Introduction to Income Tax - Neeraj Gupta CA Ipcc Tax Classes ... [20ebooks.com] (2)

NEERAJ GUPTA CA IPCC TAX CLASSES BASIC CONCEPTS OF INCOME TAX

www.ngpacollege.com Assessment Year 2013-14 For sms only 9810139214 Page 1

INTRODUCTION TO INCOME TAX The matter discussed in this assignment is relevant only for a beginner to income tax. Means for the one who is studying income tax for the first time. All provisions discussed

are in brief only just for the sake of giving the student a feel of what is income tax and what are the various concepts we are going to study specially at IPCC level.

How we will study:

1. While we will be preparing for the CA IPCC Taxation papers, we will be covering

Income tax (50 marks), VAT (25 marks ) & Service tax (25 marks).

2. Complete theory provisions and practicals are given in the assignments. For

solving practical problems, please use Blank portion of assignments. Please

bring some extra white pages for this purpose.

3. One word, fill in the blanks and true false questions series shall be going

alongwith.

4. Will also be covering Questions from Scanner, Module and Practice Manual.

5. After completion of syllabus mock tests shall be taken till exams.

6. SMS of revision series shall be given on regular basis.

7. In break time, PPT of chapters already covered shall be shown. I hope this will

help in thorough revision of the concept.

8. Bringing I cards is necessary for issue of study assignments.

Q 1 : What is tax ? Ans: It is an amount which is payable by a person to the government so that govt can meet out its certain expenses for which directly there are no charges.

For example, armed forces, police, govt schools and hospitals, parks, roads etc.

Tax is an amount payable to government



Q 2: What is broader classification of taxation system of India ?

Ans: Indian Govt. collects tax both directly and indirectly.

Income tax & wealth tax are main examples of direct tax.

Service tax, VAT, Excise duty, Customs Duty are the main examples of indirect tax.

Two classifications of taxation are direct and indirect taxation

TAX

DIRECT TAX

INDIRECT TAX

Q 3 : What is Income tax ?

Ans: As the name suggests, this is a tax on the income of a person. Usually the amount received is not fully taxable and the expenses incurred to receive (earn) that amount is deductible.

The net profit is taxable as income.

Income Tax is tax on the income of a person

INCOME

TAX

WEALTH

TAX

SERVICE

TAX

VAT

EXCISE DUTY

CUSTOMS DUTY

ENTERTAINMENT TAX



Q 4 : Whether taxation is on monthly or annual basis ?

Ans: Income tax is an annual tax liability. Income earned in one financial year is taxable in the next financial year. The financial year of income is known as PREVIOUS YEAR and financial year of taxation is known as ASSESSMENT YEAR.

Taxation is on annual basis.

Q 5: How taxable income is computed ?

Ans: Income, for the purpose of taxation is divided in five heads of income

1. Salary income Sections 15 to 17

It includes income earned from employer employee relationship.

FINANCIAL YEAR

INCOME TAXATION

PREVIOUS YEAR ASSESSMENT YEAR



2. House Property Income Sections 22 to 27

3. It includes rental income from residential & commercial properties.

4. Business & Profession Income Sections 28 to 44D

Income from trading, manufacturing, providing services etc is covered.

5. Capital Gains Sections 45 to 55 Income from sale of property, gold, silver etc is covered.

6. Income from other sources Sections 56 to 59

Income from interest, lotteries, gifts above Rs 50,000 p.a. etc [Sec 56(2)] is covered.

The total of above five heads of income is known as GROSS TOTAL INCOME (GTI).

From GTI, deductions given as per Sections 8OC to 80U is deductible.

The net amount is Taxable income also known as NET INCOME or total income.



SALARY HOUSE

PROPERTY BUSINESS &

PROFESSION CAPITAL GAINS

INCOME FROM OTHER

SOURCES

Sections Sections Sections Sections Sections

15 to 17 22 to 27 28 to 44D 45 to 55 56 to 59

Less:- Deductions U/s 80 C to 80 U

NET INCOME OR TAXABLE INCOME OR TOTAL INCOME

GROSS TOTAL INCOME (GTI)

HUNDREDS OF SOURCES OF INCOME



The format of computation:

INCOME FROM SALARIES + INCOME FROM HOUSE PROPERTY + INCOME FROM BUSINESS AND PROFESSION + INCOME FROM CAPITAL GAINS + INCOME FROM OTHER SOURCES ------------------------------------------------------------------- GROSS TOTAL INCOME (GTI) (-) DEDUCTION U/S 80 C TO 80 U -------------------------------------------------------------------

NET INCOME OR TAXABLE INCOME OR TOTAL INCOME {ROUNDED OFF}

ROUNDING OFF OF NET INCOME - SECTION 288A

As per this section, the total income is rounded off in the multiples of Rs 10/-.

Upto Rs 4.99 is ignored.

If last figure of net income is Rs 5 or more, than net income is increased to the nearest multiple of ten.

For example if net income is Rs 2,45,234.99, then tax shall be calculated on Rs 2,45,230.

Similarly if net income is Rs 3,46,865 or Rs 3,46,868

then in both situations, the tax shall be calculated on Rs 3,46,870.

ROUNDING OFF OF NET TAX PAYABLE - SECTION 288B

Just like net income, tax payable is also rounded off in multiples of Rs 10.

The total income is rounded off in the multiples of Rs 10 under Section 288A

The net tax payable is rounded off in the multiples of Rs 10 under Section 288B



Q 6 Discuss in brief the deductions given by Section 80C, 80D & 80G.

Ans:- SECTION 80C - [DEDUCTION FOR SAVINGS]

Deduction is allowed in respect of amount paid during the previous year as life insurance premium, or contribution to Public Provident Fund or Tuition fee for children etc. The maximum deduction allowed is Rs 1,00,000.

SECTION 80D- [DEDUCTION FOR MEDICLAIM POLICY]

Deduction is allowed in respect of amount paid during the previous year as medical insurance premium the maximum deduction allowed is Rs 15,000

ROUNDED OFF

INCOME NET TAX

288A 288B



SECTION 80G [DEDUCTION FOR DONATIONS]

Deduction is allowed in respect of amount paid during the previous year AS DONATION to National Defence fund set up by the Central Govt. @ 100% Prime Ministers National Relief Fund @ 100% National Childrens Fund @ 50% Etc.

Maximum deduction u/s 80C is Rs 1,00,000

Maximum deduction u/s 80D is Rs 15,000 Deduction u/s 80G is allowed as per prescribed rates

Q 7 : Give few names of exempted incomes.

Ans: 1. Agricultural Income - Section 10(1)

2. Amount received by a member from HUF Section 10(2)

3. Share of profit of a partner from a firm Section 10(2A)

4. Dividend income from Domestic company is exempt in the hands of shareholders Section 10(34)

MAXIMUM DEDUCTION

80C 80D

1,00,000 15000



5. Income from Units of UTI/ Mutual funds is exempt in the hands of unit holders Section 10(35)

6. Long term capital gain arising from sale of shares through recognized stock exchange is exempt as

transactions are subject to Securities transaction tax Section 10(38)

Agricultural income, dividend income and income from units of UTI is exempt. Q 8 : Compute the net income of Mr. N for the assessment year 2013-14 with the help of following particulars: Salary income: Rs 25,000 pm Net income from House Property: Rs 78,000 p.a. Short term Capital Gain on sale of silver : Rs 35,000 Long term Capital Gain on sale of shares subject to Securities Transaction Tax: Rs 48,000 Gift received during the year : Rs 30,000 Mediclaim insurance premium paid during the year: Rs 8,236

Q 9: Compute the net income of Mr. N for the assessment year 2013-14 with the help of following particulars:

Salary income: Rs 20,000 pm

Net income from House Property: Rs 70,000 p.a.

Short term Capital Gain on sale of Land : Rs 3,35,000

Dividend received from Reliance India Ltd: Rs 45,000

Gift received during the year : Rs 80,000

Mediclaim insurance premium paid during the year: Rs 18,000

Life insurance premium paid during the year: Rs 36,252

GIFT UPTO Rs 50,000 FULLY EXEMPT. ABOVE Rs 50,000 FULLY TAXABLE



Q 10 : Compute the net income of Mr. N for the assessment year 2013-14 with the help of following particulars:

Net Business income (Proprietorship) for the year financial year Rs 6,80,000

Interest income : Rs 69,245

Share of profit from a partnership firm : Rs 90,000

Agricultural income : Rs 45,000

Tuition fees paid to Bal Bharti Public School : Rs 8,000 per quarter

Donation to PM National Relief fund: Rs 21,000

Q 11 : Compute the net income of Mr. N for the assessment year 2013-14 with the help of following particulars:

Net income from house property : Rs 4,00,000

Share of profit from HUF : Rs 50,000

Part time business income : Rs 1,90,000

Income from units of HDFC mutual fund : Rs 37,000

Amount deposited in PPF : Rs 40,000

Life insurance premium Paid during the year : Rs 67,000

Amount donated to National Relief fund : Rs 12,000

Q 12 : What are the tax rates for individuals for the assessment year 2013-14?

Ans: Tax rates for individual (both male and female taxpayers)

1. Net income upto Rs 2,00,000 Nil

2. Net Income between Rs 2,00,010 5,00,000

Tax = [net income less 2,00,000] x 10%

3. Net income between Rs 5,00,010 10,00,000 Tax = Rs 30,000 + { [net income less 5,00,000] x 20%}

4. Net income above Rs 10,00,010 Tax = Rs 1,30,000 + { [net income less 10,00,000] x 30% }



Surcharge: It is the additional tax payable by higher income group. In some years it is applicable and sometimes not. Surcharge is not applicable for A/Y 13-14 for individuals. So students can ignore this.

Education cess: It is 2% in every case of income tax.

Secondary and higher education cess: It is 1% in every case of income tax.

For practice, students can calculate it at 3% but for examination purpose, it should be shown separately.

UPTO 2,00,000 0%; BETWEEN 2-5 LACS 10%; BETWEEN 5 10 LACS 20%; ABOVE 10 LACS 30%

Q 13 Compute the tax payable [as per A/Y 2013-14] in the following cases assuming the figures given are Net Income:

a) Rs 167,000

b) Rs 2,56,000

c) Rs 4,80,000

d) Rs 5,70,000

e) Rs 8,90,000

f) Rs 10,30,000

g) Rs 20,00,000

Q 14 Compute the taxable income and tax payable based on following data as per provisions applicable for assessment year 2013-14:

Salary income : Rs 23,000 p.m.

Net House Property income : Rs 2,50,000

Dividend from NGPA Private Limited : Rs 30,000

Long term capital gain on sale of listed shares : Rs 35,000

Mediclaim insurance premium paid : Rs 17,600

Life insurance Premium Paid : Rs 45,675



Q 15 : Compute the taxable income and tax payable of Mr. N based on following data as per provisions applicable for assessment year 2013-14:

Proprietary Business income : Rs 8,90,000

Short term capital gain on sale of gold : Rs 4,00,000

Share of profit from a partnership firm: Rs 2,40,000

Income from units of Reliance Mutual fund: Rs 66,000

Life insurance premium paid : Rs 65,000

PPF deposit : Rs 56,000

Donation to National Defence fund : Rs 11,255

Q 16 : What are special provisions for computation of tax in case of Senior Citizens ?

Ans: Senior citizens are divided in two categories

1. Senior citizens Age during previous year is 60 Years or more but less than 80 years

2. Super Senior citizens Age during previous year is 80 years or more

Tax Provisions:

For senior citizen having age of 60 years or more,

first slab of exemption is Rs 2,50,000 instead of Rs 2,00,000.

Tax rates for individual senior citizens (both male and female taxpayers)


2. Net Income between Rs 2,50,010 5,00,000

Tax = [net income less 2,50,000] x 10%

3. Net income between 5,00,010 10,00,000 Tax = 25,000 + { [net income less 5,00,000] x 20%}

4. Net income above 10,00,010 Tax = 1,25,000 + { [net income less 10,00,000] x 30% }

SENIOR CITIZEN = 60 YEARS OR MORE ONLY CHANGE EXEMPTION UPTO 2,50,000



For super senior citizens having age of 80 years or more,

first slab of 10% is fully exempt.

So, for them income upto Rs 5,00,000 is fully exempt and after that 20% slab is applicable.

Tax rates for individual super senior citizens (both male and female taxpayers)


2. Net income between 5,00,010 10,00,000

Tax = { [net income less 5,00,000] x 20%}

3. Net income above 10,00,010 Tax = 1,00,000 + { [net income less 10,00,000] x 30% }

SUPER SENIOR CITIZEN = 80 OR MORE UPTO 5 LACS 0%; 5-10 LACS 20%; ABOVE 10 LACS 30%

Q 17 - Compute the net income & Tax payable of Mrs. N (age 64 years) for the assessment year 2013-14 with the help of following particulars:

Net Business income (Proprietorship) for the year financial year Rs 4,80,000

Interest income : Rs 67,000

Share of profit from HUF : Rs 99,000


Life insurance premium paid during the year : Rs 30,000

Donation to PM National Relief fund: Rs 31,000



Q 18 : Compute the net income and tax payable by Mr N (age 83 years) for the assessment year 2013-14 with the help of following particulars:

Net house property income : Rs 4,70,000

Short term capital gain on sale of plot of land : Rs 3,70,000

Interest income : Rs 2,50,000


Dividend received from Indian Company : Rs 35,000

Life Insurance Premium paid during the year : Rs 22,000

Donation paid to National children fund : Rs 8000

Q 19 What are special tax rates for Long term capital gains and winning from Lotteries etc ?

Ans: While LTCG is taxable at a flat rate of 20%,

winnings from lotteries, crossword puzzles, races etc is taxable at a flat rate of 30%.

In both cases, education cess and SHEC shall apply at 2% and 1% as usual.

LTCG TAXABLE @ 20% FLAT. LOTTERY ETC @ 30% FLAT

Q 20 Compute the tax liability of Mr N (age 44 years) with the help of following data for the assessment year 2013-14:

Net Salary income for the year : 3,60,000

Net income from house property : 2,60,000

Long term capital gain on sale of silver : 45,000

Winning from Lotteries : 20,000

Mediclaim insurance premium paid : 10,000



Q 21 Compute the tax liability of Mr N (age 67 years) with the help of following data for the assessment year 2013-14:

Net house property income for the year : 4,50,000

Amount received as profit share from HUF : 56,000

Short term capital gain on sale of plot of land : 5,70,000

Long term capital gain on sale of listed shares : 38,500

Winning from crossword puzzles : 5,000

Life insurance premium paid : 59,000

Donation to PM National relief fund : 10,000

Q 22 Who is an assessee ?

Ans: In simple terms it means the taxpayer.

Assessee [Section 2(7)] :

Assessee means a person by whom any tax or any other sum of money (e.g interest or penalty) is payable as per this Act

Assessee is a person by whom any tax or any other sum of money is payable

Q 23: Explain in brief the concept of Clubbing of income.

Ans: In India, we follow progressive rates of taxation.



As we have already studied, tax rates increase from 10% to 20% and then to 30%, people may try to avoid tax by transferring their income to relatives specially wife and children.

In order to avoid such practices of tax avoidance, provisions of clubbing of income is prescribed in Section 60-65 of Income tax act.

The main theme behind the provisions is that if assessee transfers his income in favour of wife or children etc. by gifting the properties etc then income from such properties shall be taxed in the hands of assessee and not in the hands of wife / children etc.

Transferred income is taxable in the hands of transferor and not transferee (like wife or children)

Q 24 : Explain in brief the concept of Set off and Carry forward of losses.

Ans: Income of assessee is taxable in five heads of income i.e. salary, house property, PGBP, capital gains and income from other sources.

It is not necessary that every year, in every head of income there shall be a profit only. In some sources of income, like business head or capital gain etc, losses may also be there. Losses may also be possible in House property income or income from other sources.

Section 70-80 of income tax act deals with such provisions.

Normally the concept is that as a first step, a loss from a particular head of income is adjusted against income under the same head and, then difference loss, if any, is adjusted against the income in other head of income.

If still, any unadjusted loss is left, then it is adjusted in the next year or years against the same head of income.

Usually a limit of 4 or 8 years is applicable for carry forward of losses.

Loss is adjusted in same year from same head other head Loss is adjusted in next years from same head



Q 25 : When is the return of income is filed ?

Ans: Return of income is a systematic intimation to Income tax department about the income earned by assessee during the previous year. Return is furnished in prescribed format by due date of filing of return of income. Due date basically means the last date of filing of return of income. An individual assessee should file his return of income on or before 31st July of Assessment year. The due date for corporate assessee is 30th September of Assessment Year.

INDIVIDUAL RETURN BY JULY 31. CORPORATE BY SEP 30

Q 26 : What is PAN number ?

Ans: It is a ten digit unique identification number. It is alpha numeric number. The Govt. has made it compulsory to quote pan number in lot of day to day financial transactions like sale/purchase of property valued at Rs 5 lacs or more or Fixed Deposit with a bank exceeding Rs 50,000 etc.

PAN number is an alpha numeric ten digit unique identification number.

Q 27 : What is the difference between Self Assessment, Scrutiny Assessment and Best Judgement Assessment ?

Ans: Assessment done by assessee himself is known as Self assessment [Section 140A].

In some selected cases, income tax officer may issue notice to assessee and ask for documents to ensure there is no understatement of income. Such assessment procedure is known as Scrutiny Assessment Procedure. [Section 143(3)]

If return is not filed or inspite of notice, information is not submitted then income tax officer assess the income based on informations available or collected by him. This assessment is known as Best Judgement Assessment. [Section 144]

RETURN AFTER NOTICE TO ASSESSEE & THOROUGH CHECKING IS KNOWN AS SCRUTINY ASSESSMENT.



Q 28 : Explain the concept of Advance Tax ?

Ans: As per Sections 207 to 211, if tax payable by assessee exceeds Rs 10,000, then advance tax is payable by assessee during the PREVIOUS YEAR itself.

The slabs for advance tax are as follows:

Due dates of installments Amount payable On or before the 15th September On or before the 15th December On or before the 15th March

30% of annual tax payable 60% of annual tax payable 100% of annual tax payable

Obviously, when assessee will pay self assessment tax at the time of filing of return of income, he will deduct the advance tax already paid.

TAX PAYABLE IS MORE THEN 10,000 PAY ADVANCE TAX

Q 29: What is the concept of Tax deduction at source ?

Ans: In this concept while making payment, in some specified cases, mainly based on provisions given in section 190 to 199, tax is deducted at source by the payer and the amount is deposited by the payer to Govt and a certificate in this regard is issued to the payee.

Based on this certificate, the assessee claims deduction from his tax liability at the time of self assessment.

Q 30 : What if the return is not filed or delayed or not correctly filed ?

Ans: For later filing of return or late payment of taxes, interest is payable by Assessee and for effort of tax evasion, penalties may be imposed.

IF LATE INTEREST ; TAX KI CHORI = PENALTIES



Q 31 : Is there any appeal against decision of Income tax officer ?

Ans : Yes, if assessee is not satisfied by assessment order of ITO he can file an appeal with

Commissioner of Income Tax (Appeals), and then to

ITAT (Income tax Appellate Tribunal) and then to

High Court and finally to

Supreme Court.

APPEAL AGAINST ITO CIT (A) ITAT - HC - SC

Q 32 : Compute tax liability as per assessment year 2013-14 in following cases:

Facts Mr N (Age 38 years)

Mr X (age 65 years)

Mr Y (age 82 years)

Salary income 3,60,000 Nil Nil House property income

2,60,000 4,70,000 8,90,000

Business income Nil 13,68,000 Nil STCG 1,50,000 2,00,000 50,000 LTCG 40,000 35,000 20,000 Gift 35,000 50,000 60,000 Dividend income Nil 49,000 Nil LIC premium paid 40,000 1,03,000 80,000 Mediclaim premium 29,000 9,145 11,000



QUICK REVISION (SUMMARY) CHAPTER-1 [BASIC CONCEPTS OF INCOME TAX]

1) Tax is an amount which is payable by a person to the government so that govt

can meet out its certain expenses for which directly there are no charges.

2) Indian Govt. collects tax both directly and indirectly.

3) Income tax is a tax on the income of a person & its an annual tax liability.

4) Income earned in one financial year is taxable in the next financial year.

5) The financial year of income is known as PREVIOUS YEAR.

6) The financial year of taxation is known as ASSESSMENT YEAR.

7) Income of assessee is taxable in five heads of income i.e. salary, house property,

PGBP, capital gains and income from other sources.

8) The total of above five heads of income is known as GROSS TOTAL INCOME

(GTI).

9) From GTI, deductions given as per Sections 8OC to 80U is deductible.

10) The net amount is Taxable income also known as NET INCOME OR TAXABLE

INCOME OR TOTAL INCOME.

11) The total income is rounded off in the multiples of Rs 10 in Section 288A

12) The net tax payable is rounded off in the multiples of Rs 10 in Section 288B

13) Maximum deduction u/s 80C for savings is Rs 1,00,000

14) Maximum deduction u/s 80D for mediclaim policy is Rs 15,000

15) Deduction u/s 80G for donations in various funds is allowed as per prescribed

rates

16) Some exempted incomes are- agricultural Income, amount received by a

member from HUF, share of profit of a partner from a firm, dividend income from

Domestic company, income from Units of UTI / Mutual funds, long term capital

gain arising from sale of shares through recognized stock exchange.

17) Tax rates for individual (both male and female taxpayers)

Net income Tax upto Rs 2,00,000 Nil



Rs 2,00,010 5,00,000

[net income less 2,00,000] x 10%

Rs 5,00,010 10,00,000

Rs 30,000 + { [net income less 5,00,000] x 20%}

above Rs

10,00,010

Rs 1,30,000 + { [net income less

10,00,000] x 30% }

18) Surcharge is not applicable for A/Y 13-14 for individuals.

19) Education cess is 2% of income tax. Secondary and higher education cess is 1%

of income tax.

20) Senior citizens are divided in two categories Senior citizens and Super senior

citizens

21) Senior citizens are having age of 60 Years or more but less than 80 years

22) Super Senior citizens are having age of 80 years or more

23) Tax rates for individual senior citizens (both male and female taxpayers)

Net income Tax upto Rs 2,50,000 Nil Rs 2,50,010 5,00,000

[net income less 2,50,000] x 10%

Rs 5,00,010 10,00,000

Rs 25,000 + { [net income less 5,00,000] x 20%}

above Rs 10,00,010

Rs 1,25,000 + { [net income less 10,00,000] x 30% }

24) Tax rates for individual super senior citizens (both male and female taxpayers)

Net income Tax upto Rs 5,00,000 Nil Rs 5,00,010 10,00,000

[net income less 5,00,000] x 20%}

above Rs 10,00,010

Rs 1,00,000 + { [net income less 10,00,000] x 30% }

25) LTCG is taxable at a flat rate of 20% plus education cess and SHEC @2% and

1%

26) Winnings from lotteries, crossword puzzles, races etc is taxable at a flat rate of

30% plus education cess and SHEC @2% and 1%

27) Assessee means the taxpayer. By whom tax or any other money is payable.

28) If assessee transfers his income in favour of wife or children etc. then it shall be

taxed in the hands of assessee and not in the hands of wife / children etc.



29) A loss from a particular head of income is adjusted against income under the

same head and, then against the income in other head of income, and, then in

the next year or years against the same head of income.

30) Usually a limit of 4 or 8 years is applicable for carry forward of losses.

31) An individual assessee should file his return of income on or before 31st July of

Assessment year. The due date for corporate assessee is 30th September of

Assessment Year.

32) PAN number is an alpha numeric ten digit unique identification number. 33) Assessment done by assessee himself is known as Self assessment [Section

140A]. Assessment after notice and thorough checking is scrutiny assessment.

34) If tax payable exceeds Rs 10,000, then advance tax is payable by assessee.

35) For late filing of return or late payment of taxes, interest is payable by Assessee.

36) For effort of tax evasion, penalties may be imposed.

37) All orders of ITO appealable to CIT (A), then ITAT, then HC, then SC.



TEST SERIES CHAPTER 1 (BASIC CONCEPTS OF INCOME TAX)

Q.NO. TYPE QUESTIONS ANSWER

1) T/F Tax is an amount payable by persons to Govt. so that they can meet expenses on public services like education, security, health, infrastructure etc.

2) T/F Income tax is an example of Indirect taxes ?

3) OW Service tax and VAT are examples of which type of taxation Direct or Indirect ?

4) T/F Income tax is a monthly tax liability.

5) FB The financial year of income is known as ..

6) FB The financial year of taxation is known as

7) FB Pension income is taxable as .

8) T/F Rental income from a commercial office is taxable as Business income.

9) T/F Gift is tax free with no limit.

10) FB Total of five heads of income is known as ..

11) FB Deductions which are deductible from GTI are prescribed in sections

12) OW Rounding off of net income is given in section ..

13) OW Rounding off of tax payable is given in section ..

14) FB Tax shall be computed on if net income as per provisions is Rs 4,67,755.

15) OW How much is the limit for various investments like LIC, PPF etc in Section 80C?

16) OW How much is the limit for deduction u/s 80D for paying mediclaim insurance premium?

17) OW How much is the deduction u/s 80G for donation to National Defence fund and PM National relief fund?

18) OW How much is the deduction u/s 80G for donation to National children Fund ?

19) FB Agricultural income is exempt as per section ..........................



20) T/F Share of profit received from HUF is taxable as business income for Karta.

21) T/F Share of profit received by a partner from the partnership firm is not taxable.

22) T/F Dividend income from Foreign company is exempt from tax.

23) OW As per which section income from units of UTI/Mutual funds is exempt from tax.

24) T/F Short term capital gain is exempt from tax on sale of listed shares.

25) T/F For assessment year 2013-14 tax rates are same for male and female assessee.

26) OW What is basic exemption limit for taxation for A/Y 2013-14 ?

27) OW What is basic exemption limit for senior citizens for A/Y 2013-14 ?

28) OW What is basic exemption limit for Super Senior citizens for A/Y 2013-14?

29) OW What is maximum marginal rate of tax for A/Y 13-14 ?

30) OW How much is the surcharge applicable if net income is above Rs 10 lacs ?

31) OW How much is education cess & SHEC ?

32) OW How much is the tax rate for Short term Capital Gains ?

33) OW How much is the tax rate for Long term capital gains ?

34) OW How much is tax rate for winning from Lotteries, KBC, crossword puzzles etc ?

35) FB Assessee means a person from whom any tax or any other some of money e.g.. is payable as per this act ?

36) T/F Any income earned by wife is clubbed with the income of husband as per income tax provisions

37) T/F If any loss arises, then it can be adjusted against any income of assessee.



38) FB Due date for filing of return for individual assessee is of A/Y.

39) FB Due date for filing of return for Corporate assessee is ..of A/Y

40) FB PAN number is .digit unique identification number.

41) FB Assessment done by assessee himself at the time of filing of return is known as .as per section 140A

42) FB Assessment done by AO after notice to assessee for additional informations is known as as per section 143(3).

43) FB Assessment done by AO when no return is filed is known as ..as per section 144.

44) T/F Advance tax is payable if tax liability for the year exceeds Rs 8,000.

45) T/F TDS provisions are optional.

46) T/F Interest is payable for late filing of return of income ?

47) T/F Assessment order passed by Income tax officer is final and no appeal is possible



IMPORTANT SECTIONS DISCUSSED IN THE CHAPTER

Section Details

15 - 17 Income from salaries

22 - 27 Income from house property

28 44D PGBP

45 55 Capital gains

56 59 Income from other sources

80C 80U All deduction from GTI

288A Rounding off of Net Income

288B Net tax payable rounded off

80C Deduction for savings

80D Deduction for Mediclaim Policy

80G Deduction for donations

10(1) Agricultural income

10(2) Income from HUF (share of profit)

10(2A) Income from firm (share of profit)

10(34) Dividend income from Domestic Companies

10(35) Income from units of UTI / Mutual funds

10(38) LTCG on transfer of listed securities

2(7) Definition of Assessee

60 65 Clubbing of income

70 80 Set off and carry forward of losses

140A Self assessment

143(3) Scrutiny assessment

144 Best judgement assessment

207 211 Advance tax 190 199 TDS

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