Aggregation of Income and Set-off or Carry Forward of Losses – CS Executive Tax Laws MCQsBy CACSMockTest / November 24, 2022 0 Aggregation of Income and Set-off or Carry Forward of Losses – CS Executive Tax Laws MCQs 1 / 29 The loss from the activity of owning and maintaining race horses is eligible for carrying forward and set off for a maximum period of: (A) 8 Assessment years (B) 6 Assessment years (C) 4 Assessment years (D) 2 Assessment years 2 / 29 Short term capital loss can be setoff as per provisions of section 72 of the Income-tax Act, 1961 from: (A) Short term capital gain (B) Short term capital gain and Long term capital gain (C) Long term capital gain (D) Short term capital gain and profit & gain from business 3 / 29 Business loss can be set off from income of any other business but cannot be set off from: (A) Salary Income (B) House Property Income (C) Long Term Capital Gains (D) Income from derivatives specified in section 43(5) 4 / 29 The benefit of carrying forward and set-off of losses under section 79 of Income-tax Act, 1961, by a closely held Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger, is subject to the condition that specified percentage of the shareholders of the amalgamating or demerged foreign company continues to be the shareholders of the amalgamated or the resulting foreign company which is: (A) 51% (B) 1096 (C) 2696 (D) 10096 5 / 29 The loss computed under the head “Income from house property” can be set off by Intra head adjustment during the same year from: (A) Any other head of income up to a maximum of ₹ 2,50,000 (B) Any other head of income up to a maximum of ₹ 3,00,000 (C) Any other head of income up to a maximum of ₹ 5,00,000 (D) Any other head of income up to a maximum of ₹ 2,00,000 6 / 29 Anand, a resident individual having computed for the previous year 1st April 2020 to 31st March 2021 his business loss at ₹ 60,000, short term capital gain on sale of gold of ₹ 40,000 long term capital gain on sale of house property of ₹ 3,60,000. (A) ₹ 4,00,000 (B) ₹ 3,40,000 (C) ₹ 4,00,000 and carry forward loss of ₹ 60,000 (D) None of the above 7 / 29 The loss derived from house property can be set off during the year against: (A) the income of any other house property (B) the capital gain (C) the income under other sources (D) (A) and (C) above 8 / 29 In which case a partnership firm is not entitled to carry forward and set off so much of the losses proportionate to the share of a retired or deceased person exceeding his/her share of profits, if any, in the firm in respect of the previous year: (A) When the public are not substantially interested infirm (B) When the business or profession is succeeding by another person (C) When a change occurred in the constitution of the firm (D) None of the above 9 / 29 Speculation loss can be carried forward for subsequent assessment years. (A) 8 (B) Nil (C) 4 (D) 6 10 / 29 Rohan engaged in multifarious activities reports the following: (A) Loss from business (B) Loss from house property (C) Long term capital loss (D) None of the above 11 / 29 A company has the following: (A) (i), (it), (Hi), (iv) (B) (iv), (iii), (i), (ii) (C) (i), (ii), (iv), (iii) (D) (iv), (ii), (i), (iii) 12 / 29 Mr. Siddharth is employed in a company. His income under various heads are (A) ₹ 3,55,000 (B) ₹ 4,65,000 (C) ₹ 4,20,000 (D) ₹ 5,30,000 13 / 29 When an assessee has lost from house property, it is eligible for carrying forward for the subsequent assessment years. (A) 2 (B) 4 (C) 6 (D) 8 14 / 29 A Co. Ltd. has business loss and unabsorbed depreciation of ₹ 10 Crore. B Co. Ltd is a profit-making company. B Co. Ltd. wanted to acquire A Co. (A) Reverse merger (B) Outright purchase (C) Slump sale of A Co. Ltd. (D) Converting A Co. Ltd. into a subsidiary of B. Co. Ltd. 15 / 29 Mathur Storage (P) Ltd. engaged in chain cold storage has brought forward business loss of ₹ 12 lakhs relating to the assessment year 2020-2021. During the previous year2020-2021, its income from the said business is ₹ 9 lakhs. It also has profited from trade in food grains of ₹ 6 lakhs. (A) ₹ 15 lakhs (B) ₹ 6 lakhs (C) ₹ 9 lakhs (D) ₹ 3 lakhs 16 / 29 Mr. Hussey for the previous year has: (A) ₹ 3,50,000 (B) ₹ 2,20,000 (C) ₹ 2,40,000 (D) ₹ 1,10,000 17 / 29 Mr. Shahu has lost from house property of ₹ 1,10,000 (computed) for the assessment year 2021-22. He can carry forward such loss for subsequent assessment years. (A) 4 (B) Nil (C) 8 (D) Indefinite 18 / 29 Loss from speculation business can be set off against (A) Income from salaries (B) Income from house property (C) Income from speculation business only (D) Any head of income 19 / 29 The amount of depreciation not absorbed in the same year can be carried forward (A) For a period of 4 years (B) For a period of 8 years (C) For a period of 6 years (D) Indefinitely 20 / 29 No loss can be set off against (A) Income from salaries (B) Income from house property (C) Income from capital gains (D) Winnings from lotteries 21 / 29 Loss from speculation business is eligible for carrying forward for a period of (A) 4 Years (B) 6 Years (C) 8 Years (D) 12 Years 22 / 29 Unabsorbed loss from house property can be carried forward for (A) 4 years (B) 8 years (C) Indefinite period (D) Cannot be carried forward 23 / 29 Biren discontinued wholesale trade in medicines from 1st July 2017. He recovered ₹ 1,50,000 in October 2020 being a bad debt that was written-off and allowed in the assessment year 20182019. He has eligibly brought forward business loss of wholesale trade in medicines of ₹ 1,70,000. (A) It is chargeable to tax (B) It is eligible for set-off against brought forward business loss (C) The brought forward business loss is taxable now (D) 50% of the amount recovered now is taxable 24 / 29 To carry forward and set off losses, a loss return must be filed by the assessee within the stipulated time and gets the loss determined by the Assessing Officer. However, this condition is not applicable to (A) Loss from house property (B) Loss from speculation (C) Loss from discontinued business (D) Loss from capital assets 25 / 29 Which of the following losses available after inter source set-off, cannot be set-off from incomes in other heads in the same assessment year (A) Speculation losses (B) Loss from specified business (C) Loss under the head ‘Capital gains’ (D) All of the above 26 / 29 A partnership firm with 4 equal partners brought forward depreciation of ₹ 3 lakhs and business loss of ₹ 3 lakhs relating to AY 2019-2020. On 1st April 2020, two partners retired. (A) Unabsorbed depreciation of ₹ 3 lakhs plus brought forward business loss of ₹ 3 lakhs (B) Unabsorbed depreciation ‘nil’ plus brought forward business loss of ₹ 3 lakhs (C) Unabsorbed depreciation ₹ 3 lakhs plus brought forward business loss ‘nil’. (D) Unabsorbed depreciation ₹ 3 lakhs plus brought forward business loss of ₹ 1.50 lakhs. 27 / 29 If a person is eligible to claim: (A) (4), (3), (2) & (1) (B) (2), (3), (4) & (1) (C) (3), (4), (1) & (2) (D) (1), (2), (3) & (4) 28 / 29 Loss from the activity of owning and maintaining race horses could be set-off (A) Against income under any of the five heads of income (B) Only against income under the head “Income from other sources (C) Only against income under the head ‘Profits and gains of business or profession’ (D) Only against income from the same activity. 29 / 29 If an individual, having a sales turnover of ₹ 60 lakhs files his return of income for the AY 2021 -22 after the due date, showing unabsorbed business loss of ₹ 23,000 and unabsorbed depreciation of ₹ 45,000, he can carry forward to the subsequent assessment years (A) Both unabsorbed business loss of ₹ 23,000 and unabsorbed depreciation of ₹ 45,000 (B) Only unabsorbed business loss of ₹ 23,000 (C) Only unabsorbed depreciation of ₹ 45,000 (D) Neither unabsorbed business loss of ₹ 23,000 nor unabsorbed depreciation of ₹ 45,000. 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