The 'Presumptive Taxation' for professionals under Section 44ADA applies to gross receipts up to: MCQ with Answer and Explanation

The 'Presumptive Taxation' for professionals under Section 44ADA applies to gross receipts up to:
A. ₹2 crore
B. ₹25 lakh
C. ₹1 crore
D. ₹50 lakh
Answer: Option D
Solution (By JKSSB Mock Tests)
Section 44ADA provides for presumptive income at 50% of gross receipts for specified professionals with receipts up to ₹50 lakh (now ₹75 lakh in some cases).

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: Under Ind AS 19, actuarial gains and losses on defined benefit plans are recognized in Other Comprehensive Income (OCI). S2: These actuarial gains and losses recognized in OCI are subsequently reclassified to the Profit and Loss account in future periods. Which statement(s) is/are correct?
A. S2 only
B. Neither S1 nor S2
C. S1 only
D. Both S1 and S2

Correct Answer: Option C


Explanation:
Ind AS 19 requires remeasurements (actuarial gains/losses) of defined benefit plans to be recognized in OCI. S2 is incorrect because these amounts are recognized directly in retained earnings and are NOT reclassified (recycled) to P&L in subsequent periods.

Question #2
Standard Deduction available to salaried employees under Section 16(ia) for FY 2023-24 is:
A. Rs 50,000
B. Rs 40,000
C. Rs 1,50,000
D. Rs 1,00,000

Correct Answer: Option A


Explanation:
A flat standard deduction of Rs 50,000 is allowed from the gross salary income.

Question #3
The 'Section 44AE' presumptive scheme is for:
A. Retail traders
B. Manufacturers
C. Transporters (heavy goods vehicles)
D. Professionals

Correct Answer: Option C


Explanation:
Section 44AE is for plying, hiring or leasing goods carriages.