Income Tax Quiz

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Income Tax Quiz

National Level Online Quiz on Income Tax. This quiz comprises 50 questions to test your understanding of Income Tax. This quiz is useful for all to know more about Income Tax. It includes questions on recent changes also.

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Pitahpur Rajah's Government College (A), Kakinada is one of the oldest colleges in India. It is serving the needs of the Nation by providing quality education and having great alumni. The college is a NAAC A Grade Institution with students spanning from diverse sections of the society and a favorite choice among the students in the coastal districts of AP.

This quiz is brought to you by the Commerce Department, PRGC, Kakinada. Happy Learning.

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Occupation *

Institution Name *

Questions

Assessment Year means *

1 point

the year subsequent to previous year

the year in which assessment is done

the year in which income tax return is filed

none of these

Amendments by the Finance Act will come into force from *

1 point

First day of next financial year

First day of same financial year

Last day of same Accounting year

None of the these

Illegal usage of loopholes in the tax laws to one’s own advantage, to reduce the amount of tax payable is called *

1 point

Tax Planning

Tax Avoidance

Tax Evasion

Tax Blocking

Which character in PAN indicates the assessee type *

1 point

3rd

4th

5th

10th

The rates of income tax are specified in *

1 point

Income Tax Act,1961

Income Tax Rules,1962

Finance Act formulated every year

Circulars issued by CBDT

The apex body of Income Tax Department is *

1 point

Finance Ministry of Central Govt.

Govt. of India

Dept. of Revenue

Central Board of Direct Taxes (CBDT)

As per Section 288B of the income tax act, the total tax computed shall be rounded off to the nearest *

1 point

Re 1

Rs 100

Rs 10

No rounding required

Correct sequence is *

1 point

Exemption - Deduction - Rebate

Exemption - Rebate - Deduction

Deduction - Rebate - Exemption

Rebate - Exemption - Deduction

Net Agricultural Income is *

1 point

Fully exempted

Taken for calculation of tax if it is more than Rs 5,000

Taken for calculation of tax if it is more than Rs 10,000

Fully taxable

The HRA paid to an employee residing in Non Metro Cities is exempt up to the lower of actual HRA, excess of rent paid over 10% of salary and *

1 point

30% of the salary

40% of the salary

50% of the salary

60% of the salary

B, who is entitled to a salary of Rs.10,000 p.m. took an advance of Rs.50,000 against the salary in the month of March 2019. The gross salary of B for assessment year 2019-20 shall be *

1 point

Rs.1,70,000

Rs.1,20,000

Rs. 1,00,000

None of these

Where there is a decision to increase the D.A. in March, 2019 with retrospective effect from 1.4.2016, and the increased D.A. is received in April, 2019, the increase is taxable in *

1 point

previous year 2016-17

previous year 2018-19

previous year 2019-20

respective years to which they relate

Mr. Ram is a Government employee. He received Rs 2,25,000 in the FY 2019-20 due to implementation of pay revision. Such compensation was computed with retrospective effect from January 1, 2016. In such case the compensation would be taxable in the FY…… *

1 point

2015-16, 2016-17, 2017-18 and 2018-19

2015-16

2019-20 and can claim relief under Sec 89(1)

2016-17 and 2018-19

Municipal taxes to be deducted from Gross Annual Value should be *

1 point

Paid by the tenant during the previous year

Paid by the owner during the previous year

Accrued during the previous year

Paid during the previous year either by tenant or owner

Interest on borrowed capital accrued up to the end of the previous year prior to the year of completion of construction is *

1 point

allowed as a deduction in the year of completion of construction

allowed in 5 equal annual installments from the year of completion of construction

allowed in the respective year in which the interest accrues

not allowed

Where an assessee has two house properties for self-occupation, the benefit of nil annual value will be available in respect of *

1 point

Both the properties

The property which has been acquired/constructed first

Any one of the properties, at the option of the assessee

Any one of the properties and once option adopted cannot be changed in subsequent years

Ramesh and Suresh 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 Rs 5,00,000. The amount of allowable deduction in respect of each co-owner is *

1 point

Rs 2,50,000

Rs 2,00,000

Rs 5,00,000

No deduction allowed

Standard Deduction available under Section 24(a) is ___________ of Net Annual Value. *

1 point

10%

30%

40%

25%

An assessee has paid life insurance premium of Rs. 50,000 during the previous year for a policy of Rs. 4,00,000 taken on 1.4.2015. Deduction under Sec 80 C is *

1 point

No deduction

Rs 50,000

Rs 40,000

Rs 10,000

The maximum amount which can be donated in cash for claiming deduction under Section 80G is *

1 point

Rs 5,000

Rs 2,000

Rs 1,000

Rs 10,000

Stamp-duty, registration fee and other expenses for purchase of house are allowed as deduction u/s *

1 point

80 C

80 CCD

80 D

80 CC

Deduction under section 80D in respect of medical insurance premium is available if the premium paid by any payment mode other than *

1 point

Cash

Draft

Bearer's Cheque

Account Payee Cheque

The maximum period for which deduction is admissible under section 80E is *

1 point

1 Year

4 Years

8 Years

No time limit

An assessee can file a revised return of income at any time before the completion of assessment or before expiry of the following period, whichever is earlier *

1 point

one year from the end of the relevant assessment year

two years from the end of the relevant assessment year

six months from the end of the relevant assessment year

end of the relevant assessment year

Which of the following losses cannot be carried forward if the return of loss is not submitted in time? *

1 point

Business Loss (Speculative or otherwise)

Capital Loss

Loss from the activity of owing and maintaining race horses

All the these

Transactions related to payment to a Mutual Fund for purchase of its units shall quote his/her PAN in all documents, if *

1 point

the value of transaction exceeds Rs. 1,00,000

the value of transaction exceeds Rs. 75,000

the value of transaction exceeds Rs. 50,000

the value of transaction exceeds Rs. 25,000

As per section 139(1), an individual below the of age of 60 years shall have to file return of income if *

1 point

his total income before allowing deduction uls 80C to 8OU exceeds Rs.2,50,000

his total income before allowing deduction uls 80C to 80U exceeds Rs. 3,00,000

his total income exceeds Rs. 2,00,000

his total income before claiming exemption u/s 10(35) and before allowing deduction U/S 80C to 80U exceeds Rs. 2,50,000

Tax is to be deducted at source under section 192 on salaries at the time of *

1 point

Payment of salary to the employee

Crediting the salary to the account of employee

Payment of salary to the employee or Crediting the salary to the account of employee whichever is earlier

None of these

Deduction of tax from salary as per section 192 shall be at *

1 point

10% of salary

The average rate of income-tax computed on the basis of rates in force for the financial year in which the payment is made

The maximum marginal rate of 30%

None of these

ABC Ltd. pays salary of Rs. 6,00,000 during the year to Mr. Ram. Mr Ram has reported a business loss of Rs. 2,50,000 to his employer. The amount on which tax to be deducted at source will be *

1 point

Rs 6,00,000

Rs 3,50,000

Rs 2,50,000

Rs 4,75,000

Advance tax will not be paid if tax payable after TDS is not more than or equal to *

1 point

Rs 10,000

Rs 15,000

Rs 20,000

Rs 25,000

For deferment of advance tax *

1 point

interest is payable under section 234A

interest is payable under section 234B

interest is payable under section 234C

interest is payable under section 234D

What does Section 80U states? *

1 point

deduction for rent paid on own

deduction for profits on infrastructural undertakings

deduction for business loss

deduction from income of disabled persons

What is the deduction under sec 80TTA? *

1 point

profits of hotel business

royalty on patents in India

interest on deposits in savings account

royalty income of authors

What is the first step in the computing taxable income? *

1 point

compute losses of current year

compute income under the different heads of income

compute deduction from gross total income

none of these

What shall be the tax treatment of a salaried employee who has received reimbursement of Rs. 24,000 on account of medical facilities? *

1 point

Reimbursement of medical expenses up to Rs. 15,000 is not taxable.

Reimbursement of medical expenses up to Rs. 24,000 is not taxable.

Reimbursement is fully taxable

Reimbursement is fully deductible

What is the tax treatment of a gift received from father on March 1, 2018? *

1 point

It is fully taxable

It is not an income

It is taxable if the gift is worth more than Rs. 50,000

None of the above

New Income Tax Regime introduced in Budget 2020-21 is about forgoing certain exemptions and deductions in lieu of lower tax rates *

1 point

True

False

Number of tax slabs in new income tax regime are *

1 point

Seven

Eight

Ten

Six

Due date for filing Income Tax Returns for Non Audit Cases for AY 2020-21 is extended up to *

1 point

31st October 2020

30th November 2020

31st December 2020

30th September 2020

Reduced rates of TDS due to Covid up to 31.03.2021 applicable for *

1 point

All payments

Non salaried payments

Contractual payments including salaries

None of these

Under new income tax regime which allowances are to be forgone *

1 point

HRA

Entertainment Allowance

Both of these

None of these

Interest on House Property can be claimed as a deduction in the new income tax regime *

1 point

True

False

The deduction(s) allowed under Chapter VI A in the new income tax regime is *

1 point

80 CCD (2) Employer's contribution to pension scheme

80 CCD (1) Employee's contribution to pension scheme

Both

None of these

Option for new income tax regime is to be exercised with (in case of Individuals/HUFs having no business or professional income) *

1 point

Return of income for every previous year

Only once

Once in five years

Once in three years

Salary TDS under new income tax regime is to be deducted as per the option of the employee else the employer can deduct TDS as per old tax regime *

1 point

True

False

In case of Individuals/HUFs having business or professional income, new income tax regime option can exercised *

1 point

Only once

Each year

For five years

For three years

ITR 3 is used for *

1 point

Individuals and HUFs having income from business or profession

Papertnership firms

Presumptive basis tax returns

Companies

Form required for claiming Sec 89(1) relief *

1 point

10E

24Q

15G

15H

TDS deduction details can be seen at *

1 point

26AS

25Q

27Q

29Q

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