Income Tax Law and Practice (MCQs)

Commerce Ka Ladka July 08, 2024

Which of the following incomes is exempt from tax?
- a) Income from agriculture
- b) Income from business
- c) Income from house property
- d) Income from salary
Answer: a) Income from agriculture
What is the basic exemption limit for individuals below 60 years of age for the assessment year 2023-24?
- a) ₹2,50,000
- b) ₹3,00,000
- c) ₹5,00,000
- d) ₹2,00,000
Answer: a) ₹2,50,000
Which section of the Income Tax Act deals with deductions for donations to certain funds, charitable institutions, etc.?
- a) Section 80C
- b) Section 80G
- c) Section 80D
- d) Section 80E
Answer: b) Section 80G
Under which head of income is family pension taxable?
- a) Income from Salary
- b) Income from House Property
- c) Income from Other Sources
- d) Income from Capital Gains
Answer: c) Income from Other Sources
Which of the following is a 'perquisite' under the Income Tax Act?
- a) Salary
- b) House Rent Allowance
- c) Reimbursement of medical expenses
- d) Employer's contribution to PF exceeding 12% of salary
Answer: d) Employer's contribution to PF exceeding 12% of salary
What is the maximum deduction available under Section 80C for the assessment year 2023-24?
- a) ₹1,00,000
- b) ₹1,50,000
- c) ₹2,00,000
- d) ₹2,50,000
Answer: b) ₹1,50,000
Which section of the Income Tax Act provides for the rebate under section 87A?
- a) ₹5,000
- b) ₹12,500
- c) ₹10,000
- d) ₹15,000
Answer: b) ₹12,500
Which form is used for filing income tax returns by an individual having income from salary and interest?
- a) ITR-1
- b) ITR-2
- c) ITR-3
- d) ITR-4
Answer: a) ITR-1
Income tax in India is levied by:
- a) Central Government
- b) State Government
- c) Local Government
- d) Both Central and State Government
Answer: a) Central Government
Which of the following incomes is taxable under the head 'Income from House Property'?
- a) Income from renting a vacant land
- b) Income from business of renting machinery
- c) Annual value of house property
- d) None of the above
Answer: c) Annual value of house property

Additional Practice Questions

The income tax rate applicable to an individual in the highest slab for the assessment year 2023-24 is:
- a) 20%
- b) 25%
- c) 30%
- d) 35%
Answer: c) 30%
Which of the following is not a capital asset as per the Income Tax Act?
- a) Jewellery
- b) Stock-in-trade
- c) House property
- d) Shares
Answer: b) Stock-in-trade
Under which section can an assessee claim deduction for the interest paid on loan taken for higher education?
- a) Section 80C
- b) Section 80D
- c) Section 80E
- d) Section 80G
Answer: c) Section 80E
Which form is used for declaring the loss from house property?
- a) ITR-1
- b) ITR-2
- c) ITR-3
- d) ITR-4S
Answer: b) ITR-2
Income from subletting a property is taxable under the head:
- a) Income from Salary
- b) Income from House Property
- c) Income from Other Sources
- d) Income from Business and Profession
Answer: c) Income from Other Sources

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