Practice Test

Q1) Which among the following is the reason for including other person's income in assessee's total income? Show Answer

Q2) Under Sec. 60, for taxability of income in hands of transferor, income should be transferred without transfer of assets to Show Answer

Q3) Mr. Ajay Gupta confers the right to receive rent with respect to his house property on his wife, Mrs. Ajay Gupta without transferring the house. This right is revocable after 2 years. In whose hands rent of house property is taxable? Show Answer

Q4) Mrs. Jagruti transferred her asset to her friend Miss Leelavati which was revocable after her death. Income arising from asset will be taxable in hands of u/s 62 and 63. Show Answer

Q5) Mrs. Papad, wife Mr. Papad received commission of Rs. 30,000 from ABC Ltd. where Mr. Papad holds 25% of voting power. Rs. 30000 is taxable in hands of Mrs. Papad doesn't have professional or technical qualification. Show Answer

Q6) Lender Sec. 64(l)(ii), where both husband and wife have substantial interest in a concern and both; are in receipt of income by way of salary from said concern such income will be included in hands of Show Answer

Q7) Mr. Ravi Gupta transferred his house property to his wife without adequate consideration, at end of FY18-19, his wife received rent of total Rs. 3,00,000, this Rs. 3,00,000 will be taxable in hands of? Show Answer

Q8) Mr. Tarak Mehta gifted shares worth Rs. 60,000 to his wife without consideration on 04/04/18. On 31/12/18 Mrs. Tarak Mehta received dividend of Rs. 7000 from such share. This Rs. 7000 was deposited by her in the bank and received interest of Rs. 500 from the bank. Both Rs. 7000 and Rs. 500 will be taxable in hands of Show Answer

Q9) Mrs. Somit Goyal gave a loan of Rs. 5,00,000 @ 12% on 01/04/18 to Mr. Somit Goyal which he is supposed to repay after 5 years. Mr. Somit Goyal invested this amount in his business. Capital of his business as on 31/03/18 was Rs. 3,00,000. He earned a profit of Rs. 2,80,000 for FY 18-19. Rs. 2,80,000 will be taxable in hands of Show Answer

Q10) Mr. Tarka Khushi (minor) received Rs. 5,000 cash prize for winning in quiz competition Rs. 5,000 will be assessed in hands of Show Answer

Q11) Where marriage of parents does not subsist, income of minor will be assessed Show Answer

Q12) Under which of the following situation, income will be assessed in hands of parent of minor child Show Answer

Q13) Mr. Prajapati has taken FD of Rs. 50,000 in the name of his minor married daughter. Daughter received Rs. 5,000 as interest in FY18-19 Rs. 5000 will be assessed in hands of Show Answer

Q14) Provisions of clubbing of income of child is applicable to Show Answer

Q15) While including income of minor child, exemption off _______ will be received by parent. Show Answer

Q16) In which of the following situation, clubbing provision will not be attracted? Show Answer

Q17) Miss. Aayushi transferred money of Rs. 6,00,000 to her friend Nupur's spouse and Nupur transferred Rs. 6,00,000 to her friend Aayushi's daughter in law. This amount was invested in bank by Aayushi's spouse and daughter in law @ 10%. Rs. 60,000 be taxable in hands of Show Answer

Q18) Miss Inna, a member of HUF transferred her house property to HUE After partition of HUF, this asset was transferred to Inna's spouse. Inna's spouse received Rs. 65,000 as rent from house property. Rs. 65,000 will be taxable in hands of Show Answer

Q19) Mr. Rishi Agarwal transferred his plot of land to his wife Mrs. Swati Agarwal out of love and affection on 07/08/14 which was acquired by Mr. Rishi on 27/12/2008 for Rs. 50,00,000/-. Mrs. Agarwal sold the asset on 16/02/19 for Rs. 89,00,000/-. What will be the amount of capital gain and it will be assessed in hands of-CM for 14-15:240; CM for 08-09:137; CM for 18-19:280 Show Answer

Q20) Mr. Kejriwal gifted his house property to his married daughter (not minor). Income received from such house property will be taxable in hands of Show Answer

Q21) If the property transferred by member to HUF is subsequently partitioned among the members of the family, the income derived from such converted property as is received by the spouse of transferor will be taxable Show Answer

