MCQ on Income From Salary

Transport allowance is exempt upto Rs. 3,200 pm for which category of employees?

• Govt. employees

• Non-Govt. Employees

• Handicapped Employee

• Mentally handicapped

Foregone salary is

• Exempt if surrendered to government

• Taxable in other cases

• Just an application of Income

• All of the above

Which of the following allowance is fully Exempt?

• Overtime allowance

• Medical allowance

• Allowances paid by UNO

• HRA

Salary paid to Partner by the firm is

• Taxable u/h Salaries

• Taxable u/h PGBP

• Always exempt

• Always taxable

Transport Allowance is _.

• Always Taxable

• Exempt to handicapped Employees upto Rs. 3200 p.m

• Always Taxable except to Handicapped employees.

• Both (b) & (c)

Medical expenditure reimbursed by the employer to the employee shall be exempt upto

• Rs. 15,000 pm

• Rs. 1,00,000 pa

• Fully Exempt

• Fully taxable

Inclusive definition of salary is given u/s:

• 17(3)

• 17

• 17(1)

• None

Income is taxable as Salary Income when there is employer & employee relationship. However in one exceptional case income is taxable as salary even in the absence of employer employee relationship which is

• Members of Parliament

• Professors of college

• Partner of a firm

• Judges of HC & SC

Family pension received by a widow of a member of the armed forces where the death of the member has occurred in the course of the operational duties, is

• Exempt up to Rs.3,00,000

• Exempt up to Rs. 3,50,000

• Totally exempt under section 10(19)

• Totally chargeable to tax

Which of the following allowances are fully taxable ?

• Warden Allowance

• Servant Allowance

• Non-Practicing Allowance

• All of the above