income tax mcq PDF.docx

Income Tax MCQs 2022 - 23 [Free PDF]
Income Tax Chapterwise MCQs
Income From Salaries MCQs
Income From House Property MCQs
Deductions under Sec 80C to 80U MCqs
Profits and Gains From Business and Profession MCQs
For CA CS CMA and Other Competitive and Professional Exams

1. Income tax Multiple Choice Questions (MCQs) with answers
Assessment Year 2022 – 23 (Previous year 2021 – 22)
In this page you get income tax objective types questions with answers which are asked in various exams of Mumbai
University, Dibrugarh University, Gauhati University, Kolkata University and Assam University.
Also, these questions are useful for B. Com exams of various universities covered under CBCS pattern.
Also, these income tax objective type questions and answers are also useful for NTA Net Commerce Exam, CMA, CA, CS
and other competitive exams.
Income tax Multiple Choice Questions (MCQs) with answers
Assessment Year 2022 – 23 (Previous year 2021 – 22)
Choose the correct answers to the following:
1. Income tax Act extends to:
a) Whole of India
b) Whole of India except Jammu & Kashmir
c) Whole of India except Sikkim
d) Whole of India except NE region
Ans: a) Whole of India
2. Taxable income is determined on the basis of:
a) Residential Status
b) Total Income
c) Citizenship
Ans: a) Residential Status (Total income of a person is determined on the basis of his residential status)
3. Residential status is to be determined for
a) Previous year.
b) Assessment year.
c) Accounting year.
Ans: a) Previous year
4. Income tax act was passed in the year:
a) 1860

2. b) 1947
c) 1961
Ans: c) 1961 (Income Tax Act was passed on 1-4-1961)
5. Income tax is treated as:
a) Direct expenses
b) Indirect expenses
c) Business expenses
d) Personal expenses
Ans: d) Personal expenses
Also Read: Income Tax Chapterwise MCQs (2022 - 2023)
1. 700+ Income Tax MCQs 2022-23 [Free PDF], Income Tax Laws and Practice MCQs
2. 50+ MCQ on Residential Status, Income Tax MCQs 2022 - 23 [Free PDF]
3. 100+ MCQs on Income From Salary, Income Tax MCQs 2022 - 23 [Free PDF]
4. 50 Income from House Property MCQ, Income Tax MCQs 2022 - 23 [Free PDF]
5. 50+ Profits and Gains from Business and Profession (PGBP) MCQs, Income Tax MCQs 2022 - 23 [Free PDF]
6. 50 MCQ on Capital Gains, Income Tax MCQs 2022 - 23 [Free PDF]
7. 30+ MCQ on Set off and Carry forward of Losses, Income Tax MCQs 2022 - 23, Master Chart [Free PDF]
8. 25+ Income Tax Deductions MCQs (80C to 80 U), Income Tax MCQs 2022 – 23 [Free PDF]
**********************
6. Finance bill becomes the Finance Act when it is passed by:
a) The Lok Sabha
b) The Rajya Sabha
c) Both by Lok Sabha and Rajya Sabha
d) Both by Lok Sabha and Rajya Sabha and given the assent of the President
Ans: d) Both by Lok Sabha and Rajya Sabha and given the assent of the President

3. 7. The circulars issued by CBDT are binding on:
a) Assessee
b) Finance Ministry
c) Income tax authorities
d) Assessing officer only
Ans: c) Income tax authorities
8. AOP (Association of Person) should consists of:
a) Individuals only
b) Person other than individuals
c) Both the above
d) Artificial Judicial person
Ans: c) Both the above
9. BOI (Body of Individuals) should consists of:
a) Individuals only
b) Person other than individuals
c) Both the above
d) Artificial Judicial person
Ans: a) Individuals only
10. Income tax rates are fixed in which act?
a) Income Tax Act 1961
b) Finance Act
c) Companies Act 2013
d) None of the above
Ans: b) Finance Act
11. In which case income of the previous year is assessed in the same year?
a) Shipping business of non-residents
b) Assessment of persons leaving India