Q22) Exemption of certain amount trio (exceeding she income clubbed) is available u/s 10(32) where minor's income is clubbed with income of parent. The maximum exemption available is Show Answer

Q23) Income of minor child form a FD with a bank made out of income earned from scholarship is Show Answer

Q24) There was a loss from textiles in FY 17-18 of Rs. 1,50,000. In FY 18-19, textile business was closed and printing business was started. Loss of Rs. 1,50,000. Show Answer

Q25) Darjeeling Ltd. has LTCL of Rs. (10,000), STCG Rs. 50,000, PGBP income Rs. 20,000 HP loss Rs. (50,000). Total Income of Darjeeling Ltd. is Show Answer

Q26) Loss in speculation business can be set off against Show Answer

Q27) BB Ltd. is engaged into production of fertilizers business (35AD) and earned a profit of Rs. 10,00,000. Simultaneously, it also runs tea business in which it incurred loss of Rs. 5,00,000. Total income of BB Ltd. Show Answer

Q28) 70 enables set off of losses under one source of income against income from any other source under same head. The exceptions to this sec are Show Answer

Q29) PGBP loss (1,00,000), HP income 70,000, Salary income 90,000, total income Show Answer

Q30) Loss from HP can be set off against income from any other head upto Show Answer

Q31) In FY 18-19, Priyakant earned PGBP 2,50,000, CG 1,50,000, HP loss (3,50,000). Losses to be carried forward in next FY will be Show Answer

Q32) Losse under HP can be carried forward upto Show Answer

Q33) Loss from HP (3,10,000) of Assessment Year 18-19 is allowed to be set off against income from HP of Assessment Year 19-20 of Rs. 5,00,000 to the extent of Show Answer

Q34) Brought forward loss from House Property can be set off Show Answer

Q35) Ram and Company incurred a loss of PGBP of Rs. (1,00,000) in FY 17-18. On 01/04/18, Ram of Ram and Co. handed over the business to Lakhan, his brother. At the end of FY 18-19, Lakhan incurred a loss of Rs. (2,50,000) and other sources of income of Rs. 1,00,000. Loss to be carried forward by Lakhan in next FY will be Show Answer

Q36) Successor of business cannot carry forward or set off losses of his predecessor except in case of succession by Show Answer

Q37) If there is a loss in business which is discontinued due to flood and such business is re-established by assessee within _____ years, then loss attributable shall be allowed to be set off against profits and gains. Show Answer

Q38) Business discontinued due to flood, again re-established within 3 years. Loss of discontinued business cannot be wholly set off in year of re-establishment, so the balance loss can be carried forward for Show Answer

Q39) ABC Ltd. amalgamated with XYZ Ltd. in FY15-16 and accordingly loss of Rs. 5,00,000 and unabsorbed depreciation Rs. 2,50,000 of ABC Ltd. was taken over by XYZ Ltd. In FY 18-19, one of the conditions of amalgamation was violated by XYZ Ltd. and the loss remaining to be set off was Rs. 3,00,000 business loss and unabsorbed depreciation Rs. 2,50,000. What will be the treatment of these losses? Show Answer

Q40) Business loss of predecessor cannot be carried forward by successor, in which of the following, it can be carried forward Show Answer

Q41) Where a private company is succeeded by LLP, then successor LLP would be allowed to Show Answer

Q42) In FY18-19, Proprietary concern converted into Company. Proprietary concern as on 31.03.2017 has losses as follows-
PGBP normal loss Rs. (35,000)
Specified business loss Rs. (30,000)
Speculation business loss Rs. (60,000)
Loss that can be carried forward by company in FY 18-19 will be Show Answer

Q43) Conditions to be fulfilled by predecessor co-opt bank so that successor co-operative bank can set off and carried forward loss Show Answer

Q44) Loss in derivative business treated as- Show Answer

Q45) Reliance Industries Ltd engaged in purchase and sale of shares which is its principal business. Loss from purchase and sale of shares will be Show Answer

Q46) From specified business can be carried forward up to Show Answer

Q47) Short term or Long-term capital loss shall be carried forward up to maximum of Show Answer

Q48) Mr. X incurred LTCL from sale of listed shares in recognized stock exchange and STT paid at time of acquisition and sale of such shares. Such loss Show Answer

