Income Tax Quest

 

1. Income Tax Act was passed in the year _________. 

A) 1947

B) 1950

C) 1961

D) 1991

Answer: C) 1961

 

2. The payment of Gratuity act came in to force in ____________ 

A) 1954

B) 1973

C) 1991

D) 1972

Answer: D) 1972

 

3. Deduction from annual value is allowed under ______________. 

A) Section 24

B) Section 25

C) Section 27

D) Section 28

Answer: A) Section 24

 

4. _______% standard deduction is allowed on annual value. 

A) 20

B) 30

C) 40

D) 50

Answer: B) 30

 

5. Income chargeable under the head ‘Profits and Gains from Business or Profession’ is covered under _______________. 

A) Section 23

B) Section 24

C) Section 28

D) Section 27

Answer: C) Section 28

 

6. The transfer of old movable assets will be tax-free if it is used for _________ . 

A) 1 year

B) 5 years

C) 10 years

D) 15 year

Answer: C) 10 years

 

7. Gross interest = Net x 10 00 – rate of _______. 

A) Tax

B) TDS

C) Deduction

D) Exempted

Answer: B) TDS

 

8. Payment of LIC premium can be claimed as deduction u/s _______. 

A) 80 C

B) 80 CCC

C) 80 D

D) 80 DD

Answer: A) 80 C

 

9. Generally, long-term capital gain is charged to tax @___________ (plus surcharge and cess as applicable). 

A) 10%

B) 15%

C) 20%

D) 30%

Answer: C) 20%

 

10. The apex body of Income Tax Department. is 

A) Finance Ministry of Central Govt.

B) Central Govt. of India.

C) CBDT

D) Dept. of Revenue

Answer: C) CBDT

 

11. Under the Income Tax Act, 1961, depreciation on machinery is charged on _______________.

A) Purchase price of the machinery

B) Written down value of the machinery

C) Market price of the machinery

D) All of the above

Answer: B) Written down value of the machinery

 

12. Deduction can be claimed for amount deposited under Suganya Samridhi Account 

80 CC

B) 80 C

C) 80 DD

D) 80 D

Answer: B) 80 C

 

13. Children Education allowance is exempted for ______ child/ children. 

A) One

B) Two

C) Three

D) Four

Answer: B) Two

 

14. What is the full form of GST?

A) Goods and Supply Tax

B) Goods and Services Tax

C) General Sales Tax

D) Government Sales Tax

Answer: B) Goods and Services Tax

 

15. Expand TDS: 

A) Tax Deducted at Source

B) Taxation Deducted at Service

C) Tax Deducted at Service

D) Tax Divided at Source

Answer: A) Tax Deducted at Source

 

16. Full form of TIN? 

A) Taxpayer Identification Name

B) Tax payee Identification Number

C) Taxpayer Identification Number

D) Tax payee Identification Name

Answer: C) Taxpayer Identification Number

 

17. What is the full form of RIT 

A) Refund of Income Tax

B) Reference of Income Tax

C) Resource of Income Tax

D) Refund of Indirect Tax

Answer: A) Refund of Income Tax

 

18. Expand CBDT 

A) Central Board of Direct Taxes

B) Central Bank of Direct Tax

C) Change Board of Division Tax

D) Capital Board of Division Tax

Answer: A) Central Board of Direct Taxes

 

19. Rent free accommodation is a 

A) Allowance

B) Perquisite

C) Profit in lieu of salary

D) None of the Above

Answer: B) Perquisite

 

20. _________ is the rent fixed under rent control Act. 

A) Municipal rental value

B) Fair rental value

C) Standard rent

D) Real rent

Answer: C) Standard rent