Income Tax Questions and Answers Part-3

1. Dividend from an Indian Company is …………………
a) Fully Taxable
b) Partly Taxable
c) Fully Exempted
d) None of these

Answer: c

2. Expenditure incurred on exempted income is ………… as deduction
a) Fully Allowed
b) Partly Allowed
c) Not Allowed
d) None of these

Answer: c

3. Income exempted from tax are stated in the section …… Of Income Tax Act.
a) 5
b) 10
c) 12
d) 8

Answer: b

4. Income from Salary is explained in the section ……………………
a) 12 to 14
b) 15 to 17
c) 18 to 22
d) 24 to 26

Answer: b

5. Salary is defied as per section ……….
a) 15(2)
b) 16(1)
c) 17(2)
d) 17(1)

Answer: d

6. When an URPF is recognized, the balance so transferred is called ………….
a) Recognized PF
b) Transferred PF
c) Recognized Balance
d) Transferred Balance

Answer: c

7. Bonus paid by the employer to the employee is …………
a) Fully Taxable
b) Partly Taxable
c) Fully Exempted
d) None of these

Answer: a

8. Gratuity is defined as per section ……….
a) 10(10A)
b) 10(10AA)
c) 10(10)
d) 10A

Answer: c

9. The highest Administrative Authority for Income Tax in India is............
a) Finance Minister
b) CBDT
c) President of India
d) Director of Income Tax

Answer: b

10. Payment made by an employer to employee monthly, other than salary is called ………….
a) Bonus
b) Allowances
c) Benefits
d) None of these

Answer: b