Skip Ribbon Commands
Skip to main content

Skip Navigation LinksTaxGyan-QA

  
Edit
Questions
  
  
  
  
  
  
  
  
Explanation
  
  
  
Income Tax Concepts 
​​​Which of the following statement is correct?
Assessment year starts from April 1 to ends with March 31St of the next year.Assessment year starts from April to ends with March of the next yearAssessment year starts from January 1 ends with December 31stAssessment shall be period of 12 months or more. Option1Beginner
1
Yes

As per section 2(9) assessment year starts from 1st of April and ends on 31st March of the next year. Assessment year is period of 12 months. Hence option (1) is correct answer​.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Concepts 
Assessment year starts from __________ every year.
1St AprilAny day of the April Month31St MarchOption (1) & (2) both may not correctOption1Beginner
1
Yes

As per section 2(9), assessment year starts from 1st of April and ends on 31st March of the next year. Hence option (A) is correct answer

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Concepts 
Which of the following is correct previous year corresponding to the assessment year 2017-18?
2016-17 and 2017-182017-182016-172017Option3Beginner
1
Yes

​2016-17 is corresponding previous year of assessment year 2017-18. Hence option (3) is correct.    

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Concepts 
Assessment year may be more than 12 months.
Above statement is correct. Above statement is not correctAbove statement is partially correctAbove all options are correctOption2Beginner
1
Yes

As per section 2(9), assessment year starts from 1st of April and ends on 31st March of the next year. Assessment year is a period of 12 months only. Hence option (2) is correct answer

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following statement is correct?
First Previous year always starts from April 1   First Previous year may starts from any day between 1st of April to 31St March of next year.  Previous year start from 1st of January every yearAbove all options are correct.Option2Beginner
1
Yes

​As per section 3, in case of newly set up business/ profession or new source of income, first previous year starts on date in which new business start or new source of income come into existence. Hence First Previous year may starts from any day between 1st of April to 31St March of next year. Therefore option (2) is correct.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

Which of the following statement is correct?

Previous year always ends on 31st MarchPrevious year may ends   with any day between 1st of April to 31St March of next yearPrevious end with 31st of January Above all options are correct. Option1Beginner
1
Yes
As per section 3, first previous year and subsequent previous year ends on 31st March. Hence option (A) is correct.
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Mr. Rahul joins with X ltd on dated 12/12/2015 and prior to this date he was not in employment. Which of the following statement is correct?
First previous year is from 01/04/2015 to 31/03/2016First previous year is from 12/12/2015 to 31/03/2016 and next previous year is     01/04/2016 to 31/03/2017First previous year is from 12/12/2015 to 11/12/2016None of the above Option2Normal
1
Yes

Justification- As per section 3, in case of newly set up business/ profession or new source of income, first previous year starts on date in which new business start or new source of income come into existence. Hence First previous year is from 12/12/2015 to 31/03/2016 and next previous year is 01/04/2016 to 31/03/2017. Hence option (2) is correct option

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Previous year can be more than 12 months
Above statement is true. Above statement is partially trueAbove statement is falseAbove options are correct Option3Normal
1
Yes

As per section 3, period of previous year may be less than or equal to 12 months. Hence above statement is false. Hence option (3) is correct

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following is correct assessment year corresponding previous year which is ends on 31/03/2017?
Assessment year 2016-17 and 2017-18.Assessment year 2016-17Assessment year 2017-18 Assessment shall be period of 12 months or more. Option3Normal
1
Yes

The year in which   Income is earned is known as previous year and next year will be assessment year of corresponding previous year. Previous year ends on 31/03/2017, then   its corresponding Assessment year will be 2017-18. Hence option (3) is correct

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Jai Shakar sold a building on dated 27/03/2017 and arise long term capital gain. Which of the following is correct previous year and assessment year of such long term capital gain?
Previous year 2016-17 and assessment year 2016-17Previous year 2017-18 and assessment year 2017-18. Previous year 2016-17 and assessment year 2017-18None of above is correct.Option3Normal
1
Yes

​Capital gain arises in previous year 2016-17, and its corresponding assessment year is 2017-18. Hence option is (C) is correct ​

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Mr. X set-up a business on 27.8.2015. Previous Year for him as per Income Tax Act, 1961 will be _____.
1.4.2015 to 31.3.201627.8.2016 to 31.3.20171.4.2016 to 31.3.201727.8.2015 to 31.3.2016Option4Normal
1
Yes

​As per section 3, in case of newly set up business/ profession or new source of income, first previous year starts on date in which new business start or new source of income come into existence. Hence First previous year starts   from 27/08/2015 and ends on 31/03/2016.Hence option () are correct.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following is not included in the definition of person?
An IndividualA Hindu Undivided familyA company Hospital Option4Normal
1
Yes

​As per section 2(31), person includes a individual, a Hindu undivided family,   a company, a firm, an association of person or body of individual, a local authority and Every artificial juridical person. Hence Hospital is not included in the definition of person. Therefore option 4 is correct.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following is not included in the definition of person?
An IndividualA Hindu Undivided familyA company Hospital Option4Beginner
1
Yes

​Justification - As per section 2(31), person includes a individual, a Hindu undivided family,   a company, a firm, an association of person or body of individual, a local authority and Every artificial juridical person. Hence Hospital is not included in the definition of person. Therefore option (4) is correct.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following is not included in the definition of person?
An IndividualA Hindu Undivided familyA company SchoolOption4Normal
1
Yes

As per section 2(31), person includes a individual, a Hindu undivided family,   a company, a firm, an association of person or body of individual, a local authority and Every artificial juridical person. Hence school is not included in the definition of person. Therefore option "(4) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
​Which of the following is included in the definition of person?
An IndividualA Hindu Undivided familyA company Above allOption4Normal
1
Yes

​Justification - As per section 2(31), person includes a individual, a Hindu undivided family,   a company, a firm, an association of person or body of individual, a local authority and Every artificial juridical person. Option (1), (2) and (3) includes in the definition of person.  Therefore option 4 is correct.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following is included in the definition of person?
Minor A Hindu Undivided familyRelativeAbove allOption2Normal
1
Yes

​As per section 2(31), a Hindu undivided family,   is covered under the definition of person. Therefore option (2) is correct 

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following is covered under the meaning of individual?
 Natural Person MinorUn- sound mind individual All aboveOption4Difficult
1
Yes

Individual means only natural person, human being includes minor or unsound mind person - Hence option (4)is correct.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following entry of Schedule VII of the constitution of India gives the power to central Government to impose tax on all income except agriculture income?
Entry 72Entry 102Entry 82Entry 92Option3Difficult
1
Yes

Entry 82 of List I of seventh schedule to the constitution empowers to the Parliament levy of taxes on all income except agriculture Income. Hence option (3) is correct

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
The Income Tax Act, 1961 came into force on _______
1st April, 19621st March, 19621st April, 196115th August, 1961Option1Difficult
1
Yes

​The Income tax Act, 1961 came into force from 1st April, 1962. Hence option (1) is correct.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 
Which of the following statement is not correct?
Income tax is annual tax on income Tax rates are fixed by Income tax rule Tax is charged on every person  All options are correctOption2Difficult
1
Yes

Tax rates are always fixed by Finance Act, Hence option B is not correct statement, but option (1) and (3) are correct .Therefore option (2) is correct 

Tax GyanApproved10/3/2017 3:01 PM
Residential Status 
How does residential status of an Individual classified according to Income Tax Act 1961?
Citizen, Not ordinary citizen, Non-citizenResident, Not-ordinary resident, Non-citizenOrdinary resident, Not-ordinary resident, Non-resident Any of the aboveOption3Beginner
1
Yes

​As per section 6(1) and 6(6) (a), residential status of   an individual has been classified as resident and ordinary Resident, resident but not ordinary resident and Non- resident. Therefore option (3) is correct.

Tax GyanApproved10/3/2017 3:01 PM
Residential Status 
Which of the following are basic conditions given in under Income Tax Act that an Individual will call as resident or not?
He is in India in the previous year for the period of 182 days or moreHe in India for the period of 60 days or more in the previous year and 365 days or more during four year immediately preceding the previous year Option (1), but Not Option (2).Option (1) or Option (2) Option4Normal
1
Yes

Justification – As per section 6(1) following are two basic conditions for determination of residential status of Individual. An individual must satisfies any one condition.

(1) He is in India in the previous year for the period of 182 days or more, or

(2) He in India for the period of 60 days or more in the previous year and 365 days or more during four year immediately preceding the previous year.

Hence option (4) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Residentail 
How many are basic conditions for determination of residential status of an Individual?
4312Option4Normal
1
Yes

As per section 6(1) following are two basic conditions for determination of residential status of Individual.

(1) He is in India in the previous year for the period of 182 days or more, or

(2) He in India for the period of 60 days or more in the previous year and 365 days or more during four year immediately preceding the previous year. Hence option (4) is correct answer.


Tax GyanApproved6/26/2017 8:38 PM
Residential Status 
There are two basic conditions given in Income Tax Act, 1961 to determine whether the individual is resident in India. Which condition(s) should be fulfilled by the individual in order to call resident?
Both the basic conditionAny one of the basic condition out of twoThird  basic condition Fourth  basic conditionOption2Difficult
1
Yes

As per section 6(1) to determine whether the individual is resident in India , he should must be satisfies  any one of the basic condition. Hence option (2) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Residential Status 
What will be residential status of an Individual if he is in India of a period 181 days in previous year 2015-16.?
Resident Non- ResidentResident  but not ordinary residentNone of the aboveOption2Hard
1
Yes

As per section 6(1), one of the basic condition to determine whether the individual is resident or not is “He is in India in the previous year for the period of 182 days or more.” Hence individual will be considered as Non- resident, and therefore option (2) is correct answer

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Which of the following factor does not affect the computation of house rent allowance exemption?

Amount of rent paidPlace of residenceHouse rent allowance receivedOvertime salaryOption4Difficult
1
Yes

​Rule 2A provides the manner of computation of house rent allowance exemption. Following four factors affect the computation of house rent allowance 1) Salary 2) House rent allowance 3) Rent paid by tenant 4) The place of residence of employee. From the above it is clear that “Overtime salary” does not affect the computation of house rent allowance exemption. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 
Which of the following factor does not affect the computation of house rent allowance exemption?
Amount of rent paidPlace of residenceThe place of residence of employeeBonus Option4Difficult
1
Yes

​Rule 2A provides the manner of computation of house rent allowance exemption. Following four factors affect the computation of house rent allowance 1) Salary 2) House rent allowance 3) Rent paid by tenant 4) The place of residence of employee. From the above it is cleared that “Bonus” does not affect the computation of house rent allowance exemption. Hence option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Which of the following is not included in the definition of “salary” for calculation of house rent allowance exemption?

Basic salary.Dearness allowance (Part of salary for computation of retirement benefits)Commission based on fixed percentage of turnover .Overtime salary.Option4Difficult
1
Yes
As per rule 2A salary defined as basic salary/ pay includes dearness allowance part of salary for computation of retirement benefits and commission based on fixed percentage of turnover in terms of employment. From the above clarification option (A), (B), and (C) are included in the definition of salary. Hence, option (D) is correct answer.
Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Which of the following is included in the definition of “salary” for calculation of house rent allowance exemption?

Basic salary/payOvertime salaryChildren's education allowanceNone of the above Option1Difficult
1
Yes

​As per rule 2A salary defined as basic salary/ pay includes dearness allowance part of salary for computation of retirement benefits and commission based on fixed percentage of turnover in terms of employment. From the above clarification option (A), is included in the definition of salary. Hence, option (A) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Which of the following is  included in the definition of “salary” for the calculation of house rent allowance exemption?

Perquisites Dearness allowance (Part of salary for computation of retirement benefits)Children's education allowanceNone of the above Option2Difficult
1
Yes

​As per rule 2A salary defined as basic salary/ pay includes dearness allowance part of salary for computation of retirement benefits and commission based on fixed percentage of turnover in terms of employment. From the above clarification option (B), is included in the definition of salary. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Which of the following is included in the definition of “salary” for the purpose of calculation of house rent allowance exemption?

Overtime salaryDearness allowance (Part of salary for computation of retirement benefits)Commission based on fixed percentage of turnover Option (B) and option (C)Option4Difficult
1
Yes

​As per rule 2A salary defined as basic salary/ pay includes dearness allowance part of salary for computation of retirement benefits and commission based on fixed percentage of turnover in terms of employment. From the above clarification option (B), and (C) are included in the definition of salary. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​HRA exemption is available for the ______________.

Government employees.Non- Government employees.Public sector undertaking employees.All types of employees.Option4Beginner
1
Yes

​HRA exemption is available for all types of employees. Hence, option (D) is correct answer. 

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​​Gratuity received by Government employee is _________.

Partly taxableFully exempt from taxationFully taxableUp to Rs 10, 00,000 is exempt.Option2Normal
1
Yes

​As per section 10(10)(i) gratuity received by Government employee is fully exempt from taxation. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

Gratuity received by Non- Government employee not covered by Payment of Gratuity Act,      1972 is _____________.​

Exempt up to Rs, 10,00,000.Fully taxableFully or partly exempt from taxationFully exempt.Option3Normal
1
Yes

​As per section 10(10) (ii) gratuity received by Non- Government employee (Not covered  by Payment of Garrulity Act , 1972  is  fully or partly exempt from taxation. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Gratuity received by Non- Government employee covered by Payment of Gratuity Act, 1972 is _____________.

Exempt up to Rs, 10, 00,000.Fully taxableFully or partly exempt from taxationFully exempt.Option3Normal
1
Yes

​As per section 10(10)(i)  gratuity received by Non- Government employee (covered  by Payment of Garrulity Act , 1972  is  fully or partly exempt from taxation. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Which of the following statement is correct in respect of Gratuity?

Amount received as Gratuity is exempt from taxation.Amount received as Gratuity is fully/fully or partly exempt from taxation.Amount received as Gratuity is always taxable.None of theseOption2Difficult
1
Yes

​As per section 10(10)(i), Gratuity received by Government employee is fully exempt from taxation and as per section 10(10)(ii)/10(10)(iii) Gratuity received by Non- Government( either covered by Payment of Gratuity Act, 1972 or not) employee will be fully or partly exempt from taxation . Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Mr. Rao   retired on 31/03/2017 from Ministry of Finance and he received amount of Rs 10, 50,000 as gratuity? How much amount will be taxable?

Rs 10, 00,000 Rs 10, 50,000Rs nilRs 50,000Option3Hard
1
Yes

​Mr. Rao retired from Ministry of Finance. Ministry of Finance is a Government department. Gratuity received by Government employee is fully exempt from taxation and nothing is taxable. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Leave encashment received during course of employment is_______________.

Taxable for Government employeesTaxable for Non- Government employeesTaxable for Government as well as Non- Government employees Exempt from taxation for Government employeesOption3Difficult
1
Yes

​Leave encashment received during the course of employment is taxable for Government employee as well Non-Government employee. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Leave encashment received at the time retirement or on leaving the job is _______________.

Taxable for Government employeesTaxable for Non- Government employeesTaxable for Government as well as Non- Government employees Fully exempt from tax for Government employeesOption4Difficult
1
Yes

​As per section 10(10AA)(i) leave encashment received at the time retirement or on leaving job is exempt from  taxation for Government employee. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Leave encashment received at the time retirement or on leaving job is _______________.

Taxable for Government employeesFully or partly taxable /exempt from tax for Non- Government employeesTaxable for Government as well as Non- Government employees None of the aboveOption2Difficult
1
Yes

​As per section 10(10AA)(ii) leave encashment received at the time retirement or on leaving the job is fully or partly exempt from taxation  for the Non- Government employee. Hence, option(B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​City compensatory allowance is __________________.

Fully or partly taxable for Non- Government EmployeeFully taxableFully exempt from taxation for Government employeeTaxable for non-Government employeeOption2Hard
1
Yes

​City compensatory allowance is fully taxable, irrespective of type of employee. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Uncommuted pension is _____________.

Taxable for Government employee onlyExempted from taxation for Non-Government employeeTaxable for Non- Government employee onlyTaxable for Government / Non-Government employee.Option4Difficult
1
Yes

​Uncommuted pension is taxable for Government and Non-government employee. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Mr. Satish received uncommuted pension of Rs 4, 80,000 in the year 2016-17. How much amount will be taxable in the year 2016-17?

Rs 4, 80,000NilRs 4,40,000Rs 7,50,000Option1Hard
1
Yes

​Uncommuted pension is taxable for Government and Non-government employees. Therefore, amount received (Rs 4,80,000) as uncommutted pension will be taxable in the year 2016-17. Hence, option A is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Mr. X received uncommuted pension of Rs 4, 80,000 in the year 2016-17. How much amount will be exempt from taxation in the year 2016-17?

Rs 4, 80,000NilRs 4,40,000Rs 7,50,000Option2Hard
1
Yes

​Uncommuted pension is taxable for Government and Non-government employees. Therefore, amount received (Rs 4,80,000) as uncommutted pension will be taxable and nothing will be exempt from taxation. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Commuted pension is __________________.

Fully exempt from taxation for Government employee's.Fully exempt from taxation for Non- government employee's.Fully taxable for Government employee'sNone of the above Option1Difficult
1
Yes

​As per section 10(10A)(i) commuted pension is fully exempt from taxation for Government employee's. Hence, option (A) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Commuted pension is __________________.

Partly exempt from taxation for Non- Government employee'sFully exempt from taxation for Non- government employee's.Fully taxable for Government employee'sNone of the above Option1Difficult
1
Yes

​As per section 10 (10A)(ii) Commuted pension is fully/ partly  exempt from taxation for Non-Government employee's. Hence, option (A) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Which of the following statement is correct for non- Government employee?

One third of Commuted pension is taxable.One third of commuted pension is exempt from taxation.One third of commuted pension is exempted if employee receives gratuity.One third of commuted pension is taxable if employee receives gratuity.Option3Hard
1
Yes

​A per section 10(10A)(ii) ,one-third of the commuted pension is exempt from taxation if he receives gratuity . Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Which of the following statement is correct for non- Government employee's?

One third of Commuted pension is taxable.One third of commuted pension is exempt from taxation.Half of the commuted pension is taxable if employee has received gratuity.Half of the commuted pension has exempted if employee is not received gratuity.Option4Hard
1
Yes

​A per section 10(10A) (ii), half of the commuted pension is exempt from taxation if gratuityis received. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​which of the following Form can be used for calculating the relief under section 89?

Form 10BForm 10CForm 10 IAForm 10EOption4Difficult
1
Yes

​As per Rule 21AA Form 10 E can be used for calculating the relief under section 89. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Form 10E is used for calculation of _________

Exemption of leave salaryRelief under section 90Relief under section 89RebateOption3Difficult
1
Yes

​As per Rule 21AA Form 10E can be used for calculating the relief under section 89. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​which of the following receipts is covered for relief under section 89?

Advance salary. Arrear's of salary.Arrear's of pension.All of the above.Option4Difficult
1
Yes

​As per section 89 read with Rule 21A, advance salary, arrear's of salary and arrear's of pension are covered for relief under section 89. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Relief under section 89 is not available for the ______________.

Advance salary Exempted leave salaryArrear's of family pensionArrear's of  salaryOption2Difficult
1
Yes

​As per section 89, read with Rule 21A, advance salary, arrear's of salary and arrear's of family pension are covered for relief under section 89 but exempted leave salary  is not  covered for relief. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Relief under section 89 is not available for the ______________.

Advance salary Taxable gratuityArrear's of family pensionExempted gratuityOption4Difficult
1
Yes

​​As per section 89, read with Rule 21A, advance salary, taxable gratuity and arrear's of family pension are covered for relief under section 89 but exempted gratuity  is not  covered for relief under section 89. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Relief under section 89 is available for the ______________.

Arrear of salary which is taxed in earlier yearExempted salaryArrear of family pensionExempted gratuityOption3Difficult
1
Yes

​As per section 89, read with Rule 21A arrear of family pension is covered for relief under section 89 but options A ,B ,and D  are not  covered for relief under section 89. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Fixed medical allowance is ______________.

Taxable in the hands of non- Government employee onlyExempt from taxation for the Government Employee.Fully taxable Exempted up to Rs 15,000.Option3Difficult
1
Yes

​Fixed medical allowance is fully taxable, irrespective of type of employee. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Jeevansingh received the fixed medical allowance of Rs 1,500 per month during the year 2016-17. How much amount will be taxable in the year 2016-17?

NilRs 18,000Rs 3,000Rs 15,000Option2Difficult
1
Yes

​Fixed medical allowance is fully taxable, irrespective of type of employee. Jeevansingh received fixed medical allowance of Rs 18,000 during the year 2016-17. Therefore, amount of Rs 18,000 will be taxable in the year 2016-17. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Salary 

​Mr. Rajdeep received the fixed medical allowance of Rs 1,500 per month during the year 2016-17. How much amount will be exempted in the year 2016-17?

NilRs 18,000Rs 3,000Rs 15,000Option2Difficult
1
Yes

​Fixed medical allowance is fully taxable, irrespective of type of employee. Mr. Rajdeep received fixed medical allowance of Rs 18,000 during the year 2016-17. Amount of Rs 18,000 will be taxable and nothing will be exempted in the year 2016-17. Hence, option (A) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Mr. Sajansingh has a building and it is let out to a company.  Income will be taxed under the head ______________.

Income from other SourcesBusiness IncomeIncome from house propertyCapital gainOption3Difficult
1
Yes

​As per section 22 , an Income will be taxed under the head “Income from house property “ if it satisfies the three conditions (1) should be building or land appurtenant (2) Assesee must be owner (3) Owner should not use it for the purpose of his business or profession  carried on by him. In this case all three conditions are satisfied; therefore, income will be taxed under the head “Income from house property”. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Which of the following income will be taxed under the head “Income from house property?

Mr. X is owner of a flat, which is let out.Mr. X is Owner of a tractor, which is given on lease Mr. X is owner of agricultural land which is given on lease None of the aboveOption1Hard
1
Yes

​As per section 22 , an Income will be taxed under the head “Income from house property “ if it satisfies all the three conditions (1) should be building or land appurtenant (2) Assesee must be owner (3) Owner should not use it for the purpose of his business or profession  carried on by him. Option (A) satisfies all three conditions, therefore, income will be taxed under the head “Income from house property”. Hence, option (A) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Which of the following property income is exempted from taxation?

Rental Income from flat Rental Income from half constructed buildingRental income from building which is not let out throughout the year.Income from farm house Option4Normal
1
Yes

​As per section 2(1A)(c), read with section 10(1) income from farm house is exempt from taxation. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Which of the following property income is exempted from tax?

Rental Income from flatPalace of an ex-ruler of India.Rental income from building which is not let out throughout the year.Rental Income from half constructed buildingOption2Normal
1
Yes

​As per section 10 (19A) income from Palace of anEx- Ruler is exempt from tax. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Which of the following property income is exempted from tax?

Rental Income from flat Rental income from building which is not let out throughout the year Property Income of political party.Rental Income from half constructed buildingOption3Normal
1
Yes

​As per section 13A property income of political party is exempt from tax. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Property income of Trade union is ______________.

Taxable under the head “Income from house property” Taxable under the head “business income”Exempt from taxTaxable under the “Income from other source”Option3Difficult
1
Yes

​As per section 10(24), rental income from property of a trade union is exempt from tax.  Hence, option (C) correct.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​​While computing the Expected Rent of let out property, which of the following is not required?

Municipal Valuation Fair RentStandard RentMunicipal tax paidOption4Hard
1
Yes

​Expected rent of a let out property will be higher of municipal valuation or fair rent of the property subject to maximum standard rent if the property is covered under Rent Control Act. While computing the expected rent  municipal valuation of the property, fair rent of property and standard rent of the property are required, but municipal tax paid or payable is not required. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Unrealized rent may be reduced   from ________________.

Fair rentStandard rent Rent receivable None of the aboveOption3Difficult
1
Yes

​If the following conditions are satisfied (a) Tenant is bona fide (b) Property has been vacated (c) Defaulting tenant is not residing in other property of the assesee. (d) The assessee has take n legal steps for recovery of the rent then unrealized rent may be deducted from the rent receivable. Hence, Option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Gross Annual value is ___________.

Higher of Expected rent or rent received/receivableLower of Expected rent or rent received/receivableHigher of Standard rent or Fair rentLower of Standard rent or Fair rentOption1Difficult
1
Yes

​Gross annual Value is higher than expected rent or rent received/receivable. Hence, Option (A) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Net Annual value of let out property is ______________.

Gross value minus vacancy lossExpected Rent minus vacancy lossStandard Rent Minus vacancy loss Gross annual value minus municipal taxes paid by assesses during the year.Option4Difficult
1
Yes

​Net annual value of let out house property Is  Gross Annual value minus municipal taxes paid by the assessee during the year. Hence, option (D) is correct answer. 

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Standard rent can be determined if property is _______________.

Covered under the municipality jurisdiction.Is not covered the municipality jurisdictionNot covered under the Rent Control Act.Covered under the Rent Control Act. Option4Difficult
1
Yes

​Standard rent of thehouse property can be determined if property is covered under the Standard Rent Control Act. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Standard Rent of the property is fixed by ______________.

Income Tax Act 1961Local Act Standard Rent Control ActIncome tax RulesOption3Difficult
1
Yes

​Standard Rent of the house property is fixed by the Standard Rent Control Act. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Municipal/local taxes in respect let out property is deductible from Gross annual value, if _______________.

Municipal/local taxes paid by the tenant Municipal/Local taxes paid by owner of the property after the end of previous yearMunicipal/Local taxes paid by owner of the property during the previous yearMunicipal/ local taxes paid by the tenant during the previous yearOption3Difficult
1
Yes

​Municipal/ Local taxes are deductible from Gross Annual Value If such taxes are paid by owner of the house property during the previous year. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Gross Annual value of self occupied house property is always ___________.

Greater than zero  (positive)Less than zero (negative)ZeroEqual to or greater than zero.Option3Difficult
1
Yes

​Gross Annual Value of the property shall be zero if property is used for the own residence (or his family member) purpose throughout the year, i.e., self occupied property. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​A house property shall be treated as self occupied if _________________ .

Property is vacant throughout the year Whole Property is used by owner for his (or his family) residence purpose and no other benefits  is derived during the previous year.If any portion of the property is used by owner for his residential purposeLet out the house property to his employer, and employer allotted to the owner.Option2Normal
1
Yes

​A property shall be treated as a self occupied if   whole Property is used by owner for his (or his family) residential purpose and no other benefit is derived during the previous year. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Mr. Saroj and his family members are residing in his residential property during the year 2016-17. What will be type of property for the year 2016-17?

Let outDeemed to let outSelf occupied Rented out Option3Normal
1
Yes

​A property shall be treated as  aself occupied if   whole Property is used by owner for his (or his family members) for residential purpose and no other benefit is derived during the previous year. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​What is allowable standard deduction while computing Income from house property?

25 % of Gross annual Value.30% of net annual value.33.33 % of net annual value.30% of Gross annul value.Option2Normal
1
Yes

​As per section 24(a) 30% of net annual value is allowable while computing income from house property. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​While computing income from house property allowable standard deduction is deducted from _____________.

Gross Annual value Net annual valueMunicipal value.Expected rentOption2Normal
1
Yes

​As per section 24(a) while computing income from house property standard deduction is at 30% of net annual value and is deducted from net annual value. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Municipal taxes paid by owner during the previous year will be deductible from gross annual if type of property is ___________.

Let out propertySelf occupied propertyLet out or self occupied Residential propertyOption1Normal
1
Yes

​Municipal taxes are always deductible from Gross annual value, and Gross annual value is available for let out property. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Interest on borrowed capital is allowed as deduction under section 24(b) , if capital is borrowed for the purpose of______________

Purchase, construction, repair, renewal or reconstruction of the property Purchase of the landPurchase of motor carPurchase of machineryOption1Normal
1
Yes

​Interest on borrowed capital is allowed as deduction under section 24(b) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the property. Hence, option (A) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Deduction under section 24(b) is available if purpose of borrowed capital is ____________.

Purchase of agriculture landConstruction, repair of  propertyPurchase of motor carPurchase of machineryOption2Normal
1
Yes

​Interest on borrowed capital is allowed as deduction under section 24(b) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the property. Hence, option (B) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Deduction under section 24(b) is not available if purpose of borrowed capital is ____________.

Construction of the propertyRepair of the propertyRenewal or reconstruction of the propertyPurchase of agriculture landOption4Difficult
1
Yes

​Interest on borrowed capital is allowed as deduction under section 24(b) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the property.  Hence, option (D) is correct

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Interest on borrowed capital is deductible under section 24(b) on ____________

Receipts basis Payment basisAccrual basisNone of above Option3Normal
1
Yes

​Interest on borrowed is deductible under section 24(b) on accrual basis for the year. Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​which of the following limit is deductible under section 24(b) for a self occupied house property?

Rs 25, 000/2, 50,000 RS 35,000/ 1, 50,000Rs 30,000/Rs 2, 00,000Rs 1, 50,000Option3Normal
1
Yes

​A per section 24(b), in case of self occupied property, Interest on borrowed capital is deductible up Rs 2, 00,000 if it satisfies some specified conditions otherwise it is restricted to Rs 30,000.Hence, option (C) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income from house property 

​Which of the following limit is deductible under section 24(b) for a let out property?

Rs 2, 00,000Rs 30,000Rs 1, 50,000No limitOption4Normal
1
Yes

​As per section 24(b) interest on borrowed capital is deductible without any limit. Hence, option (D) is correct answer.

Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​​Where does the government get the money needed to provide essential goods and services?

TaxesDonationsGiftsNone of aboveOption1Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​What is meaning of Income Tax?

Tax of GiftsTax on LoanTax on IncomeTax on SalesOption3Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Which of these is Income Tax?

Tax on SalaryTax on GiftTax on ServiceTax on ImportsOption1Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Which of these is not Income Tax?

Tax on House RentTax on SalaryTax on EntertainmentTax on ProfitsOption3Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​A Financial year is a period between:

January to DecemberMay to JuneSeptember to OctoberApril to MarchOption4Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Income Tax Act is to be replaced by:

Tax on Income ActDirect Taxes CodeNew Income Tax ActIncome Tax CodeOption2Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Who is our present Finance Minister?

Smt. Sonia GandhiSh. Manmohan SinghSh. Pranab MukherjeeSh. Arun JaitleyOption4Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Taxes paid by citizens are used by the Government for the purpose of:

Public WelfareDefence PurposeBuilding InfrastructureAll of aboveOption4Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Revision in Income Tax rates is announced in:

Rail BudgetFamily BudgetUnion BudgetState BudgetOption3Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Taxation under Income Tax Act falls under which Ministry?

Finance MinistryHome MinistryEnvironment MinistryDefence MinistryOption1Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Union Budget is presented by:

Prime MinisterChief MinisterHome MinisterFinance MinisterOption4Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​India's Union Budget is presented in the month of:

FebruaryMarchJulyOctoberOption1Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​PAN means

Permanent Access NumberPermanent Account NumberPersonal Access NumberPersonal Account NumberOption2Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​How many digits are there in a PAN?

78910Option4Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​Who can issue PAN?

Sales Tax DepartmentIncome Tax DepartmentService Tax DepartmentUnique Identification AuthorityOption2Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​When do you require PAN?

Opening of a Bank AccountFiling of Income Tax ReturnIdentification for entering an airportAll of the aboveOption4Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​What is TDS?

Tax Deducted at SiteTax Deduction at SourceTax Doubled at SourceNone of the aboveOption2Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
Income Tax Basic Concepts 

​​Due date for filing Income Tax Return for an individual falls in the month of:

MayJulyAugustAll of aboveOption2Beginner
1
Yes
Tax GyanApproved10/3/2017 3:01 PM
1 - 100Next