4. c) Discontinued business
d) All of the above
Ans: d) All of the above
12. Q sets up a new business on 15.7.2021 and he commenced his business from 1.2.2022. First previous year shall be:
a) 1-4-2021 to 31-3-2022
b) 1-4-2022 to 31-3-2023
c) 1-2-2022 to 31-3-2023
d) 15-7-2021 to 31-3-2022
Ans: d) 15-7-2021 to 31-3-2022
13. An AOP formed on 1-6-2021 for a particular event which is completed on 12-12-2021. What is the assessment year
for AOP?
a) 1-4-2021 to 31-3-2022
b) 1-4-2022 to 31-3-2023
c) 1-2-2022 to 31-3-2023
d) 15-7-2021 to 31-3-2022
Ans: a) 1-4-2021 to 31-3-2022
14. If the total income of an assessee has been computed as rupees 12,50,794.90, the total income after rounding off
will be taken as:
a) 12,50,790
b) 12,50,800
c) 12,50,795
d) None of the above
Ans: a) 12,50,790
(Hint: The total income and income tax shall be rounded off to the nearest multiple of 10 rupees)
15. Which of the following statements are correct?
a) Assessee is always a person but a person may or may not be an assessee.
b) A person may not have assessable income but may still be assessee.
c) In some cases assessment year and previous year can be same financial year.

5. d) All of the above
Ans: d) All of the above
16. When was income tax levied in India for the first time?
a) 1961
b) 1860
c) 1947
Ans: b) 1860 (The income tax was introduced in India for the first time in 1860 by British rulers.)
17. Artificial Juridical person’s example is:
a) State Bank of India, Dibrugarh.
b) Delhi University.
c) Guwahati Municipal Corporation.
d) Amul
Ans: b) Delhi University.
18. Example of an Association of Persons (AOP) is:
a) A village Panchayat.
b) Mark fed.
c) Reliance Industries Limited.
d) Delhi university
Ans: a) A village Panchayat.
19. Which of the following income is exempted from tax?
a) Agricultural income
b) Sum received by a member from HUF
c) Share of profit of a partner from a firm
d) All of the above
Ans: d) All of the above
20. The daily allowance received by a Member of the Parliament is
a) Taxable.

6. b) Exempt.
c) Included in total income for rate purposes.
Ans: b) Exempt.
21. C is entitled to hostel expenditure allowance @ Rs. 600 p.m. per child for 3 children. It will be exempt to the
extent of:
a) Rs. 1,800/-
b) Rs. 900/-
c) Rs. 600/- p.m.
Ans: c) Rs. 600/- p.m. (Hostel expenditure allowance is exempted upto R.s 300 per month per child for a maximum of
two children)
22. The ceiling limit of deduction u/s 24 (b) in respect of Interest of Loan taken on 01.06.2014 for construction of a
self-occupied house is:
a) Rs. 1,50,000/-
b) Rs. 30,000/-
c) No limit.
Ans: a) Rs. 1,50,000/-
23. For the assessment year 2022 - 23 rebate under Section 87A is available in the case of the residential individual, if
his taxable income is:
a) Rs. 3,00,000 or less.
b) Rs. 4,00,000 or less.
c) Rs. 5,00,000 or less.
Ans: c) Rs. 5,00,000 or less.
24. If title of ownership of a house property is under dispute in a court of law, the decision as to who is the owner
rests with?
a) Government of India.
b) State Government.
c) Income Tax Department.
Ans: c) Income Tax Department.
25. An appeal against the order of the assessing officer lies with:

7. a) Commissioner (Appeals) [Sec 246A].
b) Principal Commissioner of Income Tax.
c) Joint Commissioner of Income Tax.
Ans: a) Commissioner (Appeals) [Sec 246A].
26. As per National Pension System, it is mandatory for persons entering the government service on or after January
1, 2004 to contribute:
a) 20% of salary every month towards NPS.
b) 15% of salary every month towards NPS.
c) 10% of salary every month towards NPS. (Salary = Basic +DA)
Ans: c) 10% of salary every month towards NPS. (Salary = Basic +DA)
27. Perquisites or benefits or any other remuneration received from other than the employer, would be taxable under
the head:
a) Income from Salaries.
b) Income from House Property.
c) Income from Other Sources.
Ans: c) Income from Other Sources.
28. Tribal areas/Scheduled areas allowances as specified in rule 2BB, exemption to State, Assam and other similar
States are subject to limit of:
a) Rs. 500 per month.
b) Rs. 200 per month.
c) Rs. 100 per month.
Ans: b) Rs. 200 per month.
29. Which of the following is not taxable under the head income from other sources?
a) Rent received from letting business building
b) Sum received under Keyman insurance policy
c) Gift received from unrelated persons
d) Gift of shares received by firm or a closely held company
Ans: a) Rent received from letting business building

8. 30. Mohan is entitled to education allowance @ 6,000 p.a. per child for 3 children. It will be exempted to the extent
of:
a) Rs. 4,000.
b) Rs. 2,400.
c) Rs. 1,200.
Ans: b) Rs. 2,400.
31. The contribution made by the Central Government in the previous year, to the account of an employee under a
pension scheme referred to in:
a) Section 80C.
b) Section 80CCC.
c) Section 80CCD
Ans: c) Section 80CCD
32. Where an assessee uses his property for carrying on any business or profession, no income is chargeable to tax
under the head:
a) Income from Salaries.
b) Income from House Property.
c) Income from Other Sources.
Ans: b) Income from House Property.
33. The Appellate Tribunal, constituted by the Central Government, functions under the Ministry of Law, consists of
which of the following two classes of members?
a) Judicial and accountant.
b) Commissioners and accountant.
c) Inspector of income tax and accountant.
Ans: a) Judicial and accountant.
34. Statutory Provident Fund is set up under the provisions of the:
a) Provident Fund Act, 1952
b) Provident Fund Act, 1925
c) Income-tax Act, 1961
Ans: b) Provident Fund Act, 1925

9. 35. If no system of accounting is followed interest on securities is taxable on:
a) Receipt basis
b) Due basis
c) Hybrid basis
d) Not taxable
Ans: b) Due basis
36. If books of accounts are maintained on cash basis, interest on securities is taxable on:
a) Receipt basis
b) Due basis
c) Hybrid basis
d) Not taxable
Ans: b) Receipt basis
37. If books of accounts are maintained on mercantile basis, interest on securities is taxable on:
a) Receipt basis
b) Due basis
c) Hybrid basis
d) Not taxable
Ans: b) Due basis
38. One can deposit in Public Provident Fund subject to
a) Minimum Rs. 500 and maximum Rs. 1,50,000 per annum.
b) Minimum Rs. 600 and maximum Rs. 2,00,000 per annum.
c) Minimum Rs. 700 and maximum Rs. 2,50,000 per annum.
Ans: a) Minimum Rs. 500 and maximum Rs. 1,50,000 per annum.
39. Pankaj is entitled to hostel allowance @ Rs. 500 p.m. per child for 3 children. It will be exempted to the extent of:
a) Rs. 7,200.
b) Rs. 12,000.
c) Rs. 16,400.

10. Ans: a) Rs. 7,200.
40. Income accrued and received outside India is taxable in the hands of:
a) Resident and ordinarily resident (ROR)
b) Not-Ordinarily resident (RNOR)
c) Non-Resident in India (NRI)
Ans: c) Non-Resident in India (NRI)
41. Underground allowance granted to an employee who is working in uncongenial, unnatural climate in underground
mines is exempted to the limit of:
a) Rs. 1,000 per month.
b) Rs. 800 per month.
c) Rs. 600 per month.
Ans: b) Rs. 800 per month.
42. Income tax is applicable to:
a) Whole of India except the State of Jammu and Kashmir.
b) Whole of India.
c) Whole of India except the State of Sikkim.
Ans: b) Whole of India.
43. Under the Income-tax Act, the incidence of taxation depends on:
a) The citizenship of the tax-payer.
b) The age of the tax-payer.
c) The residential status of the tax-payer.
Ans: c) The residential status of the tax-payer.
44. Embezzlement of cash by a cashier is
a) A revenue loss.
b) A casual loss.
c) A capital loss.
Ans: a) A revenue loss.
45. Leave travel concession is a tax-free perquisite:

