CBSE NET COMMERCE QUESTIONS WITH ANSWER

 MOST FREQUENTLY ASKED THEORIES OF WAGES   1.WAGE FUND THEORY Wage fund  theory was propounded by J.S.Mill. According to him, the employers set apart a certain amount of capital to pay wages for labourers. This is fixed and constant. This is called as wages fund. Wage is determined by the amount of wages fund and the total number of labourers. According to J.S.Mill, “wages depend upon the demand and supply of labour or as it is often expressed as proportion between population and capital. By population is here meant the number only of the laboring classes or rather of those who work for hire and by capital, only circulating capital……….. “. Wage rate=Wage fund / Number of labourers An increase in wage rate is possible only by an increase in wage fund or by a reduction in the number of labourers. Thus there exists a direct relation between wage rate and wages fund and inverse relation between wage rate and number of labourers. This theory also states that trade unio

QUESTION SET -12 83. Agriculture income is exempted from income tax under which of  the following section of Income Tax Act ,1961 A. 2(1A) B.10 (1) C.10(2) D.10(4) ANSWER:-B EXPLANATION :- As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax. Agricultural income is defined under section 2(1A) of the Income-tax Act Agricultural income earned by a taxpayer in India is exempt under Section 10(1).Agricultural income generally means: Agricultural income generally means: (a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes. (b) Any income derived from such land by agriculture operations including processing of agricultural produce to render it fit for the market or sale of such produce. (c) Any income attributable to a farm house subject to satisfaction of certain conditions specified in this regard in section 2(1A). (d) Any income derived from saplings or seedlings grown in