CA Final DT – Part I – Chapter 6 – Profits and Gains of Business or Profession MCQs – Set I

Which of the following are not considered as profits under the head PGBP

Mr. Ram is a lawyer and he receives a sum of Rs. 1,00,000/- from Mr. Sunil, who is not his client, merely for the fact that Mr. Sunil derived benefit from Ram’s professional service. Such amount is taxable in the hands of Ram under the head

The charging Section of PGBP is –

To be considered as income under the head PGBP, it is necessary that the business, profession or vocation should be carried on at least for

To be considered as income under the head PGBP, it is necessary that the business, profession or vocation should be carried on by-

Mr. A earns income from goods smuggled from Dubai. Such income is –

Profits from distinct businesses of an assessee, must be computed __________ but tax chargeable under PGBP is computed on ____________ basis

Charge of tax under PGBP is on-

Income chargeable under the Head PGBP is to be computed in accordance with-

The claim for escalation of price in a contract or export incentives shall be deemed to be the income of the previous year in which –

ICDS refers to-

ICDS requires which accounting system to follow–

ICDS is not required to be followed by which of the assesses?

ICDS are applicable to compute income under which head?

ICDS are applicable for –

In case of conflict between ICDS and provisions of Income tax Act, which of the following would prevail?

Which ICDS does not contain transitional provisions?

Which ICDS does not contain Disclosure Requirements?

ICDS I on Accounting policies does not recognise concepts of

ICDS II requires inventory to be valued at –

ICDS VI, Revenue recognition deals with revenue arising in the ordinary course of activities of a person arising from-

As per ICDS VI, Revenue recognition what is revenue in case of agency relationship?

As per ICDS VI, Revenue recognition, revenue from service transactions is required to be recognised on the basis of –

Revenue from service contracts with ________ duration is to be recognised when rendering of services under the contract is completed or substantially completed.

As per ICDS VI – Effects of changes in foreign exchange rates, non monetary items in a foreign currency shall be converted into reporting currency by using exchange rate on –

As per ICDS – VIII – Securities , Securities held as stock in trade is to be recognised at actual cost on acquisition. Actual cost on acquisition includes of –

Securities held as Stock in trade to be valued at Actual cost or NRV whichever is lower. Such comparison between actual cost and NRV is to be done –

ICDS X does not deal with Provisions, Contingent Liabilities and Contingent Assets resulting from –

Which of the following statements is correct?

A firm pays 18% p.a simple interest to a partner. The allowable rate of interest is 12% p.a. Interest to the extent of ______ will be taxed in the hands of partner and to the extent of _____ will be taxed in the hands of the firm.

Any sum received by an assessee being _________ under a Keyman insurance policy, including the sum allocated by way of bonus on such policy will be taxable as income from business

___________ of inventory on the date of conversion as a capital asset would be chargeable to tax as business income

Loss in a speculation business carried forward to a subsequent year can be set off against –

Deeming provision that if the business of a company consists of purchase and sale of shares of other companies, such company shall deem to be carrying on speculation business to the extent to which the business consists of purchase and sale of such shares, does not apply to company whose principle business is –

Which of the following is not deemed to be a speculative transaction?

The profits and gains of any business or profession is computed in accordance with provisions contained in

PQR Firm runs its business in the premises owned by one of its partners Mr. Prasad. The rent payable by the firm to such partner is –

In order to claim deduction with respect to expenses on current repairs and insurance of plant, machinery and furniture in computing income from business profession, the assessee must be _________ of such assets

Repairs for the purpose of Section 31 include

Which of the following is/are the condition/s based on which deduction is allowed for Insurance premium on Plant, machinery, furniture?

Depreciation under Section 32 is allowed from the point at which asset is

Assets like Stand by equipment and fire extinguishers can be capitalised if they are-

Depreciation is allowable in respect of ______________ assets of the assessee

Mr. Sundar runs his business in a building taken on lease by him from Mr. Shyam. Sundar incurs a capital expenditure amounting to Rs. 5,00,000/- for the purpose of construction of a structure within the building to process his products in order to make it ready for sale. The depreciation on such structure will be allowed to –

Power Generation undertakings depreciation can be calculated using

Option to compute depreciation under WDV method must be exercised by Power Generation undertaking –

Additional depreciation is allowed on –

Additional depreciation on plant and machinery is allowed to –

Rate of Additional depreciation is

Additional depreciation is not allowed to

Assessee engaged in the business of printing or printing and publishing is eligible for

Terminal depreciation is allowed to

Mega Power Ltd purchased an asset on 25/07/2017. The actual cost of the asset is Rs. 100 lakhs. The company claimed depreciation at 5% on actual cost of asset. WDV of the asset as on 01/04/2021 is Rs. 70 lakhs. On 10/06/2021, the company sold the asset for Rs. 45 lakhs. Deduction allowed as terminal depreciation would be

Motor buses, Motor lorries and motor taxis used in the business of running them on hire, acquired between 23.08.2019 to 31.03.2020 and put to use on or before 31.03.2020 subject to depreciation at the rate

Mobile phones and EPABX is considered under which block of assets?