Tax Book 2023

Losses Chapter- 14

MULTIPLE CHOICE QUESTIONS

Q.1 Loss from the speculation business may be set off against___________.

(a) Income from any other head of income

(b) Income from speculation business only

(c) Both ‘a’ and ‘b’

(d) None of the above

Q.2 Capital losses can_____.

(a) Be set off against income from any head of income

(b) not be set off against any other head of income

(c) Be set off against capital gains during the same tax year

(d) None of the above

Q.3 The business loss during the specific exemption period may be set off against the business

income___________.

(a) after the exemption period

(b) Before the exemption period

(c) Not to be set off and carried forward

(d) both ‘a’ and ‘b’

Q.4 Loss incurred from speculation and non-speculation business can be carried forward in the
immediately succeeding __tax years.
(a) 6 years
(b) 5 years
(c) 4 years
(d) 7 years
Q.5 There can be no loss under the head :
(a) Income from Salary
(b) Income from business
(c) Income from other sources
(d) None of the above
Q.6 While setting off the loss under the head income from other sources, business losses and
unabsorbed depreciation loss the adjustment shall be in the order of _____.
(a) Loss from other sources, depreciation and business loss
(b) Depreciation, business loss and other income
(c) All shall be adjusted at the same time
(d) None of the above.
Q.7 An industrial undertaking set up in any export processing zone can carry forward its assessed
business losses up to__.
(a) 6 years
(b) 5 years
(c) 10 years
(d) unlimited time