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BBA 4th Semester Taxation And Laws MCQ Unit 4

MCQs on Aggregation of Income, Set Off, and Carry Forward of Losses under Income Tax Act, 1961 Section A: Aggregation of Income What is meant by clubbing of income under the Income Tax Act, 1961? a) Combining income of two or more persons b) Including income of one person in the income of another c) Taxing income at a higher rate d) Deducting expenses from income Answer: b) Including income of one person in the income of another Explanation: Clubbing of income refers to including the income of one person (e.g., spouse, minor child) in the total income of another person under Section 64 to prevent tax evasion. Under which section is clubbing of income of a spouse addressed? a) Section 60 b) Section 64 c) Section 70 d) Section 80 Answer: b) Section 64 Explanation: Section 64 deals with the clubbing of income, such as income from assets transferred to a spouse or minor child without adequate consideration. If a husband transfers an asset to his wife without adequate consideration, the inc...

BBA 4th Semester Taxation and Laws Unit 3 MCQ

MCQs on Income from Salary under the Income Tax Act, 1961 1. Under which section of the Income Tax Act, 1961, is "Income from Salary" chargeable to tax?A) Section 14 B) Section 15 C) Section 16 D) Section 17 Answer: B) Section 15 Explanation: Section 15 specifies the conditions under which salary is taxable, including salary due, paid, or arrears of salary. 2. Which of the following is included in the definition of "Salary" under Section 17?A) Basic salary B) Perquisites C) Profits in lieu of salary D) All of the above Answer: D) All of the above Explanation: Section 17 defines "Salary" to include wages, perquisites, and profits in lieu of salary, among other components. 3. What is the maximum exemption limit for House Rent Allowance (HRA) under Section 10(13A)?A) Actual HRA received B) Rent paid minus 10% of salary C) 50% of salary (for metro cities) or 40% (for non-metro cities) D) Least of A, B, or C Answer: D) Least of A, B, or C Explanation: HRA exemp...