1. State which of the following income are exempted?
a) Dearness Allowance
b) City Compensatory Allowance
c) Foreign Allowance
d) Medical Allowance
2. Education allowance is exempted for …….
a) One person
b) Four persons
c) Two persons
d) None of these
3. A government employee received salary Rs.120,000 and entertainment allowance Rs.10,000 during the previous year. He spent Rs.6000 on entertainment. He is entitled to deduction u/s 16(ii) :
a) 10,000
b) 6000
c) 5000
d) Nil
4. A citizen of India who goes abroad for the purpose of employment, he must stay in India at least for ................... days to become a resident
a) 90 days
b) 162 days
c) 180 days
d) 182 days
5. Who among the following may be “not ordinarily resident”?
a) Hindu Undivided Family
b) Company
c) Association of persons
d) None of these
6. 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
7. Previous year means the financial year immediately preceding the …………………
a) Accounting Year
b) Assessment Year
c) All of the above
d) None of the above
8. Gratuity received by a government employee is ..................
a) Fully exempted
b) Partly exempted
c) Fully taxable
d) Exempted up to Rs:1,00,000
9. The periodic payment of money for the past service is known as ........................
a) Gratuity
b) Pension
c) Commuted pension
d) Leave salary
10. Income received in India whether occurred in India or outside India, the tax incidence in case of resident is ………………………….
a) Taxable as per slabs
b) Exempted from tax
c) Partly exempted
d) None of the above