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Chapter 4 – SALARY HEAD | Direct Tax – Tax Law Scanner | Cs Executive

1.Salary is chargeable to tax on ……………… basis

a) due basis

b) receipt basis

c) due or receipt, whichever is earlier

d) due or receipt, whichever is later

2. If S draws salary in advance of April 2020 in March 2020 itself, the same is taxable on receipt basis and

be assessed as income of the P.Y. …………………

a) 2019-20

b) 2018-19

c) 2020-21

d) None of the above

3. If S draws salary in advance of April 2020 in March 2020 itself, the same is taxable on receipt basis and

be assessed as income of the assessment year …………………

a) 2020-21

b) 2019-20

c) 2018-19

d) None of the above

4. If salary due for March 2020 is received by P later in April 2020, it is chargeable as income of the P.Y.

……….

a) 2019-20

b) 2020-21

c) 2018-19

d) None of the above

5. Every payment by an employer to his employee for service rendered would be taxable as ………….

a) income from salaries

b) income from PGBP

c) income from house property

d) income from other sources

6. Salary under section 17(1) includes

a) Leave encashment

b) fees, commission, perquisite or profits in lieu of or addition to any salary or wages

c) transferred balance in recognized provident fund to the extent it is taxable

d) all of the above

7. Which of the following income is chargable under the salary head

a) salary received by a partner from a firm

b) salary received by a member of parliament

c) both of above

d) salary of a government officer

8. Which of the following allowance is Partly Taxable

a) Allowances from UNO

b) House Rent Allowance

c) Allowance granted to Government employees outside India.

d) Fixed Medical Allowance

9. Fixed Medical Allowance is

a) Fully Taxable

b) Fully Exempt

c) Partly Taxable

d) Partly exempt

10. An assessee received uniform allowance of ` 1,200. However, the amount spent by him is ` 1,000.

What amount of exemption can be availed by assessee?

a) ` 1,200

b) ` 1,000

c) ` 600

d) ` 500

11. An assessee received uniform allowance of ` 1,500. However, the amount spent by him is ` 2,000.

What amount of exemption can be availed by assessee?

a) ` 1,500

b) ` 2,000

c) ` 1,000

d) ` 1,250

12. Children education Allowance received by assessee is exempt upto

a) amount received

b) ` 100 p.m. per child up to a maximum of 2 children

c) Lower of a) and b)

d) None of the above

13. An assessee received ` 200 per month/per child for 3 children as children education allowance.

What shall be the amount exempt in his hands for such allowance?

a) ` 7,200

b) ` 3,600

c) ` 2,400

d) Nil

14. An assessee received ` 300 per month for 3 children as Hostel Expenditure allowance. What shall be

the amount exempt in his hands for such allowance?

a) ` 10,800

b) ` 7,200

c) ` 4,800

d) Nil

15. Transport Allowance received by assessee (Handicapped) is exempt upto

a) amount received

b) 3200 p.m. for blind/handicapped employee

c) Lower of a) and b)

d) None of the above

16. Allowance allowed to transport employees shall be exempt upto

a) 70% of such allowance

b) ` 10,000

c) Lower of a) and b)

d) None of the above

17. An assessee, transport employee received allowance allowed to them of ` 20,000. The amount spent

by him is ` 12,000. What amount would be exempt on account of allowance?

a) ` 12,000

b) ` 10,000

c) ` 14,000

d) Nil

18. Raju is in receipt of following allowance. Transport allowance: ` 1,800 p.m. (amount spent ` 600 p.m.)

Tribal area allowance: ` 500 p.m. Compute his taxable allowances.

a) ` 2,400

b) 25,300

c) ` 6,000

d) Nil

19. What is the amount of HRA exempt when assessee is residing in a city other than Metro City?

a) HRA actually received

b) Rent paid – 10% of salary for the relevant period

c) 40% of salary for the relevant period

d) Least of above

20. Exemption of HRA received …………… to an assessee who lives in his own house.

a) is available

b) is not available

c) shall be available

d) None of the above

21. Mr. Dinesh has the following receipts from his employer: Particulars ` (1) Basic pay (2) Dearness

allowance (D.A.) (3) Commission (4) Motor car for personal use (expenditure met by the employer) (5)

House rent allowance 3,000 p.m. 600 p.m. 6,000 p.a. 500 p.m. 900 p.m. Find out the amount of HRA

eligible for exemption to him assuming that he paid a rent of ` 1,000 p.m. for his accommodation at

Kanpur. DA forms part of salary for retirement benefits.

a) ` 7,680

b) ` 10,800

c) ` 17,280

d) Nil

22. What is the amount of Rent free accommodation taxable when accommodation has been provided

to employee by government employer?

a) 15% of salary

b) 10% of salary

c) licence fees as per Government rules

d) None of the above

23. When accommodation is provided by an employer other than Government employer to his

employee in a city where the population exceeds 25 lakh, what amount shall be taxable in the hands of

employee?

a) 15% of salary

b) 10% of salary

c) 7½% of salary

d) None of the above

24. When accommodation is provided by an employer other than Government employer to his

employee in a city where the population is less than 10 lakh, what amount shall be taxable in the hands

of employee?

a) 15% of salary

b) 10% of salary

c) 7½% of salary

d) None of the above

25. When accommodation not owned by the employer other than Government employer is provided to

the employee, what amount shall be taxable in the hands of employee?

a) Actual Rent

b) 15% of Salary

c) lower of a) and b)

d) none of the above

26. For an employee other than Government employee, when RFA given to employee is not owned by

employer, what amount shall be taxable in the hands of employee?

a) Actual Rent or 20 % of Salary, whichever is less

b) Actual Rent or 15 % of Salary, whichever is less

c) Actual Rent or 10 % of Salary, whichever is less

d) None of the above

27. When an accommodation has been provided in a hotel by a government employer, what amount

shall be taxable in the hands of employee?

a) 24% of salary

b) actual charges

c) least of a) and b)

d) licence fees as per Government rules

28. When an accommodation has been provided in a hotel by an employer other than government

employer, what amount shall be taxable in the hands of employee?

a) 24 % of salary or actual charges, whichever is lower

b) 20 % of salary or actual charges, whichever is lower

c) 15 % of salary or actual charges, whichever is lower

d) None of the above

29. If furniture is also provided along with RFA, then what amount shall be taxable in the hands of

employee if Furniture owned by employer?

a) 10% p.a. of actual cost of furniture

b) actual hire charges

c) either of above

d) None of the above

30. If commission for the year is ` 24,000 but RFA is given for 6 months, how much commission shall be

included in salary for the purpose of computation of taxable value of RFA?

a) ` 24,000

b) ` 12,000

c) ` 8,000

d) Nil

31. Ram, Finance Manager in ABC Ltd. The company has provided him rent-free unfurnished

accommodation in Mumbai. He gives you the following particulars: Particulars ` Basic salary 6000 pm

Advance salary for April 2019 5000 Dearness Allowance 2000 (30% retirement benefit )Bonus ` 1500p.m.

Even though the company allotted house to him on 01.04.2017, he occupied the same only from

01.11.2019. Calculate the taxable value of perquisite for A.Y. 2018-19.

a) ` 6,075

b) ` 6,000

c) ` 4,500

d) Nil

32. Ram is Finance Manager in ABC Ltd. The company has provided him rent-free unfurnished

accommodation in Mumbai. He gives you the following particulars: Particulars ` Basic salary 6000p.m.

Advance salary for April 2019 5000 Dearness Allowance2000 (30% retirement benefit ) Bonus ` 1500

p.m. Even though the company allotted house to him on 01.04.2019, he occupied the same only from

01.11.2019. He paid ` 500 per month for the said accommodation. Calculate the taxable value of

perquisite for A.Y. 2018-19.

a) ` 3,575

b) ` 3,500

c) ` 2,000

d) Nil

33. Rahul is an employee in a Government company. The company has provided him rent-free

unfurnished accommodation in Mumbai. He gives you the following particulars: Particulars ` Basic salary

Advance salary for April 2017 Dearness Allowance Bonus ` 6,000 p.m. ` 5,000 ` 2,000 p.m. (30% for

retirement benefits) ` 1,500 p.m. Even though the company allotted house to him on 01.04.2017, he

occupied the same only from 01.11.2017. Calculate the taxable value of perquisite for A.Y. 2018-19. The

license fee of the house is ` 700 per month.

a) ` 6,075

b) ` 6,000

c) ` 4,500

d) 3,500

34. Interest on loan granted by the employer to the employee

a) shall have no treatment in hands of employee

b) shall be taxable in hands of employee

c) shall not be taxable in the hands of employee

d) None of the above

35. Interest on loan shall not be taxable in which case?

a) Loans as on the last day of the month does not exceed ` 20,000

b) Loan is provided for the treatment of specified disease

c) Any of the above

d) None of the above

36. Interest on loan shall not be taxable in which case?

a) Loans as on the last day of the month does not exceed ` 20,000

b) Loan is provided for the construction of house

c) Any of the above

d) None of the above

37. A loan is provided by the employer to his employee, amounting to ` 35,000 (outstanding balance as

on last day). Interest of SBI as on last day of previous year is 15% whereas as on 1st day of previous year

is 16%. On what amount shall interest be calculated and at what rate?

a) ` 35,000, 15%

b) ` 15,000, 15%

c) ` 35,000, 16%

d) ` 15,000, 16%

38. An employer provided his employee a sofa set whose actual cost is ` 70,000. Employee pays ` 2,000

to his employee towards this sofa set. What amount shall be taxable in the hands of the employee?

a) ` 7,000

b) ` 2,000

c) ` 5,000

d) ` 10,000

39. When an asset transferred by the employer to his employee is assets other than computer and

electronic items and Motor Car, what shall be taxable in the hands of the employee?

a) Purchase Price of employer – 50 % of other assets SLM for each incomplete year of usage

b) Purchase Price of employer – 50 % of other assets SLM for each completed year of usage

c) Purchase Price of employer – 20 % of other assets SLM for each completed year of usage

d) Purchase Price of employer – 10% of other assets SLM for each completed year of usage

40. If the value of gift in aggregate during the previous year is upto` 5,000, the same shall

a) taxable as allowance

b) taxable as perquisite

c) Not be taxable

d) none of the above

41. Tea or snacks provided during office hours to the employee is

a) fully exempt without limit

b) fully taxable

c) taxable beyond a limit

d) none of the above

42. Free meal provided to the employee is exempt upto ……………..

a) ` 150 per meal

b) ` 100 per meal

c) ` 50 per meal

d) No limit

43. If a free meal of ` 150 is provided to the employee. What amount shall be taxable in the hands of the

employee?

a) ` 150 per meal

b) ` 100 per meal

c)50permeal

d) Nil

44. If Credit card and club expenditure is incurred for any purpose other than official purpose, what

amount shall be taxable?

a) Nothing is taxable

b) ` 30,000 shall be taxable

c) Actual expenditure incurred by the employer shall be taxable

d) None of the above

45. Section 10(5) exempts leave travel concession (LTC) received by employees from their employers for

proceeding to any place in India

a) either on leave

b) after retirement from service

c) after termination of his service

d) all of the above

46. When the employee performs journey by any mode other than air and the destination is not

connected by rail, what amount shall be exempt from tax?

a) then second class rail fare by the shortest route to the place of destination

b) then first class rail fare by the shortest route to the place of destination

c) then first class rail fare by the longest route to the place of destination

d) then 1st class or deluxe class fare

47. If any hospital or dispensary is maintained by any local authority and the amount is provided to the

employee for treatment in such hospital, the amount so paid shall …………

a) not be exempt

b) be partly taxable

c) exempt without any limit

d) none of the above

48. When the motor car is owned by the employee and used by the employee for private purpose. What

amount shall be taxable in the hands of the employee?

a) Actual expenditure incurred by employer shall be taxable

b) Nil

c) Discretion of Assessing Officer

d) None of the above

49. When the motor car is owned by the employer and used by the employee for official purpose. What

amount shall be taxable in the hands of the employee?

a) Actual expenditure incurred by employer shall be taxable

b) Nil

c) Discretion of Assessing Officer

d) None of the above

50. Anjan joins a service is the grade of Rs. 15,600 – 39,100 plus grade pay of Rs. 6,000 on 01-08- 2020.

He also gets dearness allowance @ 107% of salary. His tax liability for assessment year 2021- 22 will be –

Anjan has opted for section 115BAC

(a) Rs. 3,520

(b) nill

(c) 920

(d) Rs. 5,600

51. Ravi who has opted section 115 bac join the service 1st april 2016 in the grade of 15000-(1000) –

18000-(2000)-26000 he shall be paying tax on 31st march 2021 on the total salary of

(a) 176000

(b)240000

(c)214000

(d)224000

52. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of

his pension and received ` 3,00,000 as commuted pension. What amount of uncommuted and

commuted pension is taxable if Ravi is Government employee?

