Income from Business & Profession

1. Which out of the following is not a condition to be fulfilled for claiming expenditure under section 37 (1)?
   (a) Such expenditure should not be covered under the specific sections i.e. sections 30 to 36
   (b) Expenditure should be of capital nature
   (c) Expenditure should not be of a personal nature
   (d) Expenditure should have been incurred wholly or exclusively for the purpose of the business or profession
2. Which of the following expenditure on scientific research is not allowed as deduction?
   (a) Revenue expenses incurred during the previous year
   (b) Revenue expenses on payment of salary to employees engaged in scientific research and
   purchase of material used in scientific research incurred during three years immediately preceding the commencement of business
   (c) Capital expenditure incurred on scientific research during the year related to the business
   (d) Expenditure incurred on acquisition of land during the year for scientific research
3. If a new machinery is purchased on 15.4.2018 and put to use for the purpose of the business on 28.12.2018, depreciation would be allowable at the rate of:
   (a) 7.5%
   (b) 15%
   (c) 10%
   (d) 20%
4. M owns the following commercial vehicles:
   (i) 2 light commercial vehicles: one for 9 months and two days and the other for 12 months
   (ii) 2 heavy good vehicle – one for 6 months and 25 days and the other for 11 months and 12 days.
   (iii) 2 medium goods vehicles – one for 6 months and the other for 8 months and 15 days
   Compute the income from business of M if he opts for the scheme under section 44 AE.
   (a) Rs. 99,000
   (b) Rs. 95,000
   (c) Rs. 67,500
   (d) Rs. 2,61,500