Profits and gains from business or profession – Test 2

Out of the followings which one is not chargeable under the head “PGBP”?

Assessee is engaged in scientific research related to his business and incurred following expenses within three years before commencement of business. Which expenditure is not eligible for deduction under section 35?

Out of followings which one is not a qualifying expenditure for the purpose of claiming deduction under section 35D (Amor tisation of preliminary expenses)?

The maximum ceiling on qualifying expenditure in case of company under section 35D is 5% of cost project or 5% capital employed whichever is higher. Find out the correct meaning of capital employed for the purpose of section 35D.

Out of the followings which shall be allowed as deduction while computing income under the head PGBP?

Out of followings who is not regarded as relative of Individual for the purpose of section 40A(2)?

During previous year 2017-18, Mr. Tej, a trader sold the goods on credit worth Rs. 90,000 to Miss Gita. Mr. Tej recovered Rs. 20,000 during previous year 2017-18 while written off Rs. 30,000 as Bad Debt. However, on 12/012/2018, Mr. Tej recovered Rs. 52,000 from Miss Gita as full and
final payment. Find out tax consequences for the previous year 2018-19.

The presumptive taxation scheme of section 44AD can be adopted by __________.

In case of a person opting for section 44AD, business income shall be computed on presumptive basis, i.e., @ _____________ of the turnover or gross receipts of the eligible business for the year if turnover/gross receipt is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date of filing of return under section 139(1).

The presumptive taxation scheme of section 44ADA can be adopted by __________.

In case of a person adopting the provisions of section 44ADA, income will be computed on presumptive basis, i.e., @ _________of gross receipts of the specified profession.

The presumptive taxation scheme of section 44AE can be opted by a person who is engaged in the business of plying, hiring or leasing of goods carriages and who does not own more than ________ goods vehicles at any time during the year.

Disallowance of interest, royalty, fees for technical services or any other sum payable outside India to any person or in India to non-residents, due to default in adhering TDS provisions is governed by section_______.

Any expenditure incurred by an assessee in respect of which payment has been made to the specified persons is liable to be disallowed under section 40A(2) while computing income under the head “Profits and Gains of business or profession” if such payment is__________ the fair market value of goods or services or facilities, etc.

Mr. Kapoor obtained services worth Rs. 1,00,000 from his relative while fair market value of these goods is Rs. 80,000. In this case, Mr. Kapoor is entitled to claim deduction of ____________ on account of services procured from his relative.

For the purpose of section 40A(2), person is said to have substantial interest in the company if he holds beneficially ____ or more of the equity capital at any time during the previous year.

Mr. Kapoor purchased goods worth Rs. 2,00,000 from an unrelated dealer. The fair market value of these goods is Rs. 1,50,000. In this case, what may be the amount of disallowance while computing income under the head “PGBP”?

Payment (other than payment made for plying, hiring or leasing goods carriages) made in excess of Rs._______ otherwise than by an account-payee cheque or an account-payee demand draft is to be disallowed under section 40A(3).

Payment made for plying, hiring or leasing goods carriages in excess of _______ otherwise than by an account-payee cheque or an account-payee demand draft is disallowed under section 40A(3).

In certain circumstances, the provisions of section 40A(3) shall not apply. These circumstances are enumerated in Rule______.

Payment made to the producer for the purchase of the products manufactured or processed, without the aid of power in a ____________, shall not attract disallowance under section 40A(3).

Mr. Jay purchased goods in cash amounting to Rs. 1,10,000 from his relative while fair market value of the goods is Rs. 90,000. In this case under which section(s) disallowance may be attracted?

Mr. Mohan purchased goods worth Rs. 1,00,000 from his sister. The fair market value of the goods is Rs. 1,20,000. Entire amount of Rs. 1,00,000 was paid in cash. Ascertain the amount of disallowance under section 40A(2)?

Mr. Mohan purchased goods worth Rs. 1,00,000 from his sister. The fair market value of the goods is Rs. 1,20,000. Entire amount of Rs. 1,00,000 was paid in cash. Ascertain the amount of disallowance under section 40A(3)?

Mr. Mohan purchased agricultural products from his sister who is the cultivator of these agricultural produce. He purchased the same for Rs. 2,00,000 though fair market value was Rs. 1,80,000. Entire amount of Rs. 2,00,000 was paid in cash. Find out the amount which may be disallowance under section 40A(3)?

Under section _______, certain payments are disallowed, if not paid on or before the due date of filing the return of income.

Which of the following payment does not fall under section 43B?

ABC Ltd. maintains books of account on mercantile basis. For the previous year 2018-19, interest
payable on term loan taken from a Co-operative bank was Rs. 5,50,000. Out of Rs. 5,50,000, it had not paid Rs. 55,000 till the due date of filing the return for the previous year 2018-19. In which year can such Rs. 55,000 be deductible.

Section ________ deals with the provisions relating to depreciation allowance while computing income chargeable to tax under the head “Profits and Gains of business or profession”.

If the asset is acquired during the previous year by the taxpayer and the same is put to business use for less than _____ days during that year, then taxpayer can claim depreciation at _______.