Income Tax - CIE 4

The assessment year is the period in which:

• Income is earned

• Income is calculated

• Income is assessed and taxed

• None of the above

The total income of a resident individual includes income:

• Earned in India

• Earned outside India

• Earned in India and Outside India

• All are Exempt

Which of the following is not a perquisite?

• Rent-free accommodation

• Entertainment allowance

• Interest Free Loan given to employees

• Dearness allowance

Leave encashment received at the time of retirement by a private-sector employee is:

• Fully taxable

• Fully exempt

• Partially exempt based on specified limits

• Exempt if received after 10 years of service

Which of the following is fully taxable in all cases?

• House rent allowance (HRA)

• Pension received by a retired government employee

• Gift from employer less than Rs. 5000

• Gratuity received by a retired government employee

The standard deduction allowed for repairs and maintenance of a house property is:

• 10% of the gross annual value

• 30% of the gross annual value

• 30% of the net annual value

• 20% of the gross annual value

Vacant period of a let-out property affects:

• Gross Annual Value

• Standard deduction

• Income tax rate

• Deduction for municipal taxes

Municipal taxes paid by the owner are:

• Fully taxable

• Fully deductible

• Deductible only if the property is let out

• Partially deductible

Which of the following is not allowed as a deduction from business income?

• Capital expenditure

• Revenue expenditure

• Depreciation

• Bad debts

The excess of income over expenses of PQ Ltd was Rs. 4,57,010. In P&L account, the Office expenses were debited by Rs. 4,22,400 that includes Rs. 1,05,000 being agricultural expense. Further, agriculture income was credited in the P&L account by Rs. 1,10,000. What is the revised business income as per IT Act?

• Rs. 4,52,010

• Rs. 4,57,010

• Rs. 8,79,410

• Rs. 10,94,410