Tax Test

· What is income tax? (3 marks)

Income tax is a type of direct tax levied on the income earned during the financial year by the
individual, Hindu undivided family, a company, a firm, an association of people or body of individual,
local authority and every artificial judicial person, etc.
This tax is imposed by government of India following the Income Tax Act,1972.
Personal income tax is a type of income tax that is levied on an individual's wages, salaries, and other
types of income.

· How many heads are there under total income? (2marks)

There are 5 heads of income.
Name them. (5marks)
1.Salary
2.Income from house property
3.Income from profit and gains from business or profession
4.Income from capital gain
5.Income from other sources

· What is the assessment year for financial year 2019-20? (2 marks)

· 2018-19
· 2019-20
· 2020-21

· Residential status is determined for_________. (2 marks)

· Previous year
· Assessment year
· Accounting year

· What is the Slab Rate for taxable income more than 2,50,000/- for AY 2021– 22? (3 marks)
 · 5%
· 10%
· 15%
· 20%

· How will you decide the residential status of an individual? (2 marks)

· He is in India in the previous year for a period of at least 182 days.
· He is in India in the previous year for a period of at least 60 days.
· He is in India in the previous year for a period of at least 90 days

· The TDS Certificate issued by an employer to his employees in case of salary income is ________.
(2 marks)
· Form 16
· Form 26
· Form 26A
· Form 26Q

· Education cess is leviable for FY 2020- 21 @ ________.

(2 marks)
· 4%
· 5%
· 2.5%

· The maximum amount on which income tax is not chargeable in case individual for FY 2021-22?
(2 marks)
· 250,000/-
· 300,000/-
· 500,000/-

· Assesse is always a person, but a person may or may not be an assesse? (2 marks)
· True
· False
· Director sitting fees chargeable is under which head of income? (2 marks)
· Income from Other Sources
· Income from Salary

· Is income received by Resident & Ordinary Resident in foreign country taxable in India?
(2 marks)
· Yes
· No

· Can long term capital loss be set off against short term capital gains? (2 marks)
· Yes
· No

· Under the Income tax act, the incidence of taxation depends on….. (2 marks)
· The citizenship of the tax-payer
· The age of the taxpayer
· The residential status of the tax-payer
· The gender of the taxpayer

· Which of the following is taxed under direct tax, (5 marks)

· Rental Income
· Sales Income
· Entertainment tax
· Tax on sales of goods
· Interest Income
· Tax on entry of goods in India
· Gain/(Loss) on sale of shares