Deductible Business Expenditure Quiz

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What type of expenditure is deductible under section 37?

Revenue expenditure (correct)

Capital expenditure

Personal expenditure

Expenditure incurred before the business was set up

Which of the following payments is considered deductible?

Demurrage paid to port authorities (correct)

Penalty for not completing a contract on time

Payment for notional rent

Payment related to speculation profits

What is the tax treatment for expenses on providing freebies to medical practitioners?

Partially deductible

Not deductible (correct)

Considered as personal expenditure

Deductible

Under which condition can a tenant get depreciation on capital expenditure for a leased building?

If the tenant uses the building for business/profession during the previous year Signup and view all the answers

What is the maximum limit for Indian companies to claim a deduction on eligible expenditure under the specified criteria?

Higher of 5% of Project Cost or Capital Signup and view all the answers

Which of the following is NOT considered as part of the eligible expenditure for setting up a new business by new companies?

Expenses for Expansion of Business Signup and view all the answers

Under what condition is Compulsory Audit required for the financial year in which expenditure is incurred?

If the company incurs eligible expenditure Signup and view all the answers

What type of expenses are deductible if capitalized in the books of accounts for claiming a deduction under section 35AD?

Capital Expenditure on developing infrastructure facilities Signup and view all the answers

What will happen to any expenditure for acquisition of an asset if aggregate payments made to a person in a day exceed Rs. 10,000?

It shall not be included in the cost of the asset. Signup and view all the answers

Which priority is followed for set-off in subsequent assessment years according to the text?

PY Depreciation, B/f Business Loss, Unabsorbed Depreciation Signup and view all the answers

In the case of second-hand assets, what criteria might the Assessing Officer use to determine the actual cost of the asset?

Both a and b Signup and view all the answers

What happens to the actual cost of a building used for non-business purposes earlier according to the text?

It remains the same. Signup and view all the answers

Deductible Business Expenditure Quiz

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Questions and Answers

What type of expenditure is deductible under section 37?

Which of the following payments is considered deductible?

What is the tax treatment for expenses on providing freebies to medical practitioners?

Under which condition can a tenant get depreciation on capital expenditure for a leased building?

What is the maximum limit for Indian companies to claim a deduction on eligible expenditure under the specified criteria?

Which of the following is NOT considered as part of the eligible expenditure for setting up a new business by new companies?

Under what condition is Compulsory Audit required for the financial year in which expenditure is incurred?

What type of expenses are deductible if capitalized in the books of accounts for claiming a deduction under section 35AD?

What will happen to any expenditure for acquisition of an asset if aggregate payments made to a person in a day exceed Rs. 10,000?

Which priority is followed for set-off in subsequent assessment years according to the text?

In the case of second-hand assets, what criteria might the Assessing Officer use to determine the actual cost of the asset?

What happens to the actual cost of a building used for non-business purposes earlier according to the text?

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