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B Com Exam  >  B Com Tests  >  Income Tax Laws  >  Test: Computation of Total Income - 1 - B Com MCQ

Test: Computation of Total Income - 1 - B Com MCQ


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10 Questions MCQ Test Income Tax Laws - Test: Computation of Total Income - 1

Test: Computation of Total Income - 1 for B Com 2024 is part of Income Tax Laws preparation. The Test: Computation of Total Income - 1 questions and answers have been prepared according to the B Com exam syllabus.The Test: Computation of Total Income - 1 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Computation of Total Income - 1 below.
Solutions of Test: Computation of Total Income - 1 questions in English are available as part of our Income Tax Laws for B Com & Test: Computation of Total Income - 1 solutions in Hindi for Income Tax Laws course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Computation of Total Income - 1 | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Income Tax Laws for B Com Exam | Download free PDF with solutions
Test: Computation of Total Income - 1 - Question 1
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Clubbing of income refers to which of the following concepts in the Indian Income Tax Act?

Detailed Solution for Test: Computation of Total Income - 1 - Question 1
Clubbing of income involves including income from various sources under a single taxpayer's total income for taxation purposes, typically in cases where the income belongs legally to someone else. It's a method to counteract tax avoidance practices.
Test: Computation of Total Income - 1 - Question 2
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Under what circumstances can an individual transfer income without transferring the ownership of the asset?

Detailed Solution for Test: Computation of Total Income - 1 - Question 2
If an individual transfers income without transferring the ownership of the asset, the income is still taxable in the hands of the transferor. This practice prevents individuals from evading taxes by diverting their income to others while retaining ownership of the asset.
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Test: Computation of Total Income - 1 - Question 3
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When can income from assets transferred to a son's wife be clubbed in the income of the transferor?

Detailed Solution for Test: Computation of Total Income - 1 - Question 3
Income from assets transferred to a son's wife can be clubbed in the income of the transferor if the transfer is made without adequate consideration. This prevents individuals from transferring assets to family members without proper consideration to avoid taxes.
Test: Computation of Total Income - 1 - Question 4
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Which type of dividend distribution results in deemed dividend income under the Income Tax Act?
Detailed Solution for Test: Computation of Total Income - 1 - Question 4
Payment of any sum by a company to a shareholder or concern in the form of an advance or loan, where the company possesses accumulated profits, results in deemed dividend income under the Income Tax Act. This prevents individuals from using such transactions to avoid tax on dividends.
Test: Computation of Total Income - 1 - Question 5
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Under which circumstances can an Assessee set off losses against profits earned in the same financial year?
Detailed Solution for Test: Computation of Total Income - 1 - Question 5
An Assessee can set off losses against profits earned in the same financial year under inter-source adjustments. This is possible when the losses are from the same head of income, such as house property losses, against any other income within the same head.
Test: Computation of Total Income - 1 - Question 6
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What is the maximum number of years for which an individual can carry forward non-speculative business losses?
Detailed Solution for Test: Computation of Total Income - 1 - Question 6
An individual can carry forward non-speculative business losses for up to 8 years immediately succeeding the assessment year in which the loss was incurred. The losses can be set off against business income in subsequent years.
Test: Computation of Total Income - 1 - Question 7
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In which case can losses from owning and maintaining race horses be carried forward?
Detailed Solution for Test: Computation of Total Income - 1 - Question 7
Losses from owning and maintaining race horses can be carried forward for up to 4 years immediately succeeding the assessment year in which the loss was incurred. These losses can only be set off against income from owning and maintaining race horses.
Test: Computation of Total Income - 1 - Question 8
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Which type of dividend distribution can be set off against previous dividend payments made by the company?
Detailed Solution for Test: Computation of Total Income - 1 - Question 8
Dividend distributed in the form of debentures to preference shareholders can be set off against previous dividend payments made and deemed as dividend. This avoids double taxation on such dividends.
Test: Computation of Total Income - 1 - Question 9
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How long can an individual carry forward speculative business losses for set-off?
Detailed Solution for Test: Computation of Total Income - 1 - Question 9
Speculative business losses can be carried forward for up to 4 years immediately succeeding the assessment year in which the loss was incurred. These losses can only be set off against income from speculation business.
Test: Computation of Total Income - 1 - Question 10
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What is the maximum number of years for which an individual can carry forward long-term capital losses?
Detailed Solution for Test: Computation of Total Income - 1 - Question 10
An individual can carry forward long-term capital losses for up to 8 years immediately succeeding the assessment year in which the loss was incurred. These losses can be set off against long-term capital gains in subsequent years.
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