a) ` 24,000, Nil

b) ` 24,000, ` 3,00,000

c) Nil, ` 3,00,000

d) Nil, Nil

53. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of

his pension and received ` 3,00,000 as commuted pension and receiving gratuity of ` 5,00,000 at the

time of retirement. What amount of uncommuted and commuted pension is taxable if he is a

nongovernment employee?

a) ` 24,000, ` 50,000

b) ` 24,000, ` 1,33,333

c) Nil, ` 1,33,333

d) Nil, ` 50,000

54. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of

his pension and received ` 3,00,000 as commuted pension and is in receipt of no gratuity at the time of

retirement. What amount of uncommuted and commuted pension is taxable if he is a nongovernment

employee?

a) ` 24,000, ` 50,000

b) ` 24,000, ` 1,33,333

c) Nil, ` 1,33,333

d) Nil, ` 50,000

55. Section 10(10) of the Income tax Act tells about

a) taxability about gratuity

b) taxability about pension

c) taxability about leave encashment

d) None of the above

56. Death cum retirement gratuity received by Non-Government employee who is covered by Payment

of Gratuity Act, 1972 ………………

a) ` 20,00,000

b) Gratuity actually received

c) 15 days’ salary based on last drawn salary for each completed year of service or part thereof in excess

of 6 months

d) Least of above

57. Gratuity received during the period of service ……………………..

a) Partially exempt from tax

b) fully exempt from tax

c) fully taxable

d) none of the above

58. Where gratuity is received in earlier year from former employer and received from another

employer in later year, the limit of ` 20,00,000 ………. by the amount of gratuity exempt earlier

a) will not be reduced

b) may be reduced

c) will be reduced

d) None of the above

59. Ramesh who is non-government employee and covered by the Payment of Gratuity Act 1972 retired

on 15.06.2019 after completion of 26 years 8 months of service and received gratuity of ` 6,00,000. At

the time of retirement his salary was: Basic Salary : ` 5,000 p.m. Dearness Allowance : ` 3,000 p.m. (60%

of which is for retirement benefits) Commission : 1% of turnover (turnover in the last 12 months was `

12,00,000) Bonus : ` 12,000 p.a. What amount of gratuity shall be taxable?

a) ` 4,75,385

b) ` 4,98,600

c) Nil

d) ` 6,00,000

60. Ramesh who is a government employee retired on 15.06.2017 after completion of 26 years 8

months of service and received gratuity of ` 6,00,000. At the time of retirement his salary was: Basic

Salary : ` 5,000 p.m. Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)

Commission : 1% of turnover (turnover in the last 12 months was ` 12,00,000) Bonus : ` 12,000 p.a. What

amount of gratuity shall be taxable?

a) ` 4,75,385

b) ` 4,98,600

c) Nil

d) ` 6,00,000

61. Leave salary received at the time of retirement by non-government employee is …………..

a) ` 3,00,000

b) Leave salary actually received

c) 10 months’ salary (on the basis of average salary of last 10 months)

d) Cash equivalent of unavailed leave salary @ 30 days for every year of service

e) Least of above

62. Which amongst the following is a fully taxable allowance if assessee has opted for section 115BAC

(a) Conveyance allowance

(b) Travelling allowance

(c) Medical allowance

(d) Daily allowance

63. Where leave salary is received in earlier year from former employer and received from another

employer in later year, the limit of ` 3,00,000…….. by the amount of leave salary exempt earlier

a) will not be reduced

b) may be reduced

c) will be reduced

d) None of the above

64. Which deduction is allowed under section 115bac

a) Professional tax

b) Entertainment allowance

c) Standard Deduction

d) none of the above

65. Which section of the Income tax Act provides about exemption of amount received by way of

compensation received on Voluntary Retirement?

a) 10(10)

b) 10(10A)

c) 10(10AA)

d) 10(10C)

66. How much amount received by way Compensation received on Voluntary Retirement is exempt?

a) ` 5,00,000

b) Amount received or receivable

c) For one completed year job done- 3 months’ salary or total months left after VRS for normal

retirement

d) Least of above

67. ) The employee is provided with furniture costing Rs. 1,50,000 along with house w.e.f. 1-7-2020. The

value of the furniture to be included in the valuation of unfurnished house shall be :

(a) Rs. 11,250 (b) Rs. 15,000 (c) Rs. 22,500 (d) Rs. 16,875

68. Which section of the Income tax Act provides about exemption of amount received by way

Retrenchment compensation?

