Question 1

A resident must stay in India for 730 days during the previous

Accepted Answer

For an individual to qualify as a resident in India for tax purposes, they must have stayed in India for 730 days during the 7 years immediately preceding the relevant financial year.

Question 2

A person is said to be of Indian origin if he or his parent were born in

Accepted Answer

A person is considered of Indian origin if he or his parents were born in undivided India, which includes present-day India, Pakistan, and Bangladesh before their partition in 1947.

Question 3

Receipt by a member from HUF is fully exempt

Accepted Answer

Receipt by a member from a Hindu Undivided Family (HUF) is fully exempt from tax under the Income Tax Act, as it is considered a distribution of family income.

Question 4

Income of minor child clubbed with the income of parents gets an exemption of

Accepted Answer

In India, the income of a minor child that is clubbed with the income of the parents is eligible for an exemption of Rs 1500 per child. This is provided under Section 10(32) of the Income Tax Act, 1961.

Question 5

To determine the residential status of HUF, the residential status of

Accepted Answer

The residential status of a Hindu Undivided Family (HUF) is determined by the residential status of its Karta (the head of the HUF) during the relevant financial year.

Question 6

GST is a………………….

Accepted Answer

GST (Goods and Services Tax) is an indirect tax because it is passed on until the final consumer bears the cost. Unlike direct taxes, which are levied directly on the income of individuals or organizations, indirect taxes are applied to the price of goods and services.

Question 7

A person with the age of or more is considered as a super senior citizen as per Income tax Act.

Accepted Answer

As per the Income Tax Act, a person aged 80 years or more is considered a super senior citizen.

Question 8

Assessment year is the period of 12 months commencing from_every year.

Accepted Answer

The assessment year in the context of taxation is the period of 12 months commencing from 1st April every year and ending on 31st March of the next year.

Question 9

Expenditure incurred on exempted income is.............. as deduction.

Accepted Answer

The answer of Expenditure incurred on exempted income is.............. as...

Question 10

HRA is………………..

Accepted Answer

HRA (House Rent Allowance) is partly taxable. The exemption available on HRA is the least of the following three options: the actual HRA received, 40% (50% for metros) of the salary, or the excess of rent paid over 10% of salary.

Question 11

If the assessee is living in own house HRA is…………..

Accepted Answer

HRA (House Rent Allowance) is fully taxable if the assessee is living in their own house, as there is no rent payment to claim exemption against.

Question 12

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

Accepted Answer

The answer of Children education allowance is exempt up to...

Question 13

Children hostel allowance is exempt up to per month per child for

Accepted Answer

Children hostel allowance is exempt up to per month per child for 2 children.

Question 14

Transport allowance given by the employer to the employee is exempt up to………..

Accepted Answer

Transport allowance given by the employer to the employee is exempt up to Rs.1600 per month.

Question 15

Education allowance is exempted for……..

Accepted Answer

Education allowance is typically exempted for two children per employee under many tax jurisdictions. This exemption is often provided to help offset the cost of education and is limited to a certain number of children to prevent abuse of the exemption.

Question 16

Gratuity received by a government employee is.......................

Accepted Answer

Gratuity received by a government employee is fully exempted from income tax under the Income Tax Act of India.

Question 17

The periodic payment of money for the past service is known as........................

Accepted Answer

Pension is the periodic payment made to an individual after retirement for their past services, typically based on their previous employment's salary and years of service.

Question 18

Pension is taxable under_head.

Accepted Answer

Pension is considered as income under the head "Salary" for tax purposes, as it is a form of compensation received for past employment.

Question 19

Which of the following is not included in salaryincome.

Accepted Answer

Family pension is considered as income from other sources, not salary income. It is paid to the family members of a deceased employee and is taxed differently from salary income.

Question 20

Dearness allowance is taxable in the handsof.................

Accepted Answer

The answer of Dearness allowance is taxable in the handsof.................
...

Quiz 2: Income Tax in India: Part B