Question 1

Municipal taxes to be deducted from GAV should be _______

Accepted Answer

A)  Paid by the tenant during the previous year
B)  Paid by the owner during the previous year
C)  Accrued during the previous year
D)  Accrued or paid by owner whichever is lower B

Question 2

Municipal tax is deducted from__________

Accepted Answer

A)  Net annual value
B)  Gross annual value
C)  Municipal valuation
D)  Amount value B

Question 3

Pension received by an employee of the central or state government who has been awarded "Param Vir Chakra" _____________

Accepted Answer

A)  Is taxable as income from salary
B)  Is exempt from tax
C)  Is taxed after deducting Rs.15,000 or 1/3 whichever is lower
D)  Is taxable as income from other sources B

Question 4

M is entitled to children education allowance @80 p.m per child for 3 children amounting Rs.240p.m. It will be exempt to the extent of ___________

Accepted Answer

A)  Rs.200 p.m
B)  Rs.160 p.m
C)  Rs.240 p.m
D)  Rs.250 pm

Question 5

Children education allowance is ____________

Accepted Answer

A)  Exempt upto lower of the amount actually spent or the prescribed limits.
B)  Exempt fully to the extent actually spent or the prescribed limits
C)  Exempt to the extent of lower of allowance received or the lump sum amount prescribed, irrespective of actual expenditure.
D)  Fully taxable

Question 6

M.claimed the exemption of gratuity in the past to the extent of Rs.2,50,000.He was entitled to the gratuity from the present employer amounting to Rs.2,00,000 in the previous year 2017-18. M can claim exemption to the maximum extent of ___________

Accepted Answer

A)  Rs.2,00,000
B)  Nil
C)  Rs.1,00,000
D)  Rs.1,50,000

Question 7

Interest on borrowed capital accrued up to the end of the previous year to prior to the year of competition of construction is allowed__________

Accepted Answer

A)  As a deduction in the year of completion of construction
B)  In 5 equal annual installments from the year of competition of construction.
C)  In the respective year in which the interest accrues
D)  Up to Rs.30,000 on Rs.20,000.

Question 8

An assessee has borrowed money for purchase of house and interest is payable outside India. Such as interest shall ____________

Accepted Answer

A)  Be allowed as deduction
B)  Not to be allowed as deduction
C)  Be allowed as deduction if the tax is deducted at source
D)  None of the above

Question 9

In case the property is owned by co -owners and it is self-occupied by all co -owners. The annual value of such house property ____________

Accepted Answer

A)  Be nil
B)  For each co-owner shall be nil
C)  Only for co -one owner will be nil
D)  None of the above

Question 10

Standard deduction under section 24(a) from income from House property is _______

Accepted Answer

A)  1/3 rd of NAV
B)  Repairs actually incurred by the owner
C)  30% of NAV
D)  Rs.30,000

Question 11

A has two house properties. Both are self-occupied. The annual value of _________

Accepted Answer

A)  Both houses shall be nil
B)  One house shall be nil
C)  No house shall be nil
D)  None of the above

Question 12

M.has taken a house on rent and sublets the same to A, income of M from such house property shall be taxable under the head _____________

Accepted Answer

A)  Income from house property
B)  Income from other sources
C)  Business income
D)  Income

Question 13

Leave travel concession is _________

Accepted Answer

A)  Exempt up to lower of the amount actually spent or the prescribed limits.
B)  Exempt fully to the extent actually spent
C)  Exempt to the extent of lower of allowance received or the lump sum amount prescribed, irrespective of actual expenditure.
D)  Fully taxable

Question 14

A house property with fair rent Rs.1,20,000 is neither let out nor self-occupied throughout the previous year. Its annual value shall be ________

Accepted Answer

A)  Rs.1,20,000
B)  Nil
C)  Rs.60,000
D)  None of the above

Question 15

A has two house properties. Both are self-occupied. The annual value of ____

Accepted Answer

A)  Both houses shall be nil
B)  One house shall be nil
C)  No house shall be nil
D)  Single house

Question 16

M.Ltd announced increase in D.A. on 21-03-2017 with retrospective effect from 21-3-2012 and the same were paid on 6-04-2017. The arrears of D.A. shall be taxable in the previous year ________

Accepted Answer

A)  2016-17
B)  2017-18
C)  In respective previous years to which these relate
D)  Previous years

Question 17

Municipal valuation of the house is Rs.1,20,000, fair rent 1,40,000, standard rent Rs.1,30,000 and actual rent received or receivable is Rs.1,25, 000.The gross annual value in this case shall be ______

Accepted Answer

A)  1,30,000
B)  1,25,000
C)  1,40,000
D)  1,60,000

Question 18

Unrealized rent is a deduction from ______-

Accepted Answer

A)  Gross annual value
B)  Net annual value
C)  Municipal value
D)  District

Question 19

Following will be taxable as income from house property_______-

Accepted Answer

A)  Sub -letting of a house
B)  Letting of an office building
C)  Sale of house at profit
D)  Rent from open land used for wedding functions

Question 20

Employee M is neither a government employee nor covered under payment of gratuity Act, 1972. He has completed 16 years and 8 months of service. The number of completed years considered for gratuity exemption shall be _____________

Accepted Answer

A)  17 years
B)  16 years
C)  16 years and 8 months
D)  19 years

Exam 2: Taxation and Exemptions Related to House Property and Employee Benefits