Tax Book 2023

Assets and Depreciation Chapter- 10

(c) Full

(d) Proportionate

Q.9. The question of depreciation allowance does not arise if the income from business is ____.

(a) Permanently exempt

(b) Exempt for specific period

(c) not exempt

(d) all of the above

Q.10. Initial allowance on eligible depreciable assets (plant and machinery) is allowed at the rate of
_____of asset.
(a) 40% of cost
(b) 40% of FMV
(c) 50% of WDV
(d) 25 % of Cost

Q.11. In case of assets with a useful life of one year, depreciation is ___allowed:

(a) Not

(b) on full year basis

(c) Proportionate basis

(d) All of these

Q.12. The initial allowance for depreciation is allowable for ___.

(a) Depreciable assets

(b) Eligible depreciable assets

(c) Intangibles

(d) All of these

Q.13. Depreciation u/s 22 on assets partly for personal and partly for business use is allowable on basis

(a) Monthly

(b) Half yearly

(c) Quarterly

(d) Annual

(e) proportionate

Q.14. Where an intangible is not used for the business for the whole year, then amortization deduction
would be on __basis.
(a) Half of the charge
(b) Full year charge
(c) Proportionate
(d) None of these

Q.15. A person shall be allowed a deduction of amortization of pre-commencement expenditure on straight
line basis at___.
(a) 10%
(b) 20%
(c) 25%
(d) 50%

Q.16. Amortization in any case cannot be___ to / from total cost of intangible.