INCOME TAX TEST – 2

Marks : 100 Topic: Basic, RS, Salary, HP)

1. Vacant site lease rent is taxable as
(a) Income from house property
(b) Business income or income from house property, as the case may be
(c) Income from other sources or business income, as the case may be
(d) Income from other sources or income from house property, as the case may be

2. Treatment of unrealized rent for determining income from house property

(a) To be deducted from expected rent
(b) To be deducted from actual rent
(c) To be deducted under section 24 from annual value
(d) To be deducted from both expected rent and actual rent

3. Municipal taxes to be deducted from GAV should be

(a) Paid by the Owner during the previous year (for any Year)
(b) Paid by the owner during the previous year (for Current Year)
(c) Accrued during the previous year
(d) Paid during the previous year either by tenant or owner

4. Deduction under section 24(a) is

(a) 1/3rd of NAV
(b) repairs actually incurred by the owner
(c) 30% of NAV
(d) Interest on borrowed capital

5. Interest on borrowed capital accrued up to the end of the previous year prior
to the year of completion of construction is
(a) allowed as a deduction in the year of completion of construction
(b) allowed in 5 equal annual installments from the year of completion of construction
(c) allowed in the respective year in which the interest accrues
(d) not allowed

6. The ceiling limit of deduction under section 24(b) in respect of interest on loan
taken on 1.4.2018 for repairs of a self-occupied house is
(a) 30,000 p.a.
(b) 1,50,000 p.a.
(c) 2,00,000 p.a.
(d) No limit

7. Where an assessee has two house properties for self-occupation, the benefit of
nil annual value will be available in respect of -
(a) Both the properties
(b) The property which has been acquired/constructed first
(c) Any one of the properties, at the option of the assessee
(d) Any one of the properties and once option is exercised cannot be changed in
subsequent years
8. Leena received `30,000 as arrears of rent during the P.Y. 2018-19. The amount
taxable under section 25A would be -
(a)30,000 (b)21,000 (c)20,000 (d) 15,000

9. Vidya received `90,000 in May, 2018 towards recovery of unrealised rent, which
was deducted from actual rent during the P.Y. 2016-17 for determining annual
value. Legal expense incurred in relation to unrealized rent is `20,000. The
amount taxable under section 25A for A.Y.2019-20 would be -
(a) `70,000 (b) `63,000 (c) `60,000 (d) 49,000

10. Ganesh and Rajesh are co-owners of a self-occupied property. They own 50%
share each. The interest paid by each co-owner during the previous year on loan
(taken for acquisition of property during the year 2004) is `2,05,000. The amount
of allowable deduction in respect of each co-owner is –
(a) `2,05,000
(b) `1,02,500
(c) `2,00,000
(d) `1,00,000

11. Mr. X purchased in October, 2018, a flat in Chennai, to be used for his own
residential purposes with the financial assistance of housing loan taken from
PNB Housing Finance Ltd. He has paid interest on such loan till March, 2019 of
`1,78,780. The amount of interest paid on such loan allowed u/s 24 is (all
conditions for claiming higher interest have been compiled with):
(a) `1,25,000
(b) `1,78,780
(c) `1,50,000
(d) None of the above

12. Mr. Zen owns a flat in Mumbai which was let out by him in the previous year
2018- 19 on a rent of `20,000 p.m. upto December, 2018 and for `30,000 p.m.
thereafter. The annual municipal value is of `3,00,000, Fair Rent is `2,50,000
and Standard Rent is `2,90,000. The Gross Annual Value of the flat shall be
taken as:
(a) `2,70,000
(b) `3,00,000
(c) `2,50,000
(d) `2,90,000

13. Mr. Ahmed acquired a property in April, 2018 for self-residential use. The loan
interest payable to State Bank of India for the financial year 2018-19 amounts to
` 2,10,000. The amount eligible for deduction under section 24 is (all conditions
for claiming higher interest have been compiled with):
(a) ` 30,000
(b) ` 2,00,000
(c) `2,10,000
(d) `1,50,000

