Tax Audit u/s 44AB 2nd Webinar - 1

B Ltd. engaged in the business of power busineess had  purchased an asset on 15.4.21 for 5 lakhs Rs.and claimed depreciation @ 10 percent on the same. WDV of the asset on 1.4.23 is Rs.4.05 lakhs. On 15.6.23 it sold the asset for Rs 5.2 lakhs. What is the amount of deemed income taxable in the hands of B Ltd.

• Rs 1.15 taxable under the head PGBP

• Rs 1.15 taxable under the head Capital Gain'

• Rs 0.95 lakhs taxable under PGBP as balancing charge and Rs 0.2 lakhs taxable under the head Capital Gains

• Rs 0.95 lakhs taxable under Capital Gains and Rs 0.2 lakhs taxable under PGBP as balancing charge

A ltd. had deducted employee share of provident fund amounting to Rs 1,00,000 for the month of Feb 24 and deposited the same by 29 March 24. What is the amount of deduction allowable to A ltd. in respect of this transaction?

• 1,00,000 will be allowed as deduction since the same had been paid before due date of filing return of income

• Nil

• Rs 50000 will be allowed as deductiom

• Rs 75000 will be allowed as deduction

Buyer is liable  to make payment of interest to the supplier at the rate of

• Interest is payable at 12 percent p.a

• 2 times the bank rate notified by RBI

• 3 times the bank rate notified by CBIC

• 3 times the bank rate notified by RBI

D ltd. made sale of Rs.1,00,000 to C Ltd.  Subsequently C Ltd become insolvent and D Ltd made bad debts of Rs.75,000 in its books for C Ltd. Bad debts of Rs 50,000 was allowed by the AO. Subsequently only Rs.35,000 were recovered from C Ltd in full & final settlement., 

• Further deduction of Rs 15000 will be allowed as bad debts under the head PGBP

• Rs 15000 will be deemed income under the head PGBP

• Rs 25000 will be deemed income under the head PGBP

• Rs 35000 will be deemed income under the head PGBP

Z and Co. had sold goods to Y and Co. for Rs.10,000 on 1.3.24. Z & Co. is registered under the MSMED ACT, 2006 and its turnover  is 55 crore.  As per the agreement between the parties, Y and Co. is required to make payment to Z and Co. by 5.4.24. However Y and Co. made payment of Rs 4000 to Z and Co. on 4.4.24 and balance Rs 5000 on 22.4.24. How much will be deduction allowed for this purchase to Y and Co. for PY 23-24?

• Rs 4000,since payment of Rs 6000 is made after the agreement date

• Nil

• Rs 6000 will be allowed as deduction

• Rs 10000 will be allowed as deduction since Z and Co. is an medium enterprise