Salary Mock Test 1
IGP-CS
CA Vivek Gaba
1. Employer’s contribution to Statutory Provident Fund shall be:
a) fully exempt
b) exempt upto 10% of salary
c) exempt upto 12% of salary
d) fully taxable
2. Interest credited to Statutory Provident Fund is:
a) fully exempt
b) exempt upto 8.5%
c) exempt upto 10%
d) fully taxable
3. Employer’s contribution to Recognised Provident Fund shall be:
a) fully exempt
b) exempt upto 9% of salary
c) exempt upto 12% of salary
d) fully taxable
4. Mahendra Ltd. pays salary of ` 2,50,000 to his employee Vasu and undertakes to pay the
Income tax amounting to `10,300 during the previous year 2016-17 on behalf of Vasu. The Gross
Salary of Vasu shall be
a) ` 2,50,000
above
b) ` 2,60,300
c) ` 2,39,700
d)
none
of
the
5. Ramesh is employed by TJ Ltd., at a salary of ` 20,000 per month. As TJ Ltd. was in financial
crisis, it paid the salary of Jan 2017 to March 2017 to Ramesh only in July 2017. The gross
salary of Ramesh for A.Y. 2017-18 shall be:
a) ` 2,40,000
above
b) ` 1,80,000
b) ` 2,50,000
d)
None
of
the
6. Salary of D is ` 10,000 p.m. D had taken salary in advance for the months of April 2017 to June
2017 in March 2017 itself. His gross salary for A.Y. 2017-18 shall be:
a) ` 2,40,000
b) ` 1,80,000
c) ` 1,20,000
d) ` 1,50,000
7. Gratuity shall be exempt in case of:
a) Central and State government employees
b) Central and State government employees, Employees of local Authorities and employees of
Statutory Corporation
c) Central and State government employees, Employees of local Authorities
d) None of the above
8. Leave travel concession for a tax free perquisite for:
a) one journey in a block of 4 years
b) one journey in a block of 3 years
c) two journeys in a block of 5 years
d) two journey in a block of 4 years
9. Suman, an actress, is employed in XYZ Films for a monthly remuneration of ` 3 lakh. She acts
in various films produced by various produce` The remuneration for acting in such films is directly
paid to XYZ Films by different produce` The relationship of employee & employer ……… and
chargeable to tax under head ……
a) Does not exist, Other Sources
b) does not exist, PGBP
c) exist, Salary
d) exist, PGBP
10. Salary of S (` 40,000 per month) becomes due on the last day of the month but paid on 7th of
next month. Also, salary of April, 2017 and May, 2017 is received in advance in March, 2017.
What will be his gross income for Assessment Year2017-18?
a) ` 5,60,000
b) ` 4,80,000
c) ` 4,40,000
d) ` 5,20,000
Salary Mock Test 1
IGP-CS
CA Vivek Gaba
11. ‘R’ was employed on 1.7.2010 in the grade of `15,000-400-17,000-500-22,000. His gross salary
for the assessment year 2017-18 shall be:
a.
`1,99,200
b) `2,04,000
c) `2,08,500
d) `2,10,000
12. ‘R’ was employed from 1.8.2012 in the grade of `15,000-400-17,000-500-22,000 and his salary
was fixed at `16,200 from the date of joining. His gross salary for the assessment year 2017-18
shall be:
a.
`1,99,200
b) `2,04,000
c) `2,08,000
d) `2,14,000
13. Gratuity shall be fully exempt in the case of:
a. Central and State Government employees
b. Central and State Government employees and employees of local authorities
c. Central and State Government employees and employees of local authorities and
employees of statutory corporation.
d. None of the above
14. ‘R’ who claimed the exemption of gratuity in the past to the extent of `3,00,000, was entitled to
gratuity from the present/second employer amounting to `8,00,000 in the previous year 2016-17
as he retired on 25.10.2016. ‘R’ shall be entitled to exemption to the maximum extent of:
a. `7,00,000
b) NIL
d) `6,00,000
d) 8,00,000
15. Un-commuted Pension received by a Government employee is:
a.
Fully exempt
b) Fully taxable
c)
partially taxable
d) none of the above
16. An employee was also entitled to gratuity. He got 60 % of his pension commuted and received
a sum of `12,00,000 as commuted pension. The exemption in his case shall be:
a. `12,00,000
b) `4,00,000
c) `6,66,667
d) `8,00,000
17. ‘R’ is entitled to Hostel expenditure allowance of `600 p.m. for his 3 children @ `200 per child.
The exemption in this case shall be:
a. `600 p.m.
b) `400 p.m.
c) `300 p.m.
d) ` 100 p.m.
18. ‘R’ is entitled to a transport allowance of `2,000 p.m. for commuting from his residence to office
and back. He spends `600 p.m. The exemption shall be:
a. `1,000 p.m.
b) `1,600 p.m.
c) `800 p.m.
d) None of the above
19. Entertainment allowance in case of Government employee is:
a. fully exempt
b. fully taxable
c. exempt up to certain limits mentioned in section 16(ii)
d. first included in salary and thereafter deduction allowed from gross salary under section 16(ii)
20. For the purpose of calculating exemption of gratuity (if employee covered under gratuity act),
salary shall include:
a. fixed commission
(C) commission if it is a fixed percentage on
turnover
b. none of these two
(D) At the option of assessee
21. ‘A’ is entitled to children education allowance @ `80 p.m. per child for 3 children amounting to
Salary Mock Test 1
IGP-CS
CA Vivek Gaba
`240 p.m. It will be exempt to the extent of:
(A) ` 200 p.m.
(B) ` 160 p.m.
(C) `240 p.m.
(D) ` 100 p.m.
22. ‘R’ is entitled to ` 6,000 as medical allowance. He spends ` 4,000 on his medical treatment and
`1,000 on the medical treatment of his major son not dependent on him. The exemption in this
case shall be:
a. ` 4,000
(B) ` 5,000
(C) NIL
(D) ` 200 p.m.
23. Mrs. R, wife of R who is employed in G Ltd. went for bypass surgery in England along with her
husband. Expenses on medical treatment of wife and stay outside India of wife and R amounted
to `7,00,000 as against `6,50,000 permitted by RBI. The travel expenses amounted to `1,50,000.
All expenses were reimbursed by the employer. Assume the gross salary and income from other
sources of the employee are `1,40,000 and `80,000 respectively. The taxable perquisite in this
case shall be:
(A) NIL
(B) `50,000
(C) `2,00,000
(D) `1,50,000
24. Salary of employee is ` 2,00,000. Fair rent of the unfurnished house given to employee is `1,30,000.
The valuation of the perquisite of the house— In case of Government Employee shall be:
(A) ` 20,000
(B) License fee determined by the Government
(C) ` 50,000
(D) ` 1,30,000
25. The employee is provided with furniture costing ` 1,50,000 along with house w.e.f. 1.7.2016. The
value of the furniture to be included in the valuation of unfurnished house shall be:
a. ` 11,250
(B) `15,000
26. Salary of ‘R’ becomes due on 1
st
(C) ` 22,500
of next month and it is paid on 7
th
(D) `16,875
of that month. For
assessment year 2017-18, the salary of ‘R’ shall be taken from:
a.
April 2016 to March 2017
(C) Any of the above
(B) March 2016 to February 2017
(D) None of the above
27. Commuted pension received shall be fully exempt in case of:
a. Government employee
b. Government employee or an employee of local authority
c. Government employee or an employee of local authority or an employee of statutory
corporation
d. None of the above
28. During the previous year, the employee was reimbursed ` 24,000 as medical expenses incurred
by him which includes ` 7,000 spent in Government hospital. The taxable perquisite in this case
shall be:
a. Rs.9,000
(B) Rs. NIL
(C) Rs.2,000
(D) Rs.24,000
29. An employer has provided a motor car of 1.5 litre capacity to his employee which the employee
is allowed to use for official purpose. The expenses of running and maintenance of Motor Car
are met by the employer. The value of this perquisite shall be:
a. Rs.1,800 p.m.
(B) Rs.600 p.m.
(C) Rs.NIL
(D) Rs.2,400 p.m.
30. R is an employee of Indian Oil Corporation Ltd. He is provided with free gas for his personal
purposes by the employer. The value of this perquisite shall be:
a.
NIL
(B) 6 1/4 % of the salary
Salary Mock Test 1
IGP-CS
(C) Manufacturing cost per unit
CA Vivek Gaba
(D) Market rate of gas
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CA Vivek Gaba (CS Tax Faculty)
Target 90+ in Tax Laws
All The Very Best.