Income Tax Law and Practice - CIE 2 Quiz

Which of the following components is included under "Income from Salary"?

• Rent from house property

• Basic salary, bonuses, and allowances

• Interest on savings

• Capital gains

What is the standard deduction available for salaried individuals for AY 2024-25?

• ₹10,000

• ₹20,000

• ₹50,000

• ₹1,00,000

Which of the following is not considered as "Perquisite" under the Income Tax Act?

• Rent-free accommodation

• Employer-provided vehicle for personal use

• Interest on home loan

• Free or concessional education to children

Income from Salary is taxed on a:

• Due/Receipt Basis

• Hybrid Basic

• Only Cash basis

Which allowance is fully exempt for transport provided to handicapped employees?

• ₹1,600 per month

• ₹3,200 per month

• ₹2,400 per month

• ₹5,000 per month

Perquisites under the Income Tax Act refer to:

• Benefits in cash only

• Monetary benefits only

• Benefits in cash or kind provided by the employer

• Allowances provided by the employer

The value of rent-free unfurnished accommodation provided by a private employer in a non-metro city (population is more than 10 lakh but less than 25 lakh) is valued at:

• 5% of salary

• 10% of salary

• 15% of salary

• 20% of salary

Perquisite valuation for an accommodation provided in a leased property is valued at:

• Actual rent paid by the employer

• 10% of salary

• 5% of salary

• 50% of salary

The taxable value of a motor car provided by the employer for both official and personal use (1.6L engine capacity) is:

• ₹1,800 per month

• ₹2,400 per month

• ₹3,000 per month

• Fully taxable

For accommodation provided to government employees, the perquisite value is calculated at:

• 5% of salary

• 7.5% of salary

• License fee based on government rules

• Fully taxable