INCOME UNDER THE HEAD SALARY

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Q1: Mr. J was employed on 1/4/2010 in the grade of Rs. 15,000-Rs. 500-Rs. 17,000-Rs. 750-Rs. 21,500-Rs. 1,000-
Rs. 31,500. His gross salary for the AY 2021-2022 i.e. PY 2020-2021 shall be:

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Q2: Mr. J is a CA and is employee of J Ltd. and is working as an internal auditor having contract of
services with J Ltd. Mr. J requests J Ltd. to show his salary as internal audit fee. Mr. J shall be chargeable
to tax for amount under the head of:

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Q3: Bonus is taxable as salary income

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Q4: Out of the following, which all payments are taxable as Salary on the receipt basis
(1) Arrear of salary
(2) Advance salary
(3) Bonus

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Q5: Salary of Mr. J becomes due on 1st of next month and it is paid on 7th of that month. For AY
2021-2022 i.e. PY 2020-2021, the salary of Mr. J shall be taken from:

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Q6: Income is taxable as Salary Income when there is employer and employee relationship. However in
one exceptional case income is taxable as salary even in the absence of employer employee
relationship which is

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Q7: Read following statements and choose the correct answer
(1) Contract between employer and employee is Contract of Service
(2) Contract between employer and employee is Contract for Service
(3) Contract between professional and client is Contract for Service
(4) Contract between professional and client is Contract of Service

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Q8: U/s 15 salary is taxable:

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Q9: Deductions from Gross Salary are allowed in:

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Q10: The standard deduction is allowed from gross salary

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Q11: The standard deduction is allowed from gross salary to the maximum of

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Q12: The standard deduction is allowed from gross salary to the maximum of `50,000 but

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Q13: Standard deduction is not allowed from

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Q14: The maximum deduction for entertainment allowance u/s 16(ii) is

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Q15: The deduction for entertainment allowance u/s 16(ii) is allowed to—

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Q16: Inclusive definition of salary is given

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Q17: Deductions for entertainment allowance is allowed to

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Q18: Deduction for entertainment allowance is allowed to

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Q19: Professional Tax is charged under which Article of Constitution of India

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Q20: Professional Tax is charged by

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Q21: The deduction for Professional Tax u/s 16(iii) is for

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Q22: Statutory limit u/s 16(ii) for deduction of entertainment allowance in case of government
employee is

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Q23: Mr. J joins a service on 1/4/2020 with basic salary of Rs. 39,100 pm plus dearness allowance of
107% of basic salary. He has no other income. What is his taxable income for the AY 2021-2022 i.e. PY
2020-2021

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Q24: Mr. J joins service on 1/4/2016 in the grade of Rs. 15,000–Rs. 1,000–Rs. 18,000–Rs. 2,000–Rs. 26,000. He shall
be paying tax for the year ended on 31/3/2021 on the total salary of

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Q25: Mr. J is employed in GGC Management Institute, Pune. He is eligible for Rs. 24,000 as
dearness allowance to meet increased cost of living. The amount of DA chargeable to tax is:

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Q26: Gratuity shall be fully exempt in the case of:

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Q27: Salary for the purposes of exemption of gratuity when employee is covered under Gratuity Act 1972
includes:

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Q28: Mr. J who claimed the exemption of gratuity in the past to the extent of Rs. 2,50,000 was entitled to the
gratuity from the present/second employer amounting to Rs. 20,00,000 in the AY 2021-2022 i.e.
PY 2020-2021. Both of employers are covered under the Payment of Gratuity Act 1972. Mr. J shall be
entitled to exemption to the maximum extent of:

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Q29: An employee is covered under Payment of Gratuity Act, 1972. Salary for purpose of calculating
15 days’ salary for each completed year of service shall be:

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Q30: An employee is covered under Payment of Gratuity Act, 1972. If the employee has completed
service of 16 years 6 months and 5 days’ then to calculate exemption of Gratuity the number of
completed years shall be taken as:

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Q31: An employee is covered under Payment of Gratuity Act, 1972. For purpose of computing 15
days’ salary, the number of days in a month shall be taken as:

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Q32: An employee is covered under Payment of Gratuity Act, 1972. The maximum exemption of
gratuity shall be:

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Q33: An employee is neither a Government employee nor covered under Payment of Gratuity Act, 1972.
Salary for purpose of calculating half month shall be taken as:

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Q34: An employee is neither a Government employee nor covered under Payment of Gratuity Act, 1972.
Salary for purpose of calculating half month shall be taken as:

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Q35: An employee is Not Covered under Payment of Gratuity Act, 1972. If the employee has
completed service of 16 years 6 months and 5 days’ then to calculate exemption of Gratuity the number
of completed years shall be taken as:

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Q36: An employee is Not Covered under Payment of Gratuity Act, 1972. For purpose of computing
half months’ salary, the number of days in a month shall be taken as:

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Q37: An employee is Not Covered under Payment of Gratuity Act, 1972. The maximum exemption of
gratuity shall be:

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Q38: Mr. J worked with a previous employer for 3 years but was not entitled to any gratuity. He worked
with the present employer for 8 years and 3 months. The completed years of service for calculating
exemption of gratuity, if employee is covered under Gratuity Act, 1972 shall be taken as

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Q39: Pension received by gallantry award winner is:

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Q40: Commuted pension received by employees of Central Government and State Government is:

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Q41: Commuted pension received by non-government employee, who also receives Gratuity,
is exempt up to:

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Q42: Commuted pension received by non-government employee, who does not receive
Gratuity, is exempt up to:

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Q43: An employee was entitled to gratuity. He got 60% of his pension commuted and received a sum of
1,20,000 as commuted pension. The exemption in his case shall be:

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Q44: An employee was not entitled to gratuity. He got 60% of his pension commuted and received a
sum of Rs. 1,20,000 as commuted pension. The exemption in his case shall be:

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Q45: Mr. J who was working with another company joined the present employer on 1/5/2020 at a Salary
of Rs. 20,000 p.m. His salary becomes due on first of next month. He was also entitled to a pension of
Rs. 8,000 p.m. from his former employer as he retired on 31/3/2020. His pension is taxable on due basis.
His gross salary for AY 2021-2022 i.e. PY 2020- 2021 shall be:

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Q46: Un-Commuted Pension received by a Government employee is:

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Q47: Commuted pension received shall be fully exempt in case of

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Q48: Encashment of leave salary at the time of retirement is fully exempt in the case of:

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Q49: Salary for exemption of leave encashment shall be taken as:

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Q50: The maximum exemption in case of leave encashment shall be:

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Q51: An employee availed the exemption of leave encashment of Rs. 1,00,000 in the past. He received
from the second employer a sum of Rs. 2,50,000 as encashment of leave. He will be entitled to
exemption to the extent of

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Q52: Leave Salary is exempt u/s

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Q53: Salary for the purpose of exemption of leave encashment shall be taken as:

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Q54: Interest credited to statutory provident fund shall be:

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Q55: Employer's contribution towards statutory provident fund is

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Q56: Employer's contribution to superannuation fund for employee

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Q57:Mr. J was employed since 1st July 2004 in an establishment. His salary was fixed at Rs. 14,800 in the
grade of Rs. 14,000-Rs. 400-Rs. 22,000 w.e.f.1/7/2014. He got the benefit of 15% of salary as DA which is
treated as forming part of the salary for the retirement benefits. He retired on 1/2/2021 and
received 3,40,000 as a Gratuity from his employer. Calculate his income under the head salary for the
AY 2021-2022 i.e. PY 2020-2021 if he is a Central Government employee.

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Q58: Payment from Recognized Provident Fund after 5 years’ of service of employee shall be:

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Q59: An employee received payment from Unrecognized Provident Fund (URPF) on his
retirement. His own contribution to URPF and Interest on his own contribution will be:

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Q60: The year in which unrecognized provident fund is converted in recognized provident fund:

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Q61: Employer’s contribution to Statutory Provident Fund shall be

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Q62: Interest credited to Statutory Provident Fund shall be:

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Q63: Employer’s contribution to Recognized Provident Fund shall be:

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Q64: Interest credited to Recognized Provident Fund shall be:

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Q65: Employee’s own contribution to recognized provident fund or public provident fund shall be

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Q66: The maximum ceiling limit for exemption u/s 10(10) in respect of gratuity for employees covered
by the Payment of Gratuity Act, 1972 is

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Q67: The maximum ceiling limit for exemption u/s 10(10C) with respect to compensation received on
voluntary retirement is

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Q68: An employee has been provided free meal worth 110 per meal for 295 days in the office,
during office hours. Such facility provided to the employees shall be taxable for the employee for the
amount of:

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Q69: Bimal is employed in a factory at a salary of 2,400 pm. He also gets dearness allowance @ 600
per month and bonus @ 200 per month. He retired on 31/12/2020 and received 75,000 as gratuity under
the Payment of Gratuity Act, 1972 after serving 31 years and 4 months in that factory. The amount of
gratuity exempt under the Income-tax Act, 1961. will be

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Q70: For the year ended 31/3/2021 Mr. J receives a salary of Rs. 2,80,000. Mr. J’s contribution to
employees’ recognized provident fund account 59,000 and matching contribution has been made by
employer. Taxable Income of Mr. J will be

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Q71: Which of the following is not correct about the approved superannuation fund

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Q72: Mr. J retired from service with GGC Ltd. on 31/1/2021. He received the following amounts from
unrecognized provident fund: Own contribution Rs. 1,50,000
Interest on own contribution Rs. 21,000 Employer’s contribution Rs. 1,10,000
Interest on employer’s contribution Rs. 15,000 How much of the receipt is chargeable to tax as
income from salary?

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Q73: GGC Ltd contributed 15% of the salary of the employee Mr. J towards recognized provident fund.
The amount liable to tax in the hands of Mr. J would be ……………………… of salary.

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Q74: Mr. J is employed in ABC Ltd. opted for voluntary retirement and received Rs. 22,00,000 by
way of Gratuity. The Payment of Gratuity Act, 1972 is applicable in his case. The monetary limit for
exemption u/s 10(10) is:

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Q75: The maximum amount eligible for exemption in respect of encashment of earned leave on
retirement is:

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Q76: Mr. J employed in GGC Ltd. as accounts manager. The employer paid Rs.1,60,000 as
contribution to approved superannuation fund to benefit Mr. J. The amount of such contribution liable
to tax as perquisite in the hands of Mr. J is:

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Q77: When interest on employee’s own unrecognized provident fund is received at
retirement by employee at the time of retirement, it is:

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Q78: Mr. J employed in GGC Ltd. took voluntary retirement in December 2020 and received
Rs. 2,00,000 from National Pension System Trust. The amount so received chargeable to income tax is:

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Q79: Compensation received on voluntary retirement is exempt u/s 10(10C) to the maximum extent of:

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Q80: Leave travel concession is allowed:

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Q81: Carry forward of leave travel concession is allowed:

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Q82: Leave Travel Concession is

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Q83: Mr. J received basic salary of Rs. 20,000 p.m. from his employer. He also received children
education allowance of Rs. 3,000 for three children and transport allowance of Rs. 1,800 p.m. The amount of
salary chargeable to tax for AY 2021-2022 i.e. PY 2020-2021 is

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Q84: The entertainment allowance received by a Government employee is exempt up to the lower of
the actual entertainment allowance received, 20% of basic salary and

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Q85: Mr. J is a manager of GGC Ltd. since 2002 was terminated by the company on 1/8/2020 by paying a
compensation of Rs. 200,00,000. Such compensation is—

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Q86: Mr. J retires from private service on 30/4/2020 and his pension has been fixed at 1,500 p.m. He gets
½ of his pension commuted on 1/1/2021 and receives 75,000. He also gets 60,000 as gratuity. The
total pension taxable including commuted value will be:

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Q87: An employee of a GGC public limited company received total Rs. 3,00,000 as encashment of leave
salary at the time of retirement. He has 18 months leave to his credit at the time of retirement and his
average salary for last 10 months is Rs. 24,000. The taxable amount of leave encashment would be

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Q88: Interest on statutory provident fund shall be:

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Q89: Mr. J retired on 31/10/2020 after rendering 35 years of service in GGC Ltd. He received gratuity of
Rs. 28,00,000. He is governed by Payment of Gratuity Act, 1972. The monetary limit eligible for exemption is:

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Q90: Children education allowance is exempt up to:

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Q91: Hostel expenditure allowance is exempt up to:

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Q92: Transport allowance is exempt for

