Question 1

The deduction of life insurance premia, contribution to provident fund, etc. will is done under of Income Tax Act, 1961.

Accepted Answer

Section 80C of the Income Tax Act, 1961, allows deductions for life insurance premiums, contributions to provident funds, and other specified investments.

Question 2

Gross Total Income is arrived after .

Accepted Answer

Gross Total Income is calculated by adding the income from all five heads, after considering the clubbing provisions (where income of another person is included in the taxpayer's total income) and after adjusting for any set off and carry forward of losses. Deductions under sections 80C to 80U are allowed from Gross Total Income to arrive at Total Income, not included in the calculation of Gross Total Income.

Question 3

The maximum aggregate amount of deduction under sections 80C, 80CCC and 80CCD cannot exceed .

Accepted Answer

The maximum aggregate amount of deduction under sections 80C, 80CCC, and 80CCD is limited to Rs 1,50,000. This cap is set to encourage savings and investments in specified instruments while also ensuring that the benefit is not excessively utilized.

Question 4

Deduction in respect of contribution to political party will .

Accepted Answer

Contributions to political parties are deductible only if they are not made in cash. Payments made in cash are specifically excluded from being eligible for deduction under tax laws to ensure traceability and transparency of political contributions.

Question 5

Government's contribution to the new pension scheme referred to in Section 80CCD is

Accepted Answer

The government's contribution to the new pension scheme under Section 80CCD is considered income chargeable to tax as salaries in full. This means it is treated as part of the employee's salary for tax purposes.

Question 6

In case of a hospital built in specified area after 31.3.2008 fulfilling the required conditions laid down in Section 80IB-(11C), the profits and gains derived from running the hospital are

Accepted Answer

The answer of In case of a hospital built in...

Question 7

Deduction in respect of contribution to pension scheme of central government comes under _____________of Income Tax Act, 1961.

Accepted Answer

Section 80CCD of the Income Tax Act, 1961, deals with deductions related to contributions to the pension scheme of the central government.

Question 8

In case of assessees other than companies, the following is advance tax rate to be payable on or before of 15th September:

Accepted Answer

For assessees other than companies, the advance tax rate payable on or before 15th September is 30%.

Question 9

For the purposes of computing minimum alternate tax under Section 115B(a) of the Income Tax Act, 1961, the book profit need not to be increased by inter alia, the amount of deferred tax debited to the profit and loss account.

Accepted Answer

The answer of For the purposes of computing minimum alternate...

Question 10

Which of the following is covered under section 80D of the Income Tax Act, 1961?

Accepted Answer

Section 80D of the Income Tax Act, 1961, specifically provides for a deduction on the premium paid for medical insurance.

Question 11

The deduction available under section 80QQB in respect of royalty income of authors shall not exceed _____________in previous year.

Accepted Answer

The deduction available under section 80QQB in respect of royalty income of authors shall not exceed Rs. 3,00,000 in the previous year. However, the correct numerical value as per the latest norms is Rs. 3,00,000, but since the options provided do not match this figure and based on the options given, the closest and correct option as per the context of the question is Rs. 2,50,000 (Option B). This seems to be a discrepancy in the question's framing or a change in the law that is not reflected in the options.

Question 12

For the purpose of deduction under section 80DD, which of the following statements is/are true?

Accepted Answer

The answer of For the purpose of deduction under section...

Question 13

The maximum deduction one can clam under section 80D is .

Accepted Answer

The maximum deduction one can claim under section 80D is Rs. 60,000. This includes Rs. 25,000 for self, spouse, and dependent children, an additional Rs. 25,000 for parents (which goes up to Rs. 50,000 if the parents are senior citizens), and an extra Rs. 5,000 for preventive health check-ups within the existing limit.

Question 14

Amount of deduction in case of a person with severe disability under section 80U will be______________ .

Accepted Answer

The answer of Amount of deduction in case of a...

Question 15

Aggregate amount of deduction under 80C, 80CCC and 80CCD cannot exceed_________..

Accepted Answer

The aggregate amount of deduction under sections 80C, 80CCC, and 80CCD cannot exceed Rs. 1,50,000. This is the combined limit for deductions under these sections in the Income Tax Act of India.

Question 16

In the case of every senior citizen resident in India, tax rebate under section 87A is ______.

Accepted Answer

Tax rebate under section 87A is not specifically designated for senior citizens; it is available to all individuals who meet the income criteria, regardless of age. Therefore, there is no special rebate amount designated for senior citizens under this section.

Question 17

The provisions regarding TDS on Salaries are contained in .

Accepted Answer

The provisions regarding Tax Deducted at Source (TDS) on Salaries are contained in Section 192 of the Income Tax Act, 1961. This section mandates employers to deduct tax at source from the salaries paid to employees.

Question 18

If the payee does not furnish PAN and TDS under section 194, dividends shall be made @__________ .

Accepted Answer

If the payee does not furnish their Permanent Account Number (PAN) to the payer, the Tax Deducted at Source (TDS) on dividends under section 194 is deducted at a higher rate of 20%.

Question 19

Deduction of tax at source for insurance commission is @ ___________________.

Accepted Answer

The deduction of tax at source for insurance commission is at the rate of 10%. This is in accordance with the tax laws in many jurisdictions, where a certain percentage is deducted at source on payments made to individuals or entities for services rendered, including insurance commission.

Quiz 5: Income Tax Act, 1961: Deductions and Rates