Income Under Head Profits and Business or Profession

8/17/2019 Income Under Head Profits and Business or Profession

1/19


2/19

8. Any sum received by an employer from Keyman insurance policy taken on the life

of the employee shall be:

(A) exempt

(B) taxable under the head business and profession

(C) taxable under the head other sources(D) taxable in the hands of employee

(B)

9. R, who was carrying on agency business received a sum of Rs.5,00,000/- from his

principal for termination of agency. Compensation amount so received shall be:

(A) exempt as it is a capital receipt

(B) fully taxable under the head business and profession

(C) taxable under the head other sources

(B)

10 (i) If the house property used for business or profession is taken on rent, tick the

expenses which shall be allowed as deduction u/s 30.

(A) Rent(B) Current repairs, other than expenditure in the nature of capital expenditure

(D) Insurance premium

(E) Rates and taxes though due

(F) Rates and taxes actually paid only

(G) Rates and taxes paid or due subject to section 43 B

(C), (D) & (G)

(ii) Which expenses shall be allowed if the premises in occupied by the assessee

otherwise as tenant.

(B), (D) & (G)

11 Where the machinery, plant and furniture is used by the assessee for the purpose ofcarrying on business and profession, he shall be entitled to deduction u/s 31 on

account of:

(A) current repairs other than expenditure in the nature of capital expenditure

(B) revenue and capital expenditure on repairs

(C) any repairs

(A)

12 Depreciation is allowed in case of:

(A) tangible assets only

(B) intangible assets only

(C) tangible and intangible assets

(C) 13 Tick the tangible assets which are subject to depreciation.

Land

Building

Machinery

Books

Tea bushes

Vehicles

Gold

Furniture

Stock-in-hand

(B), (C), (D), (G) & (I)


3/19

14 The depreciation is allowed to:

(A) the owner of asset

(B) owner including fractional owner of the asset

(C) lessee

(B) 15 Electricity companies are allowed depreciation on the basis of:

(A) block of asset

(B) each asset separately

(C) each asset separately unless the assessee opts for block of asset system in

the first previous year of its commencement

(D) either on block of asset or each asset separately provided the option is

exercised in the first previous year.

(C)

16 (i) If the asset of a particular block is acquired and put to use during the PY for less

than 180 days, the assessee shall be entitled to depreciation:

(A) at normal rate(B) at 50 % of normal rate

(C) proportionate period for which it is first put to use.

(B)

(ii) What will be your answer in the above case if the asset is acquired by the

electricity company which is claiming depreciation on straight line method:

(A) at normal rate

(B) at 50 % of normal rate

(C) proportionate period for which it is put to use

(B)

17(i)

W.D.V. of block of 15 % as on 1.4.2011 is Rs.5,00,000. An asset amounting toRs.1,00,000 was acquired on 1.11.2011 and put to use on 1.12.2011. During

the previous year 2011-12 a part of the block (other than the new asset) is sold

for Rs.5,40,000. The depreciation to be allowed for this block is:

(A) Rs.9,000

(B) Rs.4,500

(C) Rs.5,000

(B)

(ii) If in the above case, this part of the block is sold for Rs.4,80,000 instead of

Rs.5,40,000, the depreciation allowed shall be:

(A) Rs.10,500

(B) Rs.18,000(C) Rs.9,000

(A)

(iii) What will be your answer in case of (i) above if the part of the block sold

includes the new asset acquired during the year:

(A) Rs.9,000

(B) Rs.4,500

(C) Rs.5,000

(A)


4/19

18 Where a part of block of assets is sold for a price more than the opening W.D.V.

plus cost of asset acquired during the year, if any, the assessee shall be subject to:

(A) balancing charge

(B) short-term capital gain

(C) short-term or long-term capital gain depending upon the period after whichthe block is transferred

(B)

19 Where a part of a block of asset is sold for a price less than the opening W.D.V.

plus cost of assets, if any, acquired during the year, the balance amount shall be

treated as:

(A) short-term capital loss

(B) terminal/balancing depreciation

(C) written down value for purpose of charging current year depreciation

(C)

20 Where the entire block of the asset is sold for a price more than the opening

W.D.V. and asset, if any, acquired during the year, the excess amount shall besubject to:

(A) Balancing charge

(B) Short-term capital gain

(C) LT or STCG depending upon the period for which block is held

(B)

