Tax Laws MCQ on Aggregation of Income and Set-off or Carry Forward of Losses: Check the below Tax Laws MCQ on Aggregation of Income and Set-off or Carry Forward of Losses with Answers Pdf free download. Tax Laws MCQ on Aggregation of Income and Set-off or Carry Forward of Losses Questions for Tax Laws with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Aggregation of Income and Set-off or Carry Forward of Losses with Answers to help students understand the concept very well. Students should practice Aggregation of Income and Set-off or Carry Forward of Losses – CS Executive Tax Laws MCQ Questions with Answers based on the latest syllabus.

Tax Laws MCQ on Aggregation of Income and Set-off or Carry Forward of Losses

1. 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

2. Unabsorbed loss from house property can be carried forward for
(A) 4 years
(B) 8 years
(C) Indefinite period
(D) Cannot be carried forward

3. 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.
The consequence of bad debt recovery is that
(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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Speculation loss can be carried forward for subsequent assessment years.
(A) 8
(B) Nil
(C) 4
(D) 6

13. 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

14. 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 

15. 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)

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By Team Learning Mantras