Taxation Quiz

Salary is taxable on the basis of:

• Receipt basis only

• Accrual basis only

• Either receipt or accrual, whichever is earlier

• Neither receipt nor accrual

Which of the following is NOT included under "Salary"?

• Pension

• Gratuity

• House Rent Allowance

• Share of profit from partnership firm

Dearness Allowance (DA) is taxable:

• Fully taxable

• Exempt fully

• Partly exempt

• Taxable only for govt. employees

Which allowance is fully exempt?

• Transport allowance

• Foreign allowance for Govt. employees

• City compensatory allowance

• House rent allowance

Pension received by a government employee is:

• Fully exempt

• Fully taxable

• 50% exempt

• Exempt up to ₹50,000

Gratuity received under the Payment of Gratuity Act is exempt up to:

• ₹10 lakhs

• ₹20 lakhs

• ₹25 lakhs

• Fully exempt

Employer’s contribution to Recognized Provident Fund is taxable if it exceeds:

• 8% of salary

• 10% of salary

• 12% of salary

• 14% of salary

Which of the following perquisite is taxable?

• Free tea/coffee during office hours

• Free medical facilities in employer’s own hospital

• Rent-free accommodation

• Telephone provided at residence

Leave encashment at the time of retirement for a non-government employee is exempt up to:

• ₹2,00,000

• ₹3,00,000

• ₹5,00,000

• Fully exempt

Which of the following is NOT taxable under Salary?

• Bonus

• Advance salary

• Leave encashment

• Scholarship to employee’s children