Q49) Bhide Steel Fabricators is a partnership firm in which Tappu, Daya and Anjali are equal partners. At the end of Previous Year 17-18, firm incurred a business loss of Rs. 3,00,000 and unabsorbed, depreciation of Rs. 50,000. On 01/04/18, Daya retired, Tappu and Anjali continued. Loss in FY 18-19 incurred was Rs. (1,50,000). Total loss & unabsorbed depreciation to be carried forward as on 31/03/19 is Show Answer

Q50) Sonpari Company is a proprietorship business of Sonpari. Loss incurred by this business as on 31/03/13 is Rs. 1,50,000. Sonpari died on 05/06/18.Legal heirs Take over site Sonpari Company and constitute Sonpari Company as ABC and Co partnership firm. Loss of Rs. 1,50,000 will be Show Answer

Q51) A closely held Company is not an eligible start up. Loss of such company can be set off and carried forward only when same shareholders hold ______ voting power in Previous Year 18-19 and year in which loss incurred. Show Answer

Q52) In Previous Year 15-16, Dadaji Private Ltd., a closely held Company (not an eligible start up) incurred a loss of Rs. 5,00,000. In Previous Year 15-16, shareholding of Dadaji Private Ltd. is- A: 26%; B: 45%; C: 29% In Previous Year 18-19, loss remaining to be set off of Previous Year 15-16 is Rs. 1,50,000. In this year, there was a change in shareholding due to resolution plan approved under Insolvency and Bankruptcy Code which is as follows- A: 26%; D: 54%; C: 20% Treatment of Rs. 1,50,000 at the end of Previous Year 18-19 is Show Answer

Q53) Order of set off of losses Show Answer

Q54) What will be the loss to be carried forward by Meera Desai for Assessment Year 19-20. Income from business (before providing depreciation) Rs. 1,00,000 Income from Growing & Manuf. rubber business Rs. 1,20,000 Current year depreciation Rs. 1,26,000 B/f business loss (loss incurred 5 years ago) Rs. (45,000) Show Answer

Q55) Maher Ltd as on 31/03/17 has following losses to be carried forward in FY 18-ISHP loss Rs. (1,50,000); Business loss- Rs. (2,00,000); Unabsorbed depreciation- Rs. 60,000 Return of FY 17-18 not filed within due date u/s 139(1). Loss which can be carried forward and setoff in FY 18-19 Show Answer

Q56) Shyam transferred 2,000 shares of X ltd. to Ms. Babita without any consideration. Later, Shyam & Ms. Babita got married to each other. The dividend income from the shares transferred would be - Show Answer

Q57) Rohit (a Chartered Accountant) is a working as Accounts Officer in Raj (P) Ltd. on a salary of Rs.20,000 p.m. He got married to Ms. Pooja who holds 25% shares of this company. What will be the impact of salary paid to Rohit by the company in the hands of Ms. Pooja: Show Answer

Q58) Mr. Shiva gifted a let-out building which fetches rental income of Rs.10,500 per month to his son's wife on 1-11-2022. The municipal tax of Rs.6,000 on the property was paid on 10-1-2023. The total income from all other sources (computed) amounts to Rs.2,60,000 except income from above said property. His total income chargeable to tax is: Show Answer

Q59) Baby Meena (age 12) a child artist acted in feature films and earned Rs.3,50,000. The total income of her father is Rs.5,20,000 and mother is Rs.4,80,000. The minor's income would be: Show Answer

Q60) Mr. Baba transferred his let out residential property to his wife by way of gift settlement. During the financial year 2022-23, she earned rental income of Rs.30,000 per month. She made fixed deposit in a bank out of such rental income & earned interest income during the year of Rs.21,000. The total amount of income liable for clubbing in the hands of Mr. Baba for the assessment year 2023-24 is: Show Answer

Q61) Ram has gifted an amount of Rs.10,00,000 to his wife Sita without consideration (but not to live apart), which was invested by his wife in interest bearing security. She earned interest of Rs.1,00,000. The interest of Rs.1,00,000 was further invested by her in the business from which she earned a profit of Rs.15,000. The income which is to be included out of this gifted amount in the hands of Ram is : Show Answer

Q62) All income which arises or accrues to the minor child (not suffering from any disability as specified in section 80 U) shall be clubbed with the income of parent whose total income excluding the income to be included of the minor not derived from any activity involving application of his skill, talent or specialized knowledge: Show Answer

