Tax Laws MCQ on Deductions from Total Income: Check the below Tax Laws MCQ on Deductions from Total Income with Answers Pdf free download. Tax Laws MCQ on Deductions from Total Income Questions for Tax Laws with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Deductions from Total Income with Answers to help students understand the concept very well. Students should practice CS Executive Tax Laws MCQ on Deductions from Total Income with Answers based on the latest syllabus.

Tax Laws MCQ on Deductions from Total Income

1. Under the Income-tax Act, 1961, which of the following can claim a deduction for any sum contributed during the previous year to a political party or electoral trust
(A) Local authority
(B) Individual
(C) Artificial juridical person
(D) None of the above

2. Deduction in respect of donations to National Defence Fund is allowed u/s
(A) 80G
(B) 80CCG
(C) 80C
(D) None of the above

3. An Indian resident patentee is entitled to a deduction u/s 80RRB to the extent of
(A) 100% of such income
(B) 50% of such income
(C) 100% of such income or ₹ 3,00,000 whichever is less
(D) 50% of such income or ₹ 3,00,000 whichever is more 

4. The maximum possible amount of deduction u/s 80DDB for senior citizen is
(A) ₹ 75,000
(B) ₹ 1,25,000
(C) ₹ 1,00,000
(D) ₹ 60,000

5. Which of the following cannot claim a deduction for the loan taken to purchase a house property?
(A) Karta, in respect of property purchased by HUF
(B) An individual, in respect of property purchased by him
(C) Partner, in respect of property purchased by the firm
(D) Spouse of an individual, in respect of property, purchased jointly by the individual and his/her spouse

6. Deduction under section 80CCG is available to an eligible resident individual whose gross total income does not exceed
(A) ₹ 10,00,000
(B) ₹ 12,00,000
(C) ₹ 5,00,000
(D) No such limit

7. Following is not allowed as deduction u/s 80 TTA
(A) Interest on deposits in savings account with a bank up to ₹ 10,000
(B) Interest on time deposits with the bank up to ₹ 10,000
(C) Interest on deposits in savings account with post office up to ₹ 10,000 [Dec. 2014] (D) Interest on deposits with co-operative society engaged in carrying on the business of banking up to ₹ 10,000

8. Raman purchased a residential house property in Ahmedabad on loan for which he paid an interest of ₹ 50,000 during the previous year. He is working in Delhi and getting an HRA of ₹ 4,000 per month. He can claim exemption/deduction for
(A) Only HRA
(B) Only interest paid
(C) Either interest paid or HRA but not both
(D) Both HRA and interest paid

9. The monetary limit for deduction in respect of royalty on patents received by a resident individual is
(A) ₹ 1,00,000
(B) ₹ 3,00,000
(C) ₹ 5,00,000
(D) Nil

10. The maximum amount of deduction u/s 80U allowed to a person with 80% or more of one or more disabilities is
(A) ₹ 40,000
(B) ₹ 60,000
(C) ₹ 50,000
(D) ₹ 1,25,000

11. Deduction in respect of interest on savings accounts under Section 80TTA shall be allowed with respect to a savings account with
(A) Bank
(B) Co-operative society
(C) Post office
(D) All of the above

12. Deduction under section 80C can be claimed for a fixed deposit made in any scheduled bank if the minimum period of deposit is
(A) 5 Years
(B) 8 Years
(C) 10 Years
(D) 12 Years

13. Rajan paid ₹ 25,000 to LIC of India for the maintenance of his disabled son and incurred ₹ 15,000 for the treatment of his handicapped wife who is working in the State Bank of India. The deduction allowable to him under Section 80DD is
(A) ₹ 15,000
(B) ₹ 25,000
(C) ₹ 50,000
(D) ₹ 75,000

14. When a person suffers from severe disability, the quantum of deduction allowable under Section 80U is
(A) ₹ 50,000
(B) ₹ 75,000
(C) ₹ 1,25,000
(D) ₹ 1,00,000

15. Under section 80QQB, the maximum deduction in respect of royalty is allowed up to
(A) ₹ 1,00,000
(B) ₹ 1,50,000
(C) ₹ 2,50,000
(D) ₹ 3,00,000

16. An amount up to a maximum of ₹ 10,000 is deductible under Section 80TTA from the gross total income of
(A) Individual only
(B) HUF and Individual only
(C) Company only
(D) All assessee 

17. Deduction available u/s 80GG in respect of rent paid cannot be more than –
(A) ₹ 6,000 p.m.
(B) ₹ 5,000 p.m.
(C) ₹ 2,000 p.m.
(D) ₹ 110,000 p.m.

18. Deduction under Section 80G on account of donation is allowed to:
(A) A business assessee only
(B) Any assessee
(C) Individual or HUF only
(D) Any resident assessee

19. Donation to university for research in Social Science is eligible for deduction at:
(A) 100%
(B) 25%
(C) 150%
(D) 175%

20. Which of the under-mentioned incomes of a Co-operative Society is not eligible for deduction under Section 80P of the Income Tax Act, 1961 when the gross total income of the society exceeds ₹ 20,000?
(A) Agency business
(B) Income from letting of godown
(C) Income from house property
(D) Dividend from other Co-operative Societies

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By Team Learning Mantras