Income Tax Law and Practice CIE 3

An assessee uses plant and machinery for the purpose of carrying on his business. Under section 31, he shall be eligible for deduction on account of________

• both capital and revenue expenditure on repairs

• revenue expenditure on repairs

• revenue expenditure on repairs plus l/5th of capital expenditure on repairs

• Not Applicable

GGC Ltd. incurred capital expenditure of Rs. 1,50,000 on 1/4/2020 for acquisition of patents and copyrights. Such expenditure is

• Eligible for deduction in 14 years from AY 2021-2022 i.e. PY 2020-2021

• Eligible for deduction in 5 years from AY 2021-2022 i.e. PY 2020-2021

• Subject to depreciation @ 25% under section 32

• Subject to depreciation @ 15% under section 32

Which of the following income is not chargeable as income of business or profession?

• Profits and gains of business carried by an assessee during the previous year

• Income derived by a trade, professional or similar association from specific services performed for its members

• Winnings from horse races

• Salary received by a partner of a firm from the firm in which he is a partner

Rate of depreciation of furniture and fitting is:

• 15%

• 10%

• 18%

• 20%

If a new machinery is purchased on 15/4/2023 and put to use for the purpose of the business on 2/1/2024, depreciation would be allowable at the rate of:

• 7.5%

• 15%

• 10%

• 20%

Depreciation is allowed in case of

• Tangible Assets

• Intangible Assets

• Tangible and Intangible assets

• Deferred Revenue Expenditure

Preliminary expenses shall be allowed as deduction in:

• 5 instalments

• 10 instalments

• 15 instalments

• 12 instalments

Which of the following is not included under "Income from Other Sources"?

• Interest on fixed deposits

• Dividend from an Indian company

• Salary income

• Lottery winnings

Which of the following gifts is exempt from tax under "Income from Other Sources"?

• Cash gift from a friend exceeding ₹50,000

• Gift from parents on marriage

• Property received as a gift from a distant relative

• Gift received from a non-relative during Diwali

Income from winning lotteries is taxed at a flat rate of:

• 10%

• 20%

• 30%

• 40%