Question A B C D

None of the above

Income tax extends to _____ of India. whole
Income tax is a tax on _____. Income None of the above
None of the above
In all there are _____ number of section
298
under the Income tax Act, 1961.
The rate of tax on Income is decided None of the above
Finance Act
every year by the _____.
Income tax Act came into force from None of the above
1st April 1961
_____.
Constitution is the _____ in India. parent law None of the above
The constitution of India empowers None of the above
Central Government
_____ to levy tax on income.
None of the above
Gross Tax Liability – _____ = Net Tax Tax Deducted at
Liability. Source (TDS);
None of the above
The Finance Bill is introduced by _____. Finance Minister
Finance Bill, once approved, becomes None of the above
Finance Act
_____.
None of the above
The act provides for _____ of the determination
assessee. of total income
The _____ on the total income is None of the above
decided every year by passing the rate of tax
finance act.
Income tax extend to whole of India. True False
Income tax is a tax on tax. True False
Income tax in India is governed by the
Income tax Act, 1961. True False
The constitution of India empowers
Central Government to levy tax on
Income. True False
Constitution of India empowers Central
Government to levy tax on income.
True False
The Income Tax Act came into force
from financial year 1962-63. True False
Gross Tax Liability is calculated on
Gross Total Income. True False
The Income Tax Act has 289 sections.
True False
Finance Bill becomes Finance Act after
the assent of parliament. True False
The Finance Bill makes the amendment
in the form of omission, insertions and
substitutions in the Income Tax Act. True False
The Income Tax Act is applicable to
whole of India. True False
The Finance Minister introduces the
Finance Bill in the parliament. True False
The rate of tax on the total income is
decided every year by passing the
Finance Act. True False
The Finance Act is substitute to Income
tax Act. True False
The constitution of India empowers Central
State Government Parliament Finance Minister
__________ to levy tax on income. Government
Income Tax is a tax on _________. Income Profit Turnover Expenditure
The Income Tax Act, 1961 has 298
Sections Sub-sections Clauses Sub-clauses
__________.
The _________ makes the amendment in
the form of omission, insertions and Finance Bill Finance Minister Finance Act Parliament
substitutions in the Income Tax Act.
The Income Tax Act extends to
States Union Territories Citizens Whole
___________ of India.
Gross Tax Liability is calculated on Net Taxable
Gross Total Income Income Salary
________. Income

Question A B C D
Defination which are definite, specific, None of the above
complete and full are called as _____ exhaustive
definations.
A person by whom tax payable under the None of the above
Assessee
Act is called as _____.
Income Tax Act defines assessment to None of the above
Reassessment
include _____.
Previous year means _____ year None of the above
immediately preceeding the assessment Financial
year.
Person includes a natural human being None of the above
and also includes _____ or a person of Minor, unsound mind;
_____.
Any sum of money received without None of the above
consideration by an individual is called Gift
as _____.
None of the above
Previous year of a newly set up business
less than
can be of _____ 12 months.
A period of 12 months commencing on None of the above
1st day of April every year is called an Assessment
_____.
None of the above
Any sum received or receivable in cash
or kind under an agreement for not Non – compete
carrying out an activity in relation to a agreement
business is called as _____.
Any sum of money exceeding _____ None of the above
received without consideration by an 50,000
individual is treated as Income.
_____ of the Income Tax Act, 1961 None of the above
Section 2
gives the definition of various terms.
The act has _____ chapters, _____ None of the above
23, 298, 14
sections and _____ schedules.
_____ means an exception to the None of the above
Proviso
provision in section.
The two types of definitions are _____ Exhaustive and None of the above
and _____. Inclusive
None of the above
_____ provide scope for interpretation. Inclusive Definition
_____ is the process of determining the None of the above
Assessment
tax payable by an assesseee.
None of the above
Income should be real and not _____. Fictional
Income can be on _____ basis or _____ None of the above
Accrual or receipt
basis.
None of the above
Any sum received or receivable in cash
or kind under an agreement for not Non-compete
carrying out an activity in relation to a agreement
business is called as _____.
Non-compete agreements are also called Exclusive right None of the above
_____. agreement
_____ means a period of 12 months None of the above
commencing from 1st day of April every Assessment year
year.
_____ received by a professional None of the above
Awards
sportsman is an income.
None of the above
_____ received by wife for her personal
Pin Money
expenses is not treated as income.
According to section 2 (8), Assessment None of the above
Reassessment
includes _____.
_____ means a clarification of a None of the above
Explanations
particular term or a part of section.
The term _____ includes individual, None of the above
HUF, Firm, Company, AOP, BOI, Local Person
authority etc.
_____ is chargeable u/s 45. Capital Gains None of the above
Periodical Monetary None of the above
Income is expected to be a _____.
Return
None of the above
_____ gifts are not chargeable to tax. Personal
Loss is to be taken as _____. Minus income None of the above

Dharampur Gram Panchayat is a AOP.

True False
AOP stands for association of
Panchayats. True False
HUF stands for human undivided family.
True False
Thane municipal corporation is a local
authority. True False
Previous year is always of 12 months.
True False
Assessment year is always of 12 months.
True False
Only individuals can be member of body
of individuals. True False
Gift received on occassion of marriage is
always taxable as income. True False
For a newly set up business previous
year can be of less than 12 months.
True False
Any person can become a member of
association of person. True False
Every receipt is an income. True False
All persons do not have to pay tax. True False
In assessment year, income of previous
year is assessed. True False
Assessee is the person whose income is
assessed. True False
Any income which is received through
unlawful means is not chargeable to tax.
True False
Income can be in cash or kind. True False
Income can be real or fictional. True False
Pin Money is taxable. True False
Interest and salary payments made to
partners are taxable in the hands of
partners. True False
Assessment year can be of less than 12
months. True False
Previous year of every assessee may or
may not be same. True False
Reliance Industries Ltd. is a person as
per Income tax Act, 1961. True False
Awards received by professional
sportsperson in nature of gift is liable to
tax. True False
Income is calculated on the basis of
receipt only. True False
Distribution of surplus arising from
mutual activity is not chargeable to tax.
True False
According to section 2 (8), assessment
includes Reassessment. True False
The definition of ‘Income’ is inclusive
definition. True False
The financial year immediately
succeeding the assessment year is the
previous year. True False
Hindu
Human undivided Human divided
The term H.U.F. stands for : Hindu divided family undivided
family family
family
Residential has nothing to do with : Constitution Citizenship Censorship Change
Association of Association of Association of
A.O.P. is the abbreviation used for : Associate of person
persons professors Panchayats
Persons other
Both of the
A.O.P. should consist of : Individual only than individual None of the above
above
also
 Persons other
Both of the
Body of individual should consist of : Individual only than individual None of the above
above
only
Residential status of an individual
Asseseement
depends on the stay of the assesses in Calendar year Accounting year Previous year
year
India during the :
A person by whom any tax is payable
Individual Tax Receiver Assessee None of the above
under Income Tax Act 1961 is called as :
The financial year in which the income is
Assessment year Present year Previous year Current year
earned is called as the :
An company is always resident in India : Industrial Individual Indian Investment
Whole of India
India and Sri
Income Tax Act extends to Whole of India except Jammu & None of these
Lanka
Kashmir
A new business was set up on 15-11-
2019 and it commended its business 15-11-2019 to 31-3- 1-12-2019 to 31-
2017-2020 None of these
from 1-12-2019. The first previous year 2020 3-2020
in this case shall be :
Shivaji University is assessable under the An Artificial A Local
A Individual None of these
Income Tax Act as Juridical Person Authority
Income Tax Act has ____________
23 14 298 40
schedules.
Section 58 sub-
Section 58 schedule Section 58 clause Section 58 sub-
section (1)
58 (1) (a) (ii) is read as _________. (1) clause (a) sub- (1) sub-section section (1) clause (a)
clause (a) sub-
clause (ii) (a) schedule (ii) schedule (ii)
clause (ii)
In 59 (3) (b) (iv), (b) is ____________. Section Sub-section Clause Sub-clause
____________ are definite, specific, Inclusive
Exhaustive definition Sections Clauses
complete and full. definition
A firm is regarded as a unit of
Income Tax Act Partnership Act Companies Act Finance Act
assessment as per ____________.
Voluntary
____________ is chargeable u/s 45. Capital Gains Profit and Gains Dividend
Contribution
Voluntary
Income includes ____________. Dividend Capital Gains All of the above
Contribution
Any sum of money received in excess of
____________ without consideration is 5,000/- 50,000/- 5,00,000/- 55,000/-
chargeable to tax.
Previous year can be of ____________
More than Less than Only Any
12 months.
Any sum received or receivable in cash
No
or kind under an agreement for not Non-compete
Pin Money Mutual Activity Competition
carrying out an activity in relation to a Agreement
Deal
business is called as ____________.
____________ is expected to be a
Salary Profit Income Interest
periodical monetary return.
____________ are not taxable. Losses Personal Gifts Illegal Income Awards
____________ received by wife is not
Pin Money Compensation Gift Salary
taxable.
The term ‘Person’ includes
HUF AOP BOI All of them
____________
Partners are liable to pay tax on
Salary Profit Income Both (a) & (c)
____________ received from firm.

Question A B C D
Stay, India None of the above
Residential status of the assessee
depends on the _____ of the assessee in
_____ during the previous year.
Non Resident None of the above
If the assessee does not satisfy the basic
condition he will be treated as _____.
Resident None of the above
If the assessee satisfies the basic
condition he will be treated as _____.
parent, grand parents, None of the above
A person shall be deemed to be of an
undivided
Indian origin if he or either of his or any
of his _____ were born in _____ India.
If an individual satisfies only basic R & OR None of the above
condition and non of the additional
condition he will be called as _____.
Residential Status None of the above
Total Income of a person is determined
on basis of _____ in India.
Previous None of the above
Residential status is determined based on
number of days stay in _____ year.
Indian Company is always _____ in Resident; None of the above
India.
Residential status has nothing to do with Citizenship None of the above
_____.
Atleast None of the above
Special individuals shall not be treated
as resident unless their stay in India is
_____ 182 days during previous year.
Residential status has nothing to do with
citizenship. True False
Residential status of the assessee
depends on the stay of the assessee in
India during the previous year. True False
If the assessee does not satisfy the basic
condition he will be treated as resident
assessee. True False
An Indian Co. is always treated as Non
resident Co. True False
If an individual satisfies any one basic
condition and any one additional
condition he will be treated as R but
NOR. True False
While determining the Residential status
of the individual his stay need not be at
the same place nor it be continuous. True False
Past Untaxed profits brought into India
is always taxable. True False
If Karta of HUF has R & OR status the
HUF also has the same status. True False
Once a person is resident for a source of
income in a pervious year he shall be
deemed to be resident for all other
sources of income in the same previous
year. True False
An Indian company is always resident in
India. True False
A resident in India cannot become
resident in any other country for the
same assessment year. True False
Residential Status is to be determined on
the basis of nos. of days in India during
assessment year. True False
Incomes which accrue or arise outside
India but are received directly into India
are taxable only incase of resident. True False
Income deemed to accrue or arise in
India is taxable in case of all the
assessee. True False
Income which accrues or arise outside
India from a business controlled from
India is taxable in case of only not
ordinary resident. True False
Income which accrues or arises outside
India and also in India is taxable in case
of both ordinarily resident and not
ordinarily resident. True False
Total income of a person is determined
on the basis of his citizenship in India.
True False
A foreign co. is always non-resident in
India. True False
Residential status is to be determined on
the basis of no. of days stay in India
during financial year. True False
If an assesses satisfies one basic
condition & one additional condition
then he will be treated as resident and
ordinarily resident. True False
Only individuals and HUFs can be
resident, but not ordinarily resident in
India. True False
An HUF will be treated as not ordinarily
resident in India if its Karta is not
ordinarily resident in India. True False
If Karta satisfies both additional
conditions then HUF will be treated as
ordinarily resident, though the Karta may
be non-resident. True False
Income deemed to accrue or arise in Both R & OR and
Resident only Non-resident All of the above
India is taxable is case of : R but NOR
Income which accrue or arise outside
Not ordinary Both R & OR
India and also received outside India is Resident only None of the above
resident and R but NOR
taxable in case of :
Income which accrue outside India from
Not ordinary Both R & OR
a business controlled from India is Resident only None of the above
resident only and R but NOR
taxable in case of :
Residential status is determined based on Accounting
Previous year Assessment year None of these
nos. of days stay in : year
Total Income of a person is determined Residential status in Citizenship in None of the
Both of the above
on the basis of : India India above
Infourge Ltd. is registered in London the Not ordinarily
Both ordinarily
control and mangement of its affairs is Resident only resident in None of the above
resident and NOR
situated in India Infourge Ltd. shall be : India

Incomes which accrue or arise outside

Both ordinary
India but are received directly into India Resident only Non-resident All the assesses
resident and NOR
are taxable for case of :
Success Ltd. is an Indian company
Not ordinarily
whose entire control and management of Non-resident in
Resident in India resident in None of these
its affairs is situated outside India India
India
success Ltd is :
Martin Crow a foreign national visited
Not ordinarily
India during previous year for 180 days.
Resident in India Non-resident resident in None of these
Earlier to this he never visited India.
India
Martin Crow in this case shall be :
Residential status is to be determined for Accounting
Previous year Assessment year None of these
: year
Infaurge Ltd. Is an Indian company
Not ordinarily
whose entire control and management of Non-resident in
Resident in India resident in None of these
its affairs is situated outside India. India
India
Infaurge shall be :
Success Ltd. Is registered in U.K. The Not ordinarily
control and management of its affairs is Resident in India Non-resident resident in None of these
situated in India. Success Ltd. shall be : India

Manoj a foreign national visited India

Not ordinarily
during previous year 2018-19 for 150
Resident in India Non-resident resident in None of these
days. Earlier to this he never visited
India
India. Manoj in this case shall be :

Raja a foreign national but a person of

Indian origin visited India during Not-ordinarily
Non-resident in
previous year 2018-19 for 181 days. Resident in India resident in None of the above
India
During 4 preceding previous years he India
was in India for 365 days. Raja shall be :

If an individual satisfies any of the basic

conditions and satisfies only one
R & OR Non-Resident R but NOR None of the above
additional condition, then also he shall
be considered as __________.
Special individuals would become non-
Less than 182 More than 182
resident if their stay in India during Equal to 182 days None of the above
days days
previous year is __________.

Dividend received from a foreign

company in London, taxable in case of R & OR R but NOR Non-Resident All of the above
following individuals __________
Fees for technical services rendered in
India but received in London, taxable in R but NOR R & OR Non-Resident All of the above
case of __________.
In case of following individuals, global
R & OR R but NOR NR None of the above
income is taxable __________.

Question A B C D
None of the above
Agricultural Income is _____ from tax.
However it is included in the total Exempted, rate
Income for determining the _____ of tax.
Upper monetary limit for claiming None of the above
exemption from gratuity for “other” `10,00,000
category is _____.
Uncommuted pension means _____ None of the above
Periodical
payments.
Commutted pension is exempted in the None of the above
government
hands of _____ employees.
_____ is maximum celing for claiming None of the above
exemption as compensation on
`5,00,000
retirement of an employee from a PSU
u/s 10 (10c).
Minors Income which is clubbed with None of the above
that of is parent is exempted up to `1,500 per minor child
_____.
None of the above
Share of profits received by a partner,
from a firm which is separately assessed, 10 (2 A)
is exempt u/s ________.
Uncommuted pension is taxable under None of the above
Income from Salary
the head ________.
Maturity proceeds of key man insurance None of the above
Taxable
policy is ________.
Leave salary received during the period None of the above
Taxable
of service is ________.
Commuted pension means receipt of None of the above
________ amount in lieu of periodical Lumpsum
pension.
________ received by the members of None of the above
parliament or state legislature are Allowances
exempt.
Notified amount of gratuity for the None of the above
employees not covered by payment of 10,00,000
gratuity act is ________.
Salary of a M.P / M.L.A. is taxable Income from None of the above
under the head ________. other sources
Salary given to partner by a firm is None of the above
Business Income
taxable under the head ________.
Income from forest trees of spontaneous
growth is an agricultural income and
hence exempted from tax. True False
Gratuity paid to government employees
is always fully exempt from a tax.
True False
Uncommutted pension means receipt of
lumpsum amount in lieu of periodical
income. True False
Uncommutted pension is always taxable.
True False
Tax paid by the employer on Non
monetory perquisite provided to
employee is to be treated as taxable
perquisite. True False
Maturity proceeds of key man insurance
policy is exempt from tax u/s 10 (10D)
True False
Maturity proceeds in a policy in respect
of which premium paid or payable in any
year in excess of 10% of capital sum
assured will be taxable for policies
issued on or after 1-4-2012. True False
Compensation received on voluntary
retirement is exempt u/s 10 (10C)
maximum upto 3,50,000. True False
Salary for exemption of gratuity shall be
taken as average salary of 10 months
immediately proceeding the month of
retirement or death. True False
On retirement a non-government
employee was entitled to gratuity. He
also got 60% of his pension committed
for 60,000. It is exempted from tax. True False
Agricultural Income is to be excluded
from total income for determining the
rate of tax. True False
Commuted pension is exempted in the
hands of both government & non-
government employees. True False
Uncommuted pension received by
government employee is exempt. True False
Compensation received on voluntary
retirement is exempt u/s 10 (10 CC). True False
Any sum received under key-man
insurance policy is not exempt u/s 10 (10
D). True False
An Assessee claimed the exemption of
gratuity in the past to the extent of
2,50,000 from his previous employer. He 10,00,000 Nil 7,50,000 None of the above
was entitled to How much exemption can
he claim to the maximum extent :
Un-commuted pension received by a
Exempt Taxable 1/3 is exempt None of these
Government employee is :
An employee is neither a government nor
covered under the payment of Gratuity
Act, 1972. He has completed 16 years 16 years and 8
17 years 16 years None of the above
and 8 months of service. The number of months
completed years considered for gratuity
exemption shall be :
Compensation received on voluntary is
exempt under sec. 10 (10 C) to the 2,40,000 3,00,000 5,00,000 None of the above
maximum extent of :
It is paid by a
It is paid by an Indian It is paid by a it is paid by a joint
Dividend is exempt in case : multinational
Company foreign company venture unit.
company
Gratuity received by the Government
Fully taxable Fully exempt Party taxable None of the above
employee is :
Gallantry award means : Param Vir Chakra Mahavir Chakra Vir Chakra All of the above
The items of incomes which are totally
exempt from tax are covered u/s 80 10 8 None of the above
________.
Upper monetary limit for claiming
exemption from gratuity for “other” 5,00,000 1,00,000 10,00,000 None of the above
category is ________.
Minors Income which is clubbed with
1,200 per minor 1,300 per minor
that of his parent is exempted upto 1,500 per minor child None of the above
child child
________.
The dividend income in the hands of the
shareholders will be exempt from tax u/s 10 (35) 10 (34) 10 (32) 10 (33)
________.
Uncommuted pension is taxable in the Non-Government Government
Both (a) & (b) None of the above
hands of ________. Employees Employees
Leave salary received during the period Exempt u/s 10 (10 Exempt u/s 10
Taxable None of the above
of service is ________. AA) (10 A)
Tax borne by the employer on non-
monetary perquisite provided to 10 (10 C) 10 (10 CC) 10 (10 BC) 10 (10 CCC)
employee is exempt u/s ________.

Question A B C D
Expenses incurred by an assesses in None of the above
relation to exempt income are _____ u/s Not deductable
14 A of the Income tax Act, 1961.
The total of 5 heads of income given u/s None of the above
Gross total Income
14 is called as _____.
There are _____ heads of income under None of the above
five
income tax act, 1961.
The Technique of computation of None of the above
income chargeable to tax depends upon classification
the _____ of income
There are 5 heads of Income under
Income Tax Act, 1961. True False
Provisions for computation of Income
under all 5 heads are the same.
True False
Expenses incurred by an assessee in
relation to the income covered u/s 10 are
not deductible u/s 14 A of the Income
Tax Act, 1961. True False
The total of 5 heads of income given u/s Gross Total Net Total
Total Income None of the above
14 is termed as __________. Income Income
Provisions applicable under each head of
Same Similar Different None of the above
income are __________.

Question A B C D
Entertainment tax deduction is allowed Government None of the above
only to _____. employee
Employers contribution to RPF to None of the above
12%;
exempt up to _____ of salary.
Interest credited to RPF is exempt up to None of the above
9.5%;
_____ p.a.
Salary income is taxable on _____ or None of the above
accrual, receipt
_____ basis whichever is earlier.
None of the above
_____ allowance deduction is allowed
entertainment
only to Government employees.
Profession tax deduction is allowed on None of the above
payment
_____ basis.
Arrears of salary are taxable in the year None of the above
receipt
of _______.
Telephone provided at the residence of None of the above
an employee by employer is _______ non-taxable
perquisite.
Wages paid by the employer for the None of the above
domestic servants employed by the taxable
employee is _______ perquisite.
Interest credited to public provident fund None of the above
exempt
is _______.
Employer – employee relationship None of the above
scope
determines the _______ of salary.
_______ relationship is necessary for None of the above
taxing the remuneration under the head employer-employee
income from salary.
Advance against salary is _______. non-taxable None of the above
Salary received by a partner from the
firm in which he is partner is taxable
under the head Income from salaries. True False
Employer – Employee relationship is
necessary for taxing the remuneration
under the head Income from salary. True False
Entertainment allowance deduction is
only allowed to Non government
employees. True False
Mediclaim premium paid by the
employer on behalf of employee is a Tax
–free perquisite. True False
Employers contribution to statutory
provident fund shall be exempt upto 12%
of salary. True False
Interest credited to statutory provident
fund is fully exempt from tax.
True False
Profession tax deduction is allowed on
accrual basis. True False
Entertainment allowance deduction is
allowed only to Non government
employees. True False
Any amount received in the period of
suspension by suspended employee is
not taxable under the head “Income from
Salary”. True False
Advance against salary is taxable but
advance of salary is not taxable. True False
Bonus received is taxable in the year of
receipt and not in the year in which it is
declared. True False
Income tax due on salary paid by the
employer is a non-taxable perquisite. True False
Amount actually spent on entertainment
is to be considered for claiming
deduction u/s 16 (ii). True False
Employee’s contribution to RPF is
exempt from tax upto 12% of salary. True False
Standard deduction u/s 16 (i) is lower of
` 40,000 or Gross Salary. True False
Salary of Sushil Kumar becomes due on
1st of next month and it is paid on 10th
April 2019 to March March 2019 to April 2020 to March 2020 to
that month. For the assessment year 2020-
2020 February 2020 March 2021 February 2021
21, the salary of Sushil Kumar shall be
taken from :
Ramu who is entitled to salary of 10,000
p.m. took advance salary from his
employer for the months of April and
May 2020, along with salary of March, 1,20,000 1,40,000 20,000 1,00,000
2020 on 31-3-2020. The gross salary of
Ramu for the assessment year 2020-21
shall be :
Ramu who is entitled to a salary of
10,000 p.m. took an advance of 50,000
against the salary in the month of March 1,70,000 1,20,000 50,000 70,000
2020. The gross salary of Ramu for
assessment year 2020-21 shall be :
Prof. Vineet received 6th Pay arrears on
2015-16, 2016-
14th May, 2019 retrospectively from 1st 2019-20 17, 2017-18 2015-16 None of the above
Jan, 2016. The arrears would be taxable respectively
in the previous year :
First included in full
in gross salary and
Exempt upto
thereafter deduction
Entertainment allowance in case of certain limits
Fully exempt Fully taxable allowed from gross
government employee is : mentioned in
salary under section
sec. 16 (ii)
16 (ii) subject to
certain parameters.
The life insurance Policy taken by a
person on the life of another person who Key man Insurance Key Insurance
LIC Employed Insurance
is connected & key to the business as policy Policy
employee is called :
Entertainment allowance is deductable to Private company Government Both of the
None of the above
the extent of 5,000 for a employee employee above

Any
reimbursement to Any
an employee in expenditure
The same as
Perquisite can be : respect of an incurred by the None of the above
allowance
obligation which employer for
would be payable staff welfare
by the employee

Manthan a chartered accountant is

employed with Mayuni Ltd., an internal
Profit and gains
auditor and requests the employer to call Income from
Income from salaries from Business None of these
the remuneration as internal audit fee. other sources
and profession
Manthan shall be chargeable to tax for
such fee under the head.

A. Raja who is entitled to salary of

40,000 p.m. took an advance of 80,000
against the salary in the month of March 5,60,000 4,80,000 4,00,000 None of these
2020. The gross salary of Raja for
assessment year 2020-21 shall be :
Lalit who is entitled to salary of 12,000
p.m. took advance salary from his
employer for the months of April and
May 2020, along with salary of March, `1,44,000 `1,68,000 `1,56,000 `1,20,000
2020 on 31-3-2020. The gross salary of
Lalit for the assessment year 2020-21
shall be :
Salary of shaila becomes due on 1st of
next month and it is paid on 7th of that April, 2019 to March, March 2019 to April, 2020 to None of these
month. For the assessment year 2020-21, 2020 February, 2020 March, 2021
the salary of Shaila shall be taken from
Progressive Ltd. announced increase in
In respective
D.A. on 21-3-2020 with retrospective
previous years
effect from 21-3-2012 and the same paid 2018-19 2019-20 2020-21
to which these
on 6-04-2020. The arrears of D.A. shall
relate
be taxable in the previous year.

Kumar is neither a government employee

nor covered under payment of Gratuity
Act. 1972. He has completed 21 years 21 years and 8
22 years 21 years Average of (a) & (b)
and 8 months of service. The number of months
completed years considered for gratuity
exemption shall be
Employer’s contribution to statutory Exempt upto 12% of Exempt upto
Fully exempt None of the above
provident fund is _________. salary 9.5% of salary
Exempt upto
Interest credited to RPF is _________. Fully exempt Fully Taxable exempt upto 9.5%
8.5% p.a
Compensation on termination of Not taxable as
Income from other Income from
employment will be taxable under the it is capital Fully Exempt
sources salary
head _________. receipt
Profession tax deducted is allowed on
Accrual basis Payment basis Both (a) & (b) Non-deductible
_________.
Maximum amount of deduction for
1,500 2,500 5,000 3,000
entertainment allowance is _________.
Deductions in respect of salary are
17 16 15 None of the above
covered u/s _________.

Question A B C D
Gross Annual Value of a SOHP is None of the above
Nil
_____.
Municipal tax is a deduction allowed on None of the above
payment
_____ basis.
None of the above
Municipal tax is allowed as deduction if
owner
it is paid by the _____ of the property.
None of the above
Income is taxable under the head house
property only when the assessee is the owner
_____ of such house property.
Arrears of rent shall be deemed to be None of the above
income of the previous year in which
received, 30%;
such rent is _____ after deducting _____
of such amount.
Income from House cannot be taxed None of the above
under the head house property if the
business or profession
owner occupies the property for his
_____ or _____.
None of the above
Arrears of rent received after sale of
property _____ taxable after deducting is, 30%
of _____ % of such amount.
 None of the above
In case of self-occupied property, the
deduction on account of interest on the
money borrowed for the purpose of 2,00,000
construction of such house property
cannot exceed _____ .
None of the above
Fair rent of house is 2,50,000 and annual
rent 2,80,000. Municipal taxes paid for 6
1,60,000
yrs. In advance is 1,20,000. The Net
annual value shall be _____.

For a self-occupied house property None of the above

occupied in 2017-18 for which housing
loan was availed, the interest up to
March 31, 2017 is 2,05,000 and
1,01,000
thereafter the interest payable is 5000
per month, the deduction available under
section 24 in respect of interest for the
year ended March 31, 2020 is _____.
None of the above
Municipal tax is deducted from _____. gross annual value
Standard deduction is allowed on None of the above
notional basis of an amount equal to 30%
_____% of net annual value.
Pre-construction interest on house is None of the above
allowed in _____ equal installments
commencing from previous year in five
which property is acquired or
constructed.
Interest on loan for self occupied None of the above
property is restricted to _____ or _____ 30,000 or 2,00,000
as applicable.
Interest on borrowed money which is None of the above
payable outside India shall be allowed as
source
deduction if tax has been deducted at
_____.
The unrealized rent has been allowed to None of the above
be deducted in determining the _____ gross annual value
u/s 23 (i).
Income from sub-letting is taxable under income from other None of the above
the head _____. sources
Interest accrued during the construction None of the above
period preceding the year of completion
pre-construction
of construction is termed as _____
interest.
Municipal taxes are deductible from the
gross annual value only when they
accrue. True False
Unrealised rent is a deduction from net
annual value. True False
An assessee has borrowed money for
purchase of a house and interest is
payable outside India. Such interest shall
be allowed as deduction, only if tax is
deducted at source. True False
Kimaya is owner of building although
the land was taken by him on lease. The
income from such house property shall
be taxable under the head : income from
house property. True False
The interest on new loan taken to square
off interest liability towards the old loan
is allowed as deduction u/s 24 (b). True False
Reasonable letting down value is higher
of fair rent or municipal valuation.
True False
Municipal tax paid by owner is allowed
as deduction for deemed to be let out
property. True False
The assessee shall be allowed a statutory
deduction of a sum equal to 30% of
gross annual value. True False
The annual value of the property shall
not be taken to be nil if the assesseee
cannot occupy his property & resides at
some other place due to his employment. True False
Municipal valuation of the source is
1,20,000 and actful rent received is
1,25,000 fair Rent is 1,40,000. The gross
1,20,000 1,40,000 1,25,000 None of the above.
annual value in this case shall be.
Assuming that reduction in rent is due to
vacancy.
Municipal valuation of the house is
1,00,000 fair rent 1,20,000 and actual
rent received or receivable is 1,40,000. 1,00,000 1,20,000 1,40,000 None of the above
The Gross Annual Value in this case
shall be
Municipal valuation of the house is
1,20,000 fair rent 1,40,000 and actual
rent received or receivable is 1,25,000.
1,25,000 1,25,000 1,40,000 None of the above
The gross annual value in this case shall
be assuming that reduction in rent is not
due to vacancy.
A house property with fair rent 1,00,000
is neither let out nor self occupied
1,00,000 Nil 85,000 None of the above
through out the previous year. Its annual
value shall be.
Municipal
Un realised rent is a deduction from Gross annual value Net annual value None of the above
Value
A property is owned by co-owners and it To each co-
To the extent of
is self occupied house property. In this owner, to the No deduction
`2,00,000 as the case
case interest on money borrowed after 1- extent of of interest shall None of the above.
may be for the total
4-1999 for acquiring the house shall be `2,00,000 as the be allowed.
property income.
allowed. case may be
A has two house properties. Both are self-Both house shall be One house shall No house shall
None of the above
occupied. The Gross annual value of nil be nil be nil

Be allowed as
An assessee has borrowed money for
Be allowed as Not to be allowed deduction if the
purchase of a house property & Interest None of the above
deduction as deduction tax is deduction
is paid outside India. Such interest shall :
at source
Gross Annual Municipal
Municipal tax is deducted from Net Annual Value None of the above
Value Valuation
In case the property is owned by co- For each co- Only for co-one
Such house property
owners and it is self occupied by all co- owners shall be owner will be None of the above
be nil
owners . The annual value of nil nil
Municipal Tax paid is allowed as LOHP and
SOHP only, LOHP only, All of the above
deduction for DLOH,
Mandan has taken a house on rent and
sublets the same to Anil. Income from Income from house Income from Business
None of the above
such house property shall be taxable property other sources Income
under the head.
Gross Annual Municipal
Municipal tax is deducted from Net Annual Value None of the above
Value Valuation
In case the property is owned by co- For each co- Only for co-one
Such house property
owners and it is self occupied by all co- owners shall be owner will be None of the above
be nil
owners. The annual value of nil nil
A house property with fair rent 1,20,000
is neither let out nor self occupied
1,20,000 Nil 60,000 None of the above
through out the previous year. Its annual
value shall be
Municipal
Unrealised rent is a deduction from Gross annual value Net annual value None of the above
Value
A has two house properties. Both are self- One is SOHP and One house is
Both house are SOHP None of the above
occupied. other is DLOP LOHP
In case the property is owned by co- For each co- Only for co-one
Such house property
owners and it is self occupied by all co- owners shall be owner will be None of the above
be nil
owners. The annual value of nil nil
Municipal Tax paid is allowed as LOHP and
SOHP only LOHP only All of the above
deduction for DLOH
Municipal tax is a deduction allowed on
Accrual basis Payment basis Both (a) & (b) None of the above
___________.
Municipal tax paid in respect of house
property is allowed as deduction if paid Tenant Owner Both (a) & (b) None of the above
by ___________.
Mr. Varun is owner of two houses
namely “Genaraje” at Mulund & “Om
Sai” at Thane which are self – occupied . Partly let out &
Let out Self-occupied Deemed let out
However, apartment at “Om Sai” was let partly SOHP
out for 2 months. The computation of
this property would be ___________.
Unadjusted loss from house property can
be carried forward & set off in
7 Years 8 Years 6 Years 9 Years
subsequent years subject to limit of
___________.

