Income from Business and Profession MCQ | 30 Free MCQs
Income from Business and Profession MCQ
1. Depreciation under Income-tax Act is charged at the prescribed rate on the written down value of the …………….
a) Block of asset
b) Individual asset
c) None of the above
2. If any asset is used for less than ………… days in the year of purchase, the depreciation rate will be only 50% of the normal rate.
a) 180
b) 150
c) None of the above
3. Advertisement in souvenir of a ……………. is disallowed while computing business income.
a) political party
b) Trust
c) NGO
d) None of the above
4. Expenses exceeding ……….. paid in cash are disallowed.
a) Rs 10,000
b) Rs 20,000
c) Rs 50,000
d) None of the above
5. Deduction for bonus or commission to an employee is allowed only on ………….. basis.
a) Payment
b) receipt
d) None of the above
6. Profit on sale of an import license is taxed under the head ………………
a) Profit & Gains of Business
b) Income from other sources
c) None of the above
7. Any expenditure incurred on scientific research except on ……….. shall be allowed as business expenditure u/s. 35.
a) Land
b) Machinery
c) None of the above
8. …………. tax is allowed as deduction while computing the business income.
a) Sales
b) Income
c) wealth
d) None of the above
9. If some expenses are partly disallowed, then only disallowed portion should be ……….. to the profit.
a) Added
b) Deducted
c) None of the above
10. An assessee can claim additional depreciation on plant and machinery at the rate of 20% of …………….. if a few conditions are satisfied.
a) Actual cost
b) Historica cost
c) None of the above
| Answers: 1)Block of asset 2)180 3)political party 4)Rs 10,000 5)Payment 6)Profit & Gains of Business 7)Land 8)Sales 9)Added 10)Actual cost |
11. The …………. of WDV of the block and rate of depreciation is the amount of depreciation.
a) Product
b) Addition
c) None of the above
12. Unabsorbed depreciation can be carried forward for ……………. period.
a) Indefinite
b) 5 Years
c) None of the above
13. Amount paid to the national laboratory to be used for scientific research shall be allowed a weighted deduction of …………… % of sum paid.
a) 200%
b) 150%
c) 100%
d) None of the above
14. Expenditure incurred on family planning amongst the employees is allowed to ………..
a) assessee
b) Company
c) None of the above
15. If residential flats are let out to the employees for the efficient conduct of assessee’s own business, income from such letting is taxable under the head ……………
a) Income from other sources
b) Business income
c) Income from salaries
d) None of the above
16. Expenditure on scientific research incurred by the assessee can be claimed as deduction provided the research is …………… to assessee’s business.
a) related
b) not related
c) None of the above
17. In respect of ………… allowed as deduction u/s 35, no depreciation can be claimed u/s 32.
a) Capital expenditure
b) Revenue expenditure
c) None of the above
18. Income from Profit and Gains of business or Profession is 4,00,000 and his loss from speculative business is 1,00,000, during the same previous year. Net business income taxed during the previous year will be ………………
a) 1,00,000
b) 5,00,000
c) None of the above
19. Where the amount of expenditure claimed as deduction exceed 10,000, it should be paid by…………
a) Crossed cheque
b) Account payee cheque /draft
c) Cash
d) None of these
20. Where the amount of expenditure claimed as deduction exceeds 10,000, it is not made by account payee cheque/draft.
a) 20% of such payment shall be disallowed
b) 100% of such payment shall be disallowed
c) 20% of the excess over 20,000 of such payment shall be disallowed
d) None of the above
| Answers: 11)Indefinite 12)Indefinite 13)200% 14)Company 15)Business income 16)related 17)Capital expenditure 18)5,00,000 19)Account payee cheque /draft 20)100% of such payment shall be disallowed |
21. In the case, an asset of a particular block is acquired and put to use during the previous year for less than 180 days, depreciation will be charged …………..
