Income from Salary MCQ | 30 Free MCQs

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