Deductible Business Expenditure Quiz
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Questions and Answers

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?

    <p>If the tenant uses the building for business/profession during the previous year</p> 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?

    <p>Higher of 5% of Project Cost or Capital</p> 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?

    <p>Expenses for Expansion of Business</p> Signup and view all the answers

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

    <p>If the company incurs eligible expenditure</p> 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?

    <p>Capital Expenditure on developing infrastructure facilities</p> 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?

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

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

    <p>PY Depreciation, B/f Business Loss, Unabsorbed Depreciation</p> 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?

    <p>Both a and b</p> 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?

    <p>It remains the same.</p> Signup and view all the answers

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