FOOD FOR THOUGHT

Income from Illegal Business is taxable under the head

• Income form Other Sources

• Income From Business

• Income from Profession

• Not Taxable

Acquisition of Goodwill for the Business is allowed as a deduction while computing Taxable Income from Business

• Yes

• No

• Maybe

• Sometimes

Provision for Depreciation is a

• Business Expense

• Non Business Expense

• Capital Expenditure

• Deferred Revenue Expenditure

Loss on sale of Assets is

• Allowed as a Deduction from Profits

• Not allowed as a deduction

• Both

Provision for doubtful debts is:

• Fully allowed

• 
  Allowed if actual bad debts occur

• Partially allowed

• Fully disallowed

Which of the following expenses is allowed as a deduction?

• Penalty for breach of law

• Donation to a political party
  

• Income tax paid

• Compensation for loss of goods in transit

Loss due to embezzlement by an employee is:

• a) Fully allowed as a business expense

• b) Fully disallowed

• c) Allowed only if reported to authorities

• d) Allowed only if insurance is claimed

Income Tax Penalty paid is treated as

• Business Expense

• Allowed as a deduction

• Non Business Income

• Depends on the Assessing Officer

Salaries paid to part time workers is ​

• Business Expense
• Income from Salaries 
• Income from Other Sources 
• Not Business expense

If Mr A dies , and he has earned a business income of Rs 5,00,000... He need not pay tax as he is no more

• True

• False

• The Income Tax officer decides

• Income Tax pays compensation