Income from Business and Profession MCQ | 30 Free MCQs

Income from Business and Profession MCQ

Income from Business and Profession MCQ
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

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