14. A borrowed `5,00,000 @ 12% p.a. on 1-4-2014 for construction of house

property which was completed on 15-3-2018. The amount is still unpaid. The
deduction of interest for previous year 2018- 19 shall be :
(a) `60,000
(b) 96,000
(c) 1,80,000
(d) `2,40,000

15. Ms. Padmaja let out a property for `20,000 per month during the year 2015-16.
The municipal tax on the let-out property was enhanced retrospectively. Hence,
she paid `60,000 as municipal tax which included arrears of municipal tax of
`45,000. Her income from house property is —
(a) `1,80,000
(b) `1,57,500
(c) `1,26,000
(d) `1,36,500

16. The construction of a house was completed on 31st January, 2019. The owner
of the house took a loan of 20,00,000 @ 6% p.a. on 1st May, 2018. In this case
the deduction allowable for the previous year 2018-19 towards interest on
borrowings is —
(a) 22,000
(b) 24,000
(c) 1,10,000
(d) None of the above.

17. Standard Deduction u/s 24(a) shall be

(a) 25% of NAV
(b) 30% of NAV
(c) 25% of GAV
(d) 30% of GAV

18. GAV shall be

(a) Higher of expected rent and rent received/receivable
(b) Lower of expected rent and rent received/receivable
(c) Higher of municipal value and fair rent
(d) NAV minus municipal taxes

19. Expected rent shall be

(a) Higher of municipal value and fair rent but restricted to Standard rent
(b) Lower of municipal value and fair rent but maximum to Standard rent
(c) Higher of municipal value and fair rent
(d) Lower of municipal value and fair rent

20. Prior Period Interest shall be allowed in

(a) 5 annual equal installments
(b) 4 annual equal installments
(c) 3 annual equal installments
(d) 2 annual equal installments

21. The Ceiling limit of deduction u/s 24(b) in respect of interest on loan taken
for let out property shall be
(a) ` 30,000 p.a.
(a) ` 1,50,000 p.a.
(c) ` 2,00,000 p.a.
(d) No limit
 22. Recovery of unrealized rent shall be taxable under the head
(a) House Property
(b) Business/Profession
(c) Other sources
(d) None of the above

23. If any person is engaged in the business of letting out of house property,
income shall be taxable under the head
(a) Business/profession
(b) House property
(c) Other sources
(d) Capital gains

24. If loan has been taken on 01.04.2017 and house was completed on 31.03.2018,
in this case
(a) no prior period installment in p.y. 2018-19
(b) there is prior period installment in p.y. 2018-19

25. If Anirudh has stayed in India in the P.Y. 2018-19 for 181 days, and he is non-
resident in 9 out of 10 years immediately preceding the current previous year
and he has stayed in India for 365 days in all in the 4 years immediately
preceding the current previous year and 420 days in all in the 7 years
immediately preceding the current previous year, his residential status for the
A.Y.2019- 20 would be-
(a) Resident and ordinarily resident
(b) Resident but not ordinarily resident
(c) Non-resident
(d) Cannot be ascertained with the given information

26. Raman was employed in Hindustan Lever Ltd. He received a salary of `40,000
p.m. from 1.4.2018 to 27.9.2018. He resigned and left for Dubai for the first time
on 1.10.2018 and got salary of rupee equivalent of `80,000 p.m. from 1.10.2018 to
31.3.2019. His salary for October to December 2018 was credited in his Dubai
bank account and the salary for January to March 2019 was credited in his
Bombay account directly. He is liable to tax in respect of -
(a) Income received in India from Hindustan Lever Ltd;
(b) Income received in India and in Dubai;
(c) Income received in India from Hindustan Lever Ltd. and income directly credited in
India;
(d) Income received in Dubai

27. A company would be a resident in India for the P.Y. 2018-19, if

(a) it is an Indian company
(b) during the year, majority of its directors are resident in India
(c) during the year, its Place of Effective Management is in India
(d) both (a) and (c)

28. Income accruing in London and received there is taxable in India in the case of-
(a) resident and ordinarily resident only
(b) both resident and ordinarily resident and resident but not ordinarily resident
(c) both resident and non-resident
(d) non-resident

29. Incomes which accrue or arise outside India but received directly in India are
 taxable in case of-
(a) resident and ordinarily resident only
(b) both resident and ordinarily resident and resident but not ordinarily resident
(c) non-resident
(d) All the above

30. Fees for technical services paid by the Central Government will be taxable in
case of –
(a) resident and ordinarily resident only
(b) both resident and ordinarily resident and resident but not ordinarily resident
(c) non-resident
(d) All the above

31. Short term capital gains on sale of shares of an Indian company received in
Australia is taxable in case of–
(a) resident and ordinarily resident only
(b) both resident and ordinarily resident and resident but not ordinarily resident
(c) non-resident only
(d) All the above

32. Income from a business in Canada, controlled from Canada is taxable in case of –
(a) resident and ordinarily resident only
(b) both resident and ordinarily resident and resident but not ordinarily resident
(c) non-resident
(d) All the above

33. Dividend Income from Australian company received in Australia in the year
2016, brought to India during the previous year 2018-19 is taxable in case of –
(a) resident and ordinarily resident only
(b) resident but not ordinarily resident
(c) non-resident
(d) None of the above

34. If Mr. Akash has stayed in India in the P.Y. 2018-19 for 100 days, and he is
non-resident in 9 out of 10 years immediately preceding the current previous
year and he has stayed in India for 365 days in all in the 4 years immediately
preceding the current previous year and 730 days in all in the 7 years
immediately preceding the current previous year, his residential status for the
A.Y.2019- 20 would be-
(a) Resident and ordinarily resident
(b) Resident but not ordinarily resident
(c) Non-resident
(d) Cannot be ascertained with the given information

35. If Mr. A has stayed in India in the P.Y. 2018-19 for 100 days, and he is non-
resident in 8 out of 10 years immediately preceding the current previous year
and he has stayed in India for 365 days in all in the 4 years immediately
preceding the current previous year and 710 days in all in the 7 years
immediately preceding the current previous year, his residential status for the
A.Y.2019- 20 would be-
(a) Resident and ordinarily resident
(b) Resident but not ordinarily resident
(c) Non-resident
(d) Cannot be ascertained with the given information
36. Mr. A, a Canadian citizen, comes to India for the first time during the P.Y.
2014-15. He was in India during 2014-15- 55 days, 2015-16 – 60 days, 2016-17
– 90 days, 2017-18 – 150 days, 2018-19 – 70 days. Residential status for the
previous year 2018-19 shall be
(a) Resident and ordinarily resident
(b) Resident but not ordinarily resident
(c) Non-resident
(d) Cannot be ascertained with the given information

37. ABC Ltd. an Indian company has most of its business outside India and also
control and management outside India. Residential status of company shall be
(a) Resident
(b) Resident but not ordinarily resident
(c) Non-resident
(d) None of the above

38. A Korean company received `20 lakhs from a non – resident for use of patent
for a business in India is
(a) taxable in India
(b) not taxable in India
(c) None of the above

39. A non-resident received dividend of `15 lakhs from a Foreign Company outside
India, it is ____________
(a) taxable in India
(b) not taxable in India
(c) partly taxable in India
(d) None of the above

40. John is a foreign citizen born in USA. His father was born in Delhi in 1960 and
his grand-father was born in Lahore in 1935 but his mother was born in UK in
1963. John came to India for the first time on 1st June, 2018 and stayed in
India for 183 days and then left for USA. His residential status for the A.Y.
2019-20 shall be :
(a) Resident and ordinarily resident
(b) Resident but not ordinarily resident
(c) Non-resident
(d) Foreign National

41. The following income of Ms. Nargis who is a non-resident shall be included in her
total income:
(i) Salary for 2 months received in Delhi `40,000.
(ii) Interest on Savings Bank Account in Mumbai `2,100.
(iii) Agricultural income in Bangladesh and Invested in shares in Bangladesh.
(iv) Amount brought into India out of past non-taxed profits earned in USA.
(a) (i), (iii) and (iv)
(b) (i) and (ii)
(c) (i), (ii) and (iv)
(d) All the four above

42. The income earned during the previous year is subject to tax under the Act on
the basis of residential status of an assessee. However, the residential status
of an assessee every year.
(a) will not change
(b) will certainly change
(c) may change
(d) None of the above

43. Mr. Rajiv, born and brought up in India left for employment in Belgium on 15-
10-2018. He has never gone out of India, previously. What is his residential
status for the assessment year 2019-20?
(a) Non-resident
(b) Not ordinarily resident
(c) Resident and ordinarily resident in India
(d) Indian citizen

44. Mr. Ramji (age 55) is Karta of HUF doing textile business at Nagur. Mr. Ramji is
residing in Dubai for the past 10 years and visited India for 20 days every year
for filing the income tax return of HUF. His two major sons take care of the day
to day affairs of the business in India. The residential status of HUF for the
assessment year 2019-20 is :
(a) Non-resident
(b) Resident and ordinarily resident in India
(c) Not ordinarily resident
(d) None of the above

45. Past untaxed profit of the previous year 2012-13 brought to India in 2018-19 is
chargeable to tax in the assessment year 2019-20 in the hands of
(a) All the assessees
(b) Resident and ordinarily resident in India
(c) Non-resident in India
(d) None of the above.

46. Total income of a person is determined on the basis of his

(a) Residential status in India
(b) Citizenship in India
(c) Both (a) and (b) above
(d) None of the above.

47. Alpha Ltd. is an Indian company. It carries its business in Delhi and London.
Total control and management of the company is situated in London. More than
85% of its business income is from the business in England. If so, its residential
status will be —
(a) Resident
(b) Non-resident
(c) Not ordinarily resident
(d) Foreign company.

48. The maximum ceiling limit for exemption under section 10(10) in respect of
gratuity for employees covered by the Payment of Gratuity Act, 1972 is -
(a) 10,00,000
(b) 5,00,000
(c) 3,50,000
(d) 20,00,000

49. The maximum ceiling limit for exemption under section 10(10C) with respect
 to compensation received on voluntary retirement is -

(a) `2,50,000
(b) `3,00,000
(c) `3,50,000
(d) `5,00,000

50. The HRA paid to an employee residing in Patna is exempt up to the lower of
actual HRA, excess of rent paid over 10% of salary and -
(a) 30% of salary
(b) 40% of salary
(c) 50% of salary
(d) 60% of salary

51. Anirudh stays in New Delhi. His basic salary is `10,000 p.m., D.A. (60% of which
forms part of pay) is `6,000 p.m., HRA is `5,000 p.m. and he is entitled to a
commission of 1% on the turnover achieved by him. Anirudh pays a rent of
`5,500 p.m. The turnover achieved by him during the current year is `12 lakhs.
The amount of HRA exempt under section 10(13A) is –
(a) 48,480
(b) 45,600
(c) 49,680
(d) 46,800

52. Where there is a decision to increase the D.A. in March, 2019 with retrospective
effect from 1.4.2017, and the increased D.A. is received in April, 2019, the
increase is taxable -
(a) in the previous year 2017-18
(b) in the previous year 2018-19
(c) in the previous year 2019-20
(d) in the respective years to which they relate

53. Rajesh is provided with a rent free unfurnished accommodation, which is

owned by his employer, XY Pvt. Ltd., in New Delhi. The value of perquisite in
the hands of Rajesh is -
(a) 20% of salary
(b) 15% of salary
(c) 10% of salary
(d) 7.5% of salary

54. Anand is provided with furniture to the value of `70,000 along with house from
February, 2018. The actual hire charges paid by his employer for hire of
furniture is `5,000 p.a.. The value of furniture to be included along with value
of unfurnished house for A.Y.2019- 20 is-
(a) 5,000
(b) 7,000
(c) 10,500
(d) 14,000

