Tax Book 2023

Income From Salary Chapter- 07

Q.22 Under “employee share scheme” shares can only be issued to the __ of the company.

(a) employees

(b) directors

(c) shareholders

(d) chief executive

Q.23 The right or option given to an employee ____.

(a) is always free of cost

(b) is chargeable to tax as business income

(c) is chargeable to tax as property income

(d) none of above

Q.24 An employee may be a person who is engaged in __.

(a) employment

(b) business

(c) trading

(d) all of above

Q.25 If the insurance premium of the employee paid by the employer then it should be included in the
_____ income of the employee.
(a) business income
(b) salary income
(c) property income
(d) insurance income

Q.26 In case of the self-hiring of the property, it has ____ effect(s) under the law on the income of the
recipient.
(a) one
(b) two
(c) three
(d) no

Q.27 In case of golden handshake, employee has option to offer the amount of golden handshake as
_____.
(a) SBI under NTR
(b) FTR
(c) income from business
(d) all of the above

Q.28 The Commissioner Inland Revenue is empowered to charge tax on the salary income of the
employee of a private limited Company on __ basis where he has reason to believe that the
salary income has not been deliberately been deferred.
(a) cash
(b) accrual
(c) tax
(d) accounting