Thursday, December 24, 2009

Examples on Introduction and Definitions

State whether the following are TRUE (Or) FALSE


1) Mr.'X' is a Partner in a firm.He is assessable as an individual (T)

2) Mr'Y' is the M.D of A Ltd. He is assessable as an individual (T)

3) Delhi Muncipal Corporation is assessable as an AJP (F)

4) Bombay Sales Tax Bar Council is an AOP (F)

5) The Finance Act 2009, provides the Income Tax rates for the

AY 2011-12 (F)

6) An Association which has as its members Firms, HUF's, Individuals.

etc is a BOI (F)




Test Your Concepts

1) A.Y. may be less than 12 months (T/F) _______________


2) The basic source of Income-tax Law is __________________

a) Income- Tax Act, 1961

b) Circulars/Notifications issued by CBDT

c) Judgements of Courts


3) The exceptions "AOP/BOI/AJP - formed for a SHORT DURATION is covered U/s

174A


4) The definition of PERSON under the Income Tax Act, 1961 is complete/incomplete Incomplete

5) Every Assessee is a Person but every person need not be an Assessee ( T/F) True

6) Illegal Income is exempt under the Income Tax Act T/F) False

7) A Representative Assessee U/s160 is a deemed to be an Assessee.

8) Income Could be either Positive Income (or) Negative Income

9) Sec 176 covers the provisions for Income of a Discontinued Business/ Profession

10) Who is a Deemed to be an Assessee in Default ?

A) a Person who has not deducted TDS
B) a Person who has deducted TDS but has not deposited it within time with the Govt.
C) a Person who has not paid any Advance Tax - when it is due to be paid etc.
D) All of the Above.


Answer : D


11) Assessee is Defined U/s 2(7)


12) An AOP & BOI means the same under the Income Tax Act, 1961 (T/F) False


13) If the Net Income is Rs. 5,68,765 then it is rounded off to Rs. 568770


14) If the Net Income is Rs. 568763 then it is rounded off to Rs. 568760

15) Deductions U/s 80C to 80U are covered under Chapter VI A of the Income tax Act.

16) The Surcharge for a Domestic Company is @ if the Net Income exceeds Rs. 1 Crore

17) The Exemption Limit for Resident Woman who is 65 years of Age for the A.Y. 2010-11 is Rs. 2,40,000.

18) In the case of AJP, surcharge is payable only if the Net Income exceeds Rs. 10,00,000 (T/F) False

19) Total Education Cess @3% is payable for the A.Y 2010-11 on –

A) Income Tax
B) IT+ SURCHARGE
C) Surcharge
D) None

Answer : B


20) The Income Tax rate on S/T-C/G covered U/s 111A for the A.Y. 2010-11 is @ 15%

21) ITL on Casual Incomes U/s 115 BB will be @ 30%

22) The exemption limit for PSF’s for the A.Y. 2010-11 is Rs. NIL

23) A Domestic Company means :-

a) Only an Indian Company
b) Only a Foreign Company which has made the prescribed arrangements for declaration and payment of dividends in India
c) Indian Company and a foreign company which has made the prescribed arrangements for declaration and payment of dividends in India

ANSWER :- C

24) The Surcharge for an Individual is :-
A) 10% of tax payable
b) 2.5% of tax payable
c) 10% of tax payable if total income exceeds Rs. 10Lakh
d) None

ANSWER : - D


25) The additional benefit available to a Resident Woman Assessee below the age of 65 years at any time during the previous year 2009-10

a) Higher basic exemption limit of Rs. 1,90,000
b) Higher basic exemption limit of Rs. 2,40,000
c) Rebate of tax payable subject to a maximum of Rs. 5000

ANSWER : - A

26) If an Individual Assessee has no other Income except a Lottery Winning of Rs. 1,00,000 during the P.Y. 2009-10, then the following provision will apply :
a) The entire Rs. 1,00,000 will be exempt
b) The entire Rs. 1,00,000 will be taxable @ 30% + Total EC @3% U/s 115 BB

27) The surcharge applicable to a Foreign Company for A.Y. 2010-11 is
a) Nil
b) 2.5% if the total income exceeds Rs. 1 Crore.
c) 2.5%

ANSWER :- B

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