55. For the purpose of determining the perquisite value of loan at concessional
rate given to the employee, the lending rate of State Bank of India as on is
required;
(a) 1st day of the relevant previous year
(b) Last day of the relevant previous year
 (c) the day the loan is given
(d) 1st day of the relevant assessment year

56. Mr. Kashyap received basic salary of `20,000 p.m. from his employer. He also
received children education allowance of `3,000 for three children and
transport allowance of `1,800 p.m. The amount of salary chargeable to tax for
P.Y. 2018-19 is -
(a) 2,62,600
(b) 2,22,600
(c) 2,22,200
(d)2,07,800

57. The entertainment allowance received by a Government employee is exempt up

to the lower of the actual entertainment allowance received, 1/5th of basic
salary and-
(a) `4,000
(b) `6,000
(c) `5,000
(d) `10,000.

58. For the purposes of computing exemption under section 10(10), in case of Mr.
Anand, an employee of ABC Ltd., who is covered by the Payment of Gratuity
Act, 1972, "salary" includes –
(a) only basic pay
(b) basic pay and dearness allowance, if provided in the terms of employment
(c) basic pay and dearness allowance
(d) basic pay, dearness allowance and commission as a fixed percentage of turnover

59. Provision of rent free accommodation and motor car owned by Beta Ltd. to its
employee Mr. Anand, where motor car is allowed to be used by Mr. Anand both
for official and personal purposes, is a –
(a) perquisite taxable in case of all employees
(b) perquisite taxable only in case of specified employees
(c) perquisite of rent free accommodation is taxable in case of all employees whereas
perquisite of motor car is taxable only in case of specified employees
(d) perquisite of rent free accommodation is taxable only in case of specified employees
whereas perquisite of motor car is taxable in case of all employees

60. Retirement Benefit Salary shall include:

(a) Basic pay plus commission
(b) Basic pay plus Dearness allowance
(c) Basic pay plus Dearness allowance (forming part of salary) plus commission (fixed on
turnover)
(d) Basic pay plus Dearness allowance plus any commission
(e) taxable salary

61. Payments received from recognised provident fund shall be exempt from
income tax if the
(a) If the employee has rendered continuous service for a period of 1 0 years or more
(b) If the employee has rendered service for a period of 5 years or more
(c) If the employee has rendered continuous service for a period of 5 years or more
(d) If the employee has rendered service for a period of 1 0 years or more
62. Any gratuity received by the employees covered under payment of Gratuity Act
1972, shall be exempt
(a) Lower of Gratuity received or ` 20,00,000 or 15 days salary for each completed year
of service or part thereof in excess of six month.
(b) Lower of Gratuity received or ` 10,00,000 or 15 days salary for each completed year
of service or part thereof in excess of six month.
(c) Lower of Gratuity received or ` 5,00,000 or 30 days salary for each completed year
of service or part thereof in excess of six month.
(d) Lower of Gratuity received or ` 20,00,000 or 30 days salary for each completed year
of service or part thereof in excess of six month.

63. Salary for the purpose of Gratuity (employees not covered under gratuity act)
means
(a) Basic pay plus commission
(b) Basic pay plus Dearness allowance
(c) Basic pay plus Dearness allowance (forming part of salary) plus commission (fixed on
turnover)
(d) Basic pay plus any Dearness allowance plus any commission
(e) taxable salary

64. Mr. X retired on 15.06.2018 after completion of 26 years 8 months of service

and received gratuity of `6,00,000. At the time of retirement his salary was:
Basic Salary : ` 5,000 p.m.
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement
benefits) Commission : 1% of turnover (turnover in the last 12 months was
12,00,000)
Bonus : ` 12,000 p.a.
Taxable Gratuity shall be if he is non-government employee and covered by the
Payment of Gratuity Act 1972.
(a) 6,00,000
(b) 3,75,385
(c) 4,75,385
(d) 4,55,385