Question A B C D
None of the above
Depreciation under Income-tax Act is
charged at the prescribed rate on the Block of asset
written down value of the _____ .
If any asset is used for less than _____ None of the above
days in the year of purchase, the
180 days
depreciation rate will be only 50% of the
normal rate.
Advertisement in souvenir of a _____ None of the above
party is disallowed while computing political
business income.
Expenses exceeding _____ paid in cash None of the above
`10,000
are disallowed.
Deduction for bonus or commission to None of the above
employee is allowed only on _____ payment
basis.
Profit on sale of import licence is taxed Profit & Gains of None of the above
under the head _____ . Business
None of the above
Any expenditure incurred on scientific
research except on _____ shall be land
allowed as business expenditure u/s. 35.
A weight deduction of _____ of the None of the above
amount paid, to be used for scientific
research, to a university or national two times
laboratory will be allowed as on business
expenditure.
None of the above
_____ tax is allowed as deduction while
sales
computing the business income.
None of the above
If some expenses are partly disallowed,
then only disallowed portion should be added
_____ to the profit.
An assesee can claim additional None of the above
depreciation on plant and machinery at
actual cost
the rate of 20% of _____ if a few
conditions are satisfied.
The _____ of WDV of the block and None of the above
rate of depreciation is the amount of product
depreciation.
Unabsorbed depreciation can be carried None of the above
indefinite
forward for _____ period.
Amount paid to national laboratory to be None of the above
used for scientific research shall be
200%
allowed a weighted deduction of _____
% of sum paid.
Expenditure incurred on family planning None of the above
amongst the employees is allowed to company
_____ assessee.
If residential flats are let out to the None of the above
employees for efficient conduct of
assesse’s own business, income from business income
such letting is taxable under the head
_____.
None of the above
Expenditure on scientific research
incurred by the assesseee can be claimed
related
as deduction provided the research is
_____ to assesse’s business.
In respect of _____ allowed as deduction None of the above
u/s 35, no depreciation can be claimed capital expenditure
u/s 32.
None of the above
Income from Profit and Gains of
business or Profession is 1,00,000 and
his loss from speculative business is
`10,0000
1,00,000, during the same previous year.
Net business income taxed during the
previous year will be _____ .
A weighted deduction of one and three
forth time of the amount paid to national
laboratory is allowed as business
expenditure. True False
Expenditure on purchase of land gets a
weighted deduction of 175% of the
amount spent u/s 35. True False
Expenditure which is personal in nature
is allowed as business expenditure.
True False
Speculative transaction means a
transaction in which a contract for the
purchase or sale of any including stocks
and shares is settled otherwise than by
actual delivery. True False
Export incentives received by an
assessee are exempt from tax. True False
Income of trade or professional
association, from specific services
performed for its members shall be
taxable under the head : income from
business. True False
Salary, bonus, commission or
remuneration due to or received by a
working partner from the firm is taxable
under the head : Business & Profession. True False
Any sum received by an employer from
keyman insurance policy taken on the
life of the employee shall be exempt. True False
Interest on Capital received by a partner
from firm shall be exempt u/s 10(2A).
True False

Ralash, who was carrying on Agency

business, received a sum 1,00,000 from
his principal for termination of agency.
Compensation amount so received shall
be exempt as it is capital receipt.
True False
Unabsorbed depreciation which could
not be set off in the same assessment
year, can be carried forward indefinitely. True False
Where the machinery is used by the
assessee for the purpose of carrying on
business and profession, he shall be
entitled to deduction under section 31 on
account of any type of repairs of the
machinery. True False
If the asset of a particular block is
acquired and put to use as on 1-11-2019,
the assessee shall be entitles to
depreciation for the proportionate period
of 5 months upto 31-3-2020. True False
Lumpsum payment for acquisition of
technical Know how after 31-3-1999
shall be subject to deduction in 3 equal
installments. True False
Interest incurred before the
commencement of the production is to
be treated as revenue expenditure. True False
Expenditure incurred on family planning
amongst the employees is allowed to
only company assessee. True False
Capital expenditure incurred on family
planning amongst of the company
assessee is allowed as deduction in 5
equal instalments. True False
Deduction under section 37 (1) shall be
allowed even of those expenditure which
are of capital nature if used for the
purpose of business True False
Interest on capital of or loan from
partner of a firm is allowed as deduction
to the firm @ 12%. True False
Wealth Tax is subject to provisions of
section 43 B. True False
Where the amount of an expenditure
claimed as deduction exceed 20,000, it
should be paid by crossed cheque only. True False
Bad debts not allowed as deduction in
the earlier year shall be taxed when
subsequently recovered. True False
Weighted deduction of 125% is allowed
if the payment is made to an approved
university for the use of scientific
research related or unrelated to business
of the assessee. True False
Excessive & unreasonable expenditure
incurred by the assessee is disallowed u/s
40 A (2). True False
Receipts of non-compete fees to be
treated as income from other sources.
True False
Unabsorbed depreciation can be carried
forward to subsequent 8 assessment
years. True False
Depreciation is available only on
tangible assets. True False
Charging section for business income is
sec. 28. True False
Where the amount of an expenditure
Account payee
claimed as deduction exceed 10,000, it Crossed cheque Cash None of these
cheque /draft
should be paid by
20% of the
Where the amount of an expenditure 100% of such excess over
20% of such payment
claimed as deduction exceed 10,000, it is payment shall be 20,000 of such None of the above
shall be disallowed
not made by account payee cheque/draft. disallowed payment shall
be disallowed
In the case, asset of a particular block is
acquired and put to use during the At 50% of normal No depreciation
At normal rate None of these
previous year for less than 180 days, rate is allowed
depreciation will be charged
Tax is allowed as a deduction while
Wealth tax, Income tax, Sales tax, All of the above
computing the business income.
Export incentives received by an Taxable as Exempt upto
Exempt None of the above
assessee are business income certain limits

Mr. Richard who was carrying on agency

of sell computation business, received a Taxable as
Exempt as it is capital Taxable as
sum of 80,000 from his principal for income from None of the above
receipt business income
termination of agency. Compensation so other source
received shall be
Salary, bonus, commission or
remuneration due to or received by a Business
Income from salaries Other source None of the above
working partner from the firm is taxable Income
under the head.
Mobile handset received by the assessee
Professional
Doctor during the course of carrying on Salary Other sources None of the above
Income
his profession is taxable under the head.
An amount paid to a company to be used
for scientific research shall be allowed a 100% 125% 150% None of the above
deduction equal to
Bonus paid to employee is allowed as
Accrual basis Payment basis Declaration None of the above
deduction on
Allowed as
Capital Expenditure incurred on repairs Not allowed as
business is allowed 50% None of the above
of factory building is business deduction
deduction
Salary, bonus, commission or
remuneration due to or received by a Business
Income from salaries Other source None of the above
working partner from the firm is taxable Income
under the head.
Perquisite received by the assessee
Business /
during the course of carrying on his
Salary Other source Professional None of the above
business or profession is taxable under
Income
the head.
Taxable as
Taxable as
Interest on capital or loan received by a business and
Exempt u/s 10 (2A) income from None of the above
partner from a firm is : profession
other sources
Income
Under the head Business or Profession,
Mercantile system Mercantile or
the method accounting which an assessee Cash system only Hybrid system
only cash system
can follow shall be :
Tangible and
tangible fixed assets Intangible assets
Depreciation is allowed in case of intangible Wasting assets only
only only
assets
Which of the following tax is allowed as
deduction while computing the business Wealth tax Income tax Sales tax None of the above
income?
Where the amount of an expenditure
Account payee
claimed as deduction exceeds 20,000 it Crossed cheque Cash None of these
cheque / draft
should be paid by
An assessee
which is a
Expenditure incurred on family planning A company
Any assessee company or co- None of the above
amongst the employees is allowed to assessee
operative
society
Any activity carried on with a view to
Commerce Trade Business All of the above
earn profit is called _________.
If any asset is used for more than 180
days in the year of purchase, the
50% 100% 75% None of the above
depreciation rate will be _________ of
the normal rate.
Expenses exceeding 20,000 paid in cash
40 A (2) 40 AB 40 A (3) 43 B
are disallowed u/s _________.
Any sum received under non-compete
Income from other
agreement is taxable under the head Business Income Capital Gain Not Taxable
sources
________.
Machinery is acquired on 20-10-2019 &
put to use on 01-04-2020. The rate of
15% 7.50% 30% None of the above
depreciation to be applied in the P.Y.
2019-20 _________.
Unabsorbed depreciation can be carried
forward to subsequent assessment years 8 Years 7 Years 5 Years No Limit
for _________.
In the subsequent years, unabsorbed
Income from
depreciation can be set off against Business Income Capital Gains Any Head of Income
other sources
chargeable _________.
Foreign Indian
companies and companies and
Eligible assesses for claiming deduction Indian and foreign
non-resident non- resident non- None of the above
u/s 35 D are _________. companies
corporate corporate
assesses assesses
The qualifying amount of the preliminary
expenditure can be claimed as deduction
Four Five Eight Ten
over period of _________ years in equal
instalments.

