Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 4 - TAXATION Chapter 3: INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME - For Practice relevant for May/November 23 Examinations

Q:1 Casual Income received by the Assessee is -

  1. Fully Exempt
  2. Exempt upto ₹ 5,000
  3. Fully Taxable

Answer: 3

Q:2 Any pension received by an Individual or family pension received by any member of his family where such individual is in the service of Central or State Govt and was awarded Paramvir Chakra, Mahavir Chakra or Vir Chakra or any other notified gallantry award shall be -

  1. Exempt
  2. Taxable

Answer: 1

Q:3 An Author was awarded by CBDT a sum of ₹ 50,000 for writing a book in Hindi as first prize. Such award is fully exempt -

  1. False
  2. True

Answer: 2

Q:4 Where the income of an individual includes the income of minor children, such income shall be exempt up to -

  1. ₹ 1,500
  2. ₹ 1,500 per minor child
  3. ₹ 1,500 per minor child or to extent of income of the minor child included in the Total Income of the assessee whichever is less.

Answer: 3

Q:5 Mr. X received compensation of ₹ 2,60,000 from the Central Government on account of disaster. He claimed ₹ 1,20,000 as a deduction on account of loss or damage caused by such disaster under this Act. What amount of compensation received shall be exempt?

  1. ₹ 2,60,000
  2. ₹ 1,20,000
  3. ₹ 1,40,000
  4. Nil

Answer: 3

Q:6 Compensation received on account of disaster is exempt u/s 10(10BC) if it is received from

  1. Central Government
  2. State Government
  3. Local Authority
  4. All of the above

Answer: 4

Q:7 Which of the following exemption is available for a Foreign Citizen u/s 10(6)?

  1. Remuneration of Foreign Diplomats
  2. Remuneration of employee of a Foreign enterprise
  3. Salary of a crew member of a foreign ship
  4. All of the above

Answer: 4

Q:8 In respect of voluntary contributions in excess of ₹ 20,000 received by a Political Party, exemption u/s 13A is available where proper details about the donations are maintained, there is no need to maintain books of account.

  1. True
  2. False

Answer: 2

CA Intermediate TAXATION - MCQ for Chapter 4 -   

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