Tax Book 2023

Income From Salary Chapter- 07

(d) none of the above

Q.15 Tax free salary paid to an employee will be included in the _____of the employee.

(a) business income

(b) tax payable

(c) salary

(d) income from other sources

Q.16 An amount of perquisite is treated as received by an employee if it is paid _____.

(a) to him

(b) applied on his behalf

(c) to any person on his behalf

(d) all of above

Q.17 Entertainment allowance for official performance received by the employee is ___.

(a) exempt

(b) taxable

(c) 50% exempt

(d) 80% taxable

Q.18 The option available to an employee in respect of salary ____ shall be exercised in writing.

(a) received in arrears

(b) for the current year

(c) to be received in next year

(d) none of the above

Q.19 The utilities provided by the employer to his employee are chargeable to tax under the head
_____ of employee.

(a) Income from salary

(b) Other sources

(c) Income from business

(d) Income from utilities

Q.20 Gross salary consists of ___.

(a) basic salary

(b) perquisites

(c) profit in lieu of or addition to salary

(d) all of the above

Q.21 When the employer charges a _____ interest rate than the benchmark rate, then nothing shall be
included in the salary income of the employee.
(a) higher

(b) lower

(c) equal

(d) both ‘a’ or ‘c’