Insurance premium paid in respect of

insurance against risk of damage or
36 (1) (i) 36 (1) (iii) 36 (1) (iv) 36 (1) (ii)
destruction of stocks or stores can be
claimed as deduction u/s _________.
Income Tax, Wealth Tax & Fringe Allowed u/s 40
Allowed u/s 40 (b) Disallowed None of the above
Benefit tax are _________. (a)
All the firms will be charged to tax at the Minimum Marginal maximum
Average Rate None of the above
_________. Rate Marginal Rate
Payments to specified persons which are Disallowed u/s 40 Allowed u/s 40 Disallowed u/s 40 A
Allowed u/s 40 A (2)
unreasonable are _________. A (2) A (3) (3)

Question A B C D
_____ mean Income from the transfer of
Capital Gains
a capital asset. None of above
Unit of Mutual fund held for 36 months
Long-term
is treated as _____ capital asset.
None of above
Transfer of depreciable assets gives rise
short term
to _____ capital gains. None of above
The capital gain arising from transfer by
way of conversation of a asset into stock-
sold
in-trade will be chargeable to tax in the
year when the stock is _____ . None of above
Capital Gains or Loss on transfer of
short term
depreciable asset is always _____ . None of above
Enhanced compensation for compulsory
previous year,
acquisition is taxable in the _____ in
Received
which it is _____ . None of above
Capital loss can be carried forward to a
eight
maximum of _____ assessment years.
None of above
The exemption u/s 54 can be claimed to
the extent of capital gain _____ in the invested
house property. None of above
Cost of improvement of goodwill of a
Nil
business shall be _____. None of above
The cost of improvement is _____ when
enhanced compensation is received on Nil
compulsory acquisition. None of above
CII refers to _____. cost inflation index None of above
Long term capital loss can be set off only
long term capital gain
against _____. None of above
Loss under any other head of income can
short term or long
be set off against income from _____ or
term
_____ capital gain. None of above
Transfer excludes compulsory
acquisition under law. True False
Short term capital Gain arises when Net
consideration is in excess of WDV plus
additions of depreciable assets. True False
Personal effects include jewellery. True False
Any sum received as consideration for
the relinquishment of such rough is a
transfer. True False
Enhanced compensation in case of
compulsory aquisiiton of land is taxable
in the previous year in which it is
received. True False
Capital Gain on Transfer of depreciable
asset is always long term Capital Gain.
True False
Short Term Capital gain is gain arising
from the transfer of any asset which is
held for more than True False
12 months. True False
There will be long term Capital Gain, if
Plant and Machinery is transferred after
it is held for more than 12 months.. True False
There will be long term capital gain, if
Shares of an listed Indian Company are
transferred after being held for more than
12 months. True False
The cost inflation index number of the
previous year 2018-19 is 280. True False
Where the entire block of the
depreciable asset is transferred after 36
months, there will be short term capital
gain or loss. True False
In the case of compulsory acquisition,
the indexation of cost of acquisition shall
be done based on the cost inflation index
for the previous year in which
compensation is received. True False
Where net result of computation under
the head ‘capital gain’ is loss, such loss
is not allowed to be set off against any
other head of income. True False
Transfer in relation to capital asset
excludes relinquishment of a capital
asset. True False
In case of conversion of capital asset into
stock in trade, capital gain is taxable in
the year in which conversion takes place. True False
Any litigation expenses for getting
compensation enhanced are deductible as
transfer expenses. True False
In case of short term capital asset
indexation is applicable. True False
Amount under capital gain scheme
should be deposited within due date of
furnishing the return of income u/s 139
(1). True False
Capital gain arises on transfer of any
asset. True False
Loose diamonds held by an assessee are
personal effects. True False
Short-term capital gain arise on transfer 12 months from 24 months from
36 months from the
of listed shares and units held by the date the date of the date of None of the above
date of acquisition
of assessee for not more than acquisition acquisition

There will be long-term capital gain, if

Listed Unit of
one of the following asset is transferred Plant and Machinery Jewellery None of the above
Mutual fund
after it is held for 12 months and 1 days

Which asset is not treated as capital asset Motor car for business Plant and Machinery
Jewellery House Property
for capital gain purposes. use held as stock in trade

Capital gain arises from the transfer of An asset Any fixed asset A capital asset House property only

All capital assets

The assessee is allowed to opt for market Only house
All capital asset other than None of the above
value as on 1-4-2001 in case of properties
depreciation asset

In case of long term capital gain, the

Indexed cost of Indexed cost of
amount to be deducted from sale Brokerage All of the above
improvement acquisition
consideration shall be
Year in which
In case of compulsory acquisition, the Previous year of Year in which full
part or full
indexation of cost of acquisition or compulsory compensation is None of the above
compensation is
improvement shall be done till be acquisition received
received
In which such
Conversion of capital asset into stock in In which such
In which such converted asset is
trade will result into capital gain of the converted asset None of the above
conversion took place sold or otherwise
previous year : was purchase
transferred
 The market value
Where capital asset is converted into
The market value of of the asset on the
stock in trade then for the purpose of The sale
the asset on the date date of None of the above
computation of capital gain, the full consideration
of sale asset conversation of
value of consideration shall be
such asset

For claiming exemption under Sec. 54, 1 year before or

2 years before the 3 years after the
the assessee should purchase residential 2 years after the None of the above
date of transfer date of transfer
property date of transfer
Within six Due date of
If the assessee wishes to deposit money
months from the furnishing the
under capital gain scheme for claiming Six months from the
end of the return of None of the above
exemption under sec. 54, it should be date of transfer
relevant previous income u/s 139
deposited within
year (1)
Proportionate to
To the extent of To the extent of
The exemption under section 54, shall be the net
capital gain invested amount actually None of the above
available : consideration
in the House Property invested
price invested
Exemption under section 54, shall be Individual and
All assesses Individual only None of the above
available : HUF
Which asset is not treated as capital asset Motor car for business Plant and machinery
Jewellery Tenancy rights
for capital gain purchases, use held as stock in trade

Tick from the following, the capital

assets, where there will be long-term
Plant and Machinery Jewellery Shares None of the above
capital gain, if gain asset is transferred
after it is held for 14 months.

