Income tax imp 2 marks question and answers

 1. What is assessment year?

Assessment year {sec.2(9)}: assessment year is a period of 12 months comments in on 1st April every year and ending on 31st March of next year. Assessment year is the financial year immediately succeeding the previous year, e.g. for previous year 2020-21, assessment year will be 2021-22.

2. Give two examples of direct tax.

Wealth tax

Income tax

Property tax.

3. Give two examples of indirect tax.

GST

VAT ( value added tax)

STT

Service tax.

4. Expand: PAN and URPF

PAN : permanent account number.

URPF: un-recognized provident fund.

5. Who is a resident in India?

And invisible is a said to be resident in India in any previous year, if he satisfy any of the two basic conditions and both the subsequent conditions.

6. What is perquisites?

According to section 17 (2) of the income tax act the term "perquisites" its maybe defined as any casual emolument aur benefit attached to an office aur position in addition to salary or wages. It represents personal benefit to an employee. Perquisites maybe given in cash or kind.

7. What do you mean by annual value?

The annual value is the actual rent that is received in excess of the reasonable rent.

The annual value of the property must be calculated after deducting any taxes that the local authorities have levied and have been paid by the owner.

8. What is profession?

Profession means to the exploitation of one's skills and knowledge independently. Professional income is income from the exercise of any profession or vocation which calls for an intellectual or manual skill. it covers doctors, lawyers, accountants, artists, musicians, singers etc.

9. Who is a liable to pay tax?

This a mandatory to file ITR for individuals if the gross total income is over rupees 250000 in a financial year. This limit exceeds rupees 3 lakh.

10. How do you treat municipal taxes?

(A) when it is paid by landlord?

(B) when it is paid by tenant?

(A) : municipal taxes paid by landlords should be deducted from gross annual value of HP.

(B): municipal Texas paid by tenant not be taken.

11. What is casual income? Give two examples of casual income.

Casual income means and income which is casual in nature, i.e., which is unplanned,

Uncertain, accidental, sudden income which occurs just buy change and the person cannot depend upon it to produce income in future. Example:- winning from lotteries, gambling, betting, horse race.

12. What do you mean by block of assets?

Block office seeds means a group of a sex falling within a class of assets comprising - 

(A) tangible assets, being buildings machinery plant or furniture;

(B) tangible table assets being know how patents, copyright, trademarks, license, franchises.

13. State the collisions of income tax act a relating to employers contributes to  URPF and interest validity to URPF.

Exempt from tax while calculating income from salary taxable at the time of refund.

14. State any four expenses which is this allowed in computing income from business.

Salary to proprietor

Interest on capital

Provisions

Texas including GST.

15. State any two professional receipts of a medical practitioner.

Consultation fees,

Visiting fees,

Lab,

Cheques,

Sales of medicines.

16. How do you treat  "unrealised rent" in computing income from house property?

Deducted from actual rent while a calculating GAV.

17. What is recognised provident fund?

A provident fund  which is recognizer by the commissioner of income tax.

18. What is direct tax?

The tax levied collected directly from a person who is a liable to pay it is called as a direct tax.

19. Who is the specified Employee?

Specified employments and employee who face is any one of the following conditions.

 * An employee who is also a director of the company.

* Employee whose monetary salary exceeds RS. 50,000/-.

20. What do you mean by perquisites?

Any casual emolument or benefit attached to an office in addition to salary.