Q63) Which out of the following income is not to be clubbed while computing income of the Hindu Undivided Family (HUF) for the assessment year 2023-24 ? Show Answer

Q64) Kapoor gifted Rs.10,00,000 to his wife Sunita Kapoor on 15th May, 2022. The amount of gift of Rs.10,00,000 was invested by his wife in debentures of a company on 1st June,2022 earning interest @ 12% p.a. The income of interest of __________ from the debentures earned by Sunita Kapoor shall be __________ with the income of Kapoor in A.Y. 2023-24. Show Answer

Q65) Rohit is working as Company Secretary in Raj Chem Pvt. Ltd. on a salary of Rs.20,000 p.m. He got married to Pooja who holds 25% shares of this Company. What will be the impact of salary paid to Rohit by the company in the hands of Pooja ? Show Answer

Q66) Transfer of income is revocable is the following cases : Show Answer

Q67) Ram has gifted on 11th May, 2022 an amount of Rs.10,00,000 to his wife Sita without consideration and also for not to live apart. The gifted amount was invested by his wife in interest bearing security on which she earned interest of Rs.1,00,000 on 1st January, 2023. The amount of interest of Rs.1,00,000 was further invested by her in the business from which she earned a profit of Rs.15,000 for the period ended on 31st March,2023. Specify the Income which is to be included in the hands of Ram in A.Y. 2023-24. Show Answer

Q68) Revocable transfer of asset as per section 61 of the Income Tax Act, 1961 includes the transfer which gives a right to _______________of the asset or the income from such asset or assets during the____________of transferee. Show Answer

Q69) Income from assets as per section 64(1)(iv) shall not be included in the income of transferor where any individual transfers directly or indirectly any asset other than house property to the spouse when_______ Show Answer

Q70) Dr. kumar gifted a property fetching monthly rental income of Rs.1,00,000 to his son's wife Divya on 31.05.2022 by executing a gift settlement deed. She paid municipal tax of Rs.30,000 on 10.12.2022. Based on Court decree arrear rent of Rs.4 lakhs was paid by ex-tenant to present owner Divya on 01.03.2023. How much of income of Divya would be clubbed in the hands of Dr.Kumar? Show Answer

Q71) Minor Shruti (age 13) has following incomes; (i) Net income from Dancing Rs.75,000; (ii) Interest on bank fixed deposits Rs.62,000 and (iii) Cash gift from friends of her parents (non-relatives) Rs.45,000. How much of her income would be clubbed with the income of her income of her parents after deduction u/s 10(32) of the Act? Show Answer

Q72) Pinky (a minor child of age 5 years) gets a gift on 20.11.2022 of Rs 10,00,000 from her father's friend. On the same day, the amount of Rs 10,00,000 was deposited as fixed deposit for 3 years in SBi in the name of Pinky by her father. Interested of Rs 35,000 was credited on such fixed deposit during thr P.Y. 2022-23. State the amount of income and in whose hands the same will be subject to tax in A.Y. 2023-24. Show Answer

Q73) B Gifted debentures of a company to Miss G on 15.09.2019. Miss G married B's son M on 11.04.2020. Interest on debentures for the P.Y. 2022-23 paid by the company is Rs 4,00,000. Such interest in the A.Y. 2023-24 shall be: Show Answer

Q74) Sri transferred his residential property to his wife by way of a gift settlement. During the financial year 2022-23, his wife got a rental income of Rs 25000 p.m She made a fixed deposit in the bank from the rental income and she has earned an interest income of Rs 32,000. State the income taxable in the hand of Sri and his wife for the Assessment Year 2023-24? Show Answer

Q75) Raman holds 30% of shares in RS Limited. His spouse is a software engineers. Now Mrs. Raman is drawing a remuneration of Rs. 50,000 per month (1st April, 2022 to 31t March, 23) from RS Limited. The salary of spouse of Raman will be taxable in the hands of ................ . Show Answer

Q76) Sections related to clubbing of income Show Answer

Q77) If there is a transfer of income by a person to another person without the transfer of the asset from which the income arises, such income shall be included in income of: Show Answer

Q78) If there is revocable transfer of an asset by any person to another person, any income arising from such asset shall be included in the income of: Show Answer