21 Where an electricity company claiming depreciation on straight line method on

each asset separately sells such asset for a price more than its W.D.V. then the

excess amount shall be taxable:

(A) as short-term capital gain

(B) balancing charge under business head(C) balancing charge to the extent of depreciation allowed in the past and the

balance, if any, short-term capital gain

(D) balancing charge to the extent of depreciation allowed in the past and the

balance, if any, long-term or short-term capital gain depending upon the

period for which such asset was held

(D)

22. Where the entire block is sold for a price less than the opening W.D.V. and the cost

of asset, if any, acquired during the PY, the balance amount shall be treated as:

(A) terminal/balancing depreciation

(B) short-term capital loss

(C) written down value(D) short-term or long-term capital loss depending on the period for which the

block was held

(B)


5/19

23 Where an electricity company charging depreciation on straight line method on

each asset separately, sells any asset for a price less than the opening W.D.V. the

balance amount shall be treated as:

(A) short-term capital loss

(B) terminal depreciation

(C) written down value(B)

24 R acquired an asset for Rs.5,22,000 which includes Rs.72,000 as excise duty for

which the assessee has claimed CENVAT Credit. The actual cost of acquisition to

be included in the block of asset shall be:

(A) Rs.5,22,000

(B) Rs.4,50,000

(C) None of these two

(B)

25 An asset which was acquired for Rs.5,00,000 was earlier used for scientific

research. After the research was completed the machinery was brought into the

business of the assessee. The actual cost of the asset for the purpose of inclusion inthe block of asset shall be:

(A) Rs.5,00,000

(B) Rs. NIL

(C) Market value of the asset on the date it was brought into business

(B)

26 R had been using an asset for his business and its W.D.V. as on 1.4.2011 was

Rs.3,50,000. He sold this asset to G for Rs.5,00,000 and G leased back this asset to

R. The market value of this asset on the date of sale was Rs.4,00,000; in this case,

the actual cost of this asset to G for charging depreciation shall be:

(A) Rs.5,00,000(B) Rs.3,50,000

(C) Rs.4,00,000

(B)

27 A car is imported after 1.4.2011 by R Ltd., from London to be used by its

employee. R Ltd. shall be allowed depreciation on such car at:

(A) 15 %

(B) 20 %

(C) 40 %

(D) NIL

(A)

28 Unabsorbed depreciation which could not be set off in the same AY can be carriedforward for:

(A) 8 years

(B) indefinitely

(C) 4 years

(B)

29 Unabsorbed depreciation brought forward from an earlier year of a particular

business can be set off from:

(A) the same business

(B) any head of income

(C) any business income

(D) any head of income but first from business income(D)


6/19

30 For claiming deduction for Tea Development, Coffee development or Rubber

development u/s 33AB the assessee should deposit the money with NABARD or in

the Deposit Account:

(A) before the expiry of the PY

(B) within six months from the end of the relevant PY

(C) within six months from the end of the relevant PY or before the due date offurnishing the return of income whichever is earlier

(D) before the due date of furnishing the return of income

(C)

31 Deduction of Tea/Coffee/Rubber Development Account shall be allowed to:

(A) any assessee

(B) a company assessee only who is engaged in the business of growing and

manufacturing tea/coffee/rubber in India

(C) any assessee who is engaged in the business of growing and manufacturing

tea/coffee/rubber in India

(D) any assessee who is engaged in the business of manufacturing tea/

coffee/rubber in India(C)

32 The maximum deduction to be allowed under Tea Development Account, Coffee

Development Account or Rubber Development Account shall be:

(A) actual amount deposited in the scheme

(B) 20 % of the profits of such business

(C) 20 % of the amount deposited in the scheme

(D) 40 % of the profits of such business

(D)

33 Tick the cases where the amount withdrawn from the scheme of Tea/Coffee/Rubber

Development Account shall not be taxable.Amount withdrawn and used for the purpose specified in the scheme in the

same PY

Amount withdrawn in a PY & used for the purpose specified in the scheme in

the next PY

Closure of business

Death of an assessee

Partition of HUF

Dissolution of a firm

Liquidation of a company

(A), (D), (E) & (G)

34 For claiming deduction for Site Restoration Fund u/s 33ABA, the assessee shoulddeposit the money with State Bank of India or Site Restoration Account:

(A) before the end of the PY

(B) before the expiry of six months from the end of the PY

(C) before the expiry of six months from the end of the relevant PY year or

before the due date of return whichever is earlier

(A)

35 Deduction on account of Site Restoration Fund shall be allowed to:

(A) any assessee

(B) company assessee engaged in the business of prospecting for or

extraction or production of petroleum or natural gas or both

(C) any assessee engaged in the business mentioned in clause (b) above(C)


7/19

36 The maximum deduction for Site Restoration Fund under section 33ABA shall be:

(A) the amount deposited in the scheme

(B) 20 % of the profits from such business

(C) 20 % of the amount deposited in the scheme

(B)

37 Tick the case where the amount withdrawn from Site Restoration Account shall not be taxable:

(A) amount withdrawn for the purpose specified in the scheme

(B) closure of business

(C) death of an assessee

(D) partition of HUF

(E) dissolution of a firm

(F) liquidation of a company

(A)

38 Expenditure on scientific research incurred by the assessee shall be allowed if such

research:

(A) is related to the business of the assessee(B) may or may not relate to the business of the assessee

(C) is related to the research specified by the Government

(A)

39 If an assessee carries on any scientific research related to his business, he shall be

allowed deduction u/s 35 on account of:

(A) revenue expenditure

(B) capital expenditure

(C) both revenue and capital expenditure

(D) both revenue and capital expenditure excepting expenditure incurred on

acquisition of land (D)

40 Certain revenue and capital expenditure on scientific research are allowed as

deduction in the PY of commencement of business even if these are incurred:

(A) 5 years immediately before the commencement of the business

(B) 3 years immediately before the commencement of the business

(C) any time prior to the commencement of the business

(B)

41 Tick which expenses on scientific research related to the business are allowed a

deduction in the PY of commencement of the business although incurred within 3

years immediately before the commencement of the business.

any revenue expense on scientific research payment of salary to employees engaged in scientific research

purchase of material used in scientific research

repairs and maintenance expenses on the asset acquired for scientific research

land acquired for scientific research

building constructed for scientific research

plant and machinery acquired for scientific research

(B), (C), (F) & (G)


8/19

42 Where a scientific research asset is sold without having been used for other purpose

then the sale price to the extent of the cost of the asset already allowed as deduction

in the past shall be treated as:

(A) business income


(C) long-term capital gain(D) long-term or short-term capital gain depending upon the period for which

such asset was held

(A)

43 Where the sale price in the above exceeds the cost of acquisition of such asset, such

excess shall be treated as:

(A) business income


(C) long-term capital gain

(D) long-term or short-term capital gain depending upon the period for which

such asset was held

(D) 44 If the income of a business before claiming revenue expenditure on scientific

research is Rs.50,000 and the revenue expenditure incurred on scientific research

related to the business of the assessee is Rs.80,000, then Rs.30,000 shall be:

(A) business loss

(B) unabsorbed capital expenditure on scientific research

(C) none of these two

(A)

45 If the income of a business before claiming capital expenditure on scientific

research is Rs.50,000 and the capital expenditure incurred on scientific research

related to the business of the assessee is Rs.80,000, then Rs.30,000 shall be:(A) business loss

(B) unabsorbed capital expenditure on scientific research


(B)

46 Brought forward unabsorbed capital expenditure on scientific research can be

carried forward:

(A) for any number of years

(B) for 8 years

(C) for 10 years

(A)

47 If any amount is donated for research, such research should be in the nature of:(A) scientific research only

(B) social or statistical research only

(C) scientific or social or statistical research

(C)

48 If donation is made for scientific or social or statistical research, such research:

(A) must relate to the business of the assessee

(B) may or may not relate to the business of the assessee

(C) none of these

(B)


9/19

49 Donation for scientific or social or statistical research shall be allowed as deduction

to the extent of:

(A) 50 % of the donation so made

(B) 100 % of the donation so made

(C) 125 % of the donation so made

(D) 150 % of the donation so made(C)

50 If donation is made to a National Laboratory or a University or IIT with the specific

direction that scientific research should be for an approved programme, the amount

of deduction shall be:

(A) 50 % of the donation so made

(B) 100 % of the donation so made

(C) 125 % of the donation so made

(D) 150 % of the donation so made

(C)

51 (i) Weighted deduction of 150 % for in-house research in some cases is allowed to:

(A) any assessee(B) company assessee

(C) a scientific research association

(B)

(ii) Weighted deduction of 150 % for in-house research in some cases shall be

allowed for the purchase of:

(A) any assets

(B) any assets other than land

(C) any assets other than land and buildings

(C)

52 Expenditure incurred on acquisition of patents and copyrights after 31.3.1998 aresubject to:

(A) deduction in 14 equal instalments

(B) deduction in 10 equal instalments

(C) depreciation u/s 32

(C)

53 Lumpsum payment for acquisition of technical know-how after 31.3.1998 shall be

subject to:

(A) deduction in 6 equal instalments

(B) deduction in 3 equal instalments

(C) depreciation u/s 32

(C) 54 Expenditure incurred for obtaining licence to operate telecommunication services

shall be allowed in:

(A) 10 equal instalments

(B) 14 equal instalments

(C) in equal instalments over the period for which the licence remains in force

(C)


10/19

55 R Ltd., paid Rs.1,10,00,000 during the previous year 2010-11 for acquiring the

telecommunication rights which were effective for 11 years. It commenced the

business of operating the telecommunication service with effect from PY 2011-12.

R Ltd., shall be entitled to a deduction of:

(A) Rs.10 lakhs w.e.f. PY 2010-11

(B) Rs.11 lakhs w.e.f. PY 2011-12(C) none of these two

(B)

56 ‘R’ had acquired a licence to operate telecommunication service in the PY 2009-10

for Rs.2 crores and its life was 10 years. During the PY 2010-11 it had sold the

licence for Rs.1,50,00,000. It shall be allowed a deduction under section 35ABB

during the PY 2011-12 to the extent of:

(A) Rs.20 lakh

(B) Rs.10 lakh

(C) None of the above two

(B)

57 (i) R had acquired a license to operate telecommunication service in the PY2007-08 for Rs.2 crores and its life was 10 years. During the PY 2011-12 it has

sold the licence for Rs.1.90 crores, the sale price in excess of its W.D.V. shall be

treated as:

(A) Business income taxable under section 35ABB

(B) Long-term capital gain

(C) Not taxable

(A)

(ii) In the above case, the business income taxable shall be:

(A) Rs.40 Lakhs

(B) Rs.30 Lakhs

(C) Rs.37,19,875

(B)

(iii) If the above license is sold for Rs.2.20 crores instead of Rs.1.90 crores, then:

(A) Rs.60 lakhs will be taxable as business income

(B) Rs.40 lakhs shall be taxable as business income and balance 20 lakhs as

long-term capital gain

(C) Rs.40 lakhs shall be taxable as business income and balance 20 lakhs as

short-term capital gain

(D) Rs. 40 lakhs shall be taxable as business income and excess/deficit of

Rs.2.20 crore over the indexed cost of Rs.2 crores shall be treated as long-

term capital gain/loss(D)

58 R, had acquired a license to operate telecommunication service in the PY 2007-08

for Rs.2 crores and it has a life of 20 years. Part of the license is sold in the PY

2011-12 for Rs.1 crore. R shall be allowed deduction to the extent of:

(A) Rs.3.75 lakhs per year for the remaining 16 years

(B) Entire Rs.60 lakh in the PY 2011-12

(C) None of the above

(A)


11/19

59 For claiming deduction under section 35AC, the payment for eligible project and

scheme should be made to:

(A) a public sector company

(B) a local authority

(C) to an institution or an association approved by the National Committee

(D) to any of the three mentioned in (A), (B) and (C)(D)

60 A company assessee shall be allowed deduction under section 35AC on account of

eligible project and scheme if:

(A) the payment is made to the specified institution

(B) if it incurs expenditure itself

(C) both for payment made to specified institution and for direct expenditure

incurred by itself

(C)

61 Preliminary expenses incurred are allowed deduction in:


(B) 5 equal instalments(C) full

(B)

62 In the case of non-company assessee, the total preliminary expenses incurred are

allowed deduction to the extent of:

(A) 2 % of the cost of the project

(B) 5 % of the cost of the project

(C) 10 % of the cost of the project

(B)

63 In case of company assessee, the total preliminary expenses incurred are allowed as

deduction to extent of 5 % of:the cost of the project

the aggregate capital employed

the cost of project or the capital employed

(C)

64 Expenditure incurred on prospecting, etc., of minerals shall be allowed as

deduction in:


(B) 10 equal instalments

(C) full

(B)

65 In case the assessee follows merchantile system of accounting, bonus orcommission to the employee are allowed as deduction on:

(A) due basis

(B) payment basis

(C) due basis but subject to section 43B

(C)

66 Interest accrued before the commencement of the production is to be:

(A) capitalised

(B) treated as revenue expenditure

(C) either capitalized or treated as revenue expenditure

(A)


12/19

67 Interest on money borrowed for acquiring an asset by an existing concern for

expansion of the existing business, pertaining to a period prior to the date on which

the asset is put to use is to be:

(A) capitalised


(C) either capitalised or treated as revenue expenditure at the option of theassessee till the asset is put to use

(A)

68 Interest on money borrowed for the purpose of acquiring a capital asset pertaining

to the period after the asset is put to use is to be:

(A) capitalised


(C) either capitalized or treated as revenue expenditure

(B)

69 Expenditure incurred on purchase of animals to be used by the assessee for the

purpose of carrying on his business and profession is subject to:

(A) depreciation(B) deduction in the previous year in which animal dies or becomes ermanently

useless

(C) nil deduction

(B)

70 Expenditure incurred on family planning amongst the employees is allowed to:

(A) any assessee

(B) a company assessee

(C) an assessee which is a company or co-operative society

(B)

71 Capital expenditure incurred on family planning amongst employees of thecompany assessee is allowed as deduction:

(A) in full

(B) in 5 equal instalments

(C) in 10 equal instalments

(B)

72 (i) The business income of a company assessee before claiming Rs.60,000 being

1/5th of capital expenditure on family planning is Rs.40,000. The balance

Rs.20,000 shall be treated as:

(A) business loss

(B) unabsorbed expenditure on family planning

(C) none of these two(B)

(ii) The business income of a company before claiming Rs.60,000 being revenue

expenditure on family planning is Rs.40,000. The balance of Rs.20,000 shall

be treated as:

(A) business loss

(B) unabsorbed expenditure on family planning


(B)


13/19

(iii) The business income of a company assessee before claiming deduction of

revenue and capital expenditure is Rs.6,00,000. The revenue and capital

expenditure incurred during the year are Rs.7,00,000 and Rs.10,00,000

respectively. The unabsorbed expenditure on family planning in this case shall

be:

(A) Rs.3,00,000(B) Rs.11,00,000

(C) Rs.2,00,000 and Rs.1,00,000 shall be business loss

(A)

73 Deduction u/s 37(1) shall be allowed of those expenditure which are of:

(A) revenue nature

(B) capital nature

(C) both revenue and capital nature

(A)

74 Interest on capital of or loan from partner of a firm is allowed as deduction to the

firm to the extent of:

(A) 18 % p.a.(B) 12 % p.a. even if it is not mentioned in partnership deed

(C) 12 % p.a. or at the rate mentioned in partnership deed whichever is less

(C)

75 Deduction u/s 40(b) shall be allowed on account of salary/remuneration paid to:

(A) any partner

(B) major partner only

(C) working partner only

(C)

76 Remuneration paid to working partner shall be allowed as deduction to a firm:

(A) in full(B) subject to limits specified in section 40(b)


(B)

77 A firm’s business income is nil/negative. It shall still be allowed as deduction on

account of remuneration to working partner to the maximum extent of:

(A) actual remuneration paid as specified in partnership deed

(B) Rs.50,000

(C) NIL

(B)

78 From the following, tick the expenses which are subject to provisions of section

43B:Sales Tax

Income-tax

Excise duty

Municipal Tax

Custom duty

Wealth Tax

Bonus or Commission to employees

Salary to employees

Interest on term loan from financial institutions

Interest on term loan from any scheduled bank

Interest on advance or loan from any scheduled bankContribution by the employer to the provident fund or superannuation fund


14/19

Contribution by the employer to gratuity fund and any other welfare fund of

the employee

Interest on term loans from finance companies

(A), (C), (D), (G), (I), (K), (L) & (M)

79 (i) A person carrying on specified profession is:

(A) required to maintain books of account(B) required to maintain prescribed books of account

(C) not required to maintain books of account

(A)

(ii) A person carrying on specified profession is required to maintain the prescribed

books of account of the current PY if the gross receipts of such profession in

all the three preceding PYs exceed:

(A) Rs.40,00,000

(B) Rs.10,00,000

(C) Rs.1,50,000

(D) Rs.60,000

(C)(iii) A person carrying on specified profession is required to maintain:

(A) prescribed books of account in all cases

(B) prescribed books of account if the gross receipts of all the three preceding

PYs exceeds Rs.1,50,000 otherwise no books of account are to be

maintained

(C) prescribed books of account if the gross receipts of all the preceding PYs

exceeds Rs.1,50,000 otherwise such books of account as will enable the

Assessing Officer to compute his business income

(C)

80 If a person sets up a specified profession during the current PY, he is:

(A) required to maintain prescribed books of account

(B) not required to maintain prescribed books of account

(C) required to maintain prescribed books of account if the gross receipts of

such profession is likely to exceed Rs.1,50,000 otherwise such books of

account which will enable the Assessing Officer to compute his total

income

(C)

81 A person who has been carrying on non-specified profession is:

(A) not required to maintain any books of account

(B) required to maintain books of account of the current PY if the gross

receipts of such profession exceeds Rs.1,50,000(C) required to maintain books of account of the current PY if the gross receipts

of such profession of any of the preceding PY exceeded Rs.10 lakh

(D) required to maintain books of account of the current PY if in any of the

preceding 3 PYs his total income exceeded Rs.1,20,000 or gross receipts

exceeded Rs.10 lakh

(D)

82 (i) A person, who has been carrying on business is required to maintain books of

account of the current PY if:

(A) his total income of any 3 preceding PYs exceeded Rs.1,20,000

(B) his gross turnover or sales of any of 3 preceding PY exceeded Rs.10 lakh

(C) if condition mentioned either in (a) or (b) is satisfied(C)


15/19

(ii) A person who sets up a non-specified profession or commences a business

during the current PY is required to maintain books of account if his:

(A) total income of the current year exceeds or is likely to exceed Rs.1,20,000

(B) his gross turnover or sales of any of 3 preceding PY exceeded Rs.10 lakh

(C) if condition mentioned either in (a) or (b) is satisfied

(C) 83 For persons carrying on business or non-specified profession, the books of account

to be maintained have been:

(A) prescribed

(B) not prescribed

(C) none of these

(B)

84 For persons carrying on profession, tax audit is compulsory, if the gross receipts of

the PY exceeds:

(A) Rs.50 lakh

(B) Rs.40 lakh

(C) Rs.10 lakh(C)

85 Tax audit is compulsory in a case a person is carrying on business whose gross

turnover/sales/receipts, as the case may be exceeds:

(A) Rs.10 lakh

(B) Rs.40 lakh

(C) Rs.1 crore

(B)

86 In case an assessee is engaged in the business of civil construction, presumptive

income scheme is applicable if the gross receipts paid or payable to him in the PY

does not exceed:(A) Rs.10 lakh

(B) Rs.40 lakh

(C) Rs.50 lakh

(B)

87 In the aforesaid case, the income shall be presumed to be:

(A) 5 % of gross receipts

(B) 8 % of gross receipts

(C) 10 % of gross receipts

(B)

88 If an assessee is engaged in the business of civil construction and he had opted for

presumptive income scheme under section 44AD, the assessee shall:(A) be entitled to deduction u/s 30 to 37

(B) not be entitled to any deduction u/s 30 to 37

(C) not be entitled to deduction u/s 30 to 37 except on account of interest on

capital and loan from a partner and remuneration to working partner as per

section 40(b)

(C)


16/19

89 In case an assessee is engaged in the business of plying hiring or lease goods

carriage, presumptive income scheme under section 44AE is applicable if the

assessee is the owner of maximum of:

(A) 8 goods carriages

(B) 10 goods carriages

(C) 12 goods carriages(B)

90 As per presumptive income scheme under section 44AE, the presumed income

shall be:

(A) Rs.3,000 p.m. per goods carriage

(B) Rs.3,500 p.m. per heavy goods vehicle and Rs.3,150 p.m. per vehicle other

than heavy goods vehicle

(C) Rs.3,500 p.m. per heavy goods vehicle; Rs.3,150 p.m. for medium goods

vehicle and Rs.2,000 p.m. per light commercial vehicle

(B)

91 In case an assessee is engaged in the business of retail trade, presumptive income

scheme is applicable if the total turnover of such retail trade of goods does notexceed:

(A) Rs.10 lakh

(B) Rs.30 lakh

(C) Rs.40 lakh

(D) Rs.50 lakh

(C)

92 In the above case, the income to be presumed under section 44AF shall be:

(A) 8 % of total turnover

(B) 5 % of total turnover

(C) 10 % of total turnover (B)

