1. Employer provides a car (below 1.6 ltr capacity) along with a driver to X partly for official and partly for personal purpose. The expenses incurred by the company are: running and maintenance expenses – ` 32,000 and driver’s salary – ` 36,000 . Taxable value of perquisite is ……………………….
a) 21,600
b) 10,800
c) 32,400
d) 39,600
2. Encashment of earned leave is given by ……………………… of Income Tax Act, 1961.
a) Section 10(10AA)
b) Section 12(10A)
c) Section 15(10B)
d) None of the above
3. Compensation received on voluntary retirement is given by ……………………. of Income Tax Act,1961
a) Section 10(10D)
b) Section 10(10C)
c) Section 10(10E)
d) Section 11(10D)
4. If an employer transfers second hand motor car to the employee, the perquisite is valued at …………………………………….
a) Actual cost less depreciation @30% for every completed year under straight line method
b) Actual costless depreciation @20% for every completed year under WDV method
c) Actual costless depreciation @30% for every completed year under WDV method
d) Actual costless depreciation @20% for every completed year under SLM method
5. The following is not taxable as income under the head “Salaries”:
a) Commission received by a full-time director
b) Remuneration received by a partner
c) Allowances received by an employee
d) Free accommodation given to an employee
6. The following is exempt income from Income Tax:
a) Travel concession to employee
b) Remuneration received for valuation of answer scripts
c) Encashment of leave salary whilst in service
d) Perquisites in India
7. Gift to employee up to ……………………… p.a. will not be treated as perquisite taxable in the hands of employee.
a) 4,000
b) 5,000
c) 10,000
d) 2,500
8. Salary received by the manager of an agricultural farm is .........................
a) An agricultural income
b) A salary income
c) A business income
d) A capital income
9. Any benefits attached to an office or position in addition to salary or wages is called …………….
a) Allowances
b) Perquisites
c) Benefits
d) None of these
10. Leave travel concession is explained as per section ……………
a) 10(1)
b) 10(5)
c) 10(10)
d) 10(5A)