Income Tax MCQ QUIZ Set – 9 (Profits and Gains from Business or Profession)

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MCQ on Profits and Gains from Business or Profession

MCQ on Taxation

1. Business has been defined under section….




Answer is B)
2(13)

 

 

2. Expenditure on scientific research – Under section…..?



Answer is A)
sec 35

 

 

3. Payment made in cash exceeding amounting to Rs. ……is Fully disallowed



Answer is B)
20,000

 

 

4. As per section 30, which expenditure incurred for buildiig shall not be allowed as deduction under business and profession ?




Answer is C)
Capital expenditure

 

  5. Payments to residents on which tax has not been deducted will be disallowed up to the extent of




Answer is A)
30%

 

 

6. Which is the charging section of income under the head profits and gains from business & profession?



Answer is B)
Section 28

 

 

7. The Export Incentives taxable under this head includes……?



Answer is D)
All of the above

 

 

8. Circulars and Notifications are binding on the…..?



Answer is A)
Income Tax Authorities

 

 

9. Income from illegal business are ……?



Answer is B)
Fully Taxable

 

 

10. Any payments made to outside India but TDS is not paid, then it will…..?



Answer is A)
Disallowed

 

 

11. Interest on delayed payment of Value Added Tax is…… ?



Answer is B)
Allowed

 

 

12. Group of assets falling within a class of assets inrespect to tangible and intangible assets is called as …..?



Answer is C)
Block of assets

 

 

13. while computing the business income, In Which of the following taxes are allowed as deduction



Answer is A)
Sales tax

 

 

14. In the business, Assessee is having stock existing .Then Valuation of stock will be at…..?



Answer is B)
Cost or market price, whichever is less

 

 

15. Business included which of the following as per section 2(13) :



Answer is D)
All of the above

 

 

16. Dividend paid by an Indian company is …..in Income tax



Answer is A)
Exempted

MCQ on income from business and profession
Also Read :

Income Tax MCQ / Multiple Choice Questions on Taxation with Answers :

Author
Manturanjan Sa
Founder of Income TaxPe . Professionally a Lecturer, by passion a Writer, Dancer, lyricist. fitness lover. Also a social worker co-founder of Kartabya Foundation & Digital Entrepreneur.


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