Practice Test

Q1) Salary, bonus, commission or remuneration due to or received by a working partner from the firm is taxable under the head. Show Answer

Q2) Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head. Show Answer

Q3) Interest on capital or loan received by a partner from a firm is : Show Answer

Q4) Under the head Business or Profession, the method of accounting which an assessee can follow shall be : Show Answer

Q5) Export incentives received by an assessee are Show Answer

Q6) M, who was carrying on agency business, received a sum of Rs.5,00,000 from his principal for termination of agency. Compensation so received shall be Show Answer

Q7) Depreciation is allowed in case of Show Answer

Q8) If the asset of a particular block is acquired and put to use during the previous year for less than 180 days, the assessee shall be entitled to depreciation Show Answer

Q9) Which of the following tax is allowed as a deduction while computing the business income ? Show Answer

Q10) Where the amount of an expenditure claimed as deduction exceeds Rs.20,000, it should be paid by Show Answer

Q11) Where the amount of an expenditure claimed as deduction exceeds Rs.20,000and it is not made by account payee Cheque / draft. Show Answer

Q12) Expenditure incurred on family planning amongst the employees is allowed to Show Answer

Q13) Profit on sale of import license is taxed under the head______ . Show Answer

Q14) Income of a business from trading business is Rs.5,00,000 and his loss from speculative business is Rs. 1,00,000, during the same previous year. Net business income taxed during the previous year will be Rs. ______. Show Answer

Q15) Depreciation under Income-tax is charged at the prescribed rate on the written down value of the. Show Answer

Q16) If any asset is used for less than ___ days in the year of acquisition, the depreciation rate will be only 50% of the normal rate. Show Answer

Q17) Discount on zero coupon bond is deductible from business income on _____ basis. Show Answer

Q18) Family planning expenditure of capital nature can be claimed by a company in ___ equal installments. Show Answer

Q19) Advertisement in ______ souvenir is expressly disallowed while computing business income. Show Answer

Q20) Remuneration paid by a firm to a ____ partner is disallowed while computing the income of the firm Show Answer

Q21) Expenses exceeding ______ paid in cash are disallowed Show Answer

Q22) Deduction for bonus or commission to employees is allowed only on _______ basis even if books of account are maintained on the mercantile basis. Show Answer

Q23) Salary,bonus,commission or remuneration due to or received by a working partner from the firm is taxable under the head Business & profession. Show Answer

Q24) Perquisite received by the assessee during the course of carrying on his business or profession is taxable under the head Salary Show Answer

Q25) Export incentives received by an assessee are exempt Show Answer

Q26) Interest on capital received by a partner from firm shall be exempt u/s 10(2A) Show Answer

Q27) Under the head business & Profession ,the method of accounting which an assessee can follow shall be cash system only. Show Answer

Q28) Any sum received by an employer from keyman insurance policy taken on the life of the employee shall be exempt. :- Show Answer

Q29) M, who was carrying on agency business, received a sum of Rs.10,00,000 from his principal for termination of agency. Compensation amount so received shall be exempt as it is capital receipt. Show Answer

Q30) Depreciation is allowed in case of tangible asset only. Show Answer

Q31) If the asset of a particular block is acquired and put to use as on 1-11-2016, the assessee shall be entitled to depreciation for the proportionate period of 5 months upto 31-3-2017. Show Answer

Q32) Unabsorbed depreciation which could not be set off in the same assessment year, can be carried forward indefinitely Show Answer

Q33) Expenditure incurred on acquisition of patents and copyrights after 31-3-1998 is subject to depreciation under section 32. Show Answer

Q34) Lumpsum payment for acquisition of technical know after 31-3-1999 shall be subject to deduction in 3 equal installments. Show Answer

Q35) Interest incurred before the commencement of the production is to be treated as revenue expenditure Show Answer

Q36) Expenditure incurred on purchase of chickens to be used by the assessee for the purpose of carrying on his poultry business can be deducted in the previous year 2016-17, when all chickens were killed, due to bird-flu. Show Answer

Q37) Expenditure incurred on family planning amongst the employees is allowed to any assessee. Show Answer

Q38) Capital expenditure incurred on family planning amongst employees of the company assessee is allowed as deduction in 10 equal instalments Show Answer

Q39) Deductions under section 37(1) shall be allowed even of those expenditure which are of capital nature if used for the purpose of business Show Answer

Q40) Deduction under section 40(b) shall be allowed on account of salary / remuneration paid to any partner. Show Answer

Q41) A firm’s business income is nil/negative. It shall not be allowed any deduction on account of remuneration to working partner. Show Answer

Q42) Wealth Tax is subject to provisions of section 43B Show Answer