Income from B & P

1.       Which is the charging section of income under the head profits and gains of business or profession?

• A.       Section 30

• B.      Section 22

• C.       Section 28

• D.      Section 29

2.   Which of the following conditions are to be fulfilled for charging an income under the head profits and gains of business or profession

• A.      There should be profits and gains.

• B.      Business or profession must be carried on by the assessee.

• C.      Business or profession should be carried on at any time during previous year.

• D.      All of the above.

3. Assessee is having stock existing in the business. Valuation of stock will be at:

• A.      Cost price

• B.      Market price

• C.      Cost price or market price, whichever is less

• D.     Cost or market price, whichever is more

4. Rate of additional depreciation is             of actual cost of new asset.

• a.      5%

• b. 10%

• c.   15%

• d. 20%

5.   Payment to relatives is disallowed under section 40A(2) if the payment -

• a.      exceeds Rs. 50,000 per year

• b.      is unreasonable

• c.       exceeds Rs. 20,000 per day

• d. None of the three

6.    Payments to residents on which tax has not been deducted/ paid shall be disallowed to the extent of ________________ _

• A.         0%

• B.         30%

• C.         100%

• D.         50%

7.    Mr. S paid the income tax due of the previous year 2021-22 on 15th June 2022. When shall deduction of this expenditure be allowed to him?

• A.    Previous Year 2021-22

• B.  Previous Year 2022-23

• C.  Previous Year 2023-24

• D. Not allowed deduction

8.   Daughter of Mr. S was appointed as a manager in his firm. Mr. S made a payment of salary of Rs. `35,00,000 to her daughter whereas Assessing Officer is of opinion that such expenditure is excessive or unreasonable having regard to the FMV which comes to be of Rs.`29,00,000. Calculate the amount to be disallowed.

• A.         Rs.`35,00,000

• B.         Rs.`39,00,000

• C.         Rs.`6,00,000

• D.    Nil

9. Mr. X  incurred an expenditure of municipal tax of Rs. ` 55,000 relating to office building for the previous year 2021-22 but did not paid same till 30-09-2022 . Such sum  was paid on 6th Feb, 2023. In which assessment year deduction shall be allowed to the Mr. X ?

• A.  AY.2023-24

• B.   AY.2022-23

• C.  A.Y.2021-22

• D.   Nome

10.        For computing deemed profits under section 44AE in case of goods carriage other than heavy weight vehicle  being a goods vehicle the amount with which per vehicle per month has to be multiplied is:

• A.     Rs.` 10,000

• B.   Rs.` 7,500

• C.   Rs.` 50,000

• D.   Rs.` 1,50,000