CA Inter Income Tax MCQs – PGBP

Question 1

Aman is the Distributor of XYZ Co. for entire Northern Region. During  F.Y. 2018-19 company has modified the contract of Aman’s agency and in future Aman will be the distributor only for Delhi, The company paid Rs. 10 Lakh as compensation. Such compensation would be: –

a) Taxable under head IFOS

b) Taxable under the head PGBP

c) Taxable under head Capital Gain

d) None of the above

Question 2

Bojo India Ltd. made provision of Rs. 10 lakhs for payment of bonus in PY 2018-19. If it paid bonus of Rs. 5 lakhs in July 2019, calculate the amount of deduction allowable in PY 2018-19?

a) Rs. 10 lakhs

b) Rs. 7 lakhs

c) Rs. 3 lakhs

d) Rs. 5 lakhs

Question 3

YY India Ltd. purchases goods worth Rs. 30,000 from GG India Ltd. during PY 2017-18 and claimed deduction of such expenditure. During the PY 2018-19, it has made cash payment of Rs. 30,000 to GG India Ltd. Determine the amount of disallowance, if any

a) Rs. 30,000

b) Rs. 9,000

c) Nil

d) None of the above

Question 4

KJ India Ltd. has made payment to a resident contractor amounting Rs. 3,40,000 on 15-06-2018, but tax was deducted at source on 31-03-2019. What shall be the amount of disallowance if such TDS is deposited on 18-09-2018?

a) Rs. 3,40,000

b) Rs. 1,02,000

c) Nil

d) None of the above

Question 5

Shyamlal has purchased cows and buffalos for his dairy business for Rs. 5 lakhs during the P.Y. 2017-18. During the P.Y. 2018-19 these animals becomes permanently unproductive and sold for Rs.1 lakhs. What would be the amount of deduction available in P.Y. 2018-19: –

a) Nil

b) 4 Lakhs

c) 5 Lakhs

d) 1 Lakhs

CA Inter Income Tax MCQs

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