Objective Questions aie Cm eto Sot 12. The fle de foe Dal income i dastted every yer by dod very your by passing ie Hoe at fe) wey nc 398 () nus lon et fun ee (Cem iment, (8) Tax Deducied at Source (TDS); (O) Finance, Miaseeh C0) Fiasees Acts (01) determination of total income; (13) rateoftasy Timmer Miniter, GO) ofthe assessee, | [Chapter —2 7: Definitions (Sections 2 anal 3) | 1. Defination which are definite, specific, complete and full are called 2. Apperson by whom tax payable under the Act is called as Rowdies 3, Income Tax Aet defines assessment to include 4. Previous year means year immediately preceedi aes, ately preceeding the assessment year, $. Person includes a natural human being and also includes or a person of __ & Any sum of money received without consideration by an individual scaled as. fs bs. ~ defi Previous year of a newly set up business ean be of 12 month. ‘Aketiog of 12 months commencing on 1" day of Api every year is called an _ 'y sum received or receivable in cash or kind under an agreement for not carving out an activity in relation to a business is called as 10. Any sum of money exceeding © received without consideration by an individual is treated as Incorke, n. ‘of the Income Tax Act, 1961 gives the definition of various terms. 12. Theacthas___chapters,_____sections and __ schedules. 13. ‘means an exception to the provision in section. 14. The wo types of definitions are and 15 provide scope for interpretation. 16 is the process of determining the tax payable by an assesscee. 17. Income should be real and not 18, Income can be on____basis or ____ basis. ‘Any sum received or receivable in cash or kind under an agreement for not carrying out an activity in relation to a business is called as 20. Non-compete agreements are also called ‘means a period of 12 months commencing from 1” day of April every year, 22. received by a professional sportsman is an income. 23. received by wife for her personal expenses is not treated as income. 24. Recording to section 2 (8), Assessment includes ‘means a clarification of a particular term or a part of section, The term {includes individual, HUF, Firm, Company, AOP, BOI, Local authority ete. 27. is chargeable ws 45, 28. Income is expected tobea___. gifts are not chargeable to tax. 30. Loss isto be taken 2 [Ams. (1) exhaustive; @) Assessee; (3) Reassessment; (4) Financial; (5) Minor, unsound mind; (6) Gi (7) less than; (8) Assessment; (9) Non ~ compete agreement; (10) € 50,000; (11) Section 2; (12) 23, 13) Proviso; (14) Exhaustive and Inclusive; (15) Inclusive Definition; (16) Assessment, (07) Fictional; (18) Accrual or receipt; (19) Non-compete agreement; (20) Exchisive right agreement, (21) Assessment year; (22) Awards; (23) Pin Money; (24) Reassessment; (25) Explanations; (26) Person; (27) Capital Gains; (28) Periodical Monetary Retum; (29) Personal; (30) Minus income} Chapter —3 : Basis of Charge (Sections 4, 5, 6, 7, 8, and 9) Of the assessee in uring the previous 1, Residential status of the assessee depends on the ‘year. Ifthe assessee does not satisfy the basic condition he will be treated as_. if 3. Ifthe assessee satisfies the basic condition he will be treated as . 4. A person shall be deemed to be of an Indian origin if he or either of his or any of his ‘were born in India.iz 6 a a 9 10. Direct Tax ~1.¥.B.Com. (Sem. Vp 1€an individual satisfies only basic condition and non of the additional condition he will be called a» ‘Total Income of a person is determined on basis of __in India. ‘Residential status is determined based on number of days stay in year, Indian Company is always in India, Residential status has nothing to do with ‘Special individuals shall not be treated as resident unless their stay in India is 182 days during previous year {Ans (1) Stay, India; (2).Non Resident; (3) Resident; (4) parent, grand parents, undivided; (5) R& OR; (©) Residential Status; (7) Previous; (8) Resident; (9) Citizenship; (10) Atleast) ‘Chi —4: Income Exemy from Tax (U/s 10) apter wpted 2 3. Uncommuted pension means payments. 