WorksheetsMCQ on Income From Salary
Total questions: 28
Worksheet time: 14mins
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
Mr. Ajay received basic salary of Rs. 20,000 p.m. from his employer. He also received children education allowance of Rs. 3,000 for 2 children & transport allowance of Rs.1,800 p.m. The amount of salary taxable for AY 2023-24 is
Rs. 2,62,200
Rs. 2,22,600
Rs. 2,12,200
Rs. 2,07,800
Which of the following allowances are fully exempt ?
Sumptuary allowance granted to HC.SC Judges.
Allowance paid by UNO.
Compensatory Allowance received by a judge
All of the above
Bonus is taxable as salary income on basis.
Due
Receipt
Earlier of (a) or (b)
Anytime at the choice of employer
R, who is entitled to a salary of Rs.50,000 p.m. took an advance of Rs.30,000 against the salary in the month of March 2023.The gross salary of R for assessment year 2023-24 shall be:
Rs.6,30,000
Rs.6,00,000
None of these two
Rs.80,000
Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head.
Salary
Other sources
PGBP
Not Taxable
HRA is given u/s
10(13A) Rule 2A
10(15B) Rule 3B
20(4) Rule 8B
10(14A)
Mr. A purchased a residential house property in Nashik on loan for which he paid an interest of Rs. 60,000 during the PY. He is working in Delhi & getting an HRA of 4,000 p.m. He can claim exemption. Deduction for:
Only HRA
Only interest paid
Either Interest or HRA
Both HRA & interest paid
Mr. P is employed in AB Institute, Pune. He is eligible for Rs. 24,000 as dearness allowance to meet increased cost of living. The amount of DA taxable is _.
Rs. 10,000
Nil
Rs. 24,000
Rs. 9,000
Salary is deemed to accrue at the place where _.
Payment for services is received
Services are rendered
Either (a) or (b)
None of the above
What are the taxable and exempt parts of children education allowance for Mr. P's 3 children?
Rs. 8,400 & Rs. 2,400 respectively
Rs. 2,400 & Rs. 8,400 respectively
Rs. 10,800 & NIL respectively
Nil & Rs. 10,800 respectively
U/s 15 salary is taxable on basis.
Receipt
Due
Earlier of (a) or (b)
None
Rent-free official residence provided to a Judge of HC.SC is
Taxable
Exempt
Exempt upto Rs. 5,000 p.m
Taxable if such judge stays out of India after retirement.
Exemption from leave Salary is given u/s .
10(10AB)
10(10AA)
10(15A)
10(10A)
Employee is on official tour & he takes his family member with him. Value of perquisite =
Amount incurred for employee & such family member
Amount incurred for such family member
It is illegal to take family member with him since it will distract him
He should ask for the permission of AO before taking his wife (family member).
Exemption in respect of Leave Travel Concession is available only for going anywhere with _.
In India.outside India; Family.
In India; family.
In India; friends or family.
In India; Alone
Free or concessional tickets granted to Employees of an airline or the railways are _ .
Taxable Perquisite
Exempt Perquisite
Partly Exempt
None of the above.
In which of the following cases, Interest-free Loan is not treated as perquisite:
If the amount of loans ≤ Rs. 20,000.
If Loan is given for Medical Treatment of Prescribed Diseases (Cancer, tuberculosis, etc).
Both (a) & (b)
None of the above
Tea & Snacks are provided by PC Ltd. to employees in the office during office hours. The value of this perquisite shall be
Fully taxable
Fully Exempt
Exempt upto Rs. 50 pm
Exempt upto Rs. 50 per round of tea & snacks