a) At normal rate
b) At 50% of normal rate
c) No depreciation is allowed
d) None of these
22. …………….Tax is allowed as a deduction while computing the business income.
a) Wealth tax
b) Income tax
c) Sales tax
d) All of the above
23. Mandan has taken a house on rent and sublets the same to Anil. Income from such house property shall be taxable under the head.
a) Income from house property
b) Income from other sources
c) Business Income
d) None of the above
24. Un realized rent is deducted from. ………….
a) Gross annual value
b) Net annual value
c) Municipal Value
d) None of the above
25. A property is owned by co-owners and it is self-occupied house property. In this case, interest on money borrowed after 1-4-1999 for acquiring the house shall be allowed.
a) To the extent of Rs 2,00,000 as the case may be for the total property income.
b) To each co-owner, to the extent of Rs 2,00,000 as the case may be
c) No deduction of interest shall be allowed.
d) None of the above.
26. A has two house properties. Both are self-occupied. The Gross annual value of…………
a) Both houses shall be nil
b) One house shall be nil
c) No house shall be nil
d) None of the above
27. An assessee has borrowed money for the purchase of a house property & Interest is paid outside India. Such interest shall:
a) Be allowed as deduction
b) Not to be allowed as deduction
c) Be allowed as deduction if the tax is deduction at source
d) None of the above
28. Municipal tax is deducted from …………….
a) Net Annual Value
b) Gross Annual Value
c) Municipal Valuation
d) None of the above
29. In case the property is owned by co-owners and it is self occupied by all co-owners . The annual value of ……………
a) Such house property be nil
b) For each co-owners shall be nil
c) Only for co-owner will be nil
d) None of the above
30. Municipal Tax paid is allowed as a deduction for …………….
a) SOP only
b) LOP only
c) LOP and DLOP
d) All of the above
| Answer: 21)1,40,000 22)1,00,000 23)Income from other sources 24)Gross annual value 25)To each co-owner, to the extent of Rs2,00,000 as the case may be 26)One house shall be nil 27)Be allowed as deduction if the tax is deduction at source 28)Gross Annual Value 29)For each co-owners shall be nil 30)LOP and DLOP |
31. A house property with fair rent of 1,20,000 is neither let out nor self-occupied throughout the previous year. Its annual value shall be
a) 1,20,000
b) Nil
c) 60,000
d) None of the above
32. Unrealised rent is a deduction from……………
a) Gross annual value
b) Net annual value
c) Municipal Value
d) None of the above
33. A has two house properties. Both are self-occupied.
a) Both houses are SOP
b) One is SOP and other is DLOP
c) One house is LOP
d) None of the above
34. In case the property is owned by co-owners and it is self occupied by all co-owners. The annual value of…………….
a) Such house property be nil
b) For each co-owners shall be nil
c) Only for co-owner will be nil
d) None of the above
35. Municipal Tax paid is allowed as a deduction for ………….
a) SOP only
b) LOP only
c) LOP and DLOP
d) All of the above
36. Municipal tax is a deduction allowed on ……………..
a) Accrual basis
b) Payment basis
c) Both (a) & (b)
d) None of the above
37. Municipal tax paid in respect of house property is allowed as deduction if paid by ……………..
a) Tenant
b) Owner
c) Both (a) & (b)
d) None of the above
38. Mr. Varun is the owner of two houses namely “Genaraje” at Mulund & “Om Sai” at Thane which are self–occupied. However, the apartment at “Om Sai” was let out for 2 months. The computation of this property would be ………….
a) LOP
b) SOP
c) Partly LOP & partly SOP
d) DLOP
39. Unadjusted loss from house property can be carried forward & set off in subsequent years subject to limit of …………..
a) 7 Years
b) 8 Years
c) 6 Years
d) 9 Years
| Answer: 31)1,20,000 32)Gross annual value 33)Both houses are SOP 34)For each co-owners shall be nil 35)LOP and DLOP 36)Payment Basis 37)Owner 38)LOP 39)8 Years |
