py.
C)182 days in py.
D)730 days during 7 years preceding the py.

Answer 3

182 days in py.

Question 4

As per Second additional condition, a resident will be an ordinarily resident if stay in India for at least ......................... days during the seven previous years preceding the relevant .

A)182 days.
B)365 days.
C)60 days.
D)730 days.

Question 5

A person is Non resident if he fails to fulfil.....................

A)the additional conditions.
B)at least on of the basic conditions.
C)both basic conditions.
D)none of these.

Question 6

In case of Tax free salary, .......................................

A)tax is to be paid by employer
B)no tax is payable on such salary
C)tax is to be paid by the employee.
D)govt, itself pays the tax at a future date.

Question 7

Salary received by a member of parliament is.

A)taxable as salary income
B)exempt from tax sources.
C)taxable as income from other sources.
D)none of these.

Question 8

Allowances received by a government employee posted abroad are.............

A)fully exempted.
B)partly exempted.
C)fully taxable.
D)taxable by the country where posted.

Question 9

Dearness allowance is taxable in the hands of.................

A)govt employees
B)non govt employees
C)all employees.
D)none of these.

Question 10

House rent allowance is....................

A)fully exempted.
B)partly taxable.
C)fully taxable.
D)actual rent paid alone is taxable.

Question 11

Exempted limit of HRA in metropolitan cities is.

A)50% of salary.
B)40% of salary.
C)15% of salary.
D)none of these.

Question 12

Education allowance is exempted for a maximum of...................

A)one child.
B)two children.
C)three children.
D)four children.

Question 13

Children education allowance is exempted up to..................

A)rs. 200 p.m. per child.
B)rs. 300 p.m. per child.
C)rs. 100 p.m. per chi

Question 14

Hostel expenditure allowance is exempted up to..................

A)rs. 300 per month per child.
B)rs. 200 per month per child.
C)rs. 150 per month per chi

Question 15

Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actual allowance or.................

A)rs. 1,000.
B)rs. 2,000.
C)rs. 20,000.
D)rs. 5,000.

Question 16

A Perk is.........................

A)cash paid by employer to employee
B)facility provided by employer to employee
C)amount credited to employees.
D)none of these accounts.

Question 17

Perquisites to employees are covered in the I.T. Act 1961 under...................

A)sec 2a.
B)sec 17b.
C)sec 28a.
D)sec. 36 c.

Question 18

An employee is deemed as specified employee if he is a director in the company or has substantial in the company or his chargeable salary per annum exceeds.

A)rs. 5,00,000.
B)rs. 2,00,000.
C)rs. 1,00,000.
D)rs. 50,000.

Question 19

Interest on RPF balance is exempted up to.......................

A)9.75%.
B)9.5%.
C)10%.
D)12%.

Question 20

Employers contribution to RPF is exempted up to...................

A)10% of salary.
B)13% of salary.
C)12% of salary.
D)11% of salary.

Question 21

Commuted value of pension is fully exempted in case of......................

A)an employee of private sector.
B)an employee of a public sector undertaking.
C)a govt. employee.
D)none of these.