Q79) If there s transfer of asset to the transferee which is not revocable during his life time to the transferee, income arising from such asset shall be included in the income of: Show Answer

Q80) Mr. X transfers his house property to Mr Y with a condition that 25% of the income therefrom should be handed over to him. Mr Y earns Rs. 100,000 from such house property. In this case - Show Answer

Q81) Where an individual has substantial interest in a concern, there shall be included in his Total Income any remuneration paid by such concern to: Show Answer

Q82) Substantial interest for the purpose of clubbing provision u/s 64(i)(ii) shall be of: Show Answer

Q83) If Mr. B and Mrs. B both have substantial interest in a concern and both are in receipt of remuneration from that concern, then what will be the tax consequences? Show Answer

Q84) Income arising t a minor daughter is: Show Answer

Q85) An individual is said to have substantial interest in a concern if he or she, along with his or her relatives, is at any time during the previous year - Show Answer

Q86) A has sold 2000 14% debentures of Rs 100 each to his wife for rs 90,000. The market value of Debentures on the date of transfer was Rs 1,80,00. In this case, interest Income in the total income of A shall be: Show Answer

Q87) Where an individual transfers the HP to his wife without adequate consideration, the income from such HP shall be subjected to the provision of: Show Answer

Q88) Clubbing provision under Sec 64(1)(vi) are applicable where the asset is transferred by an individual for inadequate consideration to : Show Answer

Q89) B gifts Rs. 500,000 to his wife who invested the same in the partnership business. Mrs B received Rs. 60,000 as her share of profits from such firm. In this case amount to be clubbed in the income of B shall be Show Answer

Q90) As per Sec. 64(1A), income accruing to a minor shall be clubbed in the income of: Show Answer

Q91) The income of minor is not clubbed to the following limit: Show Answer

Q92) Minor child includes: Show Answer

Q93) If the marriage of the parents does not subsist, the income of the minor child shall be clubbed in the income of : Show Answer

Q94) When income of minor child is clubbed in the income of the parent concerned, such parent will be allowed exemption of: Show Answer

Q95) If any income has to be clubbed under Sec. 64, it will be clubbed under the head: Show Answer

Q96) Where a member of HUF has converted or transferred his self-acquired property for inadequate consideration into joint family property, income arising there from is taxable: Show Answer

Q97) Loss in speculation as well as non- speculation business can be carried forwards to a maximum of four consecutive assessment years immediately succeeding the assessment year for which loss was first computed. Show Answer

Q98) If an individual, having a sales turnover of Rs. 60 lakh files his return of income for the assessment year 2023-24 after the due date, showing unabsorbed business loss of Rs. 23,000 and unabsorbed depreciation of Rs.45,000, he can carry forward to the subsequent assessment years: Show Answer

Q99) Loss from the activity of owning and maintaining race horses could be set-off: Show Answer

Q100) If a person is eligible to claim:
(1) unabsorbed depreciation
(2) current scientific research expenditure
(3) current depreciation
(4) brought forward business loss
The order of priority to set-off would be: Show Answer

Q101) A partnership firm with 4 equal partners brought forward depreciation of Rs. 3nlakh and business loss of Rs.3lakh relating to assessment year 2022-23. On 1st April, 2022, two partners retired. the amount that assessee-firm can set-off against its income for the assessment year 2023-24 would be: Show Answer

Q102) Which of the following losses available after inter source set-off, cannot be set-off from incomes in other heads in the same assessment year: Show Answer

Q103) To carry forward and set-off losses, a loss return must be filed by the assessee within the stipulated time and gets the loss determined by the Assessing Officer. However, this condition is not applicable to: Show Answer

Q104) Ashwin has speculation business loss brought forwars of the assessment years 2017-18 RS. 100,000; 2018-19 RS. 70,000 and 2019-20 RS.60,000. He has income from the same speculation business for the assessment year 2023-24 RS.5,40,000. His total income chargeable to tax for assessment year 2023-24 would be: Show Answer

Q105) For the previous year 2021-22, an assessee suffered a business loss of 2,50,000 . His income from other sources id RS.1,80,000. His due date of return on 9th September, 2022. The assessee in this case: Show Answer

Q106) Biren discontinued wholesale trade in medicines from 1st July, 2020. He recovered RS. 1,50,000 in October, 2022 being a bad debt which was written off and allowed in assessment year 20221-22. He was eligible brought forward business loss of wholesale trade in medicines of RS. 1,70,000. The consequences of bad debt recovery is that: Show Answer

