Income Tax Act 2 Quiz

Which of the following is an allowable business expense?

• Personal expenses

• Penalty for violating the law

• Interest on capital

• Salary to employees

Which section covers general deductions under the Income Tax Act?

• Section 30

• Section 35

• Section 37

• Section 80C

Which of the following expenses is not allowed under Section 37?

• Expenses for business promotion

• Expenses for illegal activities

• Office rent

• Staff welfare expenses

Depreciation under the Income Tax Act is allowed on which of the following?

• Goodwill purchased

• Land

• Building

• Stock-in-trade

Provisions relating to depreciation are given under which section?

• Section 35

• Section 32

• Section 40

• Section 44AD

The concept of "block of assets" is relevant to:

• Rent calculation

• Depreciation computation

• Salary payment

• Loan repayments

Which of the following is not a deemed business profit?

• Recovery of bad debts

• Sale of depreciable asset

• Sale of capital asset

• Duty drawback

Deemed business profits are taxable under which section?

• Section 28

• Section 32

• Section 80C

• Section 24

Which section makes it mandatory for certain professionals and businesses to maintain books of accounts?

• Section 32

• Section 44AA

• Section 37

• Section 80C

Section 44AB deals with:

• Capital gains

• Audit of accounts

• Depreciation

• Deductions