4. Commutted pension is exempied in the hands of __ employees. 5. ‘maximum celing for claiming exemption as compensation on retirement of an employee from ‘EPSU ws 10 (106). 6. Minors Income which is clubbed with that of is parent is exempted up to 7. Share of profits received by a partner, from a firm which is separately assessed, is exempt ws 8. _Uncommuted pension is taxable under the head 9. Maturity proceeds of key man insurance policy is 10. Leave salary received during the period of servic 11, Commuted pension means receipt of ‘amount in leu of periodical pension. 12. received by the members of parliament or state legislature are exempt. 13. Notified amount of gratuity for the employees not covered by payment of gratuity act is 14. Salary ofa M.P/M.L.A. is taxable under the head 15, Salary given to partner by a firm is taxable under the head [Ams. (1) Exempted, rate; (2) © 10,00,000; (3) Periodical; (#) government; (5) € 5,00,000; (6) € 1,500 per minor child; (7) 10 (2 A); (8) Income from Salary; (9) Taxable; (10) Taxable; (11) Lumpsum; ‘Agricultural Income is" from tax. However it is included in the total Income for determining the of tax. ‘Upper monetary limit for claiming exemption from gratuity for “other” category is ® __ (2) Allowances; (13) 10,00,000; (14) Income from other sources; (15) Business Income} BPP veun, Chapter — 5 : Heads of Income (Sections 14) ‘Expenses incurred by an assesses in relation to exempt income are wa 14 A of the Income tx ‘Act, 1961. i The total of 5 heads of income given ws 14 is called as There are ___heads of income under income tax act, 1961. ‘The Technique of computation of income chargeable to tax depends upon the ___ of income Ans. (1) Not deductable; (2) Gross total Income; (3) five; (4) classificatioa} Chapter ~ 6 : Salaries (Sections 15 to 17) ‘Reimbursement of medical expenditure to an employee of ___ fom any Govior Is wxable te Entertainment tax deduction is allowed only to. Employers contribution to RPF to exempt up to of salary. Interest credited to RPF is exempt upto pa Salary income is taxable on or basis whichever is earlier. allowance deduction is allowed only to Government employees. ' Profession tax deduction is allowed on basis Arrears of salary are taxable in the year of ‘Telephone provided at the residence of an employee by employer is erquisite, Wages paid by the employer for the domestic servants employed by the employee is perqusite, Inetest credited to public provident fund is__, aQuestions aba saines the ines cmaneration under the Whe reananeration und employee relationship dete head income from salary ‘lationship is necessary for taxi ‘Advance agai salary igo employees (3) 12%; (4) 9.5%: (8) woerual, resin ian i 0, ree @ Goverment Mecables (11) exempt; (13) scot (3) employer-employee; (14) non-taxable) @ =< to 27) [Chapter ~8 ; Income from House Property (Sections 22 t0 27) 1 Gross Annual Value of a SOHP is 2. Menicipaltar basis. 3. Municipal tn allowed au dedtion its paid by the 4 Income is taxable under the head house property only when er é in which such rent is ‘Arreaty of rent shal be deemed tobe income of te previous yea in leducting of such amount. : Income from House cannot be taxed under the head house property if the owner occupies the property Srhin ter Avrears of Fent received after sale of property In case of sel-occupied property, the dediction on account of interest on the money borrowed for the ‘purpose of construction of such house propery cannot exceed & Fair rent of houte is 2,50,000 and annual ret ® 280,000, Municipal exes paid for 6 yes. a ¥1,20,000, The Net annual value shall be earn Fora seléeccupied house property occupied in 2015-16 for which housing loon was availed, the interes up March 2, 2013 is © 2,08 000 aod thereafter the inerest payable is % $000 per month, the Ueduction available under section 24 in respect of interest for the year ended March 31, 2017 is ‘Municipal tax is deducted from Standard deduction is allowed on notional basis of n amount equal o__% of net anmual value constriction interest on house is allowed in equal installments commencing from previous ih which propery is scquied oF constructed, inxcrest on loan for self occupied propery isresticted to ___or _ applicable, Interest on borrowed money which is paysble ouside Indi sal be allowed as deduction if tax has been deducted at unrealized ren bas been allowed io be deducted in deterhining the _-__ i 23 (). Income from sub-Ltting is taxable under the head Interest accrued during the construction period preceding the year of completion of construction is tenined as interest Ans. (1) Nik @) payment; (2) ovmer; (4) owner, (5) received, 30% (6) business or profession; (0) 15, 30% (8) & 2,00,000 (8) 1,60,000; (10) 1,01,000; (11) gross annual value; (12) 30%; (13) five; (14) 30,000 or 2,00,000; (15) source; (16) gross annual value; (17) income from other sources; (18) pre-construction} of the property the assessee is of such house after taxable after deducting of G6 of such .dvance is ‘Chapter — 9 : Profits and Gains of Business or Profession (Sections 28 to 43 B) ‘Depreciation under Income-tax Act is charged atthe prescribed rate on the written down value of the TFany asset is used for less than __ days in the year of purchase, the deprecfation rate will be only 50% of the normal rate. : Advertisement in souvenir of a____ party is disallowed while computing business income. Expenses exeeeding ___paid in cash are disallowed, Dedluction for bonus or commission to employer is allowed only on _basis. Jit on sale of import licence is taxed under the head ‘Any expenditure incurred on scientific research except on expenditure ws. 35. ‘A weight deduction of ___ of the amount paid, to be used for scientific research, to a university or iboratory will Be allowed as on business expenditure, shall be allowed as business Zaoi tax is allowed as deduction while computing the business income. If some expenses are partly disallowed, then only disallowed portion should be __to the profit ‘As snes ca ca adn depreciation om plan td machinery whe rit of 20% of ir, ‘of WDV of the block and fate of depreciation isthe amount of depreci Unabsorbed depreciation ean be carried forward for ___period. ‘Amount paid to national laboratory to be used for solentific research shall be allowed a weighted deduction of ____% of sum paid. ee Expenditure iocurred on family planning amongst the employees is allowed to_assessec. If residential flats are let out to the employees for efficient conduct of assesse"s own business, income from such leting is txable under the head __. Expenditure om scientific research incurred by the assesseee can be claimed as deduction provided the research is, to assesse's business. Jn respect of allowed as deduction ws 35, no depreciation can be claimed ws 32 {Awe (1) Block of asset, (2) 180 days: (3) political; (4) 20,000; (5) payment; (6) Profi & Gain Business, (7) land; (8) two times; (9) sales; (10) added; (11) actual cost; (12) product; (13) inde (04) 200%; (45) company; (16) business income; (17) related; (18) capital expenditure) ter — 10 : Capital Gains (Sections 2 (14), 2 (47), 45, 48, 49, 50, 54 & 5 ‘Income from Profit-and Gains of business or Profession is € 1,00,000 and his loss from speculat ‘business is © 1,00,000, during the same previous year. Net business income taxed during the pre year will be ‘mean Income from the transfer ofa capital asset nit of Mutual fund held for 36 months is treated as __capital asset. Transfer of depreciable assets gives rise to__ capital gains ‘The capital gain arising from transfer by way of conversation of a asset into stock-in-t chargeable to tax in the year when the stock is. ‘Capital Gains or Loss on transfer of depreciable asset is always Enhanced compensation for compulsory acquisition is taxable in the __in which itis Capital loss can be carried forward to a maximum of ___assessment years. ‘The exemption ws 54 can be claimed to the extent of capital gain in the house property Cost of improvement of goodwill ofa business shall be ‘The cost of improvement is when enhanced compensation is received on compulsory acquisiti Cl refers to come from ___or_capital gen [ams (1) © 1,00,000; (2) Capital Gains; (3) Long-term: (4) short term; (5) sold: (6) shor term Uyprevious year, Received; (8) eight; (9) invested; (10) Nil; (11) Nil; (12) cost inflation index; (3) lone term capital gain; (14) short term or long term) income from Other Sources (Sections 56 to 59) =i %or thapter — 11 Family Pension deduction to asseasce is least ofthe following Share of income received by a member of HUF is _ incom Scholarship to meet _is exempt. Seca nazsived under a Life Insurance policy is‘ fom tax but amount received under a Keyman {Murance Policy is der Income Tax Act, 1961, Family pension received by member ofthe family of the ‘param Vir Chakra’ is income. Nanwanee and allowance receivéd by a Member of Legislative Assembly are exerpt from x Dividends from a ____ company is exempt from tax. ‘Agricultural income from Srilanka is taxable under the head aad arent exceeding € received without consideration from non-relatives, hhead income from other sures. aoe whigh does ot fall under the first four heads of inéome is taxable under the head — government employee who bas been awarded fs taxable under the>Doyective Questions oss a ay i rcv by am individual om selves i ly 12. Dividends from « bs —__gompany is not exempt from tax. 13. Dividend declared by uniFtrastof Inia is exempt in the hands of Inadmnissible expenses under the head income from other sources are covered Ws 15. Standard Deduction of a cane Cee f shall be allowed from interest on compensation or enhanced beeen uiieias auiaa gate Tre dang Sin sare cecah Na et haoain Fatey TUT TSC egnie eS wate GAT ‘not txable as salary or Business Income. Peace ee na he FT ue Sancne oocrpeeet acer (amy yl et Se sti Chapter—12: Deductions to be Made in Computing Total Income (Sections 80 A, 80 C, 80 CCC, 80 CCE, 80 D, 80 DD, 80 E, 80°U, 80 TTA) ‘Deduction under sec. 80 ofthe chapter VIA of the Income tax act are allowed from Deduction w/s 80C is respect of tution fees is allowed maximum upto _ children. expenses of the assessce is not deductablew/ 58. Total deduction ws 80 C and ws BOCCC cannot exceed © _ Maximum amout of deduction ws 80 fr median insurance emi of 4 resident senior citizen ‘Amount deduction ws 80 DD in respect maintenance of a handicapped dependent is €_ ‘Amount deduction ws 80 U respect of a person with severe disability is Payment of life insurance premium in excess of __ of the sum assured shall not be included in the mount deductible under section 80 C for policies issued on or after 1.4.2012 sgmtion we 80.C in respect of time deposit in post office is allowed ifthe deposit is for a period of 3 mainenncs of « andieapped dependent is lowed o_o cones ony sec tmete Oe past ls 80 in ese of ULIP Dhanarksh is witwn ifs ULIP pan it ati bore conoon were made for_—_—_ Yet Lae forint on Toni for igher educatiot to__ assests only Det ta of intrest on lah fr higher edeaon alowed fer xia pediod of years period of aide witb lowed if _sie made. 1 a er vil rel ia clipe for dedustion Ws #0C. Seda ation 80 COC is allowed othe extent of Delon nde to cae nig Ye ox mee aye ing he revat previous year Bedution Dedutin ws 30 Un cse Inert et sama of meximam deh To g0 DD in epost of anes Bontlnpped is Ina ean 9 man tig ou 6 are nts ig et oct covere deine aos ‘ eEsq000 (6) € 30000 6) 751 Ee ne o ; (12) Individual; (13) 8 years; 8) 10%; (9) 5 years; (10) Individual or H.U) (11) 5 years; (12) I years; (75.00: 10%: (5 Yeh) 1s bo 6) #8 BO ee Sw (yaad a an 2) 0; (8) Actual expends 30800 hehe # 3 hall be allowed for higher education of assessee, spouse & children. vot person with disability is allowed to an individual who is _of nda ‘on educational loan is allowed as deduction. stion allowed ws 80 U is for disable person. fance of handicapped dependent is © and for severally senior citizen,in excess of WDV plus adions of rough a ease ony ae Wi De Fr mere than