11. a) For one journey in a block of four years.
b) For one journey per year.
c) For two journeys in a block of four years.
Ans: c) For two journeys in a block of four years.
46. Rent received from agricultural land is:
a) Fully exempted.
b) Partially exempted.
c) Not exempted.
Ans: a) Fully exempted. Because it is an agricultural income
47. An assessee has borrowed money for purchase of a house, and interest is payable outside India. Such interest
shall:
a) Be allowed as deduction.
b) Not be allowed as deduction.
c) Be allowed as deduction, if the tax is deducted at source.
Ans: c) Be allowed as deduction, if the tax is deducted at source.
48. Total income of a person is determined on the basis of his:
a) Residential status in India.
b) Citizenship in India.
c) Both of the above.
Ans: a) Residential status in India.
49. Where the income of an individual includes the income of minor children, such individual shall be entitled to an
exemption of:
a) Rs. 2,000/-
b) Rs. 1,500/- per minor child.
c) Rs. 1,500/- per minor child or to the extent of income of the minor child included in the total income of the assessee,
whichever is less.
Ans: c) Rs. 1,500/- per minor child or to the extent of income of the minor child included in the total income of the
assessee, whichever is less.

12. 50. D owns a house in which he lives. His employer reimburses to him the electricity bill amounting to Rs. 6,000/-. It
shall be a perquisite for:
a) Specified employee only.
b) Employee other than specified employees.
c) Both specified and other employees.
Ans: c) Both specified and other employees.
MCQ on Residential Status
Income Tax MCQs for 2022 - 23
Choose the Correct Alternative:
1. residential status is determined for:
a) Previous year.
b) Assessment year.
c) Accounting year.
d) Financial year.
Ans: a) Previous year.
2. An individual who wants to be resident of India must stay in India for at least:
a) 730 days in 10 previous years.
b) 182 days in the previous year.
c) 365 days in the previous year.
d) 60 days in the previous year.
Ans: b) 182 days in the previous year.
3. Under the income- tax act, the incidence of taxation depends on:
a) The citizenship of the tax-payer.
b) The age of the taxpayer
c) The residential status of the tax-payer.
d) The gender of the taxpayer
Ans: c) The residential status of the tax-payer.
4. Residential status of an assessee is ascertained as per the provisions of:
a) Sec. 6.
b) Sec. 7.
c) Sec. 9.
d) Sec. 11.
Ans: a) Sec. 6.

13. 5. As per the first basic condition to determine residential status, a person should have been in India during the
previous year concerned for:
a) 730 days in 10 previous years.
b) 182 days in the previous year.
c) 365 days in the previous year.
d) 60 days in the previous year.
Ans: b) 182 days in the previous year.
6. As per the second basic condition to determine residential status, a person should have been in India during the
previous year concerned for:
a) 730 days in 10 previous years.
b) 182 days in the previous year.
c) 365 days in the previous year.
d) 60 days in the previous year plus 365 days in 4 preceding p/y
Ans: d) 60 days in the previous year plus 365 days in 4 preceding p/y
7. An individual who wants to be resident of India must satisfy at least:
a) One of the Two basic conditions.
b) Both the basic conditions.
c) Both the additional conditions.
d) Both the basic conditions and the additional conditions
Ans: a) One of the Two basic conditions.
8. A person is Nonresident in India (NRI) if he fails to fulfill:
a) The additional conditions.
b) At least one of the basic conditions.
c) Both basic conditions.
d) Both basic and additional conditions
Ans: b) At least one of the basic conditions.
9. Second basic condition of 60 days is not applicable to:
a) The person of Indian Origin
b) Indian Citizen who leaves India as a crew member of ship
c) Indian Citizen who leaves India for Job
d) All of the above
Ans: d) All of the above
10. Residential status of taxable entities is _______.
a) Fixed in nature.

