Question 1

The income is chargeable under the head of salary under ……………of Income Tax Act, 1961.
A)section 15
B)section 20
C)section 14
D)section 16

Accepted Answer

Section 15 of the Income Tax Act, 1961, specifies the conditions under which income is chargeable under the head "Salaries."

Question 2

Pension is ……………under the salary head.
A)fully taxable
B)partially taxable
C)not taxable
D)none of the above

Accepted Answer

Pension is considered as a salary and is fully taxable under the salary head as per the income tax laws.

Question 3

The salary of Member of Parliament is taxable under the head .
A)salary
B)income from other sources
C)income from business
D)all of the above

Accepted Answer

B

Question 4

The death-cum-retirement gratuity received by the Government Employee or employee of local authority is .
A)partially exempted
B)fully exempted
C)half taxable
D)none of the above

Accepted Answer

The death-cum-retirement gratuity received by a Government Employee or an employee of a local authority is fully exempted from income tax.

Question 5

Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is .
A)taxable
B)not taxable
C)partially taxable
D)none of the above

Accepted Answer

Under Section 15 of the Income Tax Act, salary is taxable on a due basis or receipt basis, whichever is earlier. Therefore, if the salary is due in the previous year, it is taxable even if it is not received.

Question 6

The assesses can claim relief under…………….for arrears or advance salary.
A)section 89(1)
B)section 89(2)
C)section 89(3)
D)section 89(4)

Accepted Answer

Section 89(1) of the Income Tax Act allows for relief in case of salary received in arrears or in advance.

Question 7

The Payment of Gratuity Act came into force in…………...
A)1973
B)1980
C)1991
D)1972

Accepted Answer

The Payment of Gratuity Act came into force in 1972.

Question 8

Which of the following is not taxable under the head Salary?
A)remuneration paid to the lecturer of a college for setting a question paper
B)salary received by a member of parliament
C)commission received by an employee director of a company
D)both (a) and (b)

Accepted Answer

Remuneration paid to a lecturer for setting a question paper and salary received by a member of parliament are not considered as income under the head "Salaries" for tax purposes. These incomes are taxed under different heads, such as "Income from Other Sources" or not taxed at all, depending on the specific tax laws and regulations.

Question 9

The children education allowance, the amount exempted from taxable income is limited to
A)100 per month per child upto 3 children
B)1,000 per year per child upto 2 children
C)100 per month per child upto 2 children
D)none of the above

Accepted Answer

The correct option is C) 100 per month per child up to 2 children. This is the amount exempted from taxable income under the children education allowance in India.

Question 10

If the employee receives retirement gratuity from more than one employer, he can claim exemption in respect of .
A)current employer
B)previous employer
C)both employer
D)not from single employer

Accepted Answer

An employee can claim exemption for retirement gratuity received from both the current and previous employers. The exemption is not limited to one employer but can be claimed for gratuity received from each employer in accordance with the provisions of the applicable tax laws.

Question 11

The family pension received by the family members of armed forces after death of employee is .
A)exempt fully
B)exempted after fulfilling of certain conditions
C)not exempted
D)none of the above

Accepted Answer

The answer of The family pension received by the family...

Question 12

The entertainment allowance is applicable to .
A)private sector employees
B)public sector employees
C)government employees
D)all of the above

Accepted Answer

The answer of The entertainment allowance is applicable to .
A)private...

Question 13

The assessment period for income tax on salary is .
A)only more than 12 months
B)12 months and less than 12 months
C)only 12 months
D)12 months and more than 12 months

Accepted Answer

The assessment period for income tax on salary is typically 12 months, corresponding to the financial year.

Question 14

Total income is to be rounded off to nearest multiple of …………….and tax is to be rounded off to nearest multiple of .
A)ten rupee
B)hundred, ten
C)ten, ten
D)rupee, rupee

Accepted Answer

The answer of Total income is to be rounded off...

Question 15

Income accrued outside India and received outside India is taxable in case of.
A)resident and ordinary resident (ror) only
B)resident but not ordinary resident (rnor) only
C)non-resident only
D)ror, rnor and non-resident

Accepted Answer

Income accrued outside India and received outside India is taxable in India only in the case of resident and ordinary residents (ROR). For non-residents (NR) and residents but not ordinarily residents (RNOR), such income is not taxed in India.

Question 16

Deduction under section 80C to 80U cannot exceed .
A)gross total income
B)total income
C)income from business or profession
D)income from house property

Accepted Answer

Deductions under section 80C to 80U cannot exceed the gross total income of an individual.

Question 17

The maximum limit for the claim of deduction under salary head Contributions to certain pension funds of LIC or any other insurer is .
A)up to ` 2,00,000
B)up to ` 1,50,000
C)up to ` 1,75,000
D)none of the above

Accepted Answer

The maximum limit for claiming a deduction under the salary head for contributions to certain pension funds of LIC or any other insurer is up to ₹1,50,000. This falls under Section 80CCC of the Income Tax Act, which is part of the overall limit of ₹1,50,000 available under Section 80C.

Question 18

Encashment of earned leave is given by………………. of Income Tax Act, 1961.
A)section 10(10aa)
B)section 12(10a)
C)section 15(10b)
D)none of the above

Accepted Answer

Encashment of earned leave is exempt from tax under section 10(10AA) of the Income Tax Act, 1961.

Question 19

Compensation received on voluntary retirement is given by of Income Tax Act, 1961.
A)section 10(10d)
B)section 10(10c)
C)section 10(10e)
D)section 11(10d)

Accepted Answer

Compensation received on voluntary retirement is exempt under section 10(10C) of the Income Tax Act, 1961, subject to certain conditions and limits.

Question 20

The house rent allowance (HRA) under the salary head of Income Tax Act is given by
A)section 10
B)sec 10(13a)
C)section 11(13b)
D)section 11

Accepted Answer

Section 10(13A) of the Income Tax Act provides for the exemption on House Rent Allowance (HRA) given to an employee by their employer to meet the cost of renting a home.

Quiz 2: Income From Salary

The income is chargeable under the head of salary under ……………of Income Tax Act, 1961.

Pension is ……………under the salary head.

The salary of Member of Parliament is taxable under the head .

The death-cum-retirement gratuity received by the Government Employee or employee of local authority is .

Under Section 15 of Income Tax Act, the salary due in previous years and even if it is not received is .

The assesses can claim relief under…………….for arrears or advance salary.

The Payment of Gratuity Act came into force in…………...

Which of the following is not taxable under the head Salary?

The children education allowance, the amount exempted from taxable income is limited to

If the employee receives retirement gratuity from more than one employer, he can claim exemption in respect of .

The family pension received by the family members of armed forces after death of employee is .

The entertainment allowance is applicable to .

The assessment period for income tax on salary is .

Total income is to be rounded off to nearest multiple of …………….and tax is to be rounded off to nearest multiple of .

Income accrued outside India and received outside India is taxable in case of.

Deduction under section 80C to 80U cannot exceed .

The maximum limit for the claim of deduction under salary head Contributions to certain pension funds of LIC or any other insurer is .

Encashment of earned leave is given by………………. of Income Tax Act, 1961.

Compensation received on voluntary retirement is given by of Income Tax Act, 1961.

The house rent allowance (HRA) under the salary head of Income Tax Act is given by