Question 1

The loss from speculation business can be set off against

Accepted Answer

The loss from speculation business can only be set off against income from speculative business as per tax regulations.

Question 2

Minor's income is clubbed to -----

Accepted Answer

A minor's income is clubbed with the income of the parent whose income is greater, as per the Income Tax Act in many jurisdictions.

Question 3

------ deals with PAN

Accepted Answer

Section 140(A) deals with the Permanent Account Number (PAN) requirements under the Income Tax Act.

Question 4

An assessee was engaged in the business of dealing in commodities. He had paid Commodities transaction tax of Rs.15,000 in respect of the taxable commodities transactions. Income arising of Rs 3,00,000 from such taxable commodities transactions was included in the income computed under the head "Profits and gains of business or profession". Such expenditure of payment of Commodities transaction tax shall be considered as

Accepted Answer

The payment of Commodities Transaction Tax (CTT) by an assessee engaged in the business of dealing in commodities is considered a revenue expenditure. This is because it is an expense incurred in the ordinary course of business operations, directly related to the business's revenue-generating activities.

Question 5

--------- is the implementation of the plan of tax

Accepted Answer

Tax management refers to the strategic planning and execution of financial activities to minimize tax liabilities and ensure compliance with tax laws, effectively implementing a tax plan.

Question 6

Which of the following is an objective of tax management?

Accepted Answer

The answer of Which of the following is an objective...

Question 7

The method by which a person illegally reduces his tax burden by either deflating their income or inflating their expenses is known as

Accepted Answer

Tax evasion is the illegal practice of not paying taxes by not reporting income, reporting expenses not legally allowed, or by not paying taxes owed.

Question 8

------ refers to hedging of tax?

Accepted Answer

Tax avoidance refers to legally exploiting the tax system to reduce current or future tax liabilities, which can be seen as a form of hedging against taxes.

Question 9

Company is defined under

Accepted Answer

Section 2(17) of the Income Tax Act defines the term "company" for the purposes of the Act.

Question 10

Whichof the following deals with Domestic Company?

Accepted Answer

The answer of Whichof the following deals with Domestic Company?
...

Question 11

Section 2 (234) relates to

Accepted Answer

Section 2(234) of the Companies Act, 2013, defines a "foreign company" as a company or body corporate incorporated outside India.

Question 12

A company in which the public is not substantially interested is known as

Accepted Answer

The answer of A company in which the public is...

Question 13

Section 80 JJAA deals with

Accepted Answer

Section 80JJAA of the Income Tax Act, 1961, provides for a deduction in respect of employment of new employees.

Question 14

Expenditure incurred by an hotelier on replacement of linen and carpets in his hotel. Such expenditure shall be considered as

Accepted Answer

This expenditure is considered revenue expenditure because it relates to the regular maintenance and upkeep of the hotel, ensuring the business continues to operate efficiently. Replacing linen and carpets is part of the routine operational costs, not an investment in the business that will provide benefits over several years.

Question 15

The maximum deduction available under section 80 C is

Accepted Answer

The maximum deduction available under Section 80C of the Income Tax Act is Rs 150,000. This section allows deductions on investments in specified instruments like EPF, PPF, life insurance premiums, and home loan principal repayment, among others.

Question 16

The Presumptive Taxation Scheme of Section 44 AD can be adopted by

Accepted Answer

The Presumptive Taxation Scheme under Section 44AD of the Income Tax Act can be adopted by Resident Individual taxpayers, Hindu Undivided Families (HUFs), and Partnership firms, excluding Limited Liability Partnership Firms. This makes all the given options correct.

Question 17

Deemed dividend is defined in

Accepted Answer

Deemed dividend is defined in Section 2 (22)(a) of the Income Tax Act, 1961.

Question 18

80 ID deals with tax holiday for

Accepted Answer

The answer of 80 ID deals with tax holiday for
...

Question 19

An assessee incurred expense of tax on non monetary perquisites of employees. Such expenditure shall be considered as

Accepted Answer

The answer of An assessee incurred expense of tax on...

Question 20

Flat rate of corporate tax for a domestic company with annual turnover up to Rs250 crore is

Accepted Answer

The flat rate of corporate tax for a domestic company with an annual turnover up to Rs 250 crore is 25%. This rate was introduced to reduce the tax burden on smaller companies and make them more competitive.

Quiz 2: Income Tax and Business Expenses