B com Pattern MCQs : Income tax is a type of tax that the central government levies on the income earned by individuals and businesses during a financial year. Income tax is a source of revenue for the government. The government uses this revenue to develop infrastructure, provide health care, education, subsidies.
There are mainly two types of taxes in the farmer/agriculture sector and other government welfare schemes, direct tax and indirect tax. Direct tax is a tax levied on earned income, for example income tax is a direct tax. The calculation of tax is based on the income slab rates of the financial year applicable during that period.
Types of Taxes in India :
Every person earning or receiving income in India is subject to income tax. Whether resident of India or non-resident. For simple classification, the Income Tax Department divides income into five main heads.
- Income from other sources
- From home property
- Income from capital gains
- Income from business and profession
- Salary Income
B com Pattern MCQs :
B com Pattern MCQs, Income Tax MCQs with Answers PDF, Income Tax MCQs, MCQs on Income Tax, Income Tax Multiple Choice Questions PDF, MCQs on Income Tax, MCQs on Income Tax 2016-17, CS Executive Tax Law Objective Questions, PGBP Solved Problems, Income Tax Questions and PDF, Tax Se Answer the associated questions and answers.
Read More : Income Tax Department Semester Paper
B com Pattern MCQs :
1. When an URPF is recognized, the balance so transferred is called ………….
- A) Recognized PF
- B) Transferred PF
- C) Recognized Balance
- D) Transferred Balance
2. Bonus paid by the employer to the employee is …………
- A) Fully Taxable
- B) Partly Taxable
- C) Fully Exempted
- D) None of these
3. Gratuity is defined as per section ……………
- A) 10(10A)
- B) 10(10AA)
- C) 10(10)
- D)10A
4. The highest Administrative Authority for Income Tax in India is …..…………
- A) Finance Minister.
- B) CBDT.
- C) President of India.
- D) Director of Income Tax.
5. Payment made by an employer to employee monthly, other than salary is called ………….
- A) Bonus
- B) Allowances
- C) Benefits
- D) None of these
6. HRA is ………………..
- A) Fully Taxable
- B) Partly Taxable
- C) Fully Exempted
- D) None of these
7. Rule …………… explain the taxation of HRA
- A) 2
- B) 2A
- C) 2AA
- D) 2AB
8. Agricultural income in Pakistan is assessable for …………………
- A) Resident
- B) Not Ordinarily Resident
- C) Non-resident
- D) Not taxable
9. If the assessee is living in own house HRA is …………..
- A) Fully Taxable
- B) Partly Taxable
- C) Fully Exempted
- D) None of these
10. Entertainment allowance is allowed as a deduction as per section ……………
- A) 16
- B) 16(i)
- C) 16(ii)
- D) 16(iii)
B com Pattern MCQs :
11. Any allowance granted for encouraging research, academic and other professional pursuit is called ………………………
- A) Research Allowance
- B) Academic Allowance
- C) Higher Educational Allowance
- D) Educational Allowance
12. Children education allowance is exempt up to per month per child for two children.
- A) Rs.100
- B) Rs.150
- C) Rs.200
- D) Rs.250
13. Children hostel allowance is exempt up to per month per child for two children.
- A) Rs.100
- B) Rs.200
- C) Rs.250
- D) Rs.300
14. Transport allowance given by the employer to the employee is exempt up to ………..
- A) Rs.1000p.m
- B) Rs.1600p.m
- C) Rs.1000p.a
- D) Rs.1600p.a
15. Foreign allowance is a …………….
- A) Fully Exempted Allowance
- B) Fully Taxable Allowance
- C) Partly Exempted Allowance
- D) None of these
16. State which of the following income are exempted?
- A) Dearness Allowance
- B) City Compensatory Allowance
- C) Foreign Allowance
- D) Medical Allowance
17. Education allowance is exempted for …………..
- A) One person
- B) Four persons
- C) Two persons
- D) None of these
18. 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
19. 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
20. Who among the following may be “not ordinarily resident”?
- A) Hindu Undivided Family.
- B) Company.
- C) Association of persons.
- D) None of these
B com Pattern MCQs :
21. 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
22. 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
23. Gratuity received by a government employee is …………………..
- A) Fully exempted
- B) Partly exempted
- C) Fully taxable
- D) Exempted up to Rs:1,00,000
24. The periodic payment of money for the past service is known as ……………………
- A) Gratuity
- B) Pension
- C) Commuted pension
- D) Leave salary
25. 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
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