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Income Tax Basic Concepts 

​What is the full form of​ AMT?

Option1

​The full form of AMT is Alternate Minimum Tax (sec 115JC).

DifficultAlternate Minimum TaxAlternate Modified TaxAdvance Modified TaxAdvance Minimum Tax
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from salary 

Arjun, being an employee in a transport company, received Rs 10,000 per month by way of allowance to meet his personal expenses in the course of running such transport system from one place to another. What is the amount exempt from tax?​

Option1

​Any allowance granted to an employee working in any transport system to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided that such employee is not in receipt of daily allowance is exempt to the extend of 70 per cent of such allowance upto a maximum of Rs 10000 per month. Hence Option (1) is correct.

DifficultRs 7000Rs 10000Rs 5000Rs 7500
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following statements is correct?

Option1

​​As per section 2(9) assessment year starts from 1st of April and ends on 31st March of the next year. Assessment year is period of 12 months. Hence, option (1) is correct answer​.

BeginnerAssessment year starts from April 1 and ends with March 31St of the next year.Assessment year starts from April and ends with March of the next yearAssessment year starts from January 1 and ends with December 31stAssessment shall be period of 12 months or more.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​ Assessment year starts from __________ every year.

Option1

​​As per section 2(9), assessment year starts from 1st of April and ends on 31st March of the next year. Hence option, (A) is correct answer

Beginner1st AprilAny day of the April Month31St MarchOption (1) & (2) both may not correct
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following is correct previous year corresponding to the assessment year 2017-18?

Option3

​2016-17 is corresponding previous year of assessment year 2017-18. Hence, option (3) is correct.

Beginner2016-17 and 2017-182017-182016-172017
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Concepts 

​​Assessment year may be of more than 12 months.

Option2

​​As per section 2(9), assessment year starts from 1st of April and ends on 31st March of the next year. Assessment year is a period of 12 months only. Hence, option (2) is correct answer

BeginnerAbove statement is correct. Yes, Assessment Year can be of 15 monthsYes, Assessment Year can be of 24 monthsYes, Assessment Year can be of 36 months
1
YesTax GyanApproved12/13/2017 7:15 PM
Income Tax Basic Concepts 

​Which of the following statements is correct?

Option2

​As per section 3, in case of newly set-up business/ profession or new source of income, first previous year starts on date in which new business starts or new source of income comes into existence. Hence, First Previous year may start from any day between 1st of April to 31St March of next year. Therefore, option (2) is correct.

BeginnerFirst Previous year always starts from April 1   First Previous year may start from any day between 1st of April to 31St March of next year.  Previous year start from 1st of January every yearall options are correct.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following statements is correct?

Option1

​As per section 3, first previous year and subsequent previous year ends on 31st March. Hence, option (A) is correct.

BeginnerPrevious year always ends on 31st MarchPrevious year may end  with any day between 1st of April to 31St March of next yearPrevious end with 31st of January Above all options are correct.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Mr. Rahul joins  X ltd on dated 12/12/2015. Prior to this date he was not in employment. Which of the following statements is correct?

Option2

​As per section 3, in case of newly set-up business/ profession or new source of income, first previous year starts on date in which new business starts or new source of income comes into existence. Hence, First previous year is from 12/12/2015 to 31/03/2016 and next previous year is from 01/04/2016 to 31/03/2017. Hence, option (2) is correct option

NormalFirst previous year is from 01/04/2015 to 31/03/2016First previous year is from 12/12/2015 to 31/03/2016 and next previous year is from 01/04/2016 to 31/03/2017First previous year is from 12/12/2015 to 11/12/2016None of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Previous year can be of more than 12 months

Option3

​As per section 3, period of previous year may of be less than or equal to 12 months. Hence, above statement is false. Hence, option (3) is correct

NormalAbove statement is true. Above statement is partially trueAbove statement is falseAbove options are correct
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following is correct assessment year corresponding to previous year which  ends on 31/03/2017?

Option3

​The year in which   Income is earned is known as previous year and next year will be assessment year of corresponding previous year. Previous year ends on 31/03/2017, then   its corresponding Assessment year will be 2017-18. Hence, option (3) is correct

NormalAssessment year 2016-17 and 2017-18.Assessment year 2016-17Assessment year 2017-18 Assessment shall be period of 12 months or more.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Jai Shakar sold a building on  27/03/2017 and arose long term capital gain Which of the following is correct previous year and assessment year of such long term capital gain?

Option3

​Capital gain arises in previous year 2016-17, and its corresponding assessment year is 2017-18. Hence, option is (C) is correct ​

NormalPrevious year 2016-17 and assessment year 2016-17Previous year 2017-18 and assessment year 2017-18.Previous year 2016-17 and assessment year 2017-18None of above is correct.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Mr. X set-up a business on 27.8.2015. Previous Year for him as per Income Tax Act, 1961 will be _____.

Option4

​As per section 3, in case of newly set up business/ profession or new source of income, first previous year starts on date in which new business starts or new source of income come into existence. Hence, First previous year starts   from 27/08/2015 and ends on 31/03/2016. Hence, option (4) is correct.

Normal1.4.2015 to 31.3.201627.8.2016 to 31.3.20171.4.2016 to 31.3.201727.8.2015 to 31.3.2016
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following is not included in the definition of person?

Option4

​As per section 2(31), person includes an individual, a Hindu undivided family,   a company, a firm, an association of persons or body of individuals, a local authority and Every artificial juridical person. Hence Hospital is not included in the definition of person. Therefore, option 4 is correct.

NormalAn IndividualA Hindu Undivided familyA company Hospital
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following is not included in the definition of person?

Option4

​As per section 2(31), person includes an individual, a Hindu undivided family,   a company, a firm, an association of person or body of individual, a local authority and Every artificial juridical person. Hence school is not included in the definition of person. Therefore option (4) is correct answer.

NormalAn IndividualA Hindu Undivided familyA company School
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following is included in the definition of person?

Option4

​As per section 2(31), person includes an individual, a Hindu undivided family,   a company, a firm, an association of persons or body of individuals, a local authority and Every artificial juridical person. Options (1), (2) and (3) includes in the definition of person.  Therefore, option 4 is correct.

NormalAn IndividualA Hindu Undivided familyA companyAbove all
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following is included in the definition of person?

Option2

​As per section 2(31), a Hindu undivided family, is covered under the definition of person. Therefore, option (2) is correct

NormalMinorA Hindu Undivided familyRelativeAbove all
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following is covered under the meaning of individual?

Option4

​Individual means only natural person, human being includes minor or unsound mind person -Hence, option (4)is correct.

DifficultNatural PersonMinorUn- sound mind individualAll above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following entry of Schedule VII of the constitution of India gives the power to central Government to impose tax on all incomes except agriculture income?

Option3

​Entry 82 of List I of seventh schedule to the constitution empowers to the Parliaments levy to taxes on all income except agriculture Income. Hence, option (3) is correct

DifficultEntry 72Entry 102Entry 82Entry 92
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of the following statements is not correct?

Option2

​Tax rates are always fixed by Finance Act, Hence, option B is not correct statement.

DifficultIncome tax is annual tax on income Tax rates are fixed by Income tax ruleTax is charged on every person All options are correct
1
YesTax GyanApproved11/23/2017 12:55 PM
Residential Status 

​How does residential status of an Individual is classified according to Income Tax Act 1961?

Option3

​​As per section 6(1) and 6(6) (a), residential status of   an individual has been classified as resident and ordinary Resident, resident but not ordinary resident and Non- resident. Therefore, option (3) is correct.

BeginnerCitizen, Not ordinary citizen, Non-citizenResident, Not-ordinary resident, Non-citizenOrdinary resident, Not-ordinary resident, Non-resident Any of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Residential Status 

​Which of the following are  basic conditions given under Income Tax Act that an Individual will be called as resident or not?

Option4

​As per section 6(1) following are two basic conditions for determination of residential status of an Individual. An individual must satisfy any one condition.
(1) He has been in India in the previous year for the period of 182 days or more, or
(2) He has been in India for the period of 60 days or more in the previous year and 365 days or more during four year immediately preceding the previous year.
Hence option (4) is correct answer.

NormalHe is in India in the previous year for the period of 182 days or moreHe in India for the period of 60 days or more in the previous year and 365 days or more during four year immediately preceding the previous yearOption (1), but Not Option (2).Option (1) or Option (2)
1
YesTax GyanApproved11/23/2017 12:55 PM
Residentail 

​How many are basic conditions for determination of residential status of an Individual?

Option4

​As per section 6(1) following are two basic conditions for determination of residential status on Individual.
(1) He has been in India in the previous year for the period of 182 days or more, or
(2) He has been in India for the period of 60 days or more in the previous year and 365 days or more during four year immediately preceding the previous year. Hence option (4) is correct answer.

Normal4312
1
YesTax GyanApproved11/23/2017 12:55 PM
Residential Status 

​There are two basic conditions given in Income Tax Act, 1961 to determine whether the individual is resident in India. Which condition(s) should be fulfilled by the individual in order to call resident?

Option2

​As per section 6(1), ​to determine whether the individual is resident in India, he  must satisfy  any one of the basic conditions. Hence, option (2) is correct answer.

DifficultBoth the basic conditionAny one of the basic condition out of twoThird  basic condition Fourth  basic condition
1
YesTax GyanApproved11/23/2017 12:55 PM
Residential Status 

​What will be residential status of an Individual if he is in India of a period 181 days in previous year 2015-16.?

Option2

​​As per section 6(1), one of the basic conditions to determine whether the individual is resident or not is “He should have been in India in the previous year for the period of 182 days or more.” Hence individual will be considered as Non- resident, and therefore option (2) is correct answer

HardResident Non- ResidentResident  but not ordinary residentNone of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​​Which of the following factors does not affect the computation of house rent allowance exemption?

Option4

​Rule 2A provides the manner of computation of house rent allowance exemption. Following four factors affect the computation of house rent allowance 1) Salary 2) House rent allowance 3) Rent paid by tenant 4) The place of residence of employee. From the above it is clear that “Overtime salary” does not affect the computation of house rent allowance exemption. Hence, option (D) is correct answer.

DifficultAmount of rent paidPlace of residenceHouse rent allowance receivedOvertime salary
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​​Which of the following factors does not affect the computation of house rent allowance exemption?

Option4

​Rule 2A provides the manner of computation of house rent allowance exemption. Following four factors affect the computation of house rent allowance 1) Salary 2) House rent allowance 3) Rent paid by tenant 4) The place of residence of employee. From the above it is clear that “Bonus” does not affect the computation of house rent allowance exemption. Hence option (D) is correct answer.

DifficultAmount of rent paidPlace of residenceBasic Pay of EmployeeBonus
1
YesTax GyanApproved12/13/2017 7:15 PM
Salary 

​Which of the following is not included in the definition of “salary” for calculation of house rent allowance exemption?

Option4

​As per rule 2A salary is defined as basic salary/ pay includes dearness allowance is part of salary for computation of retirement benefits and commission based on fixed percentage of turnover in terms of employment. From the above clarification options (A), (B), and (C) are included in the definition of salary. Hence, option (D) is correct answer.

DifficultBasic salary.Dearness allowance (Part of salary for computation of retirement benefits)Commission based on fixed percentage of turnover .Overtime salary.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Which of the following is included in the definition of “salary” for calculation of house rent allowance exemption?

Option1

​As per rule 2A salary is defined as basic salary/ pay includes dearness allowance part of salary for computation of retirement benefits and commission based on fixed percentage of turnover in terms of employment. From the above clarification option (A), is included in the definition of salary. Hence, option (A) is correct answer.

DifficultBasic salary/payOvertime salaryChildren's education allowanceNone of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Which of the following is  included in the definition of “salary” for the calculation of house rent allowance exemption?

Option2

​As per rule 2A salary is defined as basic salary/ pay includes dearness allowance part of salary for computation of retirement benefits and commission based on fixed percentage of turnover in terms of employment. From the above clarification option (B), is included in the definition of salary. Hence, option (B) is correct answer.

DifficultPerquisites Dearness allowance (Part of salary for computation of retirement benefits)Children's education allowanceNone of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Which of the following is included in the definition of “salary” for the purpose of calculation of house rent allowance exemption?

