PGBP

1 / 150

Q150: A firm’s book profit is NIL. It shall still be
allowed as deduction on account of remuneration to
working partner to the maximum extent of—

2 / 150

Q149: Deduction u/s 40(b) shall be allowed on account
of salary/remuneration paid to:

3 / 150

Q148: Interest on capital or loan from partner of a firm
is allowed as deduction to the firm to the extent of:

4 / 150

Q147: A firm’s business income is nil/negative. It shall
be allowed as deduction on account of remuneration
to working partner:

5 / 150

Q146: Remuneration paid to working partner shall be
allowed as deduction to a firm:

6 / 150

Q145: Deduction u/s 40(b) shall be allowed on account
of remuneration paid to

7 / 150

Q144: Interest on capital of partner or loan from
partner of a firm is allowed as deduction to the firm
to the extent of:

8 / 150

Q143: JSJ & Co. is a partnership firm with 3 partners.
The capital of each partner was Rs. 2,00,000. The
partnership deed authorized interest on capital @
15% and working partner salary to each partner @
Rs. 10,000 per month for all the partners. The total
sales amounted to Rs. 70,00,000. The income of the
firm u/s 44AD would be

9 / 150

Q142: A partnership firm with turnover of
Rs. 2,40,00,000 omitted to get the books of account
audited u/s 44AB. The amount of penalty leviable
for failure to get the accounts audited u/s 44AB is:

10 / 150

Q141: Presumptive income of taxation referred to in
section 44AD is not applicable to

11 / 150

Q140: Section 44AD relating to presumptive income
of a business (excluding business covered u/s 44AE)
is applicable in case of:

12 / 150

Q139: In case an eligible assesses is engaged in any
business (other than playing, hiring or leasing of
goods transport) presumptive income scheme is
applicable if the gross receipts / sales paid or
payable to him in the previous year does not exceed:

13 / 150

Q138: Mr. J owns two commercial vehicles. One
vehicle is heavy good vehicles which has weight of
16 tones. This was owned for 9 months and two
days. The other vehicle is light goods vehicle which
is owned for 11 months & 12 days. What is the
income from business of Mr. J if he opts for
composition scheme u/s 44AE

14 / 150

Q137: If an eligible assesses is engaged in any
business (other than plying, hiring or leasing of
goods transport) and he has opted for presumptive
income scheme u/s 44AD, assesses shall

15 / 150

Q136: In case an assesses is engaged in the business
of plying, hiring or leasing goods carriage,
presumption income scheme u/s 44AE is applicable
if assesses is the owner of maximum of

16 / 150

Q135: If an eligible assesses is engaged in any
profession referred to in section 44ADA and he had
opted for presumptive income scheme u/s 44ADA,
the assesses shall:

17 / 150

Q134: In the case of section 44ADA, the minimum
income shall be presumed to be

18 / 150

Q133: Section 44ADA, relating to presumptive
income of the profession referred to in section
44AA, is applicable in case the gross receipts of the
profession does not exceed:

19 / 150

Q132: Section 44ADA relating to presumptive
income is applicable in case of

20 / 150

Q131: In case an assessee is engaged in the
business of plying hiring or leasing goods carriage,
presumption income scheme u/s 44AE is applicable
if the assessee is owner of maximum of:

21 / 150

Q130: If an eligible assessee is engaged in any
business other than plying, hiring or leasing of
goods transport and he had opted for presumptive
income scheme u/s 44AD, the assessee shall:

22 / 150

Q129: Presumptive income of taxation referred to in
section 44AD is not applicable to:

23 / 150

Q128: Section 44AD relating to presumptive income
of a business (excluding business covered u/s 44AE)
is applicable in case of:

24 / 150

Q127: In case an eligible assessee is engaged in any
business other than plying hiring or leasing of goods
transport, if turnover is in cash, presumptive income
shall be:

25 / 150

Q126: In case an eligible assessee is engaged in any
business other than plying hiring or leasing of goods
transport, presumptive income scheme is applicable if
the grossreceiptsthe previous year does not exceed:

26 / 150

Q125: Mr. J engaged in retail trade reports a turnover
of Rs. 43,00,000 all of which is received in cash. He
deposited Rs. 30,000 in his PPF account held with SBI.
His total income by applying Section 44AD
provision is:

27 / 150

Q124: Provisions of section 44AD for computation of
presumptive income are not applicable to –

28 / 150

Q123: Where the total turnover of an assessee, eligible
for presumptive taxation u/s 44AD, is received
entirely by account payee cheque during AY 2021-
2022 i.e. PY 2020-2021, the specified rate of
presumptive business income is

29 / 150

Q122: U/s 44AE, presumptive taxation is applicable at
a particular rate provided the assessee is the owner
of a maximum of certain number of goods carriages.
The rate per month or part of the month relevant for
AY 2021-2022 i.e. PY 2020-2021 and the maximum
number specified under the section are

30 / 150

Q121: Mr. J has 5 goods carriage vehicles on 1/4/2020.
He acquires 3 more vehicles from 11/9/2020. What
is the presumptive income u/s 44AE if all are light
goods carriage vehicles?

31 / 150

Q120: Dr. J is practicing MBBS and has gross receipt
of Rs.18,40,000. His presumptive income u/s 44ADA
would be:

32 / 150

Q119: The due date of furnishing audit report u/s
44AB shall be:

33 / 150

Q118: Tax audit is compulsory in case a person is
carrying on business whose gross turnover/sales/
receipts exceeds:

34 / 150

Q117: For person carrying on profession, tax audit is
compulsory, if the gross receipts of the previous
year exceed:

35 / 150

Q116: Calculate what amount is disallowed u/s 40(b)
where book profit of the firm is Rs. 5,00,000.
Remuneration paid to working partner is Rs. 4,50,000
and that to non-working partner is Rs. 90,000

36 / 150

Q115: A Ltd is liable to pay bonus to its employees
for the amount of Rs. 5,00,000 for the AY 2021-2022
i.e. PY 2020-2021 but paid this amount on
5/11/2021 i.e. after the due date of ITR which was
30/9/2021. How much amount shall be allowed as
deduction for bonus in subsequent year?

37 / 150

Q114: How much amount of expenses shall be
disallowed on account of not doing TDS when such
amount is payable to a resident?

38 / 150

Q113: Financial statement of Mr. J on 31/3/2021
reveals that the following expenses were due during
year ended 31/3/2021 but have been paid after
31/3/2021
Employer’s contribution to provident fund Rs. 55,000
(Rs. 25,000 paid on 15/7/2021, Rs. 10,000 paid on
31/7/2021 and Rs. 20,000 paid on 15/1/2021). The due
date of filing return is 31/7/2021. What would be the
deduction for AY 2021-2022 i.e. PY 2020-2021

39 / 150

Q112: The maximum penalty for failure to get
accounts audited u/s 44AB or furnish audit report
along with the return of income is

40 / 150

Q111: Which of following expenditure for which
payment is made to a resident are disallowed to the
extent of 30% unless the TDS has been done:

41 / 150

Q110: Interest on capital of partner or loan from
partner of a firm is allowed as deduction to the firm
to the extent of:

42 / 150

Q109: Tax audit is compulsory in case a person is
carrying on business referred u/s 44AD which has
gross turnover/sales/receipts, as the case may be,
exceeds:

43 / 150

Q108: Tax audit is compulsory in case a person is
carrying on business (except u/s 44AD) which has
gross turnover/sales/receipts, as the case may be,
exceeds:

44 / 150

Q107: For person carrying on profession, tax audit is
compulsory if the gross receipts of the PY exceed:

45 / 150

Q106: For persons carrying on business or non-specified profession the book account to be
maintained have:

46 / 150

Q105: An Individual who has been carrying on non-specified profession is:

47 / 150

Q104: If a person sets up a specified profession
during the current previous year, he is:

48 / 150

Q103: Person carrying on specified profession is
required to maintain:

49 / 150

Q102: A person carrying on specified profession is
required to maintain the prescribed books of account
of the current previous year if the gross receipts of
such profession in all of the three preceding previous
year exceeds:

50 / 150

Q101: A person carrying on specified profession is

51 / 150

Q100: For person carrying on profession, tax audit is
compulsory if the gross receipt of the previous year
exceeds

52 / 150

Q99: Is there any provision regarding compulsory
maintenance of books of accounts

53 / 150

Q98: In case the assessee follows mercantile system
of accounting, bonus and commission of employee
are allowed as deduction on:

54 / 150

Q97: A person carrying on profession will also have
to get his accounts audited before the specified date,
if gross receipts from the profession for a previous
year or years relevant to assessment year exceed

55 / 150

Q96: Which of the following are allowed as
deduction while computing the business income?

56 / 150

Q95: GGC Ltd. paid fees for technical services of
Rs. 6,00,000 but omitted to do TDS and such omission
continued till the due date for filling the return of
income specified in section 139(1). The amount of
expenditure liable for disallowance would be

57 / 150

Q94: A person carrying specified profession will
have to maintain books of account prescribed by
Rule 6F of the Income-tax Rules, 1962, if gross
receipts are more than Rs. 1,50,000 for

58 / 150

Q93: Employer’s contribution to provident fund/
superannuation fund/gratuity fund is allowed as
deduction in computing income under the head
PGBP provided it has been paid

59 / 150

Q92: The business income of a company assesses
before claiming Rs. 60,000 being 1/5th capital
expenditure on family planning is Rs. 40,000. The
balance Rs. 20,000 shall be treated as:

60 / 150

Q91: A machine which was acquired for Rs. 5,00,000
was earlier used for scientific research. After the
research was completed the machinery was brought
into the business of the assesses. The actual cost of
the machine for the purpose of inclusion in the block
of asset shall be:

61 / 150

Q90: Assessee shall not be allowed ___________
from the income mentioned u/s 35AD

62 / 150

Q89: Where a company has incurred a capital
expenditure of Rs. 1,00,000 towards promoting family
planning amongst employees, ..................... will be
allowed as deduction in the current year and balance
in ................ succeeding years

63 / 150

Q88: How is deduction of capital expenditure on
family planning allowed to company?

64 / 150

Q87: The expenditure incurred on payment under
voluntary retirement scheme shall be allowed as
deduction in

65 / 150

Q86: Where an assesses is carrying on a specified
business referred to in section 35AD, he shall be
allowed deduction

66 / 150

Q85: Deduction u/s 35CCC is allowed in respect of

67 / 150

Q84: Any expense on advertisement in any
souvenir, brochure, pamphlet or the like publications
by a political party ....................... under head PGBP.

68 / 150

Q83: Deduction u/s 35DDA is allowed in relation to

69 / 150

Q82: An assessee paid VRS as per the scheme of
voluntary retirement amounting to Rs. 8,00,000 on
21/3/2021. How much deduction of same shall be
allowed to assessee for PY ending 31/3/2021

70 / 150

Q81: Where an assessee is carrying on a specified
business referred to in section 35AD, he shall be
allowed deduction:

71 / 150

Q80: The expenditure incurred on payment under
voluntary retirement scheme shall be allowed as
deduction in

72 / 150

Q79: Capital expenditure incurred on family
planning amongst employees of the company
assessee is allowed as deduction

73 / 150

Q78: Expenditure incurred on family planning
amongst the employees is allowed to

74 / 150

Q77: Weighted deduction u/s 35CCD is allowed to

75 / 150

Q76: Expenditure incurred on skill development
project u/s 35CCD is eligible for weighted deduction
of

76 / 150

Q75: Expenditure incurred on agricultural extension
project u/s 35CCC is eligible for deduction of

77 / 150

Q74: Where the assessee does not himself carry on
scientific research but makes contributions to an
approved university, approved college or approved
institution, to be used for scientific research related
or unrelated to the business of assessee, then the
amount of deduction from income of business shall
be allowed or, such contribution to the extent of

78 / 150

Q73: In the case of company assessee, the total
preliminary expenses incurred are allowed as
deduction to extent of 5% of:

79 / 150

Q72: In the case of non-company assessee, the total
preliminary expenses incurred are allowed deduction
to the extent of:

80 / 150

Q71: Preliminary expenses incurred are allowed
deduction in:

81 / 150

Q70: Which of the following expenditure on
scientific research is not allowed as deduction

82 / 150

Q69: Deduction of 100% for an in-houses research
in some cases shall be allowed for the purchase of:

83 / 150

Q68: Deduction of 100% of revenue expenditure for
in houses research and development in some case is
allowed to:

84 / 150

Q67: If donation is made to a national Laboratory or
a university or IIT with the specific direction that the
scientific research should be for an programme
approved by the government, the amount of
deduction shall be:

85 / 150

Q66: Donation to approved university or approved
college for social or statistical research shall be
allowed as deduction to the extent of

86 / 150

Q65: Donation to approved association for scientific
research shall allowed as deduction to the extent of

87 / 150

Q64: If any amount is donated for research, such
research can be in the nature of:

88 / 150

Q63: If the income of a business before claiming
capital expenditure on scientific research is
Rs. 150,000 and the capital expenditure incurred on
scientific research related to the business of the
assessee is Rs. 280,000, then Rs. 130,000 shall be:

89 / 150

Q62: Where a scientific research asset is sold after
having been used for the purpose of scientific
research then the sale price upto the cost of
acquisition of the asset which has been allowed as
deduction in the past shall treated as:

90 / 150

Q61: Certain revenue and capital expenditure on
scientific research incurred are allowed as deduction
in the previous year of commencement of business
even if these are incurred:

91 / 150

Q60: If an assessee carries on any scientific research
related to his business, he shall be allowed deduction
u\s 35 on account of:

92 / 150

Q59: Expenditure on scientific research incurred by
the assessee shall be allowed if such research

93 / 150

Q58: Brought forward unabsorbed capital
expenditure on scientific research can be carried
forward:

94 / 150

Q57: If an assessee carries on any scientific research
related to his business, he shall be allowed deduction
u/s 35 for:

95 / 150

Q56: A microscope which was acquired for
Rs. 15,00,000 was earlier used for scientific research
and the cost was allowed as deduction us/ 35. After
the research was completed, this microscope was
brought into the business of the assessee. The actual
cost of this for inclusion in the block shall be:

96 / 150

Q55: In the case of companies, capital expenditure
incurred for the purpose of promoting family
planning amongst the employees would be
deductible to the extent—

97 / 150

Q54: Which of the following is a specified business
eligible for deduction u/s 35AD?

98 / 150

Q53: GGC Ltd. engaged in manufacture of
biomedicines in August, 2020 converted an
equipment which was used for scientific research
purposes previously, for regular business use. The
original cost of the plant is `15,00,000 which was
acquired in April, 2019. The company had claimed
deduction of 100%. The plant used for scientific
research would be included in the block of assets
now at a value for:

99 / 150

Q52: GGC Pvt. Ltd. incurred capital expenditure on
in-house scientific research
(i) Land Rs. 5,00,000
(ii) Furniture Rs. 10,00,000
(iii) Equipment Rs. 7,00,000 the amount of expenditure eligible for deduction
u/s 35 would be

100 / 150

Q51: Where an asset used for scientific research for
not more than three years is sold without having
been used for other purposes, then the sale proceeds
to the extent of the cost of the asset already allowed
as deduction u/s 35 in the past shall be treated as

101 / 150

Q50: J Ltd. paid Rs. 10,00,000 to an approved college to
be used for scientific research which is unrelated to
its business. The amount eligible for deduction u/s
35(1)(ii) is:

102 / 150

Q49: Donation to university for research in social
science is eligible for deduction at:

103 / 150

Q48: When GGC Ltd. incurred Rs. 10,00,000 as capital
expenditure for the purpose of family planning
amongst the employees, the expenditure allowable
would be:

104 / 150

Q47: Mr. J, acquires an asset which was previously
used for scientific research for Rs. 2,75,000. Deduction
u/s 35(1)(iv) was claimed in the PY 2019-2020. The
asset was brought into use for the business of Mr. J,
after the research was completed. The actual cost of
the asset to be included in the block of assets is

105 / 150

Q46: In case the assesses follows mercantile system
of accounting, bonus or commission payable to
employee shall be allowed as deduction on:

106 / 150

Q45: Mr. J is doing agency business and has
received a sum of Rs. 5,00,000 from his principal for
termination of agency. Compensation amount so
received shall be:

107 / 150

Q44: Any sum received by an employer from keyman insurance policy taken on the life of the
employee shall be taxable for the employer as:

108 / 150

Q43: For computation of business income for some
specified assessees, the assesses has to follow:

109 / 150

Q42: Under the head PGBP, the method of
accounting which assesses can follow shall be:

110 / 150

Q41: Cash payment of Rs. 17,000 was made by J Ltd
against Bill No. 1 to a contractor engaged in plying
of passenger carriage vehicles on 29/6/2020. How
much amount is disallowed u/s 40A(3)

111 / 150

Q40: As per section 40A(2), what kind of
expenditure is covered

112 / 150

Q39: Which of the following statement is false?

113 / 150

Q38: Which of the following statement is true?

114 / 150

Q37: J Ltd purchased goods on credit from D Ltd on
7/5/2020 for Rs. 86,000 for which payment of Rs. 5,000
is made in cash on 12/5/2020; Rs. 40,000 by bearer
cheque on 30/5/2020 & Rs. 41,000 by account payee
cheque on 13/6/2020. The amount of disallowance
u/s 40A(3) is

115 / 150

Q36: As per section 38(2), when asset is not used
exclusively for the purpose of business, then
deduction.........

116 / 150

Q35: Which of the following are allowed as
deduction u/s 36?

117 / 150

Q34: Any interest paid under Income Tax Act..........

118 / 150

Q33: If penalty is in nature of compensation, it is................ u/s 37(1).

119 / 150

Q32: Any expenditure incurred by an assessee for
any purpose which is an offence .......................

120 / 150

Q31: Capital expenditure is allowed as deduction u/s37. This statement is .......................

121 / 150

Q30: Which of the following income is chargeable
to tax under head profits and gains from business
and profession?

122 / 150

Q29: Where an assessee is carrying on a specified
business referred to in section 35AD, he shall be
allowed deduction:

123 / 150

Q28: Interests on capital or loan received by a
partner from a firm is:

124 / 150

Q27: In case the assessee follows mercantile system
of accounting, bonus and commission of employee
are allowed as deduction on:

125 / 150

Q26: Deduction of expenditure on the actual
payment basis is allowed to be debited in profit and
loss account. The section for this is:

126 / 150

Q25: Where the payment of an expenditure claimed
as deduction by any assessee carrying on business or
profession other than who is in transport business
exceeds Rs. 10,000, it should be paid by

127 / 150

Q24: Cash payments of more than `10,000 u/s
40A(3) are disallowed to the extent of:

128 / 150

Q23: Cash payment in excess of Rs. 10,000 is
disallowed as a deduction in profit and loss account.
The section for this is

129 / 150

Q22: Expenditure in relation on the filing of ITR or
expenditure to fight an income tax case is allowed
debit to profit and loss account:

130 / 150

Q21: Provision for bad debt is allowed to be debited
to profit and loss account:

131 / 150

Q20: Bad debt of a business are allowed to be
debited

132 / 150

Q19: Bad debts incurred are allowed to be debited in
the profit and loss account:

133 / 150

Q18: Income of a trade or professional association,
from specific services performed for its members
shall be:

134 / 150

Q17: Export incentives received by an assessee are

135 / 150

Q16: Raju succeeded to the business of his father
Ramu consequent to demise of Ramu 1/11/2020.
Raju recovered Rs. 30,000 due from a customer which
was written off by late Ramu as bad debt and
allowed as deduction. The amount recovered is:

136 / 150

Q15: GGC & Co. paid Rs. 40,000 by cash to Mr. Balu
a supplier on 5/9/2020. The cash payment was made
on the day on which the bank was on strike. The
amount of expenditure liable for disallowance u/s
40A(3) is:

137 / 150

Q14: GGC & Co. engaged in trading activity could
not recover Rs. 5,00,000 from a customer. It claimed
the entire amount as bad debt by writing off in the
books of account. The aggregate sale made during
the year to the party amounts to Rs. 30,00,000. The
amount eligible for deduction by way of bad debt is:

138 / 150

Q13: GGC Ltd. contributed Rs. 8,70,000 towards
provident fund account its employees. It actually
remitted Rs. 5,00,000 upto 31/3/2021 and Rs. 2,50,000
upto the due date for filing the return specified in
section 139(1). The amount liable to tax in its
assessment would be

139 / 150

Q12: Where an assessee doing a business incurs any
expenditure in respect of which payments made to a
person in a day exceeds Rs.10,000 should be paid
through account payee cheque or demand draft to
claim deduction for such expenditure. This
restriction does not apply to

140 / 150

Q11: Salary received by a partner from his
partnership firm is considered in his personal
assessment as

141 / 150

Q10: J Ltd. made provision of Rs. 12,00,000 for bonus
payable for the year ended 31/3/2021. It paid
Rs. 7,00,000 on 3/7/2021, Rs. 3,00,000 on 30/9/2021, and
Rs. 3,00,000 on 15/12/2021. The amount eligible for
deduction u/s 43B would be:

142 / 150

Q9: Under the Income-tax Act, 1961 profit from
speculative business is

143 / 150

Q8: Under the Income-tax Act, 1961, dividend
derived from the shares held as stock in trade are
taxable under the head

144 / 150

Q7: Under the Income-tax Act, 1961, interest on
capital received by a partner from a partnership firm
is chargeable under the head

145 / 150

Q6: Mr. J who was carrying on agency business,
received a sum of Rs. 5,00,000 from his principal for
termination of agency. Compensation amount so
received shall be:

146 / 150

Q5: Which of the following income is not
chargeable as income of business or profession?

147 / 150

Q4: Perquisite received by the assessee during the
course of carrying on his business or profession is
taxable under the head.

148 / 150

Q3: Any payment received by the employer on the
maturity of the Keyman Insurance Policy for which
premium was paid by such employer shall be
considered to be income of the employer under the
head:

149 / 150

Q2: According to section 145 an assessee can follow:

150 / 150

Q1: An assessee uses plant and machinery for the
purpose of carrying on his business. U/s 31, he shall
be eligible for deduction on account of