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Income Tax Laws & Practices (VVN)
1. What are the differences between Excise duty and Customs duty?
2 . What is Tax Deduction at Source? Explain with examples?
3 . What is Advance Payment of Tax? Why people pay taxes in advance?
4 . Critically describe the advantages and disadvanages of VAT?
5 . Descrie with examples the various incomes available
6 . Take imaginary figures and describe how the tax liability of an individual is calculated?
7 . Differenciate between revenue expenditure an dcapital expenditure?
8 . The followings are the details relating to Mr. Siddharth for the PY 2012-13. Compute income fromother sources: (i). Income from agriculture in Pakistan Rs. 5000 (ii). Interest on Post Office Savings bank Rs. 1000, (iii). Dividend from foreign company Rs. 700 (iv). Dividend from indian Company (v). Rent from subletting house Rs. 1000 and (v). Winning from lottery (Net) Rs. 14,000.
Economic Survey
The Economic Survey of India said that the government should refrain from raising exemption limits on income tax to facilitate natural growth of individual earnings and widen the taxpayers’ base, even as it also suggested increasing property tax.
The Economic Survey 2015-16, tabled in Parliament on Friday, also called for a review and phasing out of the tax exemption raj that benefited the richer private sector and a “reasonable” taxation for better-off individuals. A cross-country comparison shows that India currently has the lowest number of taxpayers, it said, adding that nearly 85 per cent of the economy still remains outside the tax net.
“Just 5.5 per cent of earning individuals are in the tax net and the ratio should be raised to a desirable estimate of about 23 per cent,” it said. Making a study of the data since Independence, the Survey said that the exemption thresholds have been raised much more rapidly than underlying income growth resulting in a widening of wedge between average income and threshold limit.
“One of the low hanging fruit would be to refrain from raising exemption thresholds for the personal income tax, allowing natural growth in income to increase the number of taxpayers. In some ways, this would be reform through inaction,” the Survey said. It said that subsidies amounting to Rs. 1 lakh crore paid to well-off need to be scaled back. Also tax exemptions raj which often amount to redistribution toward the richer private sector will also need to be reviewed and phased out.
“Reasonable taxation of the better-off, regardless of where they got their income from — industry, services, real estate or agriculture — will also help build legitimacy,” the Survey added. It also suggested that property taxation needs to be developed as sparse systematic data on property taxation shows how little attention has been given to this tax.
“Property taxes are especially desirable because they are progressive, buoyant and difficult to evade, since they are imposed on a non-mobile good which can be relatively easily identified,” it said.
Making a case for “higher property tax rates”, the Economic Survey said it would put sand in the wheels of property speculation.
“Smart cities require smart public finance and a sound property taxation regime is vital to India’s urban future,” the Survey added.
It said India has not fully translated its democratic vigour into commensurately strong fiscal capacity. “In long run, if India is to stay ‘on the line’ as its per capita income grows, it will need to build fiscal capacity.”
The Survey also said the government’s spending priorities must include essential services that all citizens consume: public infrastructure, law and order, less pollution and congestion. It said the state should prioritise on reducing corruption and government’s effort to improve transparency through transparent and efficient auctioning of public assets will help create legitimacy and over time strengthen fiscal capacity. The Survey said economic development in India lags political development.
“Independent India has averted famines, but chronic malnutrition is still a challenge. The Indian state can organise mega events, but routine safety for women has turned out to be more difficult to achieve. The Indian state responds effectively to floods and tsunamis but finds water and power metering more challenging,” it added.
1. What the case is all about? Provide the brief summary of the key issues discussed?
2. Do you really think that the India’s recent economic survey is against raising income tax exemption limits?
3. What has been said about property tax?
Question No. 1
Income-tax is an annual tax on ……………………..
Options
Royality
Income
charity
Commission
Question No. 2
Previous year belongs t which section.
Options
Section 3 a
Section 3
Section 3 b
Section 3 d
Question No. 3
Deemed profits chargeable to tax under section 41 or section……………
Options
57
58
59
60
Question No. 4
HUF stands for ……….. Undivided Family.
Options
Horizon
Homogeneous
Hindu
Hetrogeneous
Question No. 5
Receipts which are recurring by nature and which are available for meeting all day to day expenses of a business concern are known as ……………………receipts”
Options
Financial
Certain
Capital
Revenue
uestion No. 6
Liability of investor which is limited to the extent of his investment is called…………… liability.
Options
Fixed
Limited
Certain
Liabile
Question No. 7
In specific cases, income tax (and other taxes) may be levied at a fixed rate instead of the rates usually applicable are known as …………. Rates.
Options
Lump-Sum
Specific Tax
Liable
Fixed
Question No. 8
Employee’s Provident Fund and Miscellaneous Provisions Act came in force in which year.
Options
1951
1952
1977
1971
Question No. 9
LTC is a non-taxable perquisite available for ……………… class.
Options
Poor
Rich
Salaried
Business
Question No. 10
Capital receipts are shown in the Balance Sheet on the ……………….. side.
Options
Above
Below
Asset
Liability
Question No. 11
Winnings from lotteries, races etc. are taxable under the head “Income from other sources”.
Options
TRUE
FALSE
Sometimes
Can’t Say
Question No. 12
Wealth tax is to be rounded off to nearest multiple of…….
Options
1
10
100
1000
Question No. 13
Tax is to be rounded off to nearest multiple of ………
Options
Ten
Hundred
Rupee
Thousand
Question No. 14
Year in which income is earned is known as……………………. Year.
Options
Annual
Taxable
Assessment
Previous
uestion No. 15
Aggregate amount of deduction under section 80C, 80CCC and 80CCD cannot exceed:
Options
150000
100000
200000
250000
uestion No. 16
LLC stands for limited liability ……………..
Options
Corporation
Company
Console
Centre
Question No. 17
Tax and/or accounting convention under which the value of assets/liabilities is adjusted to reflect fair market value of a specific date.
Options
conventional tax rate
Sovereign Rate
Mark to market
Managerial
Question No. 18
………… is an increase in the price of something, especially from the price a trader pays for something to the price he sells it for.
Options
Column-down
Column-up
Mark-down
Mark-up
Question No. 19
Tax on mortgages usually in the form of a stamp duty levied on the mortgage document.
Options
Mortage tax
Document Tax
Implied tax
Annual Tax
Question No. 20
A lack of due care or failure to do what a reasonable and ordinarily prudent person would do under the given circumstances.
Options
Accounting Fraud
Negligence
Accounting Mistake
Fraud
Question No. 21
Obligation to persuade a court or other entity of the validity of a factual assertion.
Options
Branch Tax
Statutiory Tax
Burden of Proof
Compliance Tax
Question No. 22
A tax imposed on an act, occupation, privilege, manufacture, sale, or consumption.
Options
Sales
Excise
Income Tax
IPR tax
Question No. 23
Any 12-month period which is set for accounting purpose of an enterprise is ……………… year.
Options
Fiscal
Previous
Assessment
Monetary
Question No. 24
A risk-management strategy to balance positions of different business units or with unrelated third parties is called ……………… hedging.
Options
Liberal
Expatriate
Foreign
Global
Question No. 25
The period following the due date of taxes during which legal action for recovery of delinquent taxes will not be instituted and interest will not commence to run is ………………. Period.
Options
Flexible
Grace
Advanced
Extended
Question No. 26
Reserves which are not disclosed on the balance sheet of an enterprise, either by overvaluing debts or undervaluing assets are called…………… reserves.
Options
Fixed
Hidden
Flexible
Statutory
Question No. 27
A tax applied at the same rate to all levels of income is …………. Tax.
Options
Straight Line
Flat Tax
Forward
Fixed Tax
Question No. 28
Ratio of gross profit to the sales of a business or, alternatively, to the adjusted purchases or “goods consumed” during the accounting period is …………….. Ratio.
Options
Liquidity Profit
Gross Profit
Net profit
Actual Profit
Question No. 29
Financial instrument which has the characteristic of more than one type of instrument is ……………….. Derivative.
Options
Mixed
Impure
Hybrid
Uncertain
Question No. 30
Amount of money received by persons or entities as compensation for damages or for losses incurred.
Options
Deflamation
Indemnification
Income Shifting
Income Spliting
Question No. 31
Real property or personal property that is received by heirs.
Options
Solely
Benefited
Gifted
Inheritance
Question No. 32
A transaction among parties, each of whom acts in his or her own best interest is called …………….. Transaction.
Options
Arm’s Length
Attributable
Auxilary
Pending
Question No. 33
Environment tax is commonly called as……………… tax.
Options
Green
Eco
Forest
White
Question No. 34
Rule under which one is precluded and forbidden by law to speak against his own act or deed.
Options
Pestel
Escort
Estoppel
onograph
Question No. 35
Restriction of the amount of a particular foreign currency that can be bought or sold
Options
Exchange Control
Forex Control
Forex Reserve
Restriction
Question No. 36
DTA stands for double tax ……………….
Options
Arbitrage
Autonomy
Authorisation
Agreement
Question No. 37
Income or compensation derived from personal services in an employment, trade, business, profession or vocation is called ………….. Income.
Options
Compensatory Income
Personal Income
Earned
Vocational Income
Question No. 38
Amount by which the face value of a debt obligation exceeds its issue or selling price.
Options
Discount
offer
Subsidy
Rebate
Question No. 39
Cost identified with a particular transaction, such as raw materials, components and goods, wages and other processing expenses.
Options
Indirect Cost
Fixed Cost
Variable Cost
None of these
Question No. 40
OECD stands for Organization for Economic Co-operation and ……………………….
Options
Development
Delinqued
Depressed Economies
Disagreement
We Also Provide SYNOPSIS AND PROJECT.
Contact www.kimsharma.co.in for best and lowest cost solution or
Email: solvedstudymaterial@gmail.com
Call: +91 82907-72200 (Call/WhatsApp) or +91 88003-52777 (WhatsApp Only)