65. Mr. X retired on 15.06.2018 after completion of 26 years 8 months of service

and received gratuity of `6,00,000. At the time of retirement his salary was:
Basic Salary : ` 5,000 p.m.
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement
benefits) Commission : 1% of turnover (turnover in the last 12 months was
` 12,00,000)
Bonus : ` 12,000 p.a.
Taxable Gratuity shall be if he is non-government employee and not covered
by the Payment of Gratuity Act 1972.
(a) 6,00,000
(b) 4,98,600
(c) 4,75,600
(d) 4,55,600
66. Which of the statements is correct
(a) If the employee has not received gratuity, the commuted value of 1/2 of such pension is
exempt from tax.
(b) If the employee has not received gratuity, the commuted value of 1/3 of such pension
is exempt from tax.
(c) If the employee has not received gratuity, the commuted value of 2/3 of such pension
is exempt from tax.
(d) If the employee has not received gratuity, the commuted value of 1/4 of such pension
is exempt from tax.

67. Which of the statements is correct

(a) If the employee has received gratuity, the commuted value of 1/2 of such pension is
exempt from tax.
(b) If the employee has received gratuity, the commuted value of 1/3 of such pension is
exempt from tax.
(c) If the employee has received gratuity, the commuted value of 2/3 of such pension is
exempt from tax.
(d) If the employee has received gratuity, the commuted value of 1/4 of such pension is
exempt from tax.

68. Which of the statements is correct

(a) If the employee has received pension from Local Authority, the commuted value of
100% of such pension is exempt from tax.
(b) If the employee has received pension from Local Authority, the commuted value of
50% of such pension is exempt from tax.
(c) If the employee has received pension from Local Authority, the commuted value of
33.33% of such pension is exempt from tax.
(d) If the employee has received pension from Local Authority, the commuted value of
60% of such pension is exempt from tax.

69. Which of the statements is correct

(a) If the employee has contributed to the pension scheme, deduction u/s 80CCD shall
be allowed for such contribution but maximum to the extent of 10% of retirement
benefit salary
(b) If the employee has contributed to the pension scheme, deduction u/s 80CCD shall
be allowed for such contribution but maximum to the extent of 10% of taxable salary
(c) If the employee has contributed to the pension scheme, deduction u/s 80CCD shall
be allowed for such contribution but maximum to the extent of 20% of retirement
benefit salary
(d) If the employee has contributed to the pension scheme, deduction u/s 80CCD shall
be allowed for such contribution but maximum to the extent of 20% of salary.

70. Which of the statements is correct

(a) Mr. X engaged in business has contributed to the pension scheme, deduction u/s
80CCD shall be allowed for such contribution but maximum to the extent of 10% of
contribution
(b) Mr. X engaged in business has contributed to the pension scheme, deduction u/s
80CCD shall be allowed for such contribution but maximum to the extent of 10% of
gross total income
(c) Mr. X engaged in business has contributed to the pension scheme, deduction u/s
80CCD shall be allowed for such contribution but maximum to the extent of 20% of
contribution
(d) Mr. X engaged in business has contributed to the pension scheme, deduction u/s
80CCD shall be allowed for such contribution but maximum to the extent of 20% of
gross total income.
71. Mr. X (Non- Govt. Employee) retired w.e.f 01.12.2018 after 20 years 10 months
of service, receiving leave salary of ` 5,00,000. Other details of his salary
income are:
Basic Salary : ` 5,000 p.m. (` 1,000 was increased w.e.f.
01.04.2018)
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement
benefits)
Commission : ` 500 p.m.
Bonus : ` 1,000 p.m.
Leave availed during service : 480 days
He was entitled to 30 days leave every year. Taxable leave salary shall be
(a) 5,00,000
(b) Nil
(c) 4,73,600
(d) 4,55,600

72. Mr. X received retrenchment compensation of `10,00,000 after 30 years 4

months of service. At the time of retrenchment, he was receiving basic salary of
`20,000 p.m.; dearness allowance of ` 5,000 p.m., taxable retrenchment
compensation shall be
(a) 5,67,308
(b) Nil
(c) 6,25,000
(d) 7,00,000
(e) 10,00,000

