Deck 2: Income Tax and Allowances in India

Question 1

Which among the following is a fully exempted allowance?

A)Uniform allowance
B)HRA
C)Foreign allowance
D)CCA

Answer 1

Foreign allowance

Question 2

Income from salary includes:

A)Profit in lieu of salary
B)Perquisites
C)Allowances
D)All of the above

Answer 2

All of the above

Question 3

Salary received by a partner from his firm is an income under the head:

A)Salaries
B)Profits and gains from business or profession
C)Capital gains
D)Other sources

Answer 3

Profits and gains from business or profession

Question 4

Salary received by MLA or MP is treated as income under the head:

A)Salaries
B)Profits and gains from business or profession
C)Capital gains
D)Other sources

Question 5

Family pension received by a widow is treated as an income under the head:

A)Salaries
B)Profits and gains from business or profession
C)Capital gains
D)Other sources

Question 6

Salary received from a former employer is treated as an income under the head:

A)Salaries
B)Profits and gains from business or profession
C)Capital gains
D)Other sources

Question 7

Remuneration received from a person other than employer is treated an income under the head:

A)Salaries
B)Profits and gains from business or profession
C)Capital gains
D)Other sources

Question 8

Which among the following is a deduction allowed under section 16 :

A)Employment tax
B)Standard deduction
C)Entertainment Allowance
D)All of the above

Question 9

Pension is treated as an income under the head:

A)Salaries
B)Capital gains
C)Other sources
D)None of these

Question 10

Annuity received from the present employer is treated as income under:

A)Salary under section 17(1)
B)Perquisites
C)Allowances
D)Profit in lieu of salary

Question 11

Annuity received from former employer is treated as income under:

A)Salary under section 17(1)
B)Profit in lieu of salary
C)Allowances
D)Perquisites

Question 12

Annual accretion is taxable under:

A)Salary under section 17(1)
B)Perquisites
C)Allowances
D)Profit in lieu of salary

Question 13

Per-diem allowance given for the purpose of lodging facilities is :

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

Question 14

Sumptuary allowance to Judges of Supreme Court and High Court is:

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

Question 15

Festival allowance is :

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

Question 16

HRA received by an employee who is living in own house is:

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

Question 17

Standard deduction allowed from salary for A. Y 2019-20 is:

A)Rs: 35,000
B)Rs: 40,000
C)Rs: 50,000
D)None of these

Question 18

Entertainment allowance received by an employee of statutory corporation is:

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

Question 19

Children education allowance is exempt up to .................. per month per child for a maximum of two children.

A)Rs: 100
B)Rs: 200
C)Rs: 300
D)Rs: 500

Question 20

Rent free accommodation is an example for:

A)Allowance
B)Profit in lieu of salary
C)Perquisites
D)None of these

Question 21

Children hostel allowance is exempt up to .................. per month per child for a maximum of two children.

A)Rs: 100
B)Rs: 200
C)Rs: 300
D)Rs: 500

Question 22

Underground allowance is exempt up to:

A)Rs: 3200 p.m
B)Rs: 1600 p.m
C)Rs: 800 p.m
D)Rs: 900 p.m

Question 23

In case of an orthopedically handicapped employee, transport allowance is exempt up to:

A)Rs: 3200 p.m
B)Rs: 1600 p.m
C)Rs: 800 p.m
D)Rs: 900 p.m

Question 24

The amount of exemption in respect of tribal area allowance is:

A)Rs: 100 p.m
B)Rs: 200 p.m
C)Rs: 300 p.m
D)Rs: 325 p.m

Question 25

Value of facility of a house, owned by the employer, provided to an employee in the city where the population is 15 lakh, shall be:

A)7.5% of salary
B)10% of salary
C)15% of salary
D)24% of salary