Income From Business Chapter- 09
MULTIPLE CHOICE QUESTIONS
Q. 1 Any payment made on account of salary exceeding Rs. 2 5,000 per month is not allowed as a
deduction against business income if made through ___.
(a) cross cheque
(b) online transfer
(c) cash
(d) pay order
Q. 2 Any donation to an approved institution is allowed as straight deduction against business income by
___.
(a) Full amount
(b) Half amount
(c) Proportionate basis
(d) Amount calculated on average rate basis
Q. 3 A deduction against business income is allowed for __.
(a) Provision for bad debts
(b) Actual bad debts
(c) Appropriation of profitsQ. 4 Income tax is an ___.
(a) Expense
(b) Provision against profits
(c) Appropriation of profitsQ. 5 The expenditure or loss that was allowed as deduction if subsequently received is included in the
income of the year _____.
(a) In which it was allowed as expense
(b) In which it is received
(c) Following the year of receipt
(d) None of these
Q. 6 A company is allowed a deduction on account of depreciation for __.
(a) Depreciable assets
(b) Intangibles
(c) Pre-commencement expenditures
(d) All of theseQ. 7 Cash discount received is taxable under the head _____.
(a) Income from Business
(b) Income from Capital Gains
(c) Income from other sources
(d) Not taxableQ. 8 Income from Business may be taxable under __.
(a) FTR