Income Tax - Quiz 8

Income Tax - Quiz 8

Income Tax Law and Practice / UGC NET Commerce

1. Under the income -tax Act, the incidence of taxation depends on ______.

The citizenship of the tax-payer
The age of the tax-payer
The residential status of the tax-payer


2. Interest on securities held as stock-in-trade of an assessee’s business should be included in his total income______.

Income from business
Interest on securities
Income from other source


3. Income to the cultivator from commercial agriculture crops such as jute, cotton, groundnuts, sugarcane, etc. is treated as _______.

Business income
Agriculture income
Income from other source


4. Deduction u/s 16(iii) regarding professional tax is allowed in computation of income Under the head ‘salaries’ for the assessment year 2018-19 is an under _______.

NIL
5% of salary subject to a maximum of ₹ 1,000
Actual amount paid


5. Mr.Roy carrying on business as a chemist and a druggist and who spent ₹6,000 , in Respect of appeal proceedings before the income- tax authorities,can claim_____.

The whole of it as revenue expenditure
₹ 5,000 as a deduction from his gross total income
No deduction


6. Unabsorbed depreciation can be carried forward for set off _____.

For a period of four years only
For a period of eight years only
For an unlimited number of years


7. Mr.Sarkar and Mrs.Sarkar are qualified chartered accountants and are carrying on Profession as partners in the same professionals firm ______.

The share of income of both the partners will be clubbed under the provisions of Section 64
The clubbing provisions of section 64 will not apply to them
The share income from the firm will be exempt from tax


8. If a resident individual assessee spends ₹60,000 for developing export markets Abroad in the accounting year relevant to assessment year 2018-19 he will be Entitled to a deduction of______.

₹60,000
₹80,000
₹30,000

Compiled by Ms.S.Ilakkia