Income from Salary MCQ | 30 Free MCQs
Income from Salary MCQ
1. Entertainment tax deduction is allowed only to ……………..
a) Government employee
b) Private Employee
c) Businessman
d) None of the above
2. Employers contribution to RPF to exempt up to …………. of salary.
a) 12%
b) 18%
c) 9.5%
d) None of the above
3. Interest credited to RPF is exempt up to ………………… p.a.
a) 12%
b) 18%
c) 9.5%
d) None of the above
4. …………… allowance deduction is allowed only to Government employees.
a) Entertainment
b) House Rent
c) Travel
d) None of these
5. Profession tax deduction is allowed on ………… basis.
a) payment
b) Receipt
c) Accrual
d) None of the above
6. Arrears of salary are taxable in the year of ……………….
a) payment
b) Receipt
c) Accrual
d) None of the above
7. Telephone provided at the residence of an employee by employer is ………….. perquisite.
a) Non-taxable
b) Taxable
c) Exempt
d) None of the above
8. Wages paid by the employer for the domestic servants employed by the employee is ………. perquisite.
a) Non-taxable
b) Taxable
c) Exempt
d) None of the above
9. Employer-employee relationship determines the …………….. of salary.
a) Scope
b) Limit
c) None of the above
10. ………… relationship is necessary for taxing the remuneration under the head income from salary.
a) employer-employee
b) employee-employee
c) None of the above
| Answers: 1)Government employee 2)12% 3)9.5% 4)entertainment 5)payment 6)receipt 7)non-taxable 8)taxable 9)scope 10)employer-employee |
11. Advance against salary is ……………
a) Non-taxable
b) Taxable
c) Exempt
d) None of the above
12. Salary of Sushil Kumar becomes due on 1st of next month and it is paid on 10th that month. For the assessment year 2020-21, the salary of Sushil Kumar shall be taken from :
a) April 2019 to March 2020
b) March 2019 to February 2020
c) April 2020 to March 2021
d) March 2020 to February 2021
13. Ramu who is entitled to a salary of 10,000 p.m. took an advance salary from his employer for the months of April and May 2020, along with a salary of March 2020 on 31-3-2020. The gross salary of Ramu for the assessment year 2020-21 shall be :
a) 1,20,000
b) 1,40,000
c) 20,000
d) 1,00,000
14. 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 2020. The gross salary of Ramu for the assessment year 2020-21 shall be :
a) 1,70,000
b) 1,20,000
c) 50,000
d) 70,000
15. Prof. Vineet received 6th Pay arrears on 14th May 2019 retrospectively from 1st Jan, 2016. The arrears would be taxable in the previous year :
a) 2019-20
b) 2015-16, 2016-17, 2017-18 respectively
c) 2015-16
d) None of the above
16. Entertainment allowance in case of a government employee is :
a) Fully exempt
b) Fully taxable
c) Exempt upto certain limits mentioned in sec. 16 (ii)
d) First included in full in gross salary and thereafter deduction allowed from gross salary under section 16 (ii) subject to certain parameters.
17. The life insurance policy taken by a person on the life of another person who is connected & key to the business as employee is called :
a) Keyman Insurance policy
b) Key Insurance Policy
c) LIC
d) Employed Insurance
18. Perquisite can be :
a) The same as the allowance
b) Any reimbursement to an employee in respect of an obligation that would be payable by the employee
c) Any expenditure incurred by the employer for staff welfare
d) None of the above
19. Manthan a chartered accountant is employed with Mayuni Ltd., an internal auditor, and requests the employer to call the remuneration as internal audit fee. Manthan shall be chargeable to tax for such fee under the head.
a) Income from salaries
b) Profit and Gains from business and profession
c) Income from other sources
d) None of these
20. A. Raja who is entitled to a salary of 40,000 p.m. took an advance of 80,000 against the salary in the month of March 2020. The gross salary of Raja for assessment year 2020-21 shall be :
a) 5,60,000
b) 4,80,000
c) 4,00,000
d) None of these
| Answers: 11)March 2019 to February 2020 12)1,40,000 13)1,20,000 14)2019-20 15)First included in full in gross salary and thereafter deduction allowed from gross salary under section 16 (ii) subject to certain parameters 16)Keyman Insurance policy 17)Government employee 18)Any reimbursement to an employee in respect of an obligation that would be payable by the employee 19)Income from salaries 20)4,80,000 |
21. Lalit who is entitled to a 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, 2020 on 31-3-2020. The gross salary of Lalit for the assessment year 2020-21 shall be :
a)
21. Lalit who is entitled to a salary of 12,000 p.m. took an advance salary from his employer for the months of April and May 2020, along with salary of March, 2020 on 31-3-2020. The gross salary of Lalit for the assessment year 2020-21 shall be :
a) 1,44,000
b) 1,68,000
c) 1,56,000
d) 1,20,000
22. Salary of Shaila becomes due on 1st of next month and it is paid on 7th of that month. For the assessment year 2020-21, the salary of Shaila shall be taken from
a) April 2019 to March 2020
b) March 2019 to February 2020
c) April, 2020 to March 2021
d) None of these
23. Progressive Ltd. announced an increase in D.A. on 21-3-2020 with retrospective effect from 21-3-2012 and the same paid on 6-04-2020. The arrears of D.A. shall be taxable in the previous year.
a) 2018-19
b) 2019-20
c) In respective previous years to which these relate
d) 2020-21
24. Kumar is neither a government employee nor covered under the Payment of Gratuity Act. 1972. He has completed 21 years and 8 months of service. The number of completed years considered for gratuity exemption shall be
a) 22 years
b) 21 years
c) 21 years and 8 months
d) Average of (a) & (b)
25. Employer’s contribution to statutory provident fund is……………….
a) Exempt upto 12% of salary
b) Exempt upto 9.5% of salary
c) Fully exempt
d) None of the above
26. Interest credited to RPF is …………..
a) Fully exempt
b) Exempt upto 8.5% p.a
c) Fully Taxable
d) Exempt upto 9.5%
27. Compensation on termination of employment will be taxable under the head …………..
a) Income from other sources
b) Income from salary
c) Not taxable as it is capital receipt
d) Fully Exempt
28. Profession tax deduction is allowed on ………….
a) Accrual basis
b) Payment basis
c) Both (a) & (b)
d) Non-deductible
29. Maximum amount of deduction for entertainment allowance is …………….
a) 1,500
b) 2,500
c) 5,000
d) 3,000
30. Deductions in respect of salary are covered u/s ………….
a) 17
b) 16
c) 15
d) None of the above
| Answer: 21)1,68,000 22)March 2019 to February, 2020 23)2019-20 24)21 Years 25)Fully exempt 26)Exempt upto 9.5% 27)Income from salary 28)Payment basis 29)5,000 30)16 |