Option4

​As per rule 2A salary is defined as basic salary/ pay includes dearness allowance part of salary for computation of retirement benefits and commission based on fixed percentage of turnover in terms of employment. From the above clarification options (B), and (C) are included in the definition of salary. Hence, option (D) is correct answer.

DifficultOvertime salaryDearness allowance (Part of salary for computation of retirement benefits)Commission based on fixed percentage of turnoverOption (B) and option (C)
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​HRA exemption is available for the ______________.

Option4

​​HRA exemption is available for all types of employees. Hence, option (D) is correct answer.

BeginnerGovernment employees.Non- Government employees.Public sector undertaking employees.All types of employees.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Gratuity received by Government employee is _________.

Option2

​​As per section 10(10)(i) gratuity received by Government employee is fully exempt from taxation. Hence, option (B) is correct answer.

NormalPartly taxableFully exempt from taxationFully taxableUp to Rs 10, 00,000 is exempt.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Gratuity received by Non- Government employee not covered by Payment of Gratuity Act, 1972 is _____________.​

Option3

​​As per section 10(10) (ii) gratuity received by Non- Government employee (Not covered  by Payment of Gratuity Act , 1972  is  fully or partly exempt from taxation. Hence, option (C) is correct answer.

NormalExempt up to Rs, 10,00,000.Fully taxableFully or partly exempt from taxationFully exempt.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​​Gratuity received by Non- Government employee covered by Payment of Gratuity Act, 1972 is _____________.

Option3

​As per section 10(10)(i)  gratuity received by Non- Government employee (covered  by Payment of Gratuity Act , 1972  is  fully or partly exempt from taxation. Hence, option (C) is correct answer.

NormalExempt up to Rs, 10, 00,000.Fully taxableFully or partly exempt from taxationFully exempt.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Which of the following statements is correct in respect of Gratuity?

Option2

​As per section 10(10)(i), Gratuity received by Government employee is fully exempt from taxation and as per section 10(10)(ii)/10(10)(iii) Gratuity received by Non- Government employee ( either covered by Payment of Gratuity Act, 1972 or not)  will be fully or partly exempt from taxation . Hence, option (B) is correct answer.

DifficultAmount received as Gratuity is exempt from taxation.Amount received as Gratuity is fully or partly exempt from taxation.Amount received as Gratuity is always taxable.None of these
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Mr. Rao   retired on 31/03/2017 from Ministry of Finance and he received amount of Rs 10, 50,000 as gratuity? How much amount will be taxable?

Option3

​​Mr. Rao retired from Ministry of Finance which is a Government department. Gratuity received by Government employee is fully exempt from taxation and nothing is taxable. Hence, option (C) is correct answer.

HardRs 10, 00,000 Rs 10, 50,000Rs nilRs 50,000
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Leave encashment received during course of employment is_______________.

Option3

​Leave encashment received during the course of employment is taxable for Government employees as well Non-Government employees. Hence, option (C) is correct answer.

DifficultTaxable for Government employeesTaxable for Non- Government employeesTaxable for Government as well as Non- Government employees Exempt from taxation for Government employees
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Leave encashment received at the time of retirement or on leaving the job is _______________.

Option4

​As per section 10(10AA)(i) leave encashment received at the time retirement or on leaving job is exempt from  taxation for Government employees. Hence, option (D) is correct answer.

DifficultTaxable for Government employeesTaxable for Non- Government employeesTaxable for Government as well as Non- Government employees Fully exempt from tax for Government employees
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Leave encashment received at the time of retirement or on leaving job is _______________.

Option2

​As per section 10(10AA)(ii) leave encashment received at the time retirement or on leaving the job is fully or partly exempt from taxation  for the Non- Government employees. Hence, option(B) is correct answer.

DifficultTaxable for Government employeesFully or partly taxable /exempt from tax for Non- Government employeesTaxable for Government as well as Non- Government employees None of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​City compensatory allowance is __________________.

Option2

​City compensatory allowance is fully taxable, irrespective of type of employee. Hence, option (B) is correct answer.

HardFully or partly taxable for Non- Government EmployeeFully taxableFully exempt from taxation for Government employeeTaxable for non-Government employee
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​​Uncommuted pension is _____________.

Option4

​Uncommuted pension is taxable for Government and Non-government employees. Hence, option (D) is correct answer.

DifficultTaxable for Government employee onlyExempted from taxation for Non-Government employeeTaxable for Non- Government employee onlyTaxable for Government / Non-Government employee.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Mr. Satish received uncommuted pension of Rs 4, 80,000 in the year 2016-17. How much amount will be taxable in the year 2016-17?

Option1

​Uncommuted pension is taxable for Government and Non-government employees. Therefore, amount received (Rs 4,80,000) as uncommutted pension will be taxable in the year 2016-17. Hence, option A is correct answer.

HardRs 4, 80,000NilRs 4,40,000Rs 7,50,000
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Mr. X received uncommuted pension of Rs 4, 80,000 in the year 2016-17. How much amount will be exempt from taxation in the year 2016-17?

Option2

​Uncommuted pension is taxable for Government and Non-government employees. Therefore, amount received (Rs 4,80,000) as uncommutted pension will be taxable and nothing will be exempt from taxation. Hence, option (B) is correct answer.

HardRs 4, 80,000NilRs 4,40,000Rs 7,50,000
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Commuted pension is __________________.

Option1

​As per section 10(10A)(i) commuted pension is fully exempt from taxation for Government employees. Hence, option (A) is correct answer.

DifficultFully exempt from taxation for Government employee's.Fully exempt from taxation for Non- government employee's.Fully taxable for Government employee'sNone of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Commuted pension is __________________.

Option1

​As per section 10 (10A)(ii) Commuted pension is partly  exempt from taxation for Non-Government employees. Hence, option (A) is correct answer.

DifficultPartly exempt from taxation for Non- Government employee'sFully exempt from taxation for Non- government employee's.Fully taxable for Government employee'sNone of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Which of the following statements is correct for non- Government employees?

Option3

​A per section 10(10A)(ii) ,one-third of the commuted pension is exempt from taxation if one receives gratuity . Hence, option (C) is correct answer.

HardOne third of Commuted pension is taxable.One third of commuted pension is exempt from taxation.One third of commuted pension is exempted if employee receives gratuity.One third of commuted pension is taxable if employee receives gratuity.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Which of the following statements is correct for non- Government employees?

Option4

​A per section 10(10A) (ii), half of the commuted pension is exempt from taxation if  one  receives gratuity. Hence, option (D) is correct answer.

HardOne third of Commuted pension is taxable.One third of commuted pension is exempt from taxation.Half of the commuted pension is taxable if employee has received gratuity.Half of the commuted pension has exempted if employee is not received gratuity.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​which of the following Form can be used for calculating the relief under section 89?

Option4

​As per Rule 21AA Form 10 E can be used for calculating the relief under section 89. Hence, option (D) is correct answer.

DifficultForm 10BForm 10CForm 10 IAForm 10E
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​​Form 10E is used for calculation of _________

Option3

​As per Rule 21AA Form 10E can be used for calculating the relief under section 89. Hence, option (C) is correct answer.

DifficultExemption of leave salaryRelief under section 90Relief under section 89Rebate
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​​which of the following receipts is covered for relief under section 89?

Option4

​As per section 89, read with Rule 21A, advance salary, arrears of salary and arrears of pension are covered for relief under section 89. Hence, option (D) is correct answer.

DifficultAdvance salary. Arrear's of salary.Arrear's of pension.All of the above.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Relief under section 89 is not available for the ______________.

Option2

​As per section 89, read with Rule 21A, advance salary, arrears of salary and arrears of family pension are covered for relief under section 89 but exempted leave salary  is not  covered for relief. Hence, option (B) is correct answer.

DifficultAdvance salary Exempted leave salaryArrear's of family pensionArrear's of salary
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Relief under section 89 is not available for the ______________.

Option4

​As per section 89, read with Rule 21A, advance salary, taxable gratuity and arrears of family pension are covered for relief under section 89 but exempted gratuity  is not  covered for relief under section 89. Hence, option (D) is correct answer.

DifficultAdvance salary Taxable gratuityArrear's of family pensionExempted gratuity
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Relief under section 89 is available for the ______________.

Option3

​As per section 89, read with Rule 21A arrear of family pension is covered for relief under section 89 but options A ,B ,and D  are not covered for relief under section 89. Hence, option (C) is correct answer.

DifficultArrear of salary which is taxed in earlier yearExempted salaryArrear of family pensionExempted gratuity
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Fixed medical allowance is ______________.

Option3

​Fixed medical allowance is fully taxable, irrespective of type of employee. Hence, option (C) is correct answer.

DifficultTaxable in the hands of non- Government employee onlyExempt from taxation for the Government Employee.Fully taxableExempted up to Rs 15,000.
1
YesTax GyanApproved11/23/2017 12:55 PM
Salary 

​Jeevansingh received the fixed medical allowance of Rs 1,500 per month during the year 2016-17. How much amount will be taxable in the year 2016-17?

Option2

​Fixed medical allowance is fully taxable, irrespective of type of employee. Jeevansingh received fixed medical allowance of Rs 18,000 during the year 2016-17. Therefore, amount of Rs 18,000 will be taxable in the year 2016-17. Hence, option (B) is correct answer.

DifficultNilRs 18,000Rs 3,000Rs 15,000
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​​Mr. Sajansingh has a building and it is let out to a company.  Income will be taxed under the head ______________.

Option3

​​As per section 22 , an Income will be taxed under the head “Income from house property “ if it satisfies the three conditions (1) should be building or land appurtenant (2) Assesee must be owner (3) Owner should not use it for the purpose of his business or profession  carried on by him. In this case all three conditions are satisfied; therefore, income will be taxed under the head “Income from house property”. Hence, option (C) is correct answer.

DifficultIncome from other SourcesBusiness IncomeIncome from house propertyCapital gain
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​​Which of the following income will be taxed under the head “Income from house property?

Option1

​As per section 22 , an Income will be taxed under the head “Income from house property “ if it satisfies all the three conditions (1) should be building or land appurtenant (2) Assesee must be owner (3) Owner should not use it for the purpose of his business or profession  carried on by him. Option (A) satisfies all three conditions, therefore, income will be taxed under the head “Income from house property”. Hence, option (A) is correct answer.

HardMr. X is owner of a flat, which is let out.Mr. X is Owner of a tractor, which is given on lease Mr. X is owner of agricultural land which is given on leaseNone of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Which of the following property income is exempted from taxation?

Option4

​As per section 2(1A)(c), read with section 10(1) income from farm house is exempt from taxation. Hence, option (D) is correct answer.

NormalRental Income from flat Rental Income from half constructed buildingRental income from building which is not let out throughout the year.Income from farm house
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Which of the following property income is exempted from tax?

Option2

​As per section 10 (19A) income from Palace of an Ex- Ruler is exempt from tax. Hence, option (B) is correct answer.

NormalRental Income from flatPalace of an ex-ruler of India.Rental income from building which is not let out throughout the year.Rental Income from half constructed building
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Which of the following property income is exempted from tax?

Option3

​​As per section 13A Income from house property of political party is exempt from tax. Hence, option (C) is correct answer.

NormalRental Income from flat Rental income from building which is not let out throughout the yearIncome from house Property of political party.Rental Income from half constructed building
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Property income of Trade union is ______________.

Option3

​As per section 10(24), rental income from property of a trade union is exempt from tax.  Hence, option (C) correct.

DifficultTaxable under the head “Income from house property” Taxable under the head “business income”Exempt from taxTaxable under the “Income from other source”
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​While computing the Expected Rent of let out property, which of the following is not required?

Option4

​Expected rent of a let out property will be higher of municipal valuation or fair rent of the property subject to the maximum of standard rent if the property is covered under Rent Control Act. While computing the expected rent  municipal valuation of the property, fair rent of property and standard rent of the property are required, but municipal tax paid or payable is not required. Hence, option (D) is correct answer.

HardMunicipal Valuation Fair RentStandard RentMunicipal tax paid
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Unrealized rent may be reduced   from ________________.

Option3

​If the following conditions are satisfied (a) Tenant is bona fide (b) Property has been vacated (c) Defaulting tenant is not residing in other property of the assesee. (d) The assessee has taken legal steps for recovery of the rent then unrealized rent may be deducted from the rent receivable. Hence, Option (C) is correct answer.

DifficultFair rentStandard rent Rent receivable None of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Gross Annual value is ___________.

Option1

​Gross annual Value is higher of expected rent or rent received/receivable. Hence, Option (A) is correct answer.

DifficultHigher of Expected rent or rent received/receivableLower of Expected rent or rent received/receivableHigher of Standard rent or Fair rentLower of Standard rent or Fair rent
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Net Annual value of let out property is ______________.

Option4

​Net annual value of let out house property Is  Gross Annual value minus municipal taxes paid by the assessee during the year. Hence, option (D) is correct answer.

DifficultGross value minus vacancy lossExpected Rent minus vacancy lossStandard Rent Minus vacancy loss Gross annual value minus municipal taxes paid by assesses during the year.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Standard rent can be determined if property is _______________.

Option4

​Standard rent of  the house property can be determined if property is covered under the Standard Rent Control Act. Hence, option (D) is correct answer.

DifficultCovered under the municipality jurisdiction.Is not covered the municipality jurisdictionNot covered under the Rent Control Act.Covered under the Rent Control Act.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Standard Rent of the property is fixed by ______________.

Option3

​Standard Rent of the house property is fixed by the Standard Rent Control Act. Hence, option (C) is correct answer.

DifficultIncome Tax Act 1961Local Act Standard Rent Control ActIncome tax Rules
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​​Municipal/local taxes in respect of let out property are deductible from Gross annual value, if _______________.

Option3

​Municipal/ Local taxes are deductible from Gross Annual Value If such taxes are paid by owner of the house property during the previous year. Hence, option (C) is correct answer.

DifficultMunicipal/local taxes paid by the tenant Municipal/Local taxes paid by owner of the property after the end of previous yearMunicipal/Local taxes paid by owner of the property during the previous yearMunicipal/ local taxes paid by the tenant during the previous year
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Gross Annual value of self occupied house property is always ___________.

Option3

​Gross Annual Value of the property shall be zero if property is used for the purpose of own residence (or for family members) throughout the year, i.e., self occupied property. Hence, option (C) is correct answer.

DifficultGreater than zero  (positive)Less than zero (negative)ZeroEqual to or greater than zero.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​​A house property shall be treated as self occupied if _________________ .

Option2

​A property shall be treated as a self occupied if   whole Property is used by owner for his (or his family) residential purpose and no other benefit is derived during the previous year. Hence, option (B) is correct answer.

NormalProperty is vacant throughout the yearWhole Property is used by owner for his (or his family) residence purpose and no other benefits  is derived during the previous year.If any portion of the property is used by owner for his residential purposeLet out house property to  employer, and employer allotted to the owner.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Mr. Saroj and his family members are residing in his residential property during the year 2016-17. What will be type of property for the year 2016-17?

Option3

​A property shall be treated as  a self occupied if   whole Property is used by owner for his (or his family members) residential purpose and no other benefit is derived during the previous year. Hence, option (C) is correct answer.

NormalLet outDeemed to let outSelf occupied Rented out
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​What is allowable standard deduction while computing Income from house property?

Option2

​​As per section 24(a) 30% of net annual value is allowable while computing income from house property. Hence, option (B) is correct answer.

Normal25 % of Gross annual Value.30% of net annual value.33.33 % of net annual value.30% of Gross annul value.
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​While computing income from house property allowable standard deduction is deducted from _____________.

Option2

​​As per section 24(a) while computing income from house property standard deduction is allowed as 30% of net annual value and is deducted from net annual value. Hence, option (B) is correct answer.

NormalGross Annual value Net annual valueMunicipal value.Expected rent
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Municipal taxes paid by owner during the previous year will be deductible from gross annual value if type of house property is ___________.

Option1

​​Municipal taxes paid by the owner during the previous year are always deductible from Gross annual value, if the type of property is let out property. Hence, option (B) is correct answer.

NormalLet out propertySelf occupied propertyLet out or self occupied Residential property
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Deduction under section 24(b) is available if purpose of borrowed capital is ____________.

Option1

​Interest on borrowed capital is allowed as deduction under section 24(b) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the House property. Hence, option (A) is correct answer.

NormalPurchase, construction, repair, renewal or reconstruction of the house propertyPurchase of the landPurchase of motor carPurchase of machinery
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Deduction under section 24(b) is available if purpose of borrowed capital is ____________.

Option2

​Interest on borrowed capital is allowed as deduction under section 24(b) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the House property. Hence, option (B) is correct answer.

NormalPurchase of agriculture landConstruction, repair of House propertyPurchase of motor carPurchase of machinery
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Deduction under section 24(b) is not available if purpose of borrowed capital is ____________.

Option4

​Interest on borrowed capital is allowed as deduction under section 24(b) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the property.  Hence, option (D) is correct

DifficultConstruction of the propertyRepair of the propertyRenewal or reconstruction of the propertyPurchase of agriculture land
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​On what basis ​Interest on borrowed capital is deductible under section 24(b)  under the head income from house property?

Option3

​Interest on borrowed is deductible under section 24(b) on accrual basis for the year. Hence, option (C) is correct answer.

NormalReceipts basis Payment basisAccrual basisNone of above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income from house property 

​Which of the following amount is deductible under section 24(b) for a let out property under the head income from house property?

Option4

​As per section 24(b) interest on borrowed capital is deductible without any limit. Hence, option (D) is correct answer.

NormalRs 2, 00,000Rs 30,000Rs 1, 50,000No limit
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​From which source ,Central government gets the money needed to provide essential goods and services?

Option1

​Taxes on Income collected by central government are the source of fund to provide essential goods and services to public. Hence, Option (1) is correct answer

BeginnerTaxes on IncomeDonationsGiftsNone of above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Which of these are not covered under direct taxes?

Option3
BeginnerTax on House RentTax on SalaryTax on EntertainmentTax on Profits
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​A Financial year is a period between:

Option4
BeginnerJanuary to DecemberMay to JuneSeptember to OctoberApril to March
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​​Income Tax Act  may be replaced by:

Option2
BeginnerTax on Income ActDirect Taxes CodeNew Income Tax ActIncome Tax Code
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Who is our present Finance Minister?

Option4
BeginnerSmt. Sonia GandhiSh. Manmohan SinghSh. Pranab MukherjeeSh. Arun Jaitley
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Taxes paid by citizens are used by the Government for the purpose of:

Option4
BeginnerPublic WelfareDefence PurposeBuilding InfrastructureAll of above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Revision in Income Tax rates is announced in:

Option3
BeginnerRail BudgetFamily BudgetUnion BudgetState Budget
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Under which ministry Direct taxes are covered?

Option1
BeginnerFinance MinistryHome MinistryEnvironment MinistryDefence Ministry
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Union Budget is presented by:

Option4
BeginnerPrime MinisterChief MinisterHome MinisterFinance Minister
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Indian Union Budget is presented in the month of:

Option1
BeginnerFebruaryMarchJulyOctober
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​PAN means________.

Option2
BeginnerPermanent Access NumberPermanent Account NumberPersonal Access NumberPersonal Account Number
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​How many characters are there in a PAN?

Option4
Beginner78910
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Who can issue PAN?

Option2
BeginnerSales Tax DepartmentIncome Tax DepartmentService Tax DepartmentUnique Identification Authority
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​In Which of the following cases PAN is required?

Option4
BeginnerOpening of a Bank AccountFiling of Income Tax ReturnIdentification for entering an airportAll  above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​What is the full form of TDS?

Option2
BeginnerTax Deducted at SiteTax Deduction at SourceTax Doubled at SourceNone of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​What is the due date of filing of return of  income  of an individual not liable to audit under any law and not having international transaction or specified domestic transactions?

Option2
Beginner31st May31st July31st AugustAll of above
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Period for which Income Tax Return is to be filed is:

Option1
BeginnerFinancial yearMonthWeekFortnight
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​ITR Stands for

Option1
BeginnerIncome Tax ReturnIndian Tax RegulationIncome Tax RefundIndian Taxation Rules
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​TRP is the term used for

Option3
BeginnerTax Return PersonTax Responsible PersonTax Return PreparerTotally Responsible Parent
1
YesTax GyanApproved11/23/2017 12:55 PM
Income Tax Basic Concepts 

​Income Tax payment can be done through

Option4
BeginnerCashChequeOnline PaymentAll of the above
1
YesTax GyanApproved11/23/2017 12:55 PM
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