Income from Salary MCQ | 30 Free MCQs

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