14. b) Can change from year to year.
c) Fixed once in 5 years.
d) None of these.
Ans: b) Can change from year to year.
MCQ on Income from Salary
Income from Salary MCQ with answers
Income Tax MCQs Multiple Choice Questions with Answers (2022 – 23)
Choose the Correct Options
1. Income from salary includes:
a) Basic payments
b) Allowances
c) Perquisites
d) All of the above
Ans: d) All of the above
2. Which of the following components of salary is fully taxable?
a) Overtime payments
b) Bonus
c) Dearness Allowance
d) All of the above
Ans: d) All of the above
3. Dearness allowance is taxable in the hands of:
a) Govt. employees.
b) Non Govt. employees.
c) All employees.
d) None of these.
Ans: c) All employees.
4. Deduction on account of entertainment allowance is allowed to:
a) Non-government employees
b) Government employees

15. c) Both the above
d) None of the above
Ans: b) Government employees
5. Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actual allowance
or:
a) Rs. 1,000.
b) Rs. 2,000.
c) Rs. 20,000.
d) Rs. 5,000.
Ans: d) Rs. 5,000.
6. The daily allowance received by a Member of the Parliament is
a) Taxable.
b) Exempt.
c) Included in total income for rate purposes.
Ans: b) Exempt.
7. Education allowance is exempted for a maximum of:
a) One child.
b) Two children.
c) Three children.
d) Four children.
Ans: b) Two children.
8. Children education allowance is exempted up to:
a) Rs. 200 p.m. per child.
b) Rs. 300 p.m. per child.
c) Rs. 100 p.m. per child.
d) Rs. 400 p.m. per child.
Ans: c) Rs. 100 p.m. per child.
9. Hostel expenditure allowance is exempted up to:
a) Rs. 300 per month per child.
b) Rs. 200 per month per child.
c) Rs. 150 per month per child.
d) Rs. 250 per month per child.

16. Ans: a) Rs. 300 per month per child.
10. Which of the following allowances are fully exempted?
a) Allowance to member of UPSC
b) Allowance to teachers or Professors from SAARC member states
c) House Rent allowance to Judges
d) All of the above
Ans: Ans: d) All of the above
Income from House Property MCQ
MCQ on Income from House Property
Income Tax MCQs Multiple Choice Questions with Answers (2022 – 23)
Choose the Correct Options
1. The charging section of the Income under the head income from house property is:
a) Section 15
b) Section 17
c) Section 22
d) Section 45
Ans: c) Section 22
2. What are the conditions to be fulfilled for charging of income under the head income from house property is:
a) There must be property consisting of any building or land appurtenant thereto
b) The assessee must be owner or deemed owner
c) Property is not used by the assessee for the purpose of any business or profession
d) All of the above
Ans: d) All of the above
3. Properties exempted from tax under the head income from house property (Sec. 10)
1) Income from a farm house.
2) Annual value of one palace in the occupation of an ex-ruler.
3) Property income of a local authority.
4) Property income of an approved scientific research association.

17. 5) Property income of an educational institution and hospital.
6) Property income of a registered trade union.
7) Income from property held for charitable purposes.
8) Property income of a political party.
9) Income from property used for own business or profession.
10) Annual value of two self occupied properties.
Ans: All of the above
4. The ceiling limit of deduction u/s 24 (b) in respect of Interest of Loan taken on 01.06.2014 for construction of a self-
occupied house is:
a) Rs. 2,00,000/-
b) Rs. 30,000/-
c) Rs. 45,000/-
d) No limit.
Ans: a) Rs. 2,00,000/-
5. In case of rental house property only such municipal tax is deducted which is:
a) Paid during previous year by landlord
b) Paid during previous year by tenant
c) Total municipal taxes due during the year
d) None of the above
Ans: a) Paid during previous year by landlord
6. Where an assessee uses his property for carrying on any business or profession, no income is chargeable to tax
under the head:
a) Income from Salaries.
b) Income from House Property.
c) Income from Other Sources.
d) Capital Gains
Ans: b) Income from House Property.
7. Under the head income from house property the basis of charge is:

18. a) Rent received from house property
b) Annual value of house property
c) Net profit from house property
d) None of the above
Ans: b) Annual value of house property
8. Which of the following incomes from house property is not exempted from tax:
a) Agricultural house property
b) House used for business or profession
c) House held as stock in trade
d) House let out for commercial purpose
Ans: d) House let out for commercial purpose
9. Income from sub-letting of house property is taxable under the head:
a) Income from Salaries.
b) Income from House Property.
c) Income from Other Sources.
d) Capital Gains
Ans: c) Income from Other Sources.
10. If annual value of the house property let out is negative then the deduction under section 24 is allowed only for:
a) All deductions
b) Standard deductions @ 30%
c) Interest on money borrowed
d) None of the above
Ans: c) Interest on money borrowed
Profits and Gains from Business and Profession (PGBP) MCQs
Income Tax MCQs 2022 – 23
1. Salary received by a partner from the firm in which he is a partner is taxable under the head:
a) Income from salary.
b) Capital gains.

19. c) Profits and gains of business or profession.
d) Income from other sources.
Ans: c) Profits and gains of business or profession.
2. Perquisites received by the assessee during the course of carrying on his business or profession is taxable under the
head:
a) Income from salary.
b) Capital gains.
c) Profits and gains of business or profession.
d) Income from other sources.
Ans: c) Profits and gains of business or profession.
3. Any some received under key man insurance policy taken on the life of the employee shall be:
a) Income from salary.
b) Capital gains.
c) Profits and gains of business or profession.
d) Income from other sources.
Ans: c) Profits and gains of business or profession.
4. Methods of accounting is irrelevant for which head of income?
a) Income from salary.
b) Income from house property
b) Capital gains.
d) All of the above
Ans: d) All of the above
5. Under the head business and profession, the method of accounting which an assessee can follow shall be:
a) Mercantile System
b) Cash System
c) Mercantile or cash system only
d) Hybrid system
Ans: c) Mercantile or cash system only
6. Depreciation is allowed in case of:
a) Tangible assets
b) Intangible assets
c) Tangible and intangible assets
d) Deferred revenue expenditure
Ans: c) Tangible and intangible assets

20. 7. Under Income Tax Act depreciation is allowed on:
a) Cost price.
b) Market price.
c) W D V.
d) Face value.
Ans: c) W D V.
8. For which company depreciation is allowed on SLM basis under Income Tax Act?
a) Banking Companies
b) Insurance Companies
c) Electricity undertakings
d) None of the above
Ans: c) Electricity undertakings
9. Rate of depreciation on residential building is:
a) 5%.
b) 10%.
c) 15%.
d) 20%.
Ans: a) 5%.
10. Rate of depreciation on non-residential building is:
a) 10%.
b) 15%.
c) 20%.
d) 25%.
Ans: a) 10%.
MCQ on Capital Gains
Capital Gains MCQ with answers
Income Tax MCQs Multiple Choice Questions with Answers (2022 – 23)
1. The charging section of the income under the head capital gains is:
a) Section 15
b) Section 17
c) Section 10
d) Section 45 (1)

21. Ans: d) Section 45 (1)
2. What are the conditions to be fulfilled for charging of income under the head capital gains:
a) There must be a capital asset.
b) There must be a transfer of such capital asset.
c) The transfer of such capital asset has been affected during the previous year.
d) All of the above.
Ans: d) All of the above.
3. Tick the assets which are included and excluded from capital assets:
Assets included in Capital Assets Assets Excluded from Capital Assets
Land and Building (Both Commercial and Residential)
Plant and Machinery
Jewellery
Drawings, Paintings, Collections
Investments in securities
Patent rights
Intangible assets
Stock in trade
Personal Effects including wearing apparel
Jewellery or any property held as stock-in-trade
Agricultural rural land
Special bearer bond
Gold deposit bonds
Deposit under gold monetization scheme
4. Capital gain is the gain which arises from the transfer of
a) Land and Building Only
b) Shares of a Blue Chip Company
c) Capital asset
d) All of the above
Ans: c) Capital asset
5. Which of the following is not regarded as transfer of capital asset?
a) Sale or exchange of an asset.
b) Conversion of assets into stock-in-trade.
c) Redemption of zero coupon bonds.
d) Any transfer of a capital asset under a gift or will or an irrevocable trust

