Deck 8: Income Tax Act: Donations, Deductions

Question 1

Donation on PM's National Relief Fund is deductible 100% out of the gross total income of the assessee, under section ...................................

A)80c
B)80cc
C)80g
D)80gg

Answer 1

80g

Question 2

For the P.Y , 2012-13, the maximum permissible deduction under section 80C is ..............

A)rs: 80,000
B)rs: 1,00,000
C)rs: 2,00,000
D)1,12,000

Answer 2

rs: 1,00,000

Question 3

The rate of surcharge on tax payable is ......................% when taxable income is Rs: 5,57, 500.

A)3%
B)5%
C)10%
D)nil

Answer 3

nil

Question 4

The basic exemption up to which income is not taxable for an individual resident is ..............

A)rs: 1,00,000
B)rs: 2,00,000
C)rs: 5,00,000
D)none of the above

Question 5

STCL can be set off in the same assessment year from ...............................

A)stcg
B)ltcg
C)both
D)not possible

Question 6

Maximum amount of deduction allowable under section 80CCF is ......................

A)rs: 10,000
B)rs: 20,000
C)rs: 25,000
D)rs: 1,00,000

Question 7

Maximum Marginal Rate for the current A.Y. ( 2013-14) is ..................................

A)25%
B)20%
C)30%
D)35%

Question 8

Interest n loan taken before 1-4-1999 for construction or repairs of self occupied house shall be deducted up to Rs: .......................................

A)rs: 25,000
B)rs: 30,000
C)rs: 1,00,000
D)rs: 1,50,000

Question 9

For claiming exemption u/s 54, the assessee should construct the residential property within .........................

A)one year before or 2 years after the date of transfer
B)one year before or 3 years after the date of transfer
C)within 3 years after the date of transfer
D)within 2 years after the date of transfer.

Question 10

The cost of acquisition of bonus shares allotted on or after 1-4-1981 is ..........................

A)fair market value of that shares on 1-4-1981
B)fair market value on the date of issue of shares
C)nil
D)none of these

Question 11

Any some received under key man insurance policy taken on the life of the employee shall be ..........................

A)taxable under the head business or profession
B)taxable under the head income from other sources
C)taxable in the hands of employee
D)exempt from tax

Question 12

The rent fixed as per municipal valuation is called ............................

A)municipal value
B)fair rental value
C)standard rent
D)actual rent

Question 13

Rent free accommodation is an example for .....................................

A)allowance
B)compensation
C)perquisite
D)profit in lieu of salary.

Question 14

The amount deductible for severe disability u/s 80U is ..........................

A)rs: 1,00,000
B)rs: 1,20,000
C)rs: 50,000
D)rs: 90,000

Question 15

When a loan is taken for the education of a child, the father is entitled to deduction u/s ..........................

A)80 c
B)80 g
C)80 e
D)80 u

Question 16

Income of a minor child is exempted up to ..........................

A)rs: 1,000
B)rs: 1,500
C)rs: 1,200
D)rs: 2,000

Question 17

Loss from business can be carried for ...................... years.

A)6
B)8
C)12
D)16

Question 18

Income of Benami transactions shall be included in the income of .........................

A)real owner
B)transferor
C)transferee
D)none of these

Question 19

The amount received from URPF is ..........................

A)taxable
B)exempted
C)exempted, subject to certain conditions
D)none of the above

Question 20

............................ section deals with exempted incomes.

A)section 80
B)section 17
C)section 10
D)section 23

Question 21

There will be no partial integration, if the agricultural income does not exceed ............................

A)rs: 15,000
B)rs: 25,000
C)rs: 50,000
D)rs: 5,000

Question 22

Salary on which income tax is borne by the employer is called ....................................

A)foregoing salary
B)tax free salary
C)tax holiday
D)none

Question 23

Secondary and higher education cess is charged at the rate of .......................... of the amount of income tax.

A)1%
B)2%
C)3%
D)5%

Question 24

A partnership firm will be assessed as firm if there is .........................

A)an agreement
B)a written agreement
C)an oral agreement
D)none of the above.

Question 25

Partnership firms are governed by the provisions of the Indian Partnership Act of ...................

A)1956
B)1932
C)1946
D)1881

Question 26

A firm shall pay tax on long term capital gain @ .................................

A)15%
B)20%
C)25%
D)30%

Question 27

Section 89 of the Income tax Act deals with .............................

A)perquisites
B)arrears of salary income
C)allowances
D)profit in lieu of salary