The 'Presumptive Taxation' scheme under Section 44AD is for: MCQ with Answer and Explanation

Question

Share Report Error

The 'Presumptive Taxation' scheme under Section 44AD is for:

A. Small businesses with turnover up to ₹2 crore

B. Professionals only

C. Large corporates

D. Importers

Answer: Option A

Solution (By JKSSB Mock Tests)

Section 44AD allows eligible businesses to declare 8% (or 6% digital) of turnover as presumptive income.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

An unrecorded bank charge for ₹150 will be treated in BRS starting with Cash Book balance (Dr.):

A. Deducted ₹150

B. Added ₹150

C. No adjustment

D. Added twice

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Bank charges have been debited by bank in passbook, reducing the balance, but not recorded in cash book. To reconcile from cash book to passbook, we deduct the charges.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'Margin of Safety' is ₹2,00,000 and the P/V ratio is 25%. The profit is:

A. ₹2,00,000

B. ₹25,000

C. ₹8,00,000

D. ₹50,000

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Profit = Margin of safety × P/V ratio = 2,00,000 × 25% = ₹50,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The 'GST Refund' for zero-rated supplies without payment of tax (under bond/LUT) can be claimed for:

A. No refund

B. Both output tax and input tax credit

C. Unutilised input tax credit

D. Output tax only

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
When export is under bond/LUT without payment of IGST, refund of accumulated input tax credit can be claimed.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs