Question 1

where the amount of an expenditure claimed as deduction exceeds Rs.10,000, it should be paid by ______

Accepted Answer

A)  Crossed cheque
B)  Account payee cheque / draft
C)  Cash
D)  None of these B

Question 2

Perquisite received by the assesses during the course of carrying on his business or profession is taxable under the head _______

Accepted Answer

A)  Salary
B)  Other Sources
C)  Business / Professional Income
D)  Professional income C

Question 3

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 _________-

Accepted Answer

A)  Exempt as it is capital receipt
B)  Fully taxable as business income
C)  Taxable as income from other sources
D)  Intangible asset B

Question 4

Interest on capital or loan received by a partner from a firm is __________

Accepted Answer

A)  Exempt u/s 10 (2
A)  
B)  Taxable as business and profession income
C)  Taxable as income from other sources
D)  None of the above

Question 5

Which of the following tax is allowed as deduction while computing the business income________

Accepted Answer

A)  Wealth Tax
B)  Income Tax
C)  GST
D)  TDS

Question 6

Export incentives received by an assessee are __________

Accepted Answer

A)  Exempt
B)  Taxable as business income
C)  Exempt up to certain limits
D)  Unexempt

Question 7

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___________

Accepted Answer

A)  At normal rate
B)  At 50% of normal rate
C)  No depreciation is allowed
D)  Depreciation

Question 8

Salary, bonus commission or remuneration due to or received by a working partner from the firm is taxable under the head_______

Accepted Answer

A)  Income from Salaries
B)  Other sources
C)  Business income
D)  Salary

Question 9

Depreciation is allowed in case of __________

Accepted Answer

A)  Tangible fixed assets only
B)  Intangible assets only
C)  Tangible and intangible assets
D)  Wasting assets only

Exam 3: Taxation and Business Income: Understanding the Taxable Headings and Deductions