Tax Book 2023

Income From Salary Chapter- 07

MULTIPLE CHOICE QUESTIONS

Q. 1 The income received by an employee from --------- employer is treated as salary income

(a) Present

(b) Past

(c) Future or

(d) All of the above

Q. 2 Benchmark rate of interest on loan provided by the employee to his employer in tax year 2021 is:

(a) 1%
(b) 5%

(c) 8%

(d) 10% or

(e) none of the above

Q. 3 The value of any right or option to acquire shares is ____.

(a) Chargeable to tax

(b) Chargeable at a concessional rate

(c) Not chargeable to tax or

(d) None of the above

Q. 4 An amount required as compensation on termination of employment is a ____.

(a) Perquisite

(b) Profit in addition to salary

(c) Work conditions supplements or

(d) None of the above

Q. 5 Salary income is chargeable to tax on ____

(a) Accrual basis

(b) Actual receipt basis or

(c) Both (a) and (b)

Q. 6 Salary income is chargeable to tax at the rates specified in the ____schedule to the ITO, 2001.

(a) First

(b) Second

(c) Third or

(d) Fourth

Q. 7 In case an employee receive shares from a company under the employee share scheme the cost of
shares would be____

(a) Face value

(b) Price paid by employee

(c) Fair market value or