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Book profit u/s 115JB of I T Act 1961

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Section 115JB is applicable to which of the following assessee(s)?

a)

Individual

b)

HUF

c)

Firm

d)

Company

e)

All of them.

2.

Section 115JB comes into play when ____

a)

the taxes under normal computation is less than taxes on book profit

b)

the taxes under normal computation is more than taxes on book profit

c)

the assessee chooses to pay tax on Book Profit instead of Normal Provision

d)

either Brought forward loss or brought forward depreciation is ZERO.

3.

Book profit to be increased by ______ to arrive at adjusted Book Profit.

a)

the amount of expenditure related to exempt L.T.C.Gain

b)

the amount of GST debited in profit and loss account

c)

the provision for ascertained liabilities

d)

the amount of income taxes debited in profit and loss account

4.

Book profit to be increased by ______ to arrive at adjusted Book Profit.

a)

the amount of depreciation,

b)

the amount of deferred tax and the provision thereof debited in P&L a/c

c)

the amount or amounts set aside as provision for diminution in the value of any asset

d)

All the above

5.

Whether exempt LTCG to be reduced from book profit?

a)

YES

b)

NO

6.

In a particular case, brought forward loss is Rs 1 Cr, and brought forward unabsorbed depreciation is Rs. NIL. Which amount would be reduced from the book profit?

a)

Rs. 1 Crore

b)

Rs. 50 Lakh (Being average of B/fd. Loss & Depreciation)

c)

Rs. NIL.

d)

None of the above

7.

Deferred taxes credited to profit and loss  account

a)

Would not be reduced from the book profit

b)

Would be reduced from the book profit

c)

None of the above

8.

Whether the Dividend income is required to be reduced from the book profit?

a)

YSE

b)

NO

9.

Whether the amount of expenditure disallowed during assessment proceedings would also be disallowed while computing book profit?

a)

YES

b)

NO

c)

NONE of the above

10.

During the course of assessment proceedings, a loan of Rs 1 Cr was treated as unexplained cash credit. The same was added to book profit also on the ground that it was income of the assessee. Whether the action of the AO is correct? 

a)

YES

b)

NO

c)

NONE of the above