Income Tax and Related Terms

Q.

Q. Compute the income tax of Miss Varsha (Age 26 years) and she has a taxable income of Rs. 2, 30, 000.

1. \N

Q. Mrs. Hindujas age is $50$ years. Last year her taxable income was $₹16,30,000.$ How much income tax has she to pay?
[4 Marks]

Q. The Government of India collects taxes from its citizens. What, according to you, is done with this money?

1. Building roads and bridges
2. Educating poor and needy
3. Providing food at low prices to BPL people
4. Funding the defense infrastructure of India

Q. A person liable to pay _____ is termed as an Assessee.

1. Wealth tax
2. GST
3. Custom duty
4. Income tax

Q. At the start of a year there were ₹24, 000 in a savings account. After adding ₹56, 000 to this the entire amount was invested in the bank at 10% compound interest. What will be the total amount after 3 years ?

1. 106480

Q. A man saves ₹3, 000 every year and invests it at the end of the year at a compound interest of 10%. Calculate his total amount of savings at the end of the third year.

1. ₹9, 330
2. ₹8, 930
3. ₹9, 930
4. ₹7, 930

Q. Which of the following are deductions from the gross total income of an assessee?

1. 80F
2. 80C
3. 80M
4. 80G

Q. Anil joined his job on 22/05/2015 and left his job on 12/02/2019. For which Financial year did he not pay the tax?

1. 2015-16
2. 2016-17
3. 2018-19
4. 2019-20

Q. Consider the following terms and the variables assigned to them :
Gross Total Income = G
Basic Exemption Limit = B
Taxable Income = T
Deductions (under 80C, 80G) = D

Which of the following expresses the relation among the above variables?

1. G - B - T = D
2. T + B = G + D
3. G = T + B + D
4. B + G = T + D

Q. Which of the following are deductions to the gross total income of an assessee?

1. 80C
2. 80D
3. 80G
4. None of these

Q.

Tax levied on value of total assets owned by an individual is income tax.

1. True
2. False

Q. Nikhil spent 5% of his monthly income on his children's education, invested 14% in shares, deposited 3% in a bank and used 40% for his daily expenses. He was left with a balance of Rs. 19, 000. What was his income that month ?.

1. 50000

Q. National income differs from net national product at market price by the amount of ____________.

1. net indirect taxes
2. it does not differ
3. current transfers from the rest of the world
4. national debt interest

Q. Custom duties are levied on _______.

1. incomes of the individual
2. production of goods
3. export and import of goods
4. incomes of the corporate

Q. Nikhil spent 5% of his monthly income on his children's education, invested 14% in shares, deposited 3% in a bank, and used 40% for his daily expenses. He was left with a balance of ₹19, 000. Calculate his income that month.

Q.

Sunils monthly income is $Rs.28000$ and his wifes income is $Rs.26000$. They spend $RS.30000$ every month. How much money do they save?

Q. Seeing his friend Saurav in trouble, Anshul went up to him and asked him the reason.
Saurav : My income is Rs. 240000 per annum. I am afraid the Government will take most of my money in taxes.
Anshul (replied) : Your income is below the basic exemption limit. Even if it was above that limit, the government only takes a fraction of your money to spend on developmental projects.

Was Anshul correct?

1. Yes
2. No

Q. __________ tax is charged on the benefits derived from property ownership.

1. Corporate tax
2. Wealth tax
3. Income tax
4. Excise duty

Q. If a firm produces goods with Rs. 10, 000 and the cost of raw materials is Rs. 10, 000 and the firm will pay tax on Rs. 4000. It is paying tax according to:

1. VAT
2. CENVAT
3. MODVAT
4. None of the above

Q. Mr. Vikram is 27 years old and earns ₹7, 50, 000 per annum. The Education cess that he pays on his Income tax is ₹___.

1. 1250

Q. At present, the marginal rate of income tax (i.e., tax for the highest slab) is _______.

1. $10$%
2. $20$%
3. $30$%
4. $40$%

Q. Rahul joined his job on 22/05/2012 and left his job on 12/02/2015. For which Financial year did he not pay the tax?

1. 2012-13
2. 2013-14
3. 2014-15
4. 2015-16

Q. Which of these is not covered under Exemption in income tax returns?

1. General Provident Fund
2. Mutual Funds
3. Shares
4. Life Insurance Policy