Tax Deduction and Tax Credits MCQs

71

Which of the following life insurance premium payments is ineligible for a tax deduction under section 80C?

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A Life insurance premium paid on the life of daughter B Life insurance premium paid on the life of sister C Life insurance premium paid on the life of son D Life insurance premium paid on the life of spouse

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72

For an undertaking established in a Special Economic Zone (SEZ), for how many years is the deduction under Section 10AA of the Income Tax Act available?

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A 15 years B 5 years C unlimited period D 10 years

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73

Which type of income is excluded from the deduction allowed under Section 80G of the Income Tax Act?

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A None of these B Long Term Capital Gains C House Property D Salary

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74

Under Section 80CCC of the Income Tax Act, which category of taxpayer is eligible to claim a deduction for contributions made to specific pension funds?

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A only to members of HUF B only to members of AOP/BOI C All of the above D only to individual, even to non-resident individual

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75

Under Section 271C of the Income Tax Act, 1961, what is the penalty amount for failing to deduct tax at source?

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A 300% of tax which is otherwise deductible under Section 194 C B 100% of tax which is otherwise deductible under Section 194 C C 200% of tax which is otherwise deductible under Section 194 C D 10% of tax which is otherwise deductible under Section 194 C

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76

What is the primary purpose of the ADEN Rules, 1953, in the context of taxation?

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A Double taxation relief B Residential status C Assessment of corporate entity D Tax exemption

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77

Which of the following forms are correctly associated with Tax Deducted at Source (TDS) reporting?

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A 1 and 2 B 2 and 3 C All of the above D 1 and 3

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78

Which range of sections under the Income Tax Act covers the deductions permissible from the gross total income?

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A Section 80C to 80U B Section 80C to 80IC C Section 80C to 80P D Section 80C to 80IA

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79

What is the threshold limit for winnings from lotteries, crossword puzzles, or card games below which tax is not required to be deducted at source?

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A Rs. 20,000 B Rs. 5,000 C Rs. 50,000 D Rs. 10,000

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80

Which of the following statements accurately describes the nature and purpose of tax deductions under the Income Tax Act?

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A All of the above B The most popular deductions are under section 80C, 800, 80E, 80G, 80DDB, etc. of Chapter VIA C We can avail the deductions only if we have made tax-saving investments or incurred eligible expenses. There are a number of deductions available under various sections that will bring down our taxable income D Deductions are allowed under the income tax act help us reduce our taxable income

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