Section 11-17 of Income Tax Act, 1961

Q. Which of the following is a taxable perquisite under Section 17(2)?

• Rent-free accommodation provided by employer

• Free tea/coffee in office

• Use of uniform provided by employer

• Laptop provided for official use

Q.  "Profits in lieu of salary" are covered under which clause of Section 17?

• Section 17(1)

• Section 17(2)

• Section 17(3)

• Section 17(4)

Q. Which of the following perquisites is exempt from tax under certain conditions?

• Interest-free loan for personal use

• Car provided for personal use

• Medical reimbursement up to ₹15,000

• Employer’s contribution to PF within limit

Q. Which of the following is considered a "profit in lieu of salary" under Section 17(3)?

• Advance Salary

• Leave encashment on retirement

• Compensation on termination of employment

• Commuted pension

Which of the following is a condition for claiming exemption under Section 11 of the Income Tax Act?

• A. Trust must be registered under Section 80G

• B. Trust must apply at least 85% of its income towards charitable or religious purposes

• C. Trust must invest in mutual funds only

• D. Trust must file ITR-5 compulsorily

Anonymous donations received by a charitable trust are taxable under which section?

• A. Section 10(23C)

• B. Section 10(23C)

• C. Section 115BBC

• D. Section 13(1)(c)

Which of the following incomes is NOT eligible for exemption under Section 11?

• A. Corpus donation with written direction

• B. Capital gains applied for charitable purposes

• C. Income applied outside India without prior approval of CBDT

• D. Income invested in modes specified in Section 11(5)

As per Section 13, which of the following will lead to denial of exemption under Section 11?

• A. Applying funds for a religious event

• B. Applying funds for the benefit of the settlor’s relative

• C. Investing in government securities

• D. Receiving donations from a foreign source

For HRA exemption calculation, 'salary' includes which of the following?

• A. Only basic salary

• B. Basic salary + DA (if part of retirement benefits) + commission (as % of turnover) 

• C. Basic salary + all allowances

• D. Total CTC

Mr. X took a loan to invest in tax-free instruments. Is the interest on that loan deductible?

• A. Yes, always

• B. Only if the income is taxable

• C. No, never

• D. Only if the loan is less than ₹5 lakhs