Q. What is the maximum amount of deduction available under Section 80C for individual taxpayers?
-
A.
Rs. 1,00,000
-
B.
Rs. 1,50,000
-
C.
Rs. 2,00,000
-
D.
Rs. 50,000
Solution
As per the Income Tax Act, the maximum deduction available under Section 80C is Rs. 1,50,000.
Correct Answer:
B
— Rs. 1,50,000
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Q. What is the maximum deduction available under Section 80D for health insurance premium for a family including parents?
-
A.
Rs. 25,000
-
B.
Rs. 50,000
-
C.
Rs. 75,000
-
D.
Rs. 1 lakh
Solution
The maximum deduction available under Section 80D for health insurance premium for a family including parents is Rs. 50,000.
Correct Answer:
B
— Rs. 50,000
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Q. What is the maximum limit of deduction under Section 80C for the financial year 2022-23?
-
A.
Rs. 1 lakh
-
B.
Rs. 1.5 lakh
-
C.
Rs. 2 lakh
-
D.
Rs. 50,000
Solution
The maximum limit of deduction under Section 80C for the financial year 2022-23 is Rs. 1.5 lakh.
Correct Answer:
B
— Rs. 1.5 lakh
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Q. What is the maximum limit of deduction under Section 80D for health insurance premium for senior citizens?
-
A.
Rs. 25,000
-
B.
Rs. 50,000
-
C.
Rs. 75,000
-
D.
Rs. 1,00,000
Solution
The maximum limit of deduction under Section 80D for health insurance premium for senior citizens is Rs. 50,000.
Correct Answer:
B
— Rs. 50,000
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Q. What is the tax rate for individuals with an income above Rs. 10 lakh in the financial year 2023-24?
-
A.
10%
-
B.
20%
-
C.
30%
-
D.
40%
Solution
The tax rate for individuals with an income above Rs. 10 lakh is 30%.
Correct Answer:
C
— 30%
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Q. What is the threshold limit for tax audit under Section 44AB for a business in India?
-
A.
Rs. 1 crore
-
B.
Rs. 2 crore
-
C.
Rs. 5 crore
-
D.
Rs. 10 crore
Solution
The threshold limit for tax audit under Section 44AB for a business is Rs. 1 crore.
Correct Answer:
A
— Rs. 1 crore
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Q. Which of the following is a condition for claiming HRA exemption?
-
A.
The employee must live in a rented house
-
B.
The employee must own a house
-
C.
The employee must be a senior citizen
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D.
The employee must have a salary above Rs. 50,000
Solution
The employee must live in a rented house to claim HRA exemption.
Correct Answer:
A
— The employee must live in a rented house
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Q. Which of the following is considered as a capital gain?
-
A.
Sale of stocks
-
B.
Salary received
-
C.
Interest on fixed deposits
-
D.
Rental income
Solution
Sale of stocks is considered as a capital gain.
Correct Answer:
A
— Sale of stocks
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Q. Which of the following is included in the definition of 'Income' under the Income Tax Act?
-
A.
Capital gains
-
B.
Gifts
-
C.
Inheritance
-
D.
None of the above
Solution
Capital gains are included in the definition of 'Income' under the Income Tax Act.
Correct Answer:
A
— Capital gains
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Q. Which of the following is NOT a taxable income under the head 'Income from Other Sources'?
-
A.
Interest on savings account
-
B.
Dividend from Indian companies
-
C.
Gifts from friends
-
D.
Rental income from property
Solution
Gifts from friends are not taxable under the head 'Income from Other Sources'.
Correct Answer:
C
— Gifts from friends
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Q. Which of the following is NOT considered as income under the Income Tax Act?
-
A.
Salary
-
B.
House Rent Allowance
-
C.
Gifts from relatives
-
D.
Interest on savings account
Solution
Gifts from relatives are not considered as taxable income under the Income Tax Act.
Correct Answer:
C
— Gifts from relatives
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Q. Which section of the Income Tax Act provides for deductions on interest paid on home loans?
-
A.
Section 80C
-
B.
Section 24(b)
-
C.
Section 80E
-
D.
Section 80D
Solution
Section 24(b) allows for deductions on interest paid on home loans up to Rs. 2,00,000 for self-occupied property.
Correct Answer:
B
— Section 24(b)
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Q. Which section of the Income Tax Act provides for the deduction of interest on home loan?
-
A.
Section 80C
-
B.
Section 24(b)
-
C.
Section 80E
-
D.
Section 80D
Solution
Section 24(b) provides for the deduction of interest on home loan.
Correct Answer:
B
— Section 24(b)
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