Articleship assessment test ICAI – Level 1 | Direct Tax MCQ -Set Off or Carry Forward of Losses

Articleship assessment test ICAI – MCQ

Question 1:- 

Ram, owner of a house property, incurs loss of Rs. 5,00,000 from house property. He has filed his return of loss u/s 139(1) after the due date. Will he be eligible to carry forward his loss of Rs. 5,00,000?

(a) Yes, he can carry forward loss of Rs. 5,00,000

(b) No, he can’t carry forward the loss of Rs. 5,00,000

(c) He can carry forward only Rs. 2,00,000

(d) None of the above




Question 2:- 

Loss from house property, if not set off in the same assessment year, can be carried forward upto ________________?

(a) 2 years

(b) 4 years

(c) 6 years

(d) 8 years

Question 3:- 

As per section 32(2), which of the following can be carried forward in case the property is inherited by the legal heir?

(a) Business Loss

(b) Unabsorbed Depreciation

(c) Both A and B

(d) None of the above

Question 4:- 

Which of the following are not put of business losses?

(a) Unabsorbed depreciation

(b) Unabsorbed capital expenditure on scientific research

(c) Unabsorbed expenditure on family planning

(d) All of the above

Question 5:- 

The correct order of set off is:

(i) Current year depreciation
(ii) Unabsorbed depreciation
(iii) Brought forward business or profession losses
(iv) Current year capital expenditure on scientific research and on family planning
(v) Unabsorbed capital expenditure on scientific research
(vi) Unabsorbed expenditure on family planning

 

(a) (i), (iii), (iv), (ii), (v), (vi)
(b) (i), (iii), (iv), (ii), (vi), (v)
(c) (i), (iv), (iii), (ii), (v), (vi)
(d) (i), (ii), (iii), (iv), (v), (vi)

Answers

1. (a) Yes, he can carry forward loss of Rs. 5,00,000

2. (d) 8 years

3. (b) Unabsorbed Depreciation

4. (d) All of the above

5. (c) (i), (iv), (iii), (ii), (v), (vi)

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