73. Standard deduction u/s section 16(ia) from gross salary shall be allowed
maximum
(a) 50,000
(b) 50% of gross salary
(c) 40,000
(d) 1,00,000
(e) no deduction shall be allowed

74. which of the statement is correct from the following

(a) Children education allowance is exempt upto `100 p.m. per child upto two child.
(b) Children education allowance is exempt upto `100 p.m. per child upto three child.
(c) Children education allowance is exempt upto `100 per child upto two child.
(d) Children education allowance is exempt upto `100 per child for many child.

75. which of the statement is correct from the following

(a) Any allowance granted to an employee to meet the hostel expenditure on his child is
exempt upto `300 p.m. per child upto two children.
(b) Any allowance granted to an employee to meet the hostel expenditure on his child is
exempt upto `300 per child upto two children.
(c) Any allowance granted to an employee to meet the hostel expenditure on his child is
exempt upto `100 p.m. per child upto two children.
(d) Any allowance granted to an employee to meet the hostel expenditure on his child is
exempt upto `400 p.m. per child upto two children.
76. Mr. X is employed in central Government getting basic pay `30,000 p.m., dearness
allowance `7,000 p.m., servant allowance `2,000 p.m., entertainment
allowance `1,000 p.m., In this case entertainment allowance exempt
u/s 16(ii) for the F.Y. 2018-19 shall be

(a) Nil
(b) 5,000
(c) 12,000
(d) 7,000

77. which of the statement is not correct from the following

(a) If the population is upto 10 lakhs, taxable amount shall be 7.5% of rent free
accommodation salary
(b) If the population is more than 10 lakhs but upto 25 lakhs, taxable amount shall be
10% of rent free accommodation salary
(c) If the population is more than 25 lakhs, taxable amount shall be 15% of rent free
accommodation salary
(d) If the population is more than 10 lakhs, taxable amount shall be 15% of rent free
accommodation salary

78. The basic source of income-tax law is -

(a) Income-tax Act, 1961
(b) Income-tax Rules, 1962
(c) Circulars/Notifications issued by CBDT
(d) Judgments of Courts
(e) All of the above

79. A domestic company means -

(a) Only an Indian company
(b) Both Indian company and a foreign company having a branch in India
(c) Both Indian company and a foreign company having business connection in India
(d) Both Indian company and a foreign company which has made the prescribed
arrangement for declaration and payment of dividends in India out of the income
chargeable to tax in India

80. The rates of income-tax are mentioned in -

(a) The Income-tax Act, 1961 only
(b) Both Income-tax Act, 1961 and Income-tax Rules, 1962
(c) The First Schedule to the Annual Finance Act
(d) Both Income-tax Act, 1961 and the First Schedule to the Annual Finance Act

81. The surcharge applicable in the case of an individual is -

(a) 10% of tax payable if total income exceeds `50 lakhs but does not exceed `1 crore
(b) 10% of tax payable if total income exceeds `1 crore
(c) 15% of tax payable if total income exceeds `1 crore
(d) Both (a) and (c), as the case may be.
82. In respect of a non-resident assessee, who is of the age of 60 years or more but
less than 80 years at any time during the previous year 2018-19, -
(a) Basic exemption of `2,50,000 is available
(b) Basic exemption of `3,00,000 is available
(c) Basic exemption of `5,00,000 is available
(d) No basic exemption limit would be available

83. In case of a domestic company whose gross receipts for the P.Y. 2016-17 is
upto `250 crores, the rate of tax applicable is -
(a) 29%
(b) 25%
(c) 30%
(d) None of the above

84. The surcharge applicable to a domestic company for A.Y. 2019- 20 is -

(a) 5%, if total income exceeds `1 crore.
(b) 10%, if the total income exceeds `1 crore
(c) 7%, if the total income exceeds `1 crore but does not exceed `10 crore, and 15%, if
the total income exceeds `10 crore.
(d) 7%, if the total income exceeds `1 crore but does not exceed `10 crore, and 12%, if
the total income exceeds `10 crore.

