CBES Board Class 11/CS Executive Tax Laws MCQs Set-4 Sample Test,Sample questions

A charitable trust acquired two air-conditioners for ₹ 1,40,000 on 10th June 2020. It claimed the acquisition as the application of income. The amount it can claim by way of depreciation for the said air-conditioners for the AY 2021-22 is

A Company incurred capital expenditure on scientific research viz., (i) land ₹ 5 lakh (ii) building ₹ 10 lakh (iii) equipment ₹ 7 lakh. The amount of expenditure eligible for deduction under Section 35 would be –

Alpha & Co is a proprietary concern owned by Vimala. The total turnover for the Year 2020-21 is ₹ 52 lakhs which includes proceeds realized through banking channel ₹ 12 lakhs. The presumptive income under Section 44AD would be:

Andhra Traders a partnership firm paid ₹ 80,000 as contract charges to AKP & Co. (firm). No tax was deducted at source for the above said payment The amount liable for disallowance under section 40(a)(ii) for the assessment year 2021-22 is:

Any capital expenditure incurred on acquiring a telecom license is deductible in

Appu Ltd. contributed ₹ 8,70,000 towards the provident fund account of its employees. It actually remitted ₹ 5,00,000 up to 31st March and ₹ 2,50,000 up to the due date for filing the return specified in Section 139(1). The amount liable to tax in its assessment would be

As per Section 35DDA, total expenditure in a voluntary retirement scheme is deductible in

Ashwin has speculation business loss brought forward of the assessment years 2015-16 ₹ 1,00,000; 2016-17 ₹ 70,000 and 2017-18 ₹ 60,000. He has income from the same speculation business for the assessment year 2021-22 ₹ 5,40,000. His total income chargeable to tax for assessment year 2021-22 would be

Books of account of an individual are liable for tax audit under section 44 AB on a mandatory basis, if the annual turnover exceeds:

DP & Co. is a partnership firm with 3 partners. The capital of each partner was ₹ 2 lakh. The partnership deed authorized interest on capital @15% and working partner salary to each partner @ ₹ 10,000 per month for all the partners. The total sales amounted to ₹ 70 lakh. The total income of the firm under Section 44AD would be

DPM Ltd. constructed staff quarters and let out the same during the financial year 2020-21. Its rent received ₹ 7,50,000 by way of rent from employees during the year. The rental receipt is taxable as:

Dr. Ravi practicing medicine has gross receipt of ₹ 18,40,000 for the financial year 2020-21. His presumptive income under Section 44ADA would be:

Dr. Sen has surgical equipment whose WDV as of 1.4.2020 was ₹ 4,10,000. He acquired some more equipment in December 2020 for ₹ 3,50 000. He sold equipment in March 2020 for ₹ 2,00,000 whose original cost was ₹ 1,70,000. The written down value of the block for the purpose of computing depreciation for the assessment year 2021-22 is:

Ekta (P) Ltd., engaged in manufacturing activity, acquired new plant and machinery for ₹ 100 lakh for its manufacturing unit located in Bihar. The acquisition and use were from 1st June 2020. The assessee is eligible for additional depreciation of –

If a block of assets ceases to exist on the last day of the previous year, depreciation admissible for the block of assets will be

John Miller & Co. of UK is maintaining and operating a branch in India for the sale of its garment products. The adjusted total income of the branch for the year prior to the charge of HO expenses of ₹ 20 lakh is ₹ 100 lakh. Indian branch intends to know the maximum amount of HO expenses as allowable during the year under the Act.
Specify the amount:

Madhu Ltd. owns machinery (rate of depreciation is 15%) the written down value of which as of 1 st April 2020 ₹ 30,00,000. Due to fire, entire assets in the block were destroyed and the insurer paid ₹ 25,00,000. The eligible depreciation in respect of this machinery is

Malick & Co. engaged in trading activity could not recover ₹ 5 lakhs from a customer. It claimed the entire amount as a bad debt by writing it off in the books of account. The aggregate sale made during the year to the party amounts to ₹ 30 lakhs. The amount eligible for deduction by way of bad debt is:

Mr. Siraj engaged in retail trade reports a turnover of ₹ 43 lakhs for the previous year 2020-2021. He deposited ₹ 30,000 in his PPF account held with SBI. Turnover or gross receipts represents the amount received by an account payee cheque or an account payee bank draft or use of an electronic clearing system through a bank account during the previous year or before the due date specified in Section 139(1). His total income for the assessment year 2021-22 by applying section 44AD provision is:

Provisions of Section 44AD for computation of presumptive income are not applicable to

Rahim had 5 goods carriage vehicles on 1.4.2020. He acquired and used 3 vehicles from 1.9.2020. What is the presumptive income under Section 44AE?

Raju succeeded to the business of his father Ramu consequent to the demise of Ramu on 1.2.2021. Raju recovered ₹ 30,000 due from a customer which was written off by late Ramu as bad debt and allowed in the assessment year 2016-2017. The amount recovered is:

Ramson Industries acquired a factory building for self-use in November 2020. The value of the land underneath the building was ₹ 5 lakh and the value of the building was ₹ 10 lakh. The amount of eligible depreciation allowable for assessment year 202122 is

Ranga & Co. had as of 1.4.2020 plant and machinery whose written down value was ₹ 12,00,000. It acquired 2 plants on 3.11.2020 for ₹ 6 lakhs. The applicable depreciation rate is 15%. The eligible depreciation including additional depreciation for the AY 2020-2021 would be:

Ravi & Co. paid ₹ 40,000 in cash to Mr. Balu a supplier on 5.9.2020. The cash payment was made on the day on which the bank was on strike.
The amount of expenditure liable for disallowance under section 40A(3) is:

Rosy Ltd. engaged in the manufacture of bio-medicines in August 2020 converted one piece of equipment that was used for scientific research purposes previously, for regular business use. The original cost of the plant is ₹ 15 lakhs which was acquired in April 2019. The company had claimed deduction at 150% under section 35(2AB) in the assessment year 2020-21. The plant used for scientific research would be included in the block of assets now at a value of:

Sakshi Pvt. Ltd. has spent a sum of ₹ 30 lakh towards meeting its Corporate Social Responsibility (CSR) obligation. The amount of deduction available while computing the business income is:

Sameer sold goods worth ₹ 50,000 at credit on 1st April 2019. However, he has written off ₹ 10,000 of it as bad debts and claimed a deduction for the same during the year 2019-20. On 4th April 2020, the defaulting debtor made a payment of ₹ 45,000. The taxable amount of bad debts recovered for the year 2020-21 would be

Saraswathi Ltd. made a provision of ₹ 12 lakh for a bonus payable for the year ended 31st March 2021. It paid ₹ 7 lakh on 31st July 2021; ₹ 3 lakh on 30th September 2021; and ₹ 2 lakh on 15th December 2021.
The amount eligible for deduction u/s 43B would be

Sunil acquired a building for ₹ 15 lakh in June 2018 in addition to the cost of land beneath the building of ₹ 3 lakh. It was used for personal purposes until he commenced business in June 2020 and since then it was used for business purposes. The amount of depreciation eligible in his case for the AY 2021-22 would be

Swan (Pvt.) Ltd. acquired machinery for ₹ 5,75,000 which included a GST of ₹ 75,000 eligible for the input tax credit. It borrowed ₹ 3,00,000 from a bank for the purchase of the said machine. Interest on the bank loan up to the date of usage of the machine was ascertained as ₹ 5,000. The machine was put to use from 15th September 2020. Assume the rate of depreciation at 15%. The eligible amount of deprecation will be –

The maximum penalty leviable for failure to get accounts audited or to furnish report u/s 44AB is

U/s 40A(3) which of the following payment for an expenditure incurred would not be admissible as a deduction from business income

Under the head ‘profits and gains of business or profession’, the method of accounting that should be followed by an assessee is

Under the Income-tax Act, 1961, which of the following outlays incurred by Sun Ltd. during the previous year ended 31st March 2021 will not be admissible as deduction while computing its business income

Vaibhav, deriving business income, owns a car whose WD V as of 1 st April 2019 was ₹ 3,00,000. This is the only asset in the block of assets with a rate of 15%. It is estimated that one-third of the total usage of the car is for personal use in both years. The WDV of the block of assets as of 31 st March 2021 would be

Varun Ltd. paid fees for technical services of ₹ 6 lakh has and omitted to deduct tax at source and such omission continued till the ‘due date’ for filing the return of income specified in Section 139(1). The amount of expenditure available for disallowance would be –

Vikram Mfg. Co. Ltd. located in a backward area in the State of Andhra Pradesh acquired some machinery for ₹ 20 lakh on 10.8.2020. It was put to use from 1.9.2020. The applicable rate of depreciation is 15%.
How much would be the eligible additional depreciation for the assessment year 2021-22 in respect of the said machinery?

When a cash payment of ₹ 15,000 is made on 10th May 2020 towards the purchase of raw material affected in the earlier year, ie., on 5th June 2019, the amount liable for disallowance u/s 40A(3A) would be

When a person carries on the business of carrying goods for hire for the whole year with 5 self-owned and 3 leasehold goods vehicles (other than heavy goods vehicles), the presumptive income chargeable to tax u/s 44AE would be

When ABC Ltd. incurred ₹ 10 lakh in FY 2020-21 as capital expenditure for the purpose of family planning amongst the employees, the expenditure allowable for the assessment year 2021-22 would be:

Where an assessee doing business expenditure in respect of which payments made to a person in a day exceeds ₹ 10,000 should be paid through account payee cheque or demand draft to claim a deduction for such expenditure. This restriction does not apply to

Where an asset used for scientific research for more than three years is sold without having been used for other purposes, then the sale proceeds to the extent of the cost of the asset already allowed as deduction under section 35 in the past shall be treated as

Where the payment of expenditure claimed as a deduction by any assessee carrying on business or profession other than who is in transport business exceeds ₹ 10,000, it should be paid by:

Which of the following business commenced during August 2016 will not be eligible for deduction u/s 35 AD?

Which of the following is a ‘specified business’ eligible for deduction under section 35AD?

Which of the following is not deductible while calculating taxable income from business:

Which out of the following elements you find are sufficient for bringing to tax as income from Business or profession?
(i) Ownership of the business is not necessary
(ii) Business must be legal
(iii) Income may be earned in cash or kind
(iv) Profit motive is the sole consideration
Select correct answer from the options given below:

X Ltd. paid ₹ 10 lakh to an approved college to be used for scientific research unrelated to its business. The amount eligible for deduction u/s 35(l)(n) is

X, Manager of XYZ Ltd. since 2006 was terminated by the company on 1 st August 2020 by paying a compensation of ₹ 200 lakh. Such compensation is