a) 10(10)

b) 10(10B)

c) 10(10AA)

d) 10(10C)

69. Section 10(10B) of the Income tax Act provide for

a) taxability about gratuity

b) taxability about amount received by way of retrenchment compensation

c) taxability about leave encashment

d) None of the above

70. Which deduction is allowed under section 16?

a) Professional tax

b) Entertainment allowance

c) Standard Deduction

d) All of the above

71. Deduction in respect of entertainment allowance is available to ………………..

a) Government employees

b) Non-Government employees

c) any of the above

d) None of the above

72. What amount of deduction is available for entertainment tax?

a) One-fifth of his basic salary

b) ` 5,000

c) Actual entertainment allowance received

d) Least of above

73. The maximum exemption under section 10(10) in case of Gratuity is

a) ` 20,00,000

b) ` 3,00,000

c) ` 10,50,000

d) ` 5,00,000

74. The maximum exemption in respect of transport allowance granted to an employee to meet his

expenditure for the purpose of commuting between the place of his residence and the place of his duty

shall be

a) ` 800 per month

b) ` 1600 per month

c) ` 700 per month

d) ` Nil

75. The maximum exemption in respect of transport allowance granted to an handicapped employee to

meet his expenditure for the purpose of commuting between the place of his residence and the place of

his duty shall be

a) ` 1,600 per month

b) ` 3,200 per month

c) ` 800 per month

d) ` 900 per month

76. Mayank receives ` 50,000 as basic salary from the Government during the financial year 2019-20 and

` 9,000 by way of entertainment allowance which he spends in full for official purpose. The allowance of

deduction in respect of allowance will be

a) ` 5,000

b) ` 9,000

c) ` 10,000

d) None of the above

77. For an employee in receipt of hostel expenditure allowance for his three children, the maximum

annual allowance exempt under section 10(14) is

a) ` 10,800

b) ` 7,200

c) ` 9,600

d) ` 3,600

78. The entertainment allowance received by a Government employee is exempt up to the lower of the

actual entertainment allowance received, 1/5th of basic salary and

a) `4,000

b) ` 6,000

c) ` 5,000. |

d) Nil

79. Rajesh is provided with a rent free unfurnished accommodation, which is owned by his employer, XY

Pvt. Ltd., in New Delhi. The value of perquisite in the hands of Rajesh is –

a) 20 % of salary

b) 15 % of salary

c) 10 % of salary

d) 7.5 % of salary

80 ) Ashraf is an employee of Moon Public School. His daughter, Zara, is studying in the said school at a

concessional fees of Rs. 600 per month (Actual fee : Rs. 4,000 per month). The amount taxable in the

hands of Ashraf will be –

(a) Rs. 48,000

(b) Rs.7,200

(c) Nil

(d) Rs. 40,800.

81. The HRA paid to an employee residing in Patna is exempt up to the lower of actual HRA, excess of

rent paid over 10% of salary and –

a) 40 % of salary

b) 50 % of salary

c) 60 % of salary

d) 70 % of salary

82. Salary of S (` 40,000 per month) becomes due on the last day of the month but is paid on 7th of next

month. Also, salary of April, 2020 and May, 2020 is received in advance in March, 2020.What will be his

gross income for Assessment Year 2020-21?

a) ` 5,60,000

b) ` 4,80,000

c) ` 4,40,000

d) ` 5,20,000

83. Y received children education allowance of ` 500 pm for his 1 child. Calculate taxable amount of

children education allowance for assessment year 2020-21 if entire amount is spent by him.

a) Nil

b) ` 4,800

c) ` 6,000

d) ` 3,600

84. A Ltd. has advanced an interest free loan of ` 5,00,000 to B for purchase of car on 1.5.2019. B has

been repaying loan in installments of` 20,000 p.m. on the1stof next month. Compute the value of

perquisite on account of interest assuming the interest charged by SBI is 10% p.a.

a) ` 34,833

b) ` 36,667

c) `40,000

d) ` 50,000

85. Employer provides a car (below 1.6 ltr. capacity) along with a driver to be used partly for official and

partly for personal purpose. The expenses incurred by company are: running and maintenance expenses

-` 32,000, driver’s salary-` 36,000. Taxable value of perquisite is:

a) ` 21,600

b) ` 10,800

c) ` 32,400

d) ` 39,600

86. X retired on 15.4.2019 from a company. He was entitled to a pension of ` 4,000 p.m. At the time of

retirement, he got 75% of pension commuted & received ` 1,20,000 as commuted pension. Compute the

taxable portion of commuted pension if he is entitled to gratuity.

a) ` 66,667 b) ` 53,333 c) 1,20,000 d) ` 78,667

87. For an employee in receipt of hostel expenditure allowance for his one children, the maximum

annual allowance exempt under section 10(14) is

a) ` 10,800

b) ` 7,200

c) `9,600

d) ` 3,600

88. R, who is entitled to a salary of ` 10,000 p.m. took an advance of ` 20,000 against the salary in month

of April 2018. The gross salary of R for assessment year 2020-21 shall be:

a) ` 1,40,000

b) ` 1,20,000

c) ` 1,30,000

d) None of the above

89. A is entitled to children education allowance @ ` 80 p.m. per child for 3 children amounting ` 240

p.m. It will be exempt to the extent of :

a) ` 200 p.m.

b) ` 160 p.m.

c) ` 240 p.m.

d) Nil

90. In which of the following situation is accommodation provided in hotel by the employer not taxable

in the hands of the employee?

a) When accommodation is provided for not more than 15 days

b) on transfer of employee from one place to another

c) both a) and b) together

d) none of the above

91. In case of transfer from one place to another, if employee is provided house at new place and also

allowed to retain house at old place, what shall be taxable after 90 days?

a) value of one house with lower value shall be taxable

b) value of one house with higher value shall be taxable

c) average of value of both house shall be taxable

d) value of both the house shall be taxable

92. What is the value taxable in the hands of employee on allotment of equity shares?

a) Fair market value (FMV) of shares on date of allotment – Amount recovered from employee

b) Fair market value (FMV) of the shares on the date of allotment

c) Fair market value (FMV) of shares on date of allotment + Amount recovered from employee

d) None of the above

93. When the asset given by the employer is computer or telephone, what amount shall be taxable in

the hands of the employee?

a) Taxable in the hands of employee

b) Not taxable in the hands of employee

c) Discretion of Assessing Officer

d) None of the above

94. When the motor car is owned by the employee and used by the employee for private and official

purpose. What amount shall be taxable in the hands of the employee?

a) Total Actual expenditure for official and personal purpose – 1800 pm /2400 pm + 900 pm for

chauffeur (if any)

b) Total Actual expenditure for official and personal purpose + 1800 pm /2400 pm – 900 pm for

chauffeur (if any)

c) Total Actual expenditure for official and personal purpose – 1800 pm /2400 pm – 900 pm for

chauffeur (if any)

d) Total Actual expenditure for official and personal purpose

95. What is the maximum amount upto which leave salary is exempt from tax?

a) ` 5,00,000

b) ` 3,00,000

c) ` 10,00,000

d) upto any limit

96. Which of the following income is taxable under the head ‘income from salary’?

a) Salary received by a partner from firm

b) Salary received by a member of parliament

c) Salary of a government officer

d) None of the above

97. Vivek receive 50,000 as basic salary from the government during the financial year 2019-20 and

receives 9,000 by way of entertainment allowance which he spends in full for official purposes. The

amount deductible under section 16(ii) in respect of the allowance will be?

a) 5,000

b) 9,000

c) 10,000

d) None of the above

98. The amount of any contribution to an approved superannuation fund by the employer in respect of

the employee is exempt from tax upto?

a) 1,00,000

b) 1,50,000

c) 2,00,000

d) Nil

99. Dinesh obtained interest-free loan of ` 20,000 from his employer company for purchasing a two

wheeler. The market rate of interest on such loan is 20% p.a. The leading rate of SBI is 12.5% and that of

the private sector bank is 16%. The taxable amount of this perquisite will be computed at the rate of?

a) 20%

b) 16%

c) 12.5%

d) Nil rate

100. The maximum exemption under section 10(10AA) in case of leave encashment is?

a) 3,50,000

b) 3,00,000

c) 10,00,000

d) 5,00,00

Answer Sheet


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Night Study Time Table | CS Aspirant Group 1st OR Group 2nd Stage 1st 10 PM - 12 AM (Subject 1) 12 AM - 12.15 AM (Break ) 12.15 - 1.45 AM (Subject 2) 1.45 - 2.00 AM (Break) Stage 2nd (if you want to d

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