Taxation Viva Questions: Business and Disallowed Expenses
13 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the definition of 'business' according to taxation law?

  • Any trade, commerce, or manufacture, or any adventure or concern in the nature of trade, commerce, or manufacture (correct)
  • Conducting transactions on a large scale
  • Exchanging goods or services for money
  • Only buying and selling goods for profit

    • Which of the following expenses is disallowed for tax purposes?

  • Salary paid outside India without tax deducted at source (correct)
  • Rent paid for business premises
  • Medical expenses for employees
  • Utilities and office supplies

    • What is considered as a disallowed income according to taxation law?

  • Profits from the sale of goods
  • Dividends received (correct)
  • Interest on deposits
  • Salary received from the employer

    • According to taxation law, what occupation requires purely an intellectual skill or manual skill controlled by the intellectual skill of the operator?

    <p>Profession</p> Signup and view all the answers

    What is the difference between business and profession according to taxation law?

    <p>Business involves buying and selling goods for profit, while profession involves purely intellectual skills</p> Signup and view all the answers

    Which of the following is a disallowed expense for tax purposes?

    <p>Advertisement expenses</p> Signup and view all the answers

    What is the definition of 'capital gain'?

    <p>Profit on transfer or sale of asset is known as capital gain</p> Signup and view all the answers

    What is the difference between short term and long term capital gain?

    <p>Long term capital gain - the profit earned from the sale of assets when they are held for more than 12 months at the time of sale. Short term capital gain – profit on sale of asset which is held for less than 12 months</p> Signup and view all the answers

    What does 'indexing' refer to in the context of accounting?

    <p>Showing inflated or increased cost price, instead of actual price, justified on account of inflation</p> Signup and view all the answers

    What does 'security' refer to in financial terms?

    <p>A document acknowledging the debt by specific authority from general public</p> Signup and view all the answers

    What does 'grossing up' mean in accounting?

    <p>Interest received by the assessee is net interest and the same is to be converted into gross interest</p> Signup and view all the answers

    What is the meaning of 'gross total income' according to section 14?

    <p>The income of a person is computed under five heads: salaries, income from house property, profits and gains of business or profession, capital gains, and other sources</p> Signup and view all the answers

    What does 'cost of acquisition' include?

    <p>Total of all the expenses incurred by the assessee for acquiring the asset i.e., purchase price and expenses incurred after purchase till its first use</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser