CA Inter Income Tax MCQs – Set Off and Carry forward of Losses

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

A is engaged in derivative trading on a recognised stock exchange and incurs a loss of Rs. 5,00,000. He has other business profit of manufacturing Rs. 3,00,000. Taxable income will be treated as _____________.

a) 5,00,000

b) 3,00,000

c) 2,00,000  + c/f of loss

Question 3

Arvind incurred short-term capital loss of Rs. 20,000 on sale of shares through the National Stock Exchange. Such loss can :

a) Be set off only against short term capital gains

b) Be set off only against long term capital gains

c) Be set off against both short term and long term capital gains

d) Not be allowed to set off

Question 4

X, who incurs a loss of Rs. 4,00,000 from his house house property in the previous year 2018-19 will be allowed to set off the such loss from the gain or income on house property of Rs. 3,50,000, to the extent of:

a) Rs. 2,00,000

b) Rs. 3,50,000

c) Rs. 4,00,000

d) Not allowed to be set off

Question 5

Jamil   has a  loss  of Rs. 500,000 from the activity of owning and maintaining race horses. He also has a profit of   Rs. 10,00,000 from the activity of trading in goods through delivery. His taxable income would be : –

a) Rs. 10,00,000 

b) Rs. 500,000

c) Rs. 1300,000

d) Rs. 700,000

Video Explanation

CA Inter Income Tax MCQs

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