The 'Section 44ADA' presumptive income scheme for professionals applies to gross receipts up to: MCQ with Answer and Explanation

The 'Section 44ADA' presumptive income scheme for professionals applies to gross receipts up to:
A. ₹50 lakh (now ₹75 lakh if cash receipts ≤ 5%)
B. ₹10 lakh
C. ₹1 crore
D. ₹25 lakh
Answer: Option A
Solution (By JKSSB Mock Tests)
Presumptive income for professionals up to gross receipts ₹50 lakh (or ₹75 lakh if digital).

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Practice More Accountancy and Book Keeping Questions

Question #1
Which concept dictates that personal expenses of the owner paid from the business account should be treated as drawings?
A. Business Entity Concept
B. Periodicity
C. Materiality
D. Conservatism

Correct Answer: Option A


Explanation:
The Business Entity Concept treats the owner and the business as two distinct legal entities, separating personal and business transactions.

Question #2
A Value Added Statement is an important component of:
A. Social Accounting
B. Cash Flow Statement
C. Bank Reconciliation
D. Cost Sheet

Correct Answer: Option A


Explanation:
A Value Added Statement shows how much wealth the company has created and how it is distributed among employees, government, providers of capital, and retained earnings.

Question #3
A: The Contingency Fund of India is established to meet unforeseen expenditures. R: The President can make advances from this fund without parliamentary approval. Choose the correct option.
A. A is true but R is false
B. A is false but R is true
C. Both A and R are true and R is the correct explanation of A
D. Both A and R are true but R is NOT the correct explanation of A

Correct Answer: Option C


Explanation:
The Contingency Fund of India is an imprest held by the President to meet urgent, unforeseen expenditures. The President can authorize advances from it, which are later regularized by Parliament. R correctly explains the mechanism.