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Q93: Underground allowance to an employee is exempt upto:

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Q94: If rent is paid by the employee for a house situated in Delhi then HRA shall be exempt to the
maximum extent of:

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Q95: If rent is paid by the employee for a house situated in Faridabad the HRA shall be exempt to
the maximum extent of:

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Q96: Under the Income Tax Act 1961 Child shall includes:

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Q97: Mr. J is entitled to a watchman allowance of Rs. 600 p.m. for the security of his residence. He pays
Rs. 500 p.m. to the watchman employed by him. The taxable allowance shall be:

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Q98: Mr. J received children education allowance of Rs. 500 pm for each of his 3 children. Taxable amount
of children education allowance for the AY 2021- 2022 i.e. PY 2020-2021 if entire amount is spent by Mr. J.

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Q99: Which of the following amount is exempt

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Q100: Mr. J is entitled to Rs. 8,000 pm as Medical Allowance. He spends Rs. 4,000 pm on his medical
treatment and Rs. 1,000 on the medical treatment of his major son not dependent on him. The exemption in
this case shall be:

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Q101: Which of the following is not the condition for claiming exemption for House Rent Allowance:

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Q102: Calculate the exempt HRA from the following details:
Mr. J is entitled to a basic salary of Rs. 50,000 p.m. and DA of Rs.10,000 p.m. 40% of which forms part of
retirement benefits. He is also entitled to HRA of Rs. 20,000 pm. He actually lives with his parents in
Mumbai and does not pay any rent. Market rent of that house is Rs. 20,000 pm in Mumbai.

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Q103: Mr. J received Rs. 300 pm as children education allowance for each of his 3 children. Taxable and
exempt part of children education allowance shall be?

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Q104: Mr. J is entitled to a transport allowance of 1,000 pm. For commuting from his residence to
office and back he spends 600 pm. The exemption shall be

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Q105: Mr. J is Pilot with Jet Airways. He is entitled to outstation allowance of 10,000 p.m. He spends
4,000 every month. The exemption shall be

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Q106: Entertainment allowance in case of government employee is:

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Q107: 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

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Q108: Mr. J stays in New Delhi. His basic salary is Rs. 10,000 p.m., D.A. (60% of which forms part of
pay) is Rs. 6,000 p.m., HRA is Rs. 5,000 p.m. and he is entitled to a commission of 1% on the turnover
achieved by him. Mr. J pays a rent of Rs. 5,500 p.m. The turnover achieved by him during the current
year is Rs. 12,00,000. The amount of HRA exempt u/s 10(13A) is

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Q109: Mr. J is entitled to a watchman allowance of Rs. 6,600 pm. He pays Rs. 5,000 pm to the watchman
employed by him. The taxable allowance shall be:

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Q110: Chandan is a handicapped employee receives Rs. 1,500 pm as transport allowance from his
employer. His actual expenditure on transport is Rs. 1,000 pm. The amount of transport allowance
taxable under the head income from salaries will be

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Q111: GGC Ltd. transfers a Honda City car to its employee Mr. J after using it for 4 years and 10
months, for Rs. 2,10,000. Cost of the car was 10,00,000. Value of taxable perquisite in the hands of Mr. J is

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Q112: Children education allowance received by an employee from his employer is Rs. 80 per month per
child for 3 children. Taxable education allowance will be –

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Q113: Mr. J purchased a residential house property in Ahmadabad on loan for which he paid an interest of
Rs. 50,000 during the previous year. He is working in Delhi and getting an HRA of `4,000 per month. He
can claim exemption/deduction for—

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Q114: Mr. J is employed in GGC Ltd., Delhi. He is paid house rent allowance of 9,000 per month in
financial year 2020-2021. His salary for the purpose of computation of exemption of house rent
allowance may be taken as Rs. 20,000 per month. Mr. J pays actual rent of Rs. 10,000 per month. How much of
the house rent allowance is tax-free.

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Q115: Mr. J is receiving `10,000 pm as medical allowance from his employer. Out of this, he spends
Rs. 5,000 pm on his own medical treatment, Rs. 2,000 pm on the medical treatment of his dependent wife and
another Rs. 3,000 pm for the medical treatment of his major son who is not a dependent on him. The
amount of medical allowance taxable in his hand is

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Q116: Mr. J is employed in GGC Ltd., was eligible for transport allowance of Rs. 2,000 per month to meet
his travel expenses from residence to office. He actually incurred 1,200 per month towards travel.
The amount of travel allowance chargeable to tax would be

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Q117: Mr. J is employed in GGC Ltd. – Transporters as cabin driver. He is paid Rs. 15,000 every month
during AY 2021-2022 i.e. PY 2020-2021 as allowance for meeting his personal expenditure in
the course of running Goods Vehicle. Mr. J does not receive any other amount by way of daily allowance.
The amount of allowance eligible for exemption is:

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Q118: Mr. J employed in GGC Ltd., and received Rs. 10,000 pm as house rent allowance in the AY
2021-2022 i.e. PY 2020-2021. His total taxable salary is 4,00,000 consisting of Basic pay + DA. He
did not pay any rent for whole of the year. How much of HRA is exempt from tax?

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Q119: Rent Free Accommodation is covered in:

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Q120: Obligation of the employee met by the employer is covered u/s

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Q121: Medical expenditure reimbursed by the employer to the employee shall be:

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Q112: During the previous year the employee was reimbursed 23,000 as medical expenses incurred by
employee in Government hospital. The taxable perquisite in this case shall be:

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Q123: House Rent Allowance is covered u/s:

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Q124: Accommodation at concessional rent is given in section:

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Q125: The employee is provided with furniture costing Rs. 1,50,000 along with rent free accommodation w.e.f.
1/8/2020. The value of the furniture to be included in the value of rent free accommodation shall be:

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Q126: Mr. J is provided with a rent free accommodation owned by his employer in Delhi.
The value of this perquisite shall be:

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Q127: Mr. J owns a house in which he lives. His employer reimburses to him the electricity bill
amounting to Rs. 15,000. It shall be a perquisite for:

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Q128: Exemption of leave travel concession is allowed u/s:

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Q129: Mr. J has taken interest free loan of Rs. 1,00,000 from his employer for the purpose of medical
treatment of his son. In this case taxable value of perquisite is

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Q130: Employer provides a car (below Rs. 1,600 cubic capacity) along with a driver to Mr. J and he uses the
car partly for official and partly for personal purpose. The expenses incurred by the employer are:
(1) running and maintenance expenses of Rs. 84,000
(2) driver's salary of Rs. 1,20,000 Taxable value of perquisite is:

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Q131: Mr. J is employed in GGC Ltd and his wife is suffering from a critical disease. The company has
sent Mr.J and Mrs.Jto USA for the medical treatment of Mrs. J. The company has incurred expenses on
medical treatment of Mrs. J and stay outside India of Mrs. J and of Mr. J. amounting to Rs. 17,00,000 but RBI
permitted only Rs. 15,00,000. The travel expenses amounted to 1,50,000. Salary of Mr. J was Rs. 5,00,000.
The taxable perquisite in this case shall be:

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Q132: Mr. J is provided with a rent free unfurnished accommodation, which is owned by his employer,
GGC Pvt. Ltd., in New Delhi. The value of perquisite in the hands of Mr. J is

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Q133: Mr. J is provided with furniture to the value of Rs. 70,000 along with house from February, 2020.
Furniture is not owned by employer but has been taken on rent by employer for which employer pays
hire charges of Rs. 5,000 pa. The value of furniture to be included along with value of unfurnished house
for AY 2021-2022 i.e. PY 2020-2021 is

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Q134: For the purpose of determining the perquisite value of loan at concessional rate given to the
employee, the lending rate of State Bank of India as on __________ is required;

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Q135: Salary of employee is Rs. 2,00,000. Fair rent of the unfurnished houses situated in Delhi given to
employee is Rs. 1,30,000. The valuation of the perquisite of the house in case of Government
employee shall be:

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Q136: Salary of employee is Rs. 2,00,000. Fair rent of the unfurnished houses situated in Delhi given to
employee is Rs. 1,30,000. The valuation of the perquisite of the house in case of non Government
employee shall be:

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Q137: Salary of an employee is Rs. 2,00,000. Rent paid by the employer for the unfurnished house provided
to employee at Faridabad is 3,000 p.m. The employer charges 2,000 p.m. as rent from the
employee. The valuation of this perquisite shall be:

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Q138: A car of Rs. 1,500 cc is provided by the employer to the employee whose salary is Rs. 20,000 p.m. The
car is used by him partly for official and partly for his personal purpose. The expenses of running and
maintenance are met by the employer. The valuation of this perquisite shall be:

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Q139: Mr. J is employee of GGC Ltd. and he is provided a car of engine of 1.9-liter capacity along
with driver. The expenses of running and maintenance of car are met by Mr. J himself.
Besides using the car for official purpose, Mr. J also uses the car for his personal purpose. The valuation
of the perquisite of car shall be:

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Q140: Mr. J an employee owns a car which he used for his private purpose. All expenses of running and
maintenance of the car are met by the employer. The perquisite shall be

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Q141: Mr. J is an employee of JSJ Ltd. which is an oil manufacturing company. He is provided with
free gas for his personal purpose by the employer. The value of this perquisite shall be

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Q142: Employee own a houses in which he lives happily along with his family. His employer
reimburses to him the electricity bill amounting to Rs. 5,000 pm. The perquisite shall be

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Q143: The employer provides free facility of watchman, sweeper and gardner to his employees.
The perquisite shall be

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Q144: The Gardner, Sweeper and Watchman are employed by the employer and provided to
employee along with rent free accommodation which is owned by the employer. The salary of
Rs. 5,000 pm per person is paid by the employer. The valuation of this perquisite shall be

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Q145: Tea and Snacks are provided by GGC Ltd. to employees in the office during office hours. The
value of this perquisite shall be

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Q146: The employer GGC Ltd. gives a gift in cash to its employee on the marriage of the son of the such
employee. Gift so made shall:

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Q147: The employer has given a laptop for the personal use of the employee. The value of this
perquisite shall be:

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Q148: The employer has given a video-camera for the personal use of the employee. The value of this
perquisite shall be:

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Q149: The employer has given furniture for the personal use of the employee. The value of this
perquisite shall be:

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Q150: The employer had purchased a car for Rs. 8,00,000, 2 years and 7 months ago. This car is
sold to the employee for Rs. 1,20,000. The value of this perquisite shall be

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Q151: The employer had purchased a computer for Rs. 80,000, 2 years and 7 months ago. This computer is
sold to the employee for Rs. 15,000. The value of this perquisite shall be

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Q152: An employee has been provided free meal worth Rs. 110 per meal for 295 days in the office,
during office hours. Such facility provided to the employees shall be taxable for the employee for the
amount of:

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Q153: GGC Ltd. transfers a Honda City car to its employee Mr. J after using it for 4 years and 10
months, for Rs. 2,10,000. Cost of the car was 10,00,000. Value of taxable perquisite in the hands
of Mr. J is

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Q154: Mr. J an employee of GGC Ltd of Delhi, received the following payments during the previous
year ended 31/3/2021: Basic salary: Rs. 2,40,000 and dearness allowance: 40% of basic salary (40%
forming part of salary). Rent-free unfurnished accommodation provided by employer for which
rent paid by employer being Rs. 50,000. The value of taxable perquisite in the hands of Mr. J will be

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Q155: Mr. J is an employee of Gyan Gurucull Public School. His daughter, Ustat, is studying in the said
school at concessional fees of Rs. 600 per month (Actual fee 4,000 per month). The amount taxable in
the hands of Mr. J will be

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Q156: Mr. J took an interest-free loan of Rs. 15,000 from GGC Ltd. (the employer). Assuming that the
market rate of interest on similar loan is 10%, the taxable value of the perquisite in the hands of Mr. J
will be

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Q157: During the AY 2021-2022 i.e. PY 2020-2021 Mr. J received a watch worth Rs. 20,000 from his
employer as a gift. The taxable value of the watch will be

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Q158: Mr. J gets salary of Rs. 12,000 p.m. and is provided with rent free unfurnished accommodation
at Pune (which has population of Rs. 20,00,000): House is owned by employer, fair rental value of
which is Rs. 1,400 pm. House was provided with effect from 1st July, 2020. Value of the perquisite of rent-free accommodation will be:

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Q159: Mr. J is employed as chief engineer in GGC Ltd., Chennai w.e.f. 1/4/2020 for a consolidated
salary of Rs. 60,000 per month. He is provided with rent free unfurnished accommodation owned by the
employer from 1/7/2020 onwards. The value of taxable perquisite is –

