Business Studies MCQ Quiz Hub

1. What is the exempted limit while calculating salary under section 16 ia?
Rs. 40,000
Rs. 25,000
Rs. 30,000
Rs. 1,00,000

2. For tax deducted at source, employer issues to employee.
Form 20.
Saral
Form 16
Form 31A.

3. Advance tax should be paid during a financial year if such advance tax payable by the assessee exceeds.
Rs.50,000.
Rs. 1,000.
Rs.20,000.
Rs. 1,00,000.

4. Due date of filing of return by company assessee is____.
30th June.
31st August
31st July.
30th Sep.

5. Under the income- tax act, the incidence of taxation depends on
The citizenship of the tax-payer.
The age of the taxpayer
The residential status of the tax-payer.
The gender of the taxpayer

6. Unabsorbed depreciation can be carried forward for set off.
for a period of four years only.
for a period of eight years only
for an unlimited number of years.
for a period of eighteen years only.

7. Contribution of provident fund by employer is exempted upto ____ of Salary.
. 9.5%
10%
12%
50%

8. Contribution of provident fund by employer is exempted upto ____ of Salary.
. 9.5%
10%
12%
50%

9. Interest accumulated to PF a/c is exempted upto _________.
9.5%
10%
12%
15%

10. Which of the following is taxable in the hands of specified employee only?
Rent free house
club facility
credit card facility
car or other conveyance facility

11. Deduction in respect of expenditure on advertisements through articles intended for presentation will be allowed on the value of each article up to a limit of.
fully allowed.
Rs. 1,000 per item
Rs. 800 per item
Rs. 1,800 per item.

12. Capital expenditure on scientific research which cannot be absorbed on account of insufficiency of profit in any accounting year can be carried forward for.
16 years.
8 succeeding previous years.
Indefinite period.
12 years.

13. Embezzlement of cash in a money lending business shall be treated as.
. Business expenditure.
Revenue loss incidental to business.
Capital expenditure
Capital loss.

14. Entertainment allowance is fully taxable allowance to _________.
private employees
Govt. employees
foreign employee
None of the above.

15. Receipt of amount on maturity of LIC Policy is.
A revenue receipt.
A capital receipt.
A casual receipt
None of the these

16. Water bill issued in the name of employee but paid by employer is
taxable for all employees
exempted for all employees
partially taxable for all employees
taxable for specified employees only

17. What is the notified limit for calculation of exemption of gratuity?
. Rs. 20,00,000
Rs. 10,00,000
Rs. 5,00,000
Rs. 30,00,000

18. Deductions out of gross salary under section 16 is/are _______.
Standard deduction
professional tax
both of the above
None of the above

19. Maximum limit of amount which can be claimed as deductions under section 80C is ______.
Rs. 50,000
Rs.1,00,000
Rs. 2,00,000
. Rs. 1,50,000

20. Rent from a building let out for business purpose is __________ income
house property
business
capital gain
other source

21. Annual value is dealt in section ______.
23
25
24
26

22. The rent fixed under the rent control act is ________
MRV
FRV
standard rent
RRV

23. Integration of agricultural income with non agricultural income is not done for
Individuals
HUF
AOP
firm

24. Exempted incomes are defined under section
15 of income tax Act.
18 of income tax Act
10 of income tax Act
20 of income tax Act.

25. Exempted incomes do not form part of total income of
Individual assessees only
HUF only
Firm and company assessees only
all assessee

26. Incomes absolutely exempt from Tax are listed under
Sec 2.
Sec 10
Sec 38.
Sec. 80c.

27. Remuneration received by embassy or high commission employees of a foreign state is fully exempt from tax under.
Section 9a.
Sec 14(e)
Sec 10 b. (ii) to (vi)
Sec 20 (s).

28. Scholarship granted is.
Fully exempted.
Fully taxable
Partly exempted.
None of these.

29. Scholarship granted is.
Fully exempted.
Fully taxable
Partly exempted.
None of these.

30. Scholarship granted is.
Fully exempted.
Fully taxable
Partly exempted.
None of these.

31. Income of Non profit seeking educational institutions, financed by government, is exempt from Income tax if its annual receipts do not exceed.
Rs. 50 lakhs .
Rs. 1 crore.
Rs. 5 crores.
Rs. 50 crores.

32. When parents income is clubbed with minor childs income parent is eligible for exemption of the.
Actual income of minor or Rs. 20,000 which ever is less
Actual income of minor or Rs. 10,000 whichever is less.
Actual income of minor or Rs. 5,000 which ever is less
Actual income of minor or Rs. 1,500 whichever is less.

33. Tax Holiday is.
Income tax on holiday income.
Tax exemption for a specified period
Cancellation of tax for the entire country.
None of the above

34. Rebate u/s 87A is allowed to individuals upto _________.
Rs. 2,500
Rs. 3,500
Rs. 4,000
Rs. 5,000

35. Share of income from firm is.
Taxable in the hands of partner
Exempted in the hands of partner.
Exempted in the hands of firm.
None of the these

36. In case of Tax free salary.
Tax is to be paid by employer
No tax is payable on such salary
Tax is to be paid by the employee.
Govt, itself pays the tax at a future date.

37. Salary received by a member of parliament is.
Taxable as salary income
Exempt from tax sources
Taxable as income from other sources
capital gain

38. Taxable as income from other sources
Payment by the employer in kind.
Salary from the former employer.
Salary received by UNO employees
Leave salary.

39. Taxable as income from other sources
Payment by the employer in kind.
Salary from the former employer.
Salary received by UNO employees
Leave salary.

40. What is the maximum rate of tax for an individual assessee?
. 5%
10%
20%
. 30%

41. Dearness allowance is taxable in the hands of.
Govt employees
Non-Govt employees
All employees.
None of the these

42. Dearness allowance is taxable in the hands of.
Govt employees
Non-Govt employees
All employees.
None of the these

43. HRA paid to an employee who is residing in his own house is
Fully exempted.
Partly taxable.
Fully taxable.
None of the above

44. Exemption for house rent allowance is determined by.
Rule 24C.
Sec. 80C
Rule 2A.
Sec. 91.

45. Exempted limit of HRA in non-metropolitan cities is.
A. 40% of salary.
50% of salary
10% of salary.
7.5% of salary.

46. Value of the car, when car is provided to an employee for official purpose and expenditure is incurred by employer is
. Nil
Rs 1,800 p.m
Rs. 1,200 p.m
Rs. 2,000 p.m

47. Lump-sum gratuity received by govt. employee is
fully exempted
fully taxable
partially taxable
none

48. Monthly pension received by govt. employee is
fully taxable
fully exempted
partially taxable
None

49. Deduction under 80G is allowed to _______.
Individuals only
HUF only
Company only
All assessee

50. Amount of contribution made to PM national relief fund is exempted upto _________.
100%
75%
50%
25%

51. Perquisites to employees are covered in the I.T. Act 1961 under.
Sec 2a.
Sec. 17b
Sec 28a.
Sec. 36 c.

52. The value of Interest-free concessional loans to employees is determined on the basis of lending rates for the same purpose
S.B.I.
R.B.I.
Central govt.
State govt.

53. An employee is deemed as a specified employee if he is a director in the company or has substantial in the company or his chargeable salary per annum exceeds.
Rs. 5,00,000.
Rs. 2,00,000
Rs. 1,00,000.
Rs. 50,000.

54. University teacher is
Govt. employee
Semi Govt. employee
Private employee
undecided employee

55. Employers contribution to RPF is exempted upto.
10% of salary.
13% of salary
12% of salary
11% of salary.

56. Medical allowance received by an employee is
Fully taxable.
Partially taxable
Fully exempted
exempted upto the actual amount of expenditure

57. Rate of tax for long term capital gain
10%
20%
30%
35%

58. In case the dependent is suffering from a notified disease the rate of deduction u/s 80DDB is
. Rs. 15,000 p.a
Rs. 40,0000 p.a
Rs. 50,000 p.a
Rs. 1,00,000

59. Leave encashment received during service by a govt or non-govt employee is.
Fully exempted.
Partially exempted
Fully taxable
employer has to pay tax on it.

60. The statutory limit of exemption of leave encashment is.
Rs. 3,50.000.
Rs. 3,00,000
Rs. 5,00,000
2,50,000.

61. Which one of the following is not eligible for deduction u/s 80C?
Employee contributions to SPF
Employee contributions to URPF
Employee contributions to PPF
Employee contributions to RPF

62. For all non-corporate assessees whose accounts are subject to audit and working partners of a firm whose accounts are subject to audit must file the return by
30th Sep. of AY
30th July of AY
31st Oct. of AY
30th Nov. of AY

63. Professional tax paid by salaried assessees is allowed as a deduction
u/s 16 ia
u/s 16ii
u/s 16 iii
u/s 17 b

64. Rate of depreciation on furniture is.
. 5%.
15%.
10%
20%.

65. Additional depreciation is allowed at half the rate if the asset is used in the initial year for.
195 days.
199 days
360 days.
less than 180 days.

66. Expansion of PAN
Permanent Account Number
Person Account Number
Permanent Audit number
Permanent Assessee Number

67. Tax benefit for senior citizen is available to an assess who has attained the age of
. 65 yrs
60 yrs
80 yrs
75 yrs

68. Furniture held for more than 36 months, on which depreciation is allowed is
Long term capital asset.
Short term capital asset.
Exempted capital asset
not a capital asset.

69. Long term capital gain on sale of listed shares are.
Exempted.
Taxable
Partially Exempted.
Partially Taxable.

70. Dividends from co-operative society are.
Exempted.
Taxable
Partially Exempted.
Partially Taxable.

71. Income received by charted account by way of fees from his client is
salary income
business income
professional income
income from other sources

72. Which of the following gifts are taxable?
Gift in kind from relatives.
Gift from wife
Gift from son
Gift from employer