93 If the assessee opts for presumptive income scheme under section 44AD or 44AF

or 44AE, then the assessee shall:

(A) not be entitled to any deduction u/ss 30 to 37

(B) be entitled to deduction under sections 30 to 37

(C) not be entitled to deduction u/ss 30 to 37 except for interest or capital or

loan from partner and remuneration to a working partner subject to

conditions laid down under section 40(b)

(C)

94 In case of non-resident, who is carrying on shipping business, his Indian income

shall be presumed to be:(A) 5 % of certain amount received

(B) 7 ½ % of certain amount received

(C) 10 % of certain amount received

(B)


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95 The income of a non-resident from shipping business under section 44B shall be

presumed to be 7 ½ % of:(A) the amount paid or payable whether in India or out of India to the assessee

on account of carriage of passengers, livestock, mail or goods shipped at

any port in India

(B) the amount received or deemed to be received in India on account ofcarriage of passengers, livestock, mail or goods shipped at any port outside

India(C) both the amount mentioned in (A) & (B) above

(C)

96 In case of non-resident, who is engaged in the business of operation of aircraft, his

income shall be presumed to be:(A) 7 ½ % of certain amount(B) 5 % of certain amount(C) 10 % of certain amount

(B)

97 The expenditure incurred on payment under voluntary retirement scheme shall beallowed as deduction in:(A) the previous year it is paid(B) equal instalments in 5 assessment years starting from the AY in which it is

paid(C) not allowed at all

(B)

98 Which of the following taxes are allowed as deduction while computing the business income

(A) Wealth Tax

(B) Income Tax

(C)

Sales Tax(D) Securities Transaction Tax (C&D)

99. Which of following expenditure for which payment is made to a resident are notallowed as deduction unless the tax is deducted at source and deposited before the

due date of furnishing the return under Section 139(1)(A)

Salary to employees(B) Interest(C)

Commission or brokerage(D)

Payment of contractors(E)

Payment to sub-contractors

(F) Rent

(G)

Fee for professional services(H) Fee for technical services

(I)

Royalty (B, C, D, E, F,G,H, I)


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100. Where the payment of an expenditure claimed as deduction by any assesseecarrying on business or profession other than who is in transport business exceeds

Rs 20,000, it should be paid by:(A)

Crossed Cheque/draft

(B)

Account Payee cheque/account payee draft(C) Account payee cheque(D)

Any mode other than cash (B)

101. Where the above payment is not made by account payee cheque or account payee

draft:(A) 20% of such payment shall be disallowed

(B) 100% of such payment shall be disallowed(C)

100% of such payment shall be disallowed unless such payment falls under

the exceptions prescribed. (C)

102. Where business re-organisation of a co-operative bank has taken place during the

financial year then:

(A)

the deduction under Section 32, Section 35D and section 35DD shall beallowed both to the predecessor as well as successor co-operative bank(B)

the deduction under Section 32, Section 35D and Section 35DD shall beallowed proportionately to the predecessor co-operative bank and successor

co-operative bank (C)

the deduction under section 32, section 35D and section 35DD shall be

allowed proportionately to the predecessor bank from 1st day of the relevant

financial year and till the date prior to the date of reorganization and to the

successor co-operative bank from the date of business re-organization to the

last day of the financial year (C)

103. Where an assessee is carrying on a specified business referred to in section 35AD,

he shall be allowed deduction :(A) Only for revenue expenditure

(B) Both the revenue and capital expenditure(C)

Both for revenue and capital expenditure other than goodwill, land andfinancial instruments.

(D) Both for revenue and capital expenditure other than land, building and good

will (C)

104. Write True or False :(A) Sum paid by the employer by way of contribution towards a pension scheme

referred to in section 80CCD shall be allowed as deduction to the extent it does not

exceed 10% of salary of the employee in previous year. (T)

(B) Depreciation is allowed in case of tangible assets only (F)(C) R acquired an asset for Rs 6,61,800 which includes Rs 61,800 as excise dutyfor which the assessee has claimed CENVAT credit. The actual cost of acquisition

to be included in the block of asset shall be Rs 6,61,800 (F)(D) Deduction of Tea Development Account shall be allowed to a company

assessee only which is engaged in the business of growing and manufacturing tea inIndia.

(E) Preliminary expenditure are allowed deduction in 10 equal instalments (F)


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Documents

Income Under Head Profits and Business or Profession