Residence and Scope of Total Income MCQ | 50 Free MCQs

31. Share of profits received by a partner, from a firm which is separately assessed, is exempt u/s …………….
1) 10 (2 A)
b) 10 (4 B)
c) None of the above

32. Uncommuted pension is taxable under the head ……………….. .
a) Income from House property
b) Income from Salary
c) None of the above

33. Maturity proceeds of key man insurance policy is ……………..
a) Non-Taxable
b) Taxable
c) None of the above

34. Leave salary received during the period of service is ……………….
a) Non-Taxable
b) Taxable
c) None of the above

35. Commuted pension means receipt of ………… amount in lieu of periodical pension.
a) Lumsum
b) Periodical
c) Yearly
d)None of the above

36. ………………. received by the members of parliament or state legislature are exempt.
a) Allowances
b) Salary
c) None of the above

37. Notified amount of gratuity for the employees not covered by payment of gratuity act is …………..
a) Rs 10,00,000
d) Rs 9,00,000
c) Rs 1,00,000
d) Rs 5,00,000

38. Salary of a M.P / M.L.A. is taxable under the head …………..
a) Income from salary
b) Income from other sources
c) None of the above

39. Salary given to partner by a firm is taxable under the head ……………
a) Business Income
b) Income from salary
c) None of the above

40. An Assessee claimed the exemption of gratuity in the past to the extent of 2,50,000 from his previous employer. He was entitled to How much exemption can he claim to the maximum extent :
a) 10,00,000
b) Nil
c) 7,50,000
d) None of the above

Answer: 31)10 (2 A) 32)Income from Salary 33)Taxable 34)Taxable 35)Lumpsum 36)Allowances 37)10,00,000 38)Income from other sources 39)Business Income 40)7,50,000

41. Un-commuted pension received by a Government employee is :
a) Exempt
b) Taxable
c) 1/3 is exempt
d) None of these

42. An employee is neither a government nor covered under the Payment of Gratuity Act, 1972. He has completed 16 years and 8 months of service. The number of completed years considered for gratuity exemption shall be :
a) 17 years
b) 16 years
c) 16 years and 8 months
d) None of the above

43. Compensation received on voluntary is exempt under sec. 10 (10 C) to the maximum extent of :
a) 2,40,000
b) 3,00,000
c) 5,00,000
d) None of the above

44. Dividend is exempt in case :
a) It is paid by an Indian Company
b) It is paid by a foreign company
c) It is paid by a multinational company
d) it is paid by a joint venture unit.

45. Gallantry award means :
a) Param Vir Chakra
b) Mahavir Chakra
c) Vir Chakra
d) All of the above

46. The items of incomes that are totally exempt from tax are covered u/s __.
a) 80
b) 10
c) 8
d) None of the above

47. Upper monetary limit for claiming exemption from gratuity for “other” category is ………….
a) 5,00,000
b) 1,00,000
c) 10,00,000
d) None of the above

48. The dividend income in the hands of the shareholders will be exempt from tax u/s …………..
a) 10 (35)
b) 10 (34)
c) 10 (32)
d) 10 (33)

49. Leave salary received during the period of service is ……………...
a) Exempt u/s 10 (10 AA)
b) Exempt u/s 10 (10 A)
c) Taxable
d) None of the above

50. Tax borne by the employer on non-monetary perquisite provided to an employee is exempt u/s ……………...
a) 10 (10 C)
b) 10 (10 CC)
c) 10 (10 BC)
d) 10 (10 CCC)

Answer: 41)Taxable 42)16 years 43)5,00,000 44)It is paid by an Indian Company 45)All of the above 46)10 47)10,00,000 48)10 (34) 49)Taxable 50)10 (10 CC)