CA Inter MCQs Direct Tax

Question 1

X incurred losses, during the year. In such a case, would such loss be taxable under the Head PGBP, since its only profits and gains, which are taxable under this Head
a. Both profits and losses are taxable under the Head PGBP
b. Only profits are taxable under the Head PGBP
c. Losses cannot be taxed under the Head PGBP
d. None of the above.

Question 2

As per the provisions of clubbing, who among the following are not included in the definition of relative of an individual?
a. Spouse of individual
b. Brother or sister of individual
c.  Lineal ascendant or descendant of individual
d. Lineal ascendant or descendant of spouse of individual

Question 3

Income under the Head Profits and Gains of Business and Profession would tax :-
a)  Income from only one business of assessee
b)  Income from all the business of assessee
c)  Only income from profitable business of the assessee
d)  None of the above

Question 4

Incomes or receipts which are taxable under PGBP but have not been credited to P/L Account, are to be :-
a)  Added to the profit and loss number when P/L shows a credit Balance
b)  Reduced from the profit and loss balance, when P/L shows a Debit Balance
c)  No impact
d)  Both A and B.

Question 5

Depreciation under the Income Tax Act, is allowed for : –
a) Tangible Assets;
b) Intangible Assets;
c) Both A and B
d) None of the above

Question 6

In computing income under the Head Profits and gains of Business and Profession, income from which of the following business is taxable : –
a) Legal business
b) Illegal business;
c) Both, legal and Illegal Business
d) None of the above

Question 7

Depreciation on asset acquired under installment basis  is allowed
a) On installment paid
b) On entire purchase price
c) Not allowed until last installment is paid
d) Either A or B at the option of the assessee

Question 8

Which of the following is true for Block of Assets : –
a) It’s a group of assets
b) Same rate of depreciation is prescribed for asset within a group
c) It could include tangible or intangible assets
d) All the above

Question 9

Provision for gratuity is allowable as a deduction  in which of the following cases   :-
a) Provision for gratuity actually becomes payable during the relevant previous year
b) Payment towards an approved gratuity fund
c) Both of the above
d) None of the above
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