22. Ans: d) Any transfer of a capital asset under a gift or will or an irrevocable trust
6. Which of the following is regarded as transfer of capital asset?
a) Any transfer in a scheme of amalgamation if the amalgamated company is an Indian company.
b) Any transfer in a scheme of amalgamation of shares held in an Indian company by the amalgamating foreign company
to the amalgamated foreign company.
c) Any transfer, in a demerger, of a capital asset by the demerged company to the resulting company.
d) Distribution of assets on the dissolution of a firm, body of individuals or association of persons
Ans: d) Distribution of assets on the dissolution of a firm, body of individuals or association of persons
7. Which of the following assets shall be treated as short term capital assets if these assets are held for not more than
12 months?
a) A security and shares of companies listed in a recognised stock exchange
b) A unit of an equity oriented fund
c) A zero coupon bonds
d) All of the above
Ans: d) All of the above
8. Which of the following assets shall be treated as short term capital assets if these assets are held for not more than
24 months?
a) Unlisted shares of companies
b) An immovable property being land and building
c) All of the above
Ans: c) All of the above
MCQ on Set off and Carry forward of Losses
Including Master Chart to understand Set off and Carry Forward
1. Loss from house property can be carried forward and set-off in subsequent eight assessment years:
a) If return of loss is filed within due date
b) Even if return of loss is filed after due date
c) Even if return of loss is not filed
d) None of above

23. Ans: b) Even if return of loss is filed after due date
2. When the assessee has loss from house property, the maximum amount of such loss eligible for set off against
other permissible incomes would be:
a) Rs. 30,000
b) Rs.1,50,000
c) Rs.2,00,000
d) No Limit
Ans: c) Rs.2,00,000
3. STCL can be set off in the same assessment year from:
a) STCG.
b) LTCG.
c) both.
d) Not possible.
Ans: c) both.
4. Long term capital loss can be set off from which of the following?
a) STCG
b) LTCG
c) Casual Income
d) Profits and gains from business and profession
Ans: b) LTCG
5. Loss of card game can be set off from:
a) STCG
b) LTCG
c) Casual Income
d) None of the above (Casual loss Cannot be set off at all)
Ans: d) None of the above (Casual loss Cannot be set off at all)
6. Unabsorbed depreciation can be carried forward for:
a) Any number of years
b) 8 years

24. c) 4 years
d) 7 years
Ans: a) Any number of years
7. Unabsorbed business losses cannot be carried forward for more than:
a) 5 A.Y
b) 6 A.Y
c) 8 A.Y
d) 10 A.Y
Ans: c) 8 A.Y
Income Tax Deductions MCQs (80C to 80 U)
Income Tax MCQs 2022 – 23
1. Deduction under section 80C is allowed to:
a) Individual
b) Individual or HUF
c) Individual or HUF resident in India
d) All Assessee
Ans: b) Individual or HUF
2. Maximum deduction under section 80C is:
a) 1,00,000
b) 1,50,000
c) 2,00,000
d) 70,000
Ans: b) 1,50,000
3. Section 80C provides for deduction in respect of tuition fee to _______ children.
a) One.
b) Two.
c) Three.
d) None.
Ans: b) Two.
4. Deduction u/s 80CCC allowed to an individual for amount paid by him in an annuity plan of LIC is restricted to
a) Rs. 5,000
b) Rs. 7,500

25. c) Rs. 1,50,000
d) Rs. 12,500
Ans: c) Rs. 1,50,000
5. Deduction under section 80D is allowed to:
a) Individual
b) Individual or HUF
c) Individual or HUF resident in India
d) All Assessee
Ans: b) Individual or HUF
6. Medical insurance premium incurred for senior citizen is eligible for deduction up to ________ under section 80D.
a) Rs. 30,000
b) Rs. 50,000
c) Rs. 1,00,000
d) Rs. 60,000
Ans: b) Rs. 50,000
7. The maximum amount of deduction under section 80D in the case of a senior citizen is:
a) Rs: 10,000.
b) Rs: 15,000.
c) Rs: 50,000.
d) Rs: 25,000.
Ans: c) Rs: 50,000.
8. The maximum amount of deduction under section 80D if both taxpayer and parents are senior citizen is:
a) Rs: 10,000.
b) Rs: 15,000.
c) Rs: 50,000.
d) Rs: 1,00,000.
Ans: c) Rs: 1,00,000.
9. Deduction under section 80DD is allowed to:
a) Individual
b) Individual or HUF
c) Individual or HUF resident in India
d) All Assessee
Ans: b) Individual or HUF
10. The amount of deduction under section 80DD regarding disability which is less than 80%

26. a) Rs: 30,000.
b) Rs: 50,000.
c) Rs: 75,000.
d) Actual expense.
Ans: c) Rs: 75,000.