Income Tax And Corporate Tax - Study Mode

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[#516] What are the incomes are considered as an agricultural income?

(A) Any rent received from land which is used for agricultural purpose

(B) Any income derived from such land by agricultural operations

(C) Income attributable to farm house

(D) All of the above

Correct Answer

(D) All of the above

[#517] Which of the losses cannot be carried forward, if the return of loss is not submitted in time?

(A) Capital loss

(B) Business loss (speculative or otherwise)

(C) Loss from the activity of owing and maintaining race horses

(D) All of the above

Correct Answer

(D) All of the above

[#518] Which one of the following statements is not correct with reference to the assessment of firms?

(A) All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961

(B) Income of a firm is taxable at a flat rate of 30% without any exemption

(C) Partner's share in the income of a firm is not chargeable to tax in the hands of partners

(D) Remuneration paid to partners of a firm (assessed as such) is allowed as deduction subject to statutory limit

(E) All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961

(F) Income of a firm is taxable at a flat rate of 30% without any exemption

(G) Partners' share in the income of a firm is not chargeable to tax in the hands of partners

(H) Remuneration paid to partners of a firm (assessed as such) is allowed as deduction subject to statutory limit

Correct Answer

(A) All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961
(E) All partnership firms formed under the Indian Partnership Act, 1932, are assessed as firms under the Income Tax Act, 1961

[#519] Which business losses are allowed?

(A) Loss due to dacoits

(B) Salary

(C) Wages

(D) None of these

Correct Answer

(A) Loss due to dacoits

[#520] Which of the following statements is/are true? 1. Tax-shield on depreciation and interest is an important variable both for the lessor and the lessee. 2. Lease transactions in India are governed by the Lease Act. 3. A lessee should evaluate the lease options against the buying option. 4. As per AS-19, financial lease is shown in the balance sheet of the lessee as an asset. Choose the correct answer from the options given below:

(A) 1, 3 and 4

(B) Only 2

(C) 2, 3 and 4

(D) 1 and 4

Correct Answer

(A) 1, 3 and 4