Question 1

The standard deduction u/s 24(a) shall be................. , if the Annual Value of the H.P. is Rs: 60,000.

Accepted Answer

The standard deduction under section 24(a) of the Income Tax Act is 30% of the Annual Value of the house property. Therefore, for an Annual Value of Rs. 60,000, the standard deduction would be 30% of 60,000 = Rs. 18,000.

Question 2

The work of a doctor is covered by the term:

Accepted Answer

The work of a doctor is considered a profession because it requires specialized knowledge, education, and training, as well as adherence to ethical standards.

Question 3

If a businessman spends certain amount for advertisement in a souvenir of a political party, he is eligible for deduction from:

Accepted Answer

The answer of If a businessman spends certain amount for...

Question 4

If a company spent Rs: 80,000 as preliminary expenses on 31st March, 2018, the allowable deduction is:

Accepted Answer

Under the Income Tax Act, preliminary expenses are allowed as a deduction in five equal annual installments, which means 20% of the expense can be claimed each year. Therefore, 20% of Rs: 80,000 equals Rs: 16,000.

Question 5

While computing the income of a business, which among the following is allowed:

Accepted Answer

Actual bad debts are allowed as they represent debts that are confirmed to be uncollectible, whereas doubtful debts and provisions are estimates and not actual expenses.

Quiz 3: Taxation and Deductions: A Guide to Income From House Property and Business Expenses

The standard deduction u/s 24(a) shall be................. , if the Annual Value of the H.P. is Rs: 60,000.

The work of a doctor is covered by the term:

If a businessman spends certain amount for advertisement in a souvenir of a political party, he is eligible for deduction from:

If a company spent Rs: 80,000 as preliminary expenses on 31st March, 2018, the allowable deduction is:

While computing the income of a business, which among the following is allowed: