Income-tax MCQ Quiz in मल्याळम - Objective Question with Answer for Income-tax - സൗജന്യ PDF ഡൗൺലോഡ് ചെയ്യുക

The basic procedure of Income Tax return e-Filling in India is

1. Register: Visit the 'e-Filing' Portal www.incometaxindiaefiling.gov.in. and register yourself by providing basic details.
2. Once the registration process is complete login into your account by providing the credentials.
3. The next step is to download the utility and preparing returns
4. Next step enter your bank account details and proceed towards e-filing.
5. Once your return is filed e-Verify your income tax return.

E-filing is now mandatory for individuals and Hindu Undivided Families whose accounts have to be audited under Section 44AB of the Income Tax Act. For companies, e-filing with a digital signature is mandatory.

The correct answer is Employer - Employee

Key Points

• Employer-Employee relationship is necessary for Income to be taxed under the head "Salaries".
• Government - Member of Parliament is NOT the correct answer because it is taxable under the head "Income from other Sources"
• Seller - Buyer is NOT the correct answer because both the parties do not share a formal relationship relating to providing a service or payment in form of wages, pension etc.
• Student - Principal is NOT the correct answer as they do not share a monetary relationship. 

Additional Information 

Salary includes the following points:

• Wages
• Annuity
• Pension
• Gratuity
• Fees, Commission
• Leave Encashment
• Allowances
• Bonus etc.

Important Points

• A partner's remuneration, bonus, or commission received from the firm is not taxable under the heading Salaries, but rather under the heading Business or Profession.

Basic rules for determining the Residential Status of an Assessee:

• The residential status of an assessee is determined for each category of persons separately e.g. there are separate sets of rules for determining the residential status of an individual and separate rules for companies, etc.
• The residential status is always determined for the previous year because we have to determine the total income of the previous year only.
• An assessee may enjoy the residential status for the different assessment years.
• If a person is resident in India in a previous year relevant to an assessment year in respect of any source of income, he shall be deemed to be resident in India in the previous year relevant to the assessment year in respect of each of his other sources of income. [Section 6(5)]
• A person may be a resident of more than one country for any previous year.
• For example, if X is a resident in India for the previous year 2019-20, it does not mean that he cannot be a resident of any other country for that previous year.
• Citizenship of a country and the residential status of that country are separate concepts.
• A person may be an Indian national/citizen, but may not be a resident in India, and on the other hand, a person may be a foreign national/citizen, but maybe a resident in India.
• The Income-tax Act and Rules do not specify how to count the number of days of stay in India.
• However, in the case of Manoj Kumar Reddy, the Bangalore Tribunal noted drew guidance from the provisions of the general Causes Act and concluded that in counting days in this manner, the first day should be excluded.
• So while counting the days, the day of arrival should be ignored.
• On the basis of Tribunal views, one may consider counting on the basis of calendar years, excluding the day of arrival but including the day of departure, even if it's a fraction of a day.
• Therefore, if an individual arrives in evening and leaves the next morning i.e. only part of the day, it will be calculated as one complete day. 

Therefore, all of the above statements are correct.

Computation of Income under the head "Salaries"

Therefore, his income from salary for the A.Y. 2015-16 will be Rs. 3,73,860.

Assessee - Section 2(7) of the Income Tax Act:

Assessee means any person who is liable to pay any sum or in respect of whom any proceedings have been initiated under the income tax Act and includes -

• every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person;
• every person who is deemed to be an assessee under any provision of this Act;
• every person who is deemed to be an assessee in default under any provision of this Act;

Person - Section 2(31) of the Income Tax Act:

The term 'person' includes - 

• An individual,
• A Hindu undivided family,
• A company,
• A firm,
• An association of persons or a body of individuals, whether incorporated or not,
• A local authority, and
• Every artificial judiciary person not falling within any of the above categories.

The correct answer is ₹ 3,00,000

Key PointsUnder the new tax regime under Section 115BAC, the basic exemption limit has been revised to ₹ 3,00,000. The basic exemption limit is the maximum amount not chargeable to tax.

The income tax slab rates under the new income tax regime will now be as follows:

Additional Information

• The basic exemption limit under the old regime continues to be ₹ 2,50,000.
• New inclusion: A tax rebate of Rs 25,000 is available under the new tax regime from FY 2023-24. This tax rebate is applicable for all individuals whose taxable income does not exceed Rs 7 lakh. This would make effective tax outgo zero.

The correct answer is Other Sources

Key PointsSalary received by MP/MLA/MLC is taxable under Other Sources.

Additional InformationIncome taxable under head other sources:

• Amount received under family pension
• Agricultural income
• Director sitting fee
• Income sub-letting of house property
• Dividend
• Winning from lotteries, puzzles, card games
• Interest received on the compensation of compulsory acquisition of a capital asset

Computation of tax for the A. Y. 2020-21 of Mr. R

Therefore, Mr. R, a resident individual sold a long­ term capital asset on which he made long-term capital gain of Rs. 4,00,000. He deposited Rs. 1,00,000 into his Public Provident Fund A/c and donated Rs. 50,000 to PM's National Relief Fund His tax liability for the A.Y. 2020-21 will be Rs. 31,200.

The correct answer is Capital Assets held for more than 36 months

Key Points

Long-term capital asset means a capital asset held by an assessee for more than 36 months immediately preceding the date of its transfer.

However in the following cases, if the Capital asset is held for more than 12 months it shall be treated as a long-term capital asset

• Equity or preference shares held in a company listed in a recognized stock exchange in India
• Any other security listed in a recognized stock exchange in India
• Units of UTI (whether quoted or not)
• Units of an equity-oriented fund
• Zero coupon bonds (whether quoted or not)
• Unlisted Equity or preference shares held in a company (if the transfer of such shares takes place on or before 10th July 2014)
• Units of a mutual fund specified under section 10(23D) other than equity-oriented fund (whether quoted or not, if the transfer of such shares takes place on or before 10th July 2014)

An asset held for less than or for exactly 36 or 12 months will be considered a short-term capital asset.

Additional Information 

The correct answer is AOP/BOI

Key Points Partial Integration of agricultural with non-agricultural income:

• Although there is no tax on agricultural income, if an assessee also has non-agricultural income, that non-agricultural income is taken into account when calculating the income tax on non-agricultural income.
• This is also known as partial integration of agricultural income with non-agricultural income or indirect way of taxing agricultural income.

Important Points

Such partial integration is done only in the case of:

• individual;
• HUF;
• AOP/BOI;
• Artificial juridical person.

It is not done in the case of:

• firm
• company
• co-operative society
• local authority

The partial integration is done to compute the tax on non-agricultural income only when the following two conditions are satisfied:

• non-agricultural income of the assessee exceeds the maximum exemption limit which is Rs. 2,50,000 in the case of an individual (other than individual of the age of 60 years or above) and HUF, etc.; and
• the Net Agricultural Income exceeds Rs. 5,000.