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Direct TAX MCQ - Multiple Choice Question and Answer

Direct TAX MCQ with detailed explanation for interview, entrance and competitive exams. Explanation are given for understanding.

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Question No : 8
The amount of taxable income is to be rounded off to the nearest multiple of Re.1 for income tax calculations.

True
False

Question No : 9
Income of minor child, if clubbed with income of parents, is exempt from tax up to

Rs.1,000
Rs.1,500
Rs.1,200
None of the above

Question No : 10
Amit has received Rs.25,000 from his former employer as arrear salary of 2004-05 previous year, Rs.85,000 from present employer and Rs.50,000 from the company he is going to join from 01.04.2006, during the previous year 2005-06. The total amount of salar

Rs.1,60,000
Rs.1,30,000
Rs.1,10,000
Rs. 80,000

Question No : 11
Uncommuted pension received by a Government employee is fully exempt from tax.

True
False

Question No : 12
Interest on capital, borrowed on 10.10.2000, for self-occupied property is deductible upto a maximum amount of

Rs.1,00,000
Rs.1,50,000
Rs.50,000
No limit

Question No : 13
Tax' is imposed on a person by

State Govt.
Central Govt.
Both of the above
None of the above

Question No : 14
Which of the following statements is incorrect?

Income tax is a direct tax
Wealth tax is a central govt. tax
Excise duty is an example of direct tax.
Entry tax is a state govt. tax.