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1. Total 40 squares.

How?
Let’s assume the smallest square side is 0.5cm in length.

Now count the squares with different length :-
0.5cm : 8
1cm : 16 +2(in the middle)
2cm : 9
3cm : 4
4cm : 1
————
Total : 40

 

2. Total 35 squares.

Explanation 
1/2 X 1/2 squares : 4
1X1 squares : 17
2X2 squares : 9
3X3 squares : 4
4X4 squares : 1
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Total : 35