Q107) Unabsorbed loss from house property can be carried forward for: Show Answer

Q108) Loss from speculation business is eligible for carry forward of loss for a period of Show Answer

Q109) No loss can be set-off against: Show Answer

Q110) The amount of depreciation not absorbed in the same year can be carried forward: Show Answer

Q111) Loss from speculation business can be set-off against: Show Answer

Q112) Mr. Shahu has loss from house property of Rs. 1,10,000 (computed) for the assessment year 2023=24. He can carry forward such loss for subsequent .......... assessment years. Show Answer

Q113) A Co. Ltd has business loss and unabsorbed depreciation of Rs. 10 crores. B Co. Ltd is profit making company. B Co. Ltd wanted to acquire A Co. Ltd with the benefit of set off of brought forward loss and unabsorbed depreciation. The legally permissible method is: Show Answer

Q114) When an assessee has loss from house property, it is eligible for carry forward for the subsequent _________ assessment years. Show Answer

Q115) A company has the following:
(i) current scientific research expenditure;
(ii) current depreciation;
(iii) unabsorbed depreciation;
(iv) brought forward business loss. The order/sequence of set off is:
Show Answer

Q116) Rohan engaged in multifarious activities reports the following:
(i) loss from business Rs. 80,000;
(ii) loss from house property Rs. 1,20,000;
(iii) long term capital loss Rs. 70,000.
He filed his return beyond the 'due date' specified in section 139(1). Which of the above loss(es) cannot be carried forward to subsequent assessment year? Show Answer

Q117) In which case a partnership firm is not entitled to carry forward and set off so much of the losses proportionate to the share of a retired or deceased person exceeding his/her share of profit,if any, in the firm in respect of the previous year : Show Answer

Q118) The loss derived from a house property can be set off during the year against: Show Answer

Q119) The loss computed under the head "Income from house property" can be set-off by intra head adjustment during the same year from:. Show Answer

Q120) The benefit of carry forward and set-off of losses under section 79 of Income Tax Act, 1961 , by a closely held Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger, is subject to the condition that specified percentage of the shareholders of the amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company which is: Show Answer

Q121) At the time of fixation of marriage of Yash on 10th June, 2022, his father Sunder gifted land to his would be daughter in law Rashmi. The marriage was held on 21st January, 2023. The income accruing on land after marriage shall be taxable in the hands of:
Show Answer

Q122) Sections related to clubbing of income -
Show Answer

Q123) If there is a transfer of income by a person to another person without the transfer of the asset from which the income arises, such income shall be included in the income of:
Show Answer

Q124) If Mr. B and Mrs. B both have substantial interest in a concern and both are in receipt of remuneration from that concern, then what will be the tax consequences? Show Answer

Q125) Income arising to a Minor Married Daughter is:
Show Answer

Q126) An individual is said to have substantial interest in a concern if he or she along with his or her relatives, is, at any time during the previous year.
Show Answer

Q127) A has sold 2,000 14% Debentures of 100 each to his wife for
Rs.90,000. The Market Value of debentures on the date of transfer was Rs,1,80,000. In this case, Interest Income in the Total Income of A shall be: Show Answer

Q128) Where an individual transfers the HP to his wife without adequate consideration, the income from such HP shall be subjected to the provision of: Show Answer

Q129) If any income has to be clubbed under Sec. 64, it will be clubbed under the head:
Show Answer

Q130) If an individual, having a sales turnover of 60 lakh files his return of income for the assessment year 2023-24 after the due date. showing unabsorbed business loss of 23,000 and unabsorbed depreciation of 45,000, he can carry forward to the subsequent assessment years Show Answer

Q131) Loss from the activity of owning and maintaining race horses could be set-off-
Show Answer

Q132) If a person is eligible to claim: (1) unabsorbed depreciation
(2) current scientific research expenditure (3) current depreciation
(4) brought forward business loss
The order of priority to set-off would be-
Show Answer

Q133) A partnership firm with 4 equal partners brought forward depreciation of 3 lakh and business loss of 3 lakh relating to assessment year 2022-23. On 1st April, 2022, two partners retired. The amount that assessee-firm can set-off against its income for the assessment year 2023- 24 would be:

Show Answer

Q134) Which of the following losses available after inter source set- off, cannot be set-off from incomes in other heads in the same assessment year-
Show Answer

Q135) To carry forward and set-off losses, a loss return must be filed by the assessee within the stipulated time and gets the loss determined by the Assessing Officer. However, this condition is not applicable to Show Answer

Q136) Ashwin has speculation business loss brought forward of the assessment years 2017-18 1,00,000; 2018-19 70,000 and 2019-20 60,000. He has income from the same speculation business for the assessment year 2023-24 Rs 5, 40,000. His total income chargeable to tax for assessment year 2023-24 would be- Show Answer

Q137) For the previous year 2021-22, an assessee suffered a business loss of 2,50,000. His income from other sources is 1,80,000. His due date of return was 31st July, 2022 but he submitted the return on 9th September, 2022. The assessee in this case- Show Answer

Q138) Biren discontinued wholesale trade in medicines from 1st July, 2020. He recovered 1,50,000 in October, 2022 being a bad debt which was written-off and allowed in assessment year 2021-22. He has eligible brought forward business loss of wholesale trade in medicines of 1,70,000. The consequence of bad debt recovery is that - Show Answer

Q139) Unabsorbed loss from house property can be carried forward for- Show Answer

Q140) No loss can be set-off against
Show Answer

Q141) The amount of depreciation not absorbed in the same year can be carried forward- Show Answer

Q142) Loss from speculation business can be set-off against- Show Answer

Q143) Mr. Shahu has loss from house property of 1,10,000 (computed) for the assessment year 2023-24. He can carry forward such loss for subsequent ........... assessment years. Show Answer

Q144) Mr. Hussey for the previous year has (i) business loss of 1,30,000; (ii) income from salary 2,40,000 (Assume computed); and (ii) speculation gain of 1,10,000. His total income for income tax assessment is: Show Answer

Q145) Mathur Storage (P) Ltd. engaged in chain cold storage has brought forward business loss of 12 lakhs relating to assessment year 2022-23. During the previous year 2022-23, its income from the said business is 9 lakhs. It also has profit from trade in food grains of 6 lakhs. The total income of the company for the assessment year 2023-24 is: Show Answer

Q146) A Co. Ltd. has business loss and unabsorbed depreciation of 10 crores. B Co. Ltd. is profit making company. B Co. Ltd. wanted to acquire A Co. Ltd. with the benefit of set off of brought forward loss and unabsorbed depreciation. The legally permissible method is:
Show Answer

Q147) When an assessee has loss from house property, it is eligible for carry forward for the subsequent ...... assessment years. Show Answer

Q148) A company has the following: (i) current scientific research expenditure; (ii) current depreciation; (iii) unabsorbed depreciation; (iv) brought forward business loss. The order / sequence of set off is: Show Answer

Q149) Rohan engaged in multifarious activities reports the following: (i) loss from business 80,000; (ii) loss from house property 1,20,000; (iii) long term capital loss 70,000. He filed his return beyond the 'due date' specified in section 139 (1). Which of the above loss(es) cannot be carried forward to subsequent assessment year? Show Answer

Q150) Speculation loss can be carried forward for ...... subsequent assessment years. Show Answer

Q151) In which case a partnership firm is not entitled to carry forward and set off so much of the losses proportionate to the share of a retired or deceased person exceeding his/her share of profits, if any, in the firm in respect of the previous year: Show Answer

Q152) The loss derived from a house property can be set off during the year against: Show Answer

Q153) The loss computed under the head "Income from house property" can be set-off by intra head adjustment during the same year from: Show Answer

Q154) The benefit of carry forward and set-off of losses under section 79 of Income Tax Act, 1961, by a closely held Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger, is subject to the condition that specified percentage of the shareholders of the amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company which is: Show Answer

Q155) Anand, a resident individual having computed for the previous year 1st April, 2022 to 31st March, 2023 his business loss at 60,000, short term capital gain on sale of gold of 40,000 long term capital gain on sale of house property of 3,60,000. The amount of total income to be declared in the return for the assessment year 2023-24 by Anand shall be Show Answer

Q156) Where the net result for any assessment year in respect of any source falling under any head of income is a loss; the assessee is entitled to set-off the amount of such loss against his income from any other source under the same head. However, certain losses are not being allowed to be set-off as per General Rule. Find out from the following which are those:
(i) Speculative business loss
(ii) Long term capital loss
(iii) Causal income
(iv) Loss from an exempt source Show Answer

Q157) Padmaja has following income/loss for the previous year ended 31.03.2023: (i) income from lottery winning of 7,00,000; (ii) loss from non-speculation business of 3,00,000; and (iii) dividend from Indian companies of 50,000. What is her total income chargeable to tax for the assessment year 2023-24? Show Answer

Q158) Which of the following is not eligible for carry forward and set off? Show Answer

Q159) R & S are 2 partners of RS & Co. (a partnership firm). The firm was constituted on 01.04.2022 after the death of M (father of R & S) to continue the business of M. M carried a proprietary business of Food Grains and the accumulated losses up to 31.03.2022 were 50,000. Particulars of income and loss of RS & Co. for the P.Y. 2022-23 are:
(i) Income from Grain business 4,00,000
(ii) Loss in Cloth Business 60,000
(iii) Speculative business income 2,00,000
Against the income of Rs 6,00,000 for the year partners of the firm want to set- off the following:
(i) Loss in Cloth business of firm Rs. 60,000
(ii) Business Loss of Rs 50,000 of M accumulated up to 31.03.2022.
(iii) H.P. loss of R of Rs 25,000.
(iv) Speculative loss of S of Rs 32,000
(v) Disputed sales tax liability of M of the financial year 2018-19 of Rs 15,000 which was paid by the firm on 01.12.2022 but not deducted from any of the income given above.
Determine and find out the income of RS & Co. which will be subject to tax for A.Y. 2023-24: Show Answer

Q160) Ganesh incurred short term capital loss of RS.80,000 on sale
of shares during the previous year 2022-23 through the national stock exchange. Such loss can be:
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Q161) Brought forward loss from house property of Rs. 2,25,000 of A.Y. 2022-23 is allowed to be set-off against income from house, property of A.Y. 2023-24 of Rs.4,00,000 to the extent of:
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Q162) Loss of a property can be set off in the current year from the income of- Show Answer

Q163) Loss from house property and losses in speculation business can be carried forward respectively for -
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Q164) Loss under the head Income from House Property can be carried
forward:
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Q165) Loss from a speculation business of a particular A.Y. can be set-off in the same A.Y. from:
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Q166) Unabsorbed depreciation can be set off to the extent of- Show Answer

Q167) Loss under the head Business or Profession can be set-off in the same assessment year from:
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Q168) The business loss is allowed to be carried forward only when an assessee has furnished:
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Q169) A Business Loss can be carried forward and set-off in the subsequent assessment year when the business on account of which this loss has arisen:
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Q170) Mr. B incurred Short Term Capital Loss of Rs.10,000 on Sale of Shares through the National Stock Exchange. Such Loss can be set-off: Show Answer

Q171) Long-Term Capital Loss of a particular assessment year can be set-off in the same assessment year from:
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Q172) Loss under the head Capital Gain in a particular assessment year can: Show Answer

Q173) Loss on account of owning and maintaining the race horses of particular assessment year can be set-off in the same assessment year from: Show Answer

Q174) Loss on account of owning and maintaining the race horses can be carried forward:
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Q175) Brought Forward Loss: Show Answer

Q176) In the case of amalgamation, carry forward of business loss and unabsorbed depreciation in the hands of amalgamated Company shall be allowed:
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Q177) In case of amalgamation if the conditions mentioned u/s 72A are satisfied, the amalgamated Company shall be allowed to carry forward the loss and unabsorbed depreciation of amalgamated Company for: Show Answer

Q178) Loss of a closely held Company cannot be carried and set-off unless on the last day of the previous year in which the loss was incurred and as on the last day of the previous year in which such loss is set-off, atleast _____ of the Shares are beneficially held by the same persons. Show Answer

Q179) During the previous year an assessee has incurred loss from his business amounting to Rs. 1,10,000 whereas his Income from House Property is Rs.1,00,000. Which of the following is correct? Show Answer

Q180) Loss from speculation business is eligible for carry forward of loss for a period of - Show Answer

Q181) Rajan paid Rs 25,000 to LIC of India for the maintenance of 15,000 for the treatment of his handicapped Bank of India. The deduction allowable to him under section 80DD is- Show Answer