Be regarded as a Neither be
Be regarded as a transfer in the regarded as
Distribution of assets at the time of
transfer in the hands hands of transfer in the
partial or complete partition of HUF None of the above
of HUF for capital coparceners hands of HUF
shall
gain purposes (members of nor in the hands
HUF) of coparceners
Capital
The capital
Cost of improvement of goodwill of a expenditure
Nil expenditure None of the above
business shall be incurred on or
incurred
after 1-4-2001
In case of long term capital gain, the
Indexed cost of Market value
amount to be deducted from sale Cost of acquisition None of the above
acquisition on 1-4-2001
consideration shall be
Income from transfer of capital asset is
Capital Gain Capital Profit Net Profit None of the above
termed _________.
Capital asset is classified into two Holding period of
Type of the assets Block of assets None of the above
categories on the basis of _________. the asset
Cost
Cost Income
CII refers to _________. Cost Inflation Index Improvement None of the above
Index
Index
The method of computation of capital
47 48 46 45
gain is provided u/s _________.
Personal effects of assessee include
Gold Silver Coins Precious Stones None of the above
_________.
Capital gain on transfer of depreciable
Short Term Gain Short Term Loss either (a) or (b) Long Term Loss
asset is always _________.
Long term capital loss can be set off Short term capital Long term capital Under any other head
Both (a) & (b)
against _________. gain gain of income
Short term capital loss can be set off Short term capital Long term capital Winnings from
Both (a) & (b)
against _________. gain gain lotteries
After availing the exemption u/s 54EC,
the assessee has to retain the Long term
1 year 5 years 3 years 2 years
specified asset for a minimum period of
_____ from the date of its acquisition
Limit of Investment in the ‘Long term
specified asset’ U/S. 54EC by an
` 50,00,000 ` 25,00,000 ` 30,00,000 No Limit
assessee during any financial year should
not exceed _____.
Where the cost Long-term specified asset
is also eligible for deduction from
income u/s. 80C, the said deduction will also be not be propotionately seperately
_____ allowed, if the exemption is
availed u/s. 54EC.

Question A B C D
None of the above
Family Pension deduction to assessee is
33 1/3% or 15,000
least of the following _____% or _____ .
Share of income received by a member None of the above
exempt
of HUF is _____ income.
None of the above
Scholarship to meet _____ is exempt. cost of education
Amount received under a Life Insurance None of the above
policy is _____ from tax but amount
received under a Keyman Insurance exempt, taxable
Policy is _____ under Income Tax Act,
1961.
Family pension received by member of None of the above
the family of the government employee
exempt;
who has been awarded ‘Param Vir
Chakra’ is _____ income.
None of the above
_____ allowance and _____ allowance
received by a Member of Legislative constituency daily
Assembly are exempt from tax.
Dividends from a _____ company is None of the above
Indian
exempt from tax.
Agricultural income from Srilanka is Income from None of the above
taxable under the head _____ . other sources
Amount exceeding _____ received None of the above
without consideration from non-relatives,
`50,000
is taxable under the head income from
other sources.
An income which does not fall under the None of the above
Income from
first four heads of income is taxable
other sources
under the head _____ .
Any gift received by an individual from None of the above
exempt
his relatives is fully _____ .
Dividends from a _______ company is None of the above
foreign
not exempt from tax.
None of the above
Dividend declared by unit trust of India
unit holders
is exempt in the hands of _______.
Inadmissible expenses under the head None of the above
income from other sources are covered 58
u/s _______.
None of the above
Standard Deduction of _______ shall be
allowed from interest on compensation 50%;
or enhanced compensation.
Any sum received by an individual as a None of the above
member of _______ is exempt from tax H.U.F.;
u/s 10 (2).
None of the above
Any sum received under Keyman
Insurance Policy shall be chargeable to income from other
tax under the head _______ if not sources
taxable as salary or Business Income.
Gift received in contemplation of death None of the above
exempt
of the payer is _______.
Interest on Income tax refund is an
income from other source. True False
Any sum received including bonus under
keyman insurance policy is taxable under
the head income from other sources. True False
Deduction for family pension income is
33%. True False
Any Interest, salary paid or payable
outside India on which tax has not being
deducted at source will not be allowed as
deduction. True False
Gift in contemplation of death of the
payer is taxable. True False
Expenditure incurred to maintain the
horses shall be allowed as deduction to
the assessee being the owner of the
horses maintained by him for running in
horse race. True False
Winning from lotteries, cross world
puzzles, horse races & other races, card
game, etc. are casual income & hence
fully exempt. True False
For computing of income from lottery,
cross world puzzles, races, card games
etc., the assessee shall be entitled to
deduction for purchase of ticket/ any
expenditure incurred for earning such
income. True False
Dividend declared by Mutual fund is
taxable in the hands of the shareholders.
True False
Income under the head income from
other sources is taxable on due basis.
True False
Dividend declared by Indian company is
fully exempt in the hands of the
shareholders. True False
Income under the head “Income from
other sources” is taxable on receipt basis
only. True False
Gift received by an individual on
occasion of marriage is not taxable. True False
Deduction for family pension income is
33 1/3% of such pension or 5,000
whichever is lower. True False
Income from subletting shall be
chargeable to tax under the head income
from house property. True False
Sushant has taken a house on rent and
sublets the same to A. Income from such Income from house Income from Business
None of the above
house property shall be taxable under the property other sources income
head.
Taxable but
Fully taxable in
Dividends declared by Unit Trust of Fully exempt in the deduction is
the hands of unit None of the above
India is hands of unit holders allowed under
holders
sec. 80
Be entitled to
Be entitled to any Not entitled to
deduction upto
For computing lottery income, the deduction for any deduction for
10% of total None of the above
assessee shall purchase of lottery purchase of
purchase of
tickets lottery tickets
tickets
33 1/3% of
The legal heir of the deceased who
33 1/3% of such such pension or
received family pension is allowed a 33 1/3% of such
pension or 15,000 15,000 None of the above
standard deduction from such pension to pension
whichever is less whichever is
the extent of
more
Gift received by an individual 70,000 Exempt upto
Exempt upto 25,000 Fully taxable None of the above
from his relatives Rajendra shall be 50,000
On the basis of
method of
Income under the head income from accounting
Due basis Receipt basis None of the above.
other sources is taxable on regularly
employed by
the assesses
Expenses admissible under the head
income from other sources are covered 56 58 59 57
u/s ________.
Gift received by an individual / HUF Exempt upto
Exempt upto 50,000 Fully Exempt Fully Taxable
from relatives shall be _______. 25,000
Gift received by Mr. Mohan from his Fully taxable as
friend amounts to 80,000, shall be Exempt upto 50,000 Fully Exempt received from Exempt upto 30,000
________. friend
Interest received on compensation or on
Income from other
enhanced compensation shall be taxable Capital Gains Casual Income None of the above
sources
under the head ________.

Question Solution
Deduction under sec. 80 of the chapter
VI A of the Income tax act are allowed Gross total Income
from _____.
Deduction u/s 80C is respect of tution
fees is allowed maximum upto _____ Two
children.
_____ expenses of the assessee is not
personal;
deductable u/s 58.
Total deduction u/s 80 C and u/s 80CCC
` 1,50,000
cannot exceed _____ .
Maximum amount of deduction u/s 80 D
for mediclaim insurance premium of a
` 50,000
resident senior citizen is _____ .

Amount deduction u/s 80 DD in respect

maintenance of a handicapped dependent `75,000
is _____ .
Amount deduction u/s 80 U respect of a
person with severe disability is ____ . 1,25,000

Payment of life insurance premium in

excess of _____ of the sum assured shall
not be included in the amount deductible 10%;
under section 80 C for policies issued on
or after 1.4.2012
Deduction u/s 80 C in respect of time
deposit in post office is allowed if the
5 years
deposit is for a period of _____ years.

Deduction u/s 80 DD in respect of

maintenance of a handicapped dependent
Individual or H.U.F
is allowed to _____ or _____ assessee
only.
Deduction claimed in the past u/s 80 C in
case of ULIP Dhanaraksha is withdrawn
if a ULIP plan is terminated before 5 years
contribution were made for _____ years .

Deduction u/s 80 E is available for

interest on loan for higher education to Individual
_____ assessee only.
The deduction u/s 80 E for payment of
interest on loan for higher education is
8 years
allowed for a maximum period of _____
years.
Deduction u/s 80C will be allowed if
actual payments
_____ are made.
_____ interest on NSC VIII issue is also
accrued
eligible for deduction u/s 80C.
Deduction under section 80 CCC is
1,50,000
allowed to the extent of _____.
Senior citizens for section 80 D means
attaining _____ years or more anytime
60;
during the relevant previous year.

Deduction u/s _____ shall be allowed for

higher education of assessee, spouse & 80 E
children.
Deduction u/s 80 U in case of person
with disability is allowed to an individual resident
who is _____ of India.
Interest _____ on educational loan is
paid
allowed as deduction.
The quantum of maximum deduction
allowed u/s 80 U is _____ for disable 75,000
person.
Deduction u/s 80 DD in respect of
maintenance of handicapped dependent
75000, 125000
is _____ and for severally handicapped
is _____.
Very senior citizen for section 80 D
means attaining _____ years or more
80
anytime during the relevant previous
year.
The amount of deduction u/s 80 D for Actual expenditure or
senior citizen, not covered under 50,000 whichever is
insurance policy is _____. less
Investment u/s 80C need not be out of
taxable Income. True
Interest Repayment on housing loan
qualifies for deduction u/s 80C. False
Total deduction u/s 80C and 80CCC
cannot exceed 1,50,000. True
Deduction u/s 80C is allowed from gross
total income. True
For claiming Deduction u/s 80C in
respect of L.I.P., premium can be paid
by assesee for himself, spouse and any
child. True
An assessee has paid life insurance
premium of 1,05,000 during the previous
year for a policy of 5,00,000. He shall be
allowed Deduction for the entire
premium as per the provisions of section
80C. False
For claming Deduction u/s 80C in
respect of P.P.F., the contribution must
be paid by the individual in the P.P.F.
account himself only. False
For claiming Deduction u/s 80C, for life
insurance premium if the payment is
made by the assessee for his child, then
the child must be minor dependent and
unmarried. False
Deduction u/s 80C in respect of tuition
fee is allowed to an individual for any
number of his children. False
Deduction u/s 80C in respect of tuition
fee is allowed to the maximum extent of
10,000 per child for maximum of 2
children. False
The annual interest accrued on NSCs
VIII issue shall be taxable as “Income
from other sources”, and it is also
eligible for Deduction u/s 80C.
True
Contribution made u/s 80CCC should be
out of his taxable income. True
Deduction u/s 80C in respect of LIP,
contribution to provident fund, etc., is
allowed to any assessee. False
Deduction under section 80D in respect
of medical insurance premium is allowed
to any person who is resident in India.
False
Deduction u/s 80D is allowed only if the
premium is paid to life Insurance
Corporation. False
The premium under section 80D can be
paid by an individual, for his parents.
True
The quantum of deduction allowed under
section 80D shall be limited to 2,00,000.
False
The payment for insurance premium
under section 80D should be made in
cash only. False
Where the medical insurance premium is
paid to effect an insurance in relation to
a senior citizen, the deduction allowed
shall be 1,20,000.
False
Interest accrued on educational loan is
allowed as deduction. False
Deduction for physical dependent
relative is allowed irrespective of actual
expenditure. True
Deduction u/s 80U in case of permanent
physical disability is allowed to an
individual who is citizen of India.
False
The quantum of maximum deduction
allowed u/s 80U is 50,000. False
Deduction u/s 80U shall be allowed only
when the assessee is suffering from a
permanent disability at the beginning of
the previous year. False
Deduction u/s 80U in case of a person
with disability is allowed to an individual
who is citizen of India. False
Deduction u/s 80C will be allowed only
if actual payments are made. True
Deduction u/s 80D is available to an
individual / HUF who are resident in
India. False
Deduction u/s 80E is available to an
individual & HUF. False
Interest on deposits (not being time
deposits) in a saving account with a bank
shall be allowed to all category of the
assessee U/s. 80TTA. False
For claiming deduction u/s 80C the Out of income
payment or deposit should be made chargeable to tax
Deduction u/s 80C in respect of LIP,
An individual and/or
Contribution to provident fund, etc. is
HUF
allowed to :
Deduction u/s 80C is allowed to the
1,50,000
maximum limit of
Be allowed Deduction
An assessee has paid life insurance u/s 80C to the extent
premium of 1,25,000 during the previous of 20% of the capital
year for a policy of 5,00,000. He shall : sum assured i.e.
1,00,000
For claiming deduction u/s 80C in
Self, spouse and any
respect of life insurance premium, it can
child
be paid by assessee for
Deduction u/s 80C in respect of term
deposit with a scheduled bank is allowed Not less than 5 years
if the term deposit is for a period

Deduction u/s 80C in respect of tuition Any two children of

fee is allowed to an individual for such individual
Deduction u/s 80C in respect of tuition
An individual only
fee is allowed to
Out of any income
For claiming Deduction u/s 80D, the
chargeable to income
payment or deposit should be made
tax
Deduction u/s 80D in respect of medical An individual and/or
insurance premium is allowed to HUF
 For a sum of 75,000
Deduction under section 80DD shall be
irrespective of actual
allowed
expenditure or deposit
Deduction u/s 80DD in case of
1,25,000 irrespective
dependent with serve disability shall be
of actual expenditure
allowed
The payment for Insurance premium By any mode other
under section 80D should be than cash
The quantum of deduction allowed under
25,000
section 80D shall be limited to
Deduction u/s 80D is allowed to an Assessee, his spouse,
individual for premium paid to insure the parents and dependent
health of children
Deduction under section 80CCC is
1,50,000
allowed to the extent of
Deduction in respect of contribution for
annuity plan to certain pension fund Individuals only
under u/s. 80CCC is allowed to
The quantum of deduction u/s 80D shall
50,000
be limited to in case of senior citizens

Senior citizens for section 80D means

attaining _____ years anytime during the 60 years
previous year or more.

Deduction u/s 80E shall be allowed in Financial institution

respect of amount paid by way of interest or approved charitable
on loan taken from institution
An amount paid as
The deduction u/s 80E is allowed for
interest during the
repayment of interest to the extent of :
year
Deduction u/s 80E shall be allowed for Assessee, spouse and
the higher education of children
Person with severe disability means
person with _____ or more of one or
more disability as referred under equal 80%
opportunity, protect of right and full
participation act, 1995.
Deduction u/s 80U in case of person An individual who is
with disability is allowed to resident of India
The quantum of deduction allowed u/s
75,000
80U is
Annual interest accrued on NSCs VIII Taxable on the basis
issue shall be of annual accrual
For claiming deduction u/s 80 – C in
self, spouse and any
respect of life insurance premium shall
child
be allowed for :
In the case of HUF, deduction u/s 80 C
in respect of life insurance premium shall Any member of HUF
be allowed for :
 Be allowed Deduction
An assessee has paid life insurance u/s 80 C to the extent
premium of 25,000 during the previous of 20% of the capital
year for a policy of 1,00,000. He shall : sum assured i.e.
20,000.
Annual interest accrued on NSCs VIII Taxable on the basis
issue shall be of annual accrual

Deduction u/s 80-C in respect of tuition

An individual only
fee is allowed for the purposes of :
Any full time
Deduction u/s 80-C for tuition fee shall
education in a school
be allowed for the purposes of :
or college
Deduction in respect of contribution for
annuity plan to certain pension fund Individual only
under 80 CCC isallowed to
Deduction u/s 80 DD shall be allowed : 75,000

The deduction u/s 80 E is allowed for an amount of interest

repayment of interest to the extent of : during the P.Y.
The aggregate amount of the deduction
under chapter VI A shall not exceed the Gross total income
________.
As per section 80 CCE, the total
deduction an assessee can claim u/s 80C,
1,50,000
80 CCC & 80 CCD is restricted to
________.
The deduction u/s 80E for payment of
interest on loan for higher education is
8 Years
allowed for maximum period of
________.
The quantum of deduction of 1,00,000
u/s 80U can be claimed if a person is 80% or more
with disability of ________.
Interest on deposits (not being time
deposits) in a saving account with a bank
deduction shall be allowed u/s. 80TTA 10,000
with reference to such income not
exceeding
The maximum quantum of deduction u/s
80 D for senior citizen not covered under 50,000
insurance policy is upto
Ans

a
b

a
c

a
a
b

a
 a

b
b
a
a

Ans

c
c

b
c

b
c

a
b

a
b
a

b
a
b
b

b
a

c
a

c
b
a

d
 d

Ans
c

b
a

b
d

c
 b

Ans

b
a

a
 c

b
d

Ans

c
 c

Ans

a
b

a
b

b
a

b
 b

Ans

b
b

b
a

a
b

a
 b

Ans

c
c

b
b

b
b

c
b

d
 d

Ans

c
c
b

b
b

b
b

b
b

b
 d

Ans

a
a

c
c

b
b

d
c