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Q160: Ms. J is provided with an interest free loan by her employer for the purchase of a house. The value
of the perquisite shall be –

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Q161: GGC Ltd. acquired a motorcar for 8,00,000 on 30/6/2020. It sold the said motor car to its employee,
Mr. J, for Rs. 6,00,000 on 10/7/2020. The company claimed depreciation @ 15% for the year ended
31/3/2021. The perquisite value in the hands of Mr. J on sale of motor car would be

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Q162: A company has provided laptop worth Rs. 50,000 to its employee for official as well as personal
purposes. The taxable amount of perquisite will be –

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Q163: Mr. J employed in GGC Ltd. at Mumbai was provided rent-free accommodation by the employer
who owned such accommodation. The salary income of Mr. J for the purpose of computing the
perquisite value is Rs. 8,00,000. The perquisite value of rent-free accommodation in the hands of Mr. J is:

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Q164: Mr. J is given a motor car with chauffeur by the employer which is used for both official and
personal purpose. The entire running expenses of the car amounting to Rs. 64,800 were met by the employer
in the AY 2021-2022 i.e. PY 2020-2021. The cubic capacity of the engine of the motor car exceeds 1.6
liters. The perquisite value of motor car taxable in the hands of Mr. J is:

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Q165: During the AY 2021-2022 i.e. PY 2020-2021, the employee was reimbursed Rs. 24,000 as medical
expenses incurred by him which includes Rs. 7,000 spent in Government hospital. The taxable perquisite
in this case shall be:

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Q166: Mr. J is employed in GGC Ltd. at Madurai which has population of Rs. 40,00,000. He is provided
with a rent free accommodation owned by the employer. The percentage of salary to be adopted for
the purpose of valuation of perquisite would be:

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Q167: Mr. J employed in GGC Ltd. was permitted to admit his only son in the school run by the
employer. No fee was charged on such education provided to the son of Mr. J. The cost of such
education for other children is 1,800 per month. The perquisite value of free education in the hands of
Mr. J would be:

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Q168: J. Ltd is a company paying salary of Rs. 4,50,000 to its employee Mr. J and also undertakes to pay the
Income Tax amounting to Rs. 10,400 on his behalf during the AY 2021-2022 i.e. PY 2020-2021. The
gross Salary of Mr. J shall be:

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Q169: Mr. J who is entitled to a salary of Rs.10,000 p.m. took an advanced of Rs. 20,000 against the salary in
the month of March 2021. The gross salary of Mr. J for AY 2021-2022 i.e. PY 2020-2021 shall be.

170 / 176

Q170: Mr. J who is entitled to salary of Rs. 10,000 p.m. took advance salary from his employer for the
months of April 2021 and May 2021 along with  salary of March 2021 on 31/3/2021. The gross salary
for Mr. J for AY 2021-2022 i.e. PY 2020-2021 shall be:

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Q171: Salary of Mr. J is Rs. 10,000 p.m. Mr. J had taken salary in advance for the months of April 2020 to
June 2020 in March 2020 itself. The gross salary of Mr. J for AY 2021-2022 i.e. PY 2020-2021 shall be:

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Q172: The Government of India announced increase in the DA on 15/3/2020 with retrospective effect from
1/5/2017 and the same were paid on 8/5/2020. The arrears of DA shall be taxable in the:

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Q173: Profits in lieu of salary is defined u/s:

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Q174: Where there is a decision to increase the D.A. in March, 2021 with retrospective effect from
1/4/2019, and the increased D.A. is received in April, 2021 the increase is taxable -

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Q175: GGC is a LLP and had taken keyman insurance policy on the life of it managing partner. The policy
got matured on 13/9/2020 and an amount of Rs. 75,00,000 was paid by the insurers to the managing
partner. The amount so received on maturity of the policy by the managing partner is

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Q176: Mr. J is employed in a company with annual gross salary of Rs. 8,60,000. The company paid
income-tax of Rs. 37,000 on his non-monetary perquisites. He paid Rs. 1,20,000 to recognized
provident fund during the AY 2021-2022 i.e. PY 2020-2021. His total income would be: