Question 1

Medical reimbursement is exempt up to .................. if treatment is done in a private hospital.

Accepted Answer

Medical reimbursement is exempt up to Rs. 15,000 if treatment is done in a private hospital as per the Income Tax Act provisions in India.

Question 2

Excise duty and sales tax are allowed as deduction if paid before......................

Accepted Answer

Excise duty and sales tax are allowed as a deduction if they are paid before the due date of filing the income tax return. This is because expenses that are pertinent to the business and paid within the stipulated time frame are considered for deduction in the fiscal year in which they are incurred, aligning with tax filing regulations.

Question 3

Technical know-how acquired after 1.4.98 is eligible for depreciation at...............

Accepted Answer

C

Question 4

Which of the following is exempted.

Accepted Answer

Foreign allowance is typically exempted from taxes under many tax jurisdictions, as it is often provided to employees to cover the additional costs of living abroad, which is not considered as taxable income.

Question 5

Free food provided to employees is exempted upto ...................... per meal.

Accepted Answer

As per Indian tax laws, free food provided to employees is exempted up to Rs. 50 per meal.

Question 6

The income from the sale of house hold furniture is ......................

Accepted Answer

The answer of The income from the sale of house...

Question 7

Preliminary expenses shall be allowed as deduction in...............

Accepted Answer

Preliminary expenses are allowed as a deduction in 5 equal annual installments under the Income Tax Act.

Question 8

Bad debts allowed earlier and recovered latter on is....................

Accepted Answer

Bad debts recovered are considered business income because they were originally related to the business's operations and were previously written off as a business expense.

Question 9

Under valuation of opening stock is....................

Accepted Answer

Under valuation of opening stock leads to overstatement of net profit. To rectify this, the amount of undervaluation is deducted from the net profit.

Question 10

Under section 44AB the audit of accounts is compulsory if total sales exceed ..........................

Accepted Answer

Under section 44AB of the Income Tax Act, the audit of accounts is compulsory if the total sales, turnover, or gross receipts in business exceed Rs. 1 crore in any previous year.

Question 11

Gifts from clients are...................

Accepted Answer

The answer of Gifts from clients are...................
...

Question 12

Repairs incurred before installation of an assets is..................

Accepted Answer

Repairs incurred before the installation of an asset are considered capital expenditure because they are necessary to bring the asset to a usable condition and are thus added to the cost of the asset.

Question 13

If a depreciable asset is acquired and used for less than 180 days in a financial year, depreciation allowed on it is..............

Accepted Answer

For assets used for less than 180 days in a financial year, many accounting standards and tax regulations allow for depreciation at 50% of the normal rate to account for the partial year of use.

Question 14

The Total income of an individual is Rs: 3,46,994. The rounded off total income will be........................

Accepted Answer

The answer of The Total income of an individual is...

Question 15

The income tax payable by an individual is Rs:8,562.55. The rounded off tax payable will be .........................

Accepted Answer

The answer of The income tax payable by an individual...

Question 16

The maximum tax exemption to a senior citizen for the assessment year is ......................

Accepted Answer

The answer of The maximum tax exemption to a senior...

Question 17

If STT is paid, then STCG tax on the transfer of capital asset is ..............................

Accepted Answer

When Securities Transaction Tax (STT) is paid, the Short Term Capital Gains (STCG) tax on the transfer of a capital asset is 15%.

Question 18

Education cess for the A.Y is ................................

Accepted Answer

Education cess for the Assessment Year (A.Y) is set at 3%. This cess is added on top of the income tax and surcharge (if applicable) to fund education and healthcare initiatives in India.

Question 19

According to section ........................ , TDS shall be payable during the financial year in respect of the total income of the assessee.

Accepted Answer

Section 207 of the Income Tax Act specifies that tax is payable during the financial year in respect of the total income of the assessee.

Question 20

.................. must be paid according to the provisions of " Pay As You Earn" Scheme.

Accepted Answer

The answer of .................. must be paid according to the...

Quiz 6: Taxation and Financial Regulations