85. The surcharge applicable to a foreign company for A.Y. 2019- 20 is -

(a) 5%, if the total income exceeds `1 crore.
(b) 10%, if the total income exceeds `1 crore.
(c) 2%, if the total income exceeds `1 crore but does not exceed `10 crore and 5% if the
total income exceeds `10 crore.
(d) 2%, if the total income exceeds `10 crore.

86. The rate of tax applicable to a partnership firm for A.Y. 2019- 20 is -
(a) 25%
(b) 30%
(c) 35%
(d) 40%

87. Where the total income of an artificial juridical person is `3,10,000, the
income-tax before cess payable is `............... and surcharge payable is
`..............
(a) `3,000; surcharge – nil.
(b) `6,000; surcharge – nil.
(c) `500; surcharge – nil
(d) `93,000; surcharge – `4650

88. What is the basic exemption limit for a woman assessee for A.Y. 2019-20, who
turned 60 years on 01.4.2019?
(a) `2,00,000
(b) `3,00,000
(c) `2,50,000
(d) `5,00,000

89. What is the rate of surcharge applicable to individuals having total income
exceeding `1 crore?
(a) 15%
(b) 12%
(c) 10%
(d) 2%

90. What is the basic exemption limit for Mrs. X, a resident individual who is of the
age of 80 years as on 31.3.2019?
(a) `5,00,000
(b) `2,40,000
(c) ` 3,00,000
(d) `2,50,000

91. Tax Liability of a resident individual having LTCG 3.5 Lakh shall be
(a) 18,200
(b) 72,800
(c) 70,200
(d) 20,800

92. The maximum amount of rebate allowable under section 87A for A.Y. 2019-20 is
-
(a) `2,000, if the total income does not exceed `5 lakh
(b) `5,000, if the total income does not exceed `5 lakh
(c) `2,500, if the total income does not exceed `3.5 lakh
(d) `5,000,if the total income does not exceed `3.5 lakh

93. If Mr. Y’s total income for A.Y. 2019-20 is `52 Lakhs, surcharge is payable at the
rate of -
(a) 15%
(b) 12%
(c) 10%
(d) 2%

94. What is the basic exemption limit for Mr. X, a resident individual who has
completed the age of 60 years as on 1.4.2019?
(a) `5,00,000
(b) `2,40,000
(c) `3,00,000
(d) ` 2,50,000

95. Mr. X aged, 61 years, received dividend of `12,00,000 from a domestic company
in P.Y. 2018-19.
Tax chargeable under section 115BBDA is @10% on
(a) The entire amount of `12,00,000
(b) `2,00,000
(c) Nil
(d) `9,00,000

96. In respect of dividend received from domestic companies in excess of `

10,00,000 by an individual-
(a) no deduction under Chapter VI-A is allowed but loss under other heads can be set-
off against such income
(b) no deduction under Chapter VI-A is allowed and no loss can be set-off against such
income
(c) both deduction under Chapter VI-A and set-off of losses against such income are
allowed
(d) deduction under Chapter VI-A is allowed but set-off of losses under other heads
against such income is not allowed
97. Mr. X aged, 59 years, received dividend of `14,00,000 from a domestic company
in P.Y. 2018-19.
Tax payable shall be
(a) `15,600
(b) `41,600
(c) `2,41,800
(d) Nil

98. Mr. X aged, 61 years, received dividend of `14,00,000 from a domestic company
in P.Y. 2018-19.
Tax payable shall be
(a) `10,400
(b) `7,800
(c) `41,600
(d) `1,45,600

99. Rebate u/s 87A shall be allowed to

(a) all persons
(b) only individual
(c) resident individual
(d) resident individual & HUF

100. Rebate u/s 87A shall be allowed if total income is

(a) less than `2,50,000
(b) less than `3,50,000
(c) upto `3,50,000
(d) upto `5,00,000