DT Flashcards
(109 cards)
1
Q
Charging Section of IT Act
A
Section 4
2
Q
Rebate u/s 87A available to all except
A
LTCG 112A
3
Q
Rebate Limit
A
Resident Individual, TI upto 5L
12500 or tax payable
4
Q
What is 115BAA?
A
22% + 10% + 4%
Special Income - Special Rate + 10% + 4%
Applicable to domestic company.
Form 10IC
5
Q
What is 115BAB?
A
Manufacturing income - 15% + 10% + 4%
Other income (IFOS,HP) - 25.16%
Special Income - Special Rate + 10% + 4%
STCG - depreciable asset - 17.16%
STCG - non depreciable asset - 25.16%
Excess income by AO - 30+10+4%
Applicable to domestic manufacturing company setup on or after 1/10/19 and commence business before 31/03/24.
Form 10ID
6
Q
What is 115BAD?
A
Similar to 115 BAA.
Difference - applicable to resident cooperative society.
35CCD available, 80M not available.
Form 10IF
7
Q
What is 115BAE?
A
Similar to 115BAB.
Differences - Manufacturing resident cooperative society registered on or after 1/04/23 and commence business before 31/03/24. 35CCD available, 80M not available.
8
Q
What personal asset capital gain excludes?
A
DJ SAAP
Drawing, Jewellery, Sculpture, Archaeological collection, Any other form of art, Painting.
9
Q
At what value is capital gain taxable in the hands of partner/member on transfer of asset to firm/AOP/BOI
A
At the amount recorded in books of firm/AOP/BOI
10
Q
Section 45?
A
CG not chargeable in the year of transfer.
11
Q
Section 10(10D)
A
Exemption on maturity of LIP.
12
Q
Section 50B?
A
Slump Sale
13
Q
Section 50C
A
SDV to be treated as FVOC
14
Q
Section 47
A
Certain transaction not to be treated as transfer
15
Q
Section 115BB
A
Tax on winning from lotteries, crossword puzzle, races, card game
16
Q
Section 115BBJ
A
Income from online games
17
Q
Section 54, 54EC and 54 B?
A
54 - Exemption on house property for capital gain.
54EC - Exemption for immovable property
54B - Urban agriculture land
18
Q
Person on whom section 56(2)(X) not applicable?
A
MR ID HUTLA ITC
Marriage, Relative | Inheritance, Death | Hospital/Medical, University/educational, Trust, Local Authority | Individual by trust, by any trust/fund/medical etc under sec 10(23C), Certai exemption of sec 47.
19
Q
Section 56(2)(X)?
A
Taxability of gift.
20
Q
Property as per section 56 (2)(x)
A
DJ SAAP BIVS
Drawing, Jewellery, sculpture, archaeological collection, any other form of art, painting, bullion, immovable property, virtual digital asset, shares/securities.
21
Q
What is TDS u/s 194 S?
A
Tax on VDA.
Consid?10000 @1%
22
Q
Deduction u/s 80 M
A
If GTI of domestic company includes dividend from another domestic/foreign company or business trust then -
a) Aggregate dividend received (including deemed dividend)
b) Dividend distributed to SH up to due date
Lower shall be allowed for deduction.
23
Q
Treatment of tax in hand of domestic company on buy back of shares.
A
Co - taxable u/s 115QA @20+12+4% = Buy back price - issue price (inc prem).
SH - exempt u/s 10(34A)
24
Q
Section 32?
A
Depreciation.
25
Method of Depreciation for assessee having business of generation?
SLM or WDV both.
26
How is depreciation allocated between amalgamation, demerger, succession?
By the ratio of number of days for which assets were used by them.
27
Section 35(1)(i), 35(2AB) and Section 35(1)(iv)
35(1)(i) - Revenue expense for inhouse research.
35(1)(iv) - Capital expense for inhouse research.
35(2AB) - company engaged in mfg & bio tech business.
No deduction on land.
28
Section 35(1)(ii), 35(2AA) and Section 35(1)(iii)
35(1)(ii) - Scientific research for approved instituion - Rahul ICU
35(1)(iii) - Scientific research for approved company engaged in research.
35(2AA) - Scientific research for IIT and National Lab.
29
Section 35CCD, 35CCC, 35AD.
35CCD - Expenditure on Agriculture extension project.
35CCC - Expenditure for Skill Development project.
35AD - Specified Business
30
Interest on loan advanced to sister concern for commercial expediency is allowed as deduction in PGBP?
Yes.
31
Section 36(1)(vii)?
Bad debts deduction
32
How much provision for bad debts is allowed to banks while claiming deduction in PGBP.
Indian Bank- 8.5% of GTI + 10% of aggregate advance made by Rural branches
Foreign Bank/NBFC - 5% of GTI
33
Are registration fees incurred on increase of authorised SC and expenses on IPO/FPO allowed as deduction in PGBP?
No.
34
When will the salary payable to NR or outside India disallowed due to non deduction of TDS will be finally allowed as expense?
Never
35
Section 40A(3)?
Cash payment > 10000 to single person in a single day
36
Section 43B
Expenses allowed on payment basis.
37
How long books are required to be kept under section 44AA - compulsory maintenance of books?
6 years.
38
Section 44AD, 44ADA, 44AE
44AD- Profit for business on presumptive basis.
44ADA- Profit for profession on presumptive basis.
44AE- Profit for transporter on presumptive basis.
39
When is income from HP, IFOS, CG and donation received by political parties exempt?
As per Sec 13A-
maintain books, audited, keep record of donation > 20000, not take donation >2000 by cash, file ROI.
40
Is sec 44AD and 44ADA allowed to LLP?
No.
41
If a partner is working as individual capacity and receives interest at representative capacity, will the maximum limit of 12% be applicable and vice versa?
No, sec 40(b) not applicable for interest section on this.
42
Is liability of partners in LLP limited as per IT Act?
No
43
If a member of AOP/BOI is working as individual capacity and receives interest at representative capacity, will the interest be allowed and vice versa?
Allowed since sec 40(ba) not applicable.
44
What are the tax treatment in case of Business trust/UH for the following -
a) Interest
b) Dividend
c) Rental
a) Interest - BT - exempt, UH - taxable at 5%/Normal rate ( NR/Resident), TDS 194LBA- 5%/10%.
b) Dividend - BT - exempt, UH - taxable at 10%/Normal rate ( NR/Resident), TDS 194LBA- 10%/10%.
If SPV not opted for 115BAA, dividend exempt in hands of SH.
c) Rental - BT - exempt, UH - taxable at NR/Normal rate ( NR/Resident), TDS 194LBA- Rate in force/10%.
45
What are the tax rates for investment fund in case of -
a) Company
b) Firm
c) Others
a) Company - 25%
b) Firm - 30%
c) Other - MMR
46
By which date should business trust, investment fund, securitization trust provide breakup of income to -
a) UH
b) IT Authority
a) 30th June of AY.
b) IT Authority - 30th Nov pf AY, 15th June in case of investment fund.
47
At what rate is MAT/AMT applicable to unit situated in IFSC deriving income solely in foreign exchange.
9% rather than 15%.
48
Which type of foreign company are not eligible for MAT?
1) Those country with whom DTAA is there and no Permanent establishment in India.
2) No DTAA but not required to seek registration in Companies law.
49
MAT/AMT credit is allowed to set off and c/f for how many years?
15 AY
50
At what limit is AMT not applicable?
ATI upto 20lacs for Individual/HUF/AOP/BOI
51
What is the amount of deduction for 10AA (SEZ)?
o First 5 AY – 100% of Export profit.
o Next 5 AY – 50% of Export profit.
o Next 5 AY – Lower of 50% of Export profit or amount debited to P/L and cr. To SEZ Reinvestment Allowance Reserve account.
o Export Profit = PGBP of unit in SEZ * (Export Turnover/Total Turnover)
Export profit means consid rec for export brought in India in convertible forex within 6m from end of PY or time permitted by RBI.
52
When are two enterprises known as Associated enterprises as per transfer pricing?
When one holds 26% share in other.
53
What to do if more than 1 ALP are available in transfer pricing?
Arithmetic mean to be taken if data set is less than 6 ALP. If more than 6 ALP then range value concept to be used.
54
What is the fees for roll back provision in transfer pricing?
Rs. 5,00.000
55
What is secondary adjustment in transfer pricing?
Excess money (ALP - Actual) shall be treated as loan if not repatriated within 90 days.
56
Basic and Additional condition for residential status?
Resident Status – Basic condition – a) More than 182 days in PY, b) atleast 60 days in PY and 365 or more days in last 4 PY. [Only a) to be checked if – Indian citizen leave for employment, Indian citizen leave India being crew member of Indian ship, Indian citizen or person of Indian origin leave for employment and total income from India is < 15 lakh (if more than 15 lakh then b) to be 120 instead of 60 days)].
Additional Condition – a) Resident for 2 PY out of last 10 PY. b) Stay for 730 or more days in India out of Last 7 PY.
57
When do we check POEM for foreign company?
Only if turnover is > 50cr.
58
How are the following income taxable in the hands of ROR, RNOR, NR-
a) Indian income
b) Foreign Income - from business or prof setup in India
c) Other foreign income.
Indian Income - ROR - Taxable, RNOR- Taxable, NR- Taxable.
Foreign Income setup in India - ROR - Taxable, RNOR- Taxable, NR- Not Taxable.
Other Foreign Income - ROR - Taxable, RNOR- Not Taxable, NR- Not Taxable.
59
Interest payable by a unit located in an IFSC in respect of monies borrowed by it on or after 01.09.2019 is taxable for NR?
No
60
What are the 2 types of reliefs in DTAA?
Unilateral and Bilateral Relief.
Under bilateral - Tax exemption method and tax credit method.
61
To which state Equilisation levy not applicable? And when is EL not applicable in general in case of specified services?
Jammu and Kashmir.
Applicable @ 6%.
b) - Aggregate amount received by NR is < 1,00,000 in PY.
- not for the purpose of business or profession.
- NR having PE in India and such service is connected with PE.
62
What is the rate charged as equilisation levy on the following -
a) Speicified services
b) E commerce operator
a) 6%
b) 2%
63
TIll when should the person deposit equilisation levy to the govt?
7th of next month, if late 1% interest.
In case of e-com operator - till 7th of quarter ending but if march ending then by 31 march.
64
What are the sections 234A, 234B, 234C?
234A - Interest for non filing of return
234B - Interest for non/short payment of advance tax
234C - Interest for deferment of advance tax installments.
65
When is interest on refund not given by govt?
When refund is less than 10% of the tax determined.
66
When is Surcharge and CESS added to TDS amount while deducting the same?
When payment is made to NR or Foreign Company.
67
TDS Name and rate -
a) 192
b) 193
c) 194
d) 194A
e) 194BA
a) 192 - Salary - slab rate
b) 193 - Interest on securities - 10%
c) 194 - Dividend - 10%
d) 194A - Interest other than securities - 10%
e) 194BA - Winning from online - 30%
68
TDS Name and Rate -
a) 194C
b) 194DA
c) 194H
d) 194 - I
e) 194 - IA
f) 194 - IB
a) 194C - contractor - ind/huf - 1%, other - 2%
b) 194DA - Maturity of LIP - 5% on income
c) 194H - Commission or brokerage - 5%
d) 194 - I - Rent for P&M, land, building - 2% for P&M, 10% for L&B.
e) 194 - IA - Transfer of Immovable prop., 1% of consid or SDV, higher.
f) 194 - IB - Rent of Immovable prop. - 5%
69
TDS Name and Rate -
a) 194J
b) 194LA
c) 194M
d) 194N
e) 194O
f) 194Q
g) 194R
a) 194J - Prof service, FTS, Royalty, Rem to director - 10%
b) 194LA - Compulsory acq - 10%
c) 194M - Mixture of 194J,C,H - 5%
d) 194N - Cash withdraw - 2% on excess of 1cr.
e) 194O - E commerce - 1%
f) 194Q - Pur of goods more than 50L - 0.1% of excess.
g) 194R - Perquisite from PGBP - 10%
70
What happens if payee not filed return u/s 139(1) for the last year before CY and TDS/TCS deducted/collected > 50000.
TDS/TCS rates in CY will be higher of twice the normal rate or 5%.
71
Section - TCS - Name and Rate -
a) 206C(1)
b) 206C(1C)
c) 206C(1F)
d) 206C(1G)
e) 206C(1H)
a) 206C(1) - Tendu-5%, timber-2.5%, alcohol, mineral, scrap - 1%
b) 206C(1C) - Leasing/licensing of toll/parking/quarry - 2%
c) 206C(1F) - Sale of motor vehicle > 10L - 1%
d) 206C(1G) - Remittance of money > 7L - 5%/20%
Sale of overseas tour - 5%/20%
e) 206C(1H) - Sale of goods > 50L, 0.1%
72
WHat is the due date of filing ROI -
a) Company/person to be audited
b) Normal Person
a) 31 Oct
b) 31 July
73
Can loss be set off and c/f even if ROI not filed within due date?
Set off allowed, no c/f.
House property and unabsorbed dep can be c/f even though ROI not on due date.
Others can be c/f after approval from CIT/PCIT/CBDT as the case maybe
74
Section 139?
Filing of ROI
75
Section 133A?
Power to Survey
76
Section 131
Power of IT Authority
77
For how many days can IT Authority impound books under survey?
Max 15 days + 15 (approval)
78
In case of TDS/TCS survey, can IT Authority impound the books and make inventory of cash etc.?
No.
79
In how many days during search and seizure should the AO hand over the BOA/money etc?
60 days.
80
For a period of how many years can IT Authority ask the assessee to produce books of accounts and docs?
3 years prior to relevant PY.
81
Section 142(1)?
RIA wala notice, Return/Info/Accounts notice.
Enquiry before Assessment.
82
Section 143(3)?
Order of Scrutiny Assessment
83
Section 144?
Best Judgement Assessment
84
How can Assessee and AO file appeal on directions of Dispute Resolution Panel?
Assesse can file appeal to ITAT. AO can not. it is binding on AO.
85
Section 147 and 148?
147 - Income escaping assessment
148 - Issue of notice
86
Section 156?
Demand notice.
87
How many members sit for ITAT appeal from IT Authority?
2 members, one accountant and one judicial member.
If TI of assessee is < 50L then a single member.
88
In how much time ITAT gives judgement for appeal by assessee?
Within 4 years from end of year in which appeal received.
89
What is the period for stay of demand to ITAT by assessee?
180 days provided 20% of tax paid or security provided. 365 maximum days.
90
Can the order passed in appeal be revised by CIT/PCIT/CCIT/PCCIT u/s 263?
No.
91
What is the rate of tax for undisclosed foreign income and asset under black money act?
Flat 30% rate, no surcharge or cess.
92
What are deductions -
a) 80CCC
b) 80CCD
c) 80E
d) 80EE
e) 80EEA
f) 80EEB
a) 80CCC - Contribution to Pension fund of LIC or other insurance company.
b) 80CCD - Contribution to pension scheme of govt./NPS
c) 80E - Interest on loan for higher education
d) 80EE - Interest on housing loan
e) 80EEA - Interest on housing loan (other than above)
f) 80EEB - Interest on EV.
93
What are deductions -
a) 80G
b) 80GG
c) 80GGA
d) 80GGB/GGC
e) 80JJAA
f) 80JJA
g) 80LA
a) 80G - Donations
b) 80GG - Rent paid for House property (HRA not received)
c) 80GGA - Donation for scientific research or rural dev
d) 80GGB/GGC - Donation to political parties or electoral trust.
e) 80JJAA - Employment of new employees.
f) 80JJA - Collecting and processing of bio-degradable waste.
g) 80LA - Off short banking unit/IFSC.
94
Are deduction u/c 80IA - 80RRB allowed if not claimed in ROI and what if ROI not filed within due date?
No and No.
95
What are deductions -
a) 80IAC
b) 80IAB
c) 80P
d) 80QQB
e) 80RRB
f) 80TTA
g) 80TTB
a) 80IAC - New start ups
b) 80IAB - Developing and housing projects
c) 80P - Income of co-op societies.
d) 80QQB - Royalty from books
e) 80RRB - Royalty from patent
f) 80TTA - Interest on savings account from bank, Co-op, Post office
g) 80TTB - Interest on deposits from bank, co-op bank and post office including FD for senior citizen.
96
What is the exemption u/s 10(32) for minor child income?
1500 per child p.a.
97
Is inter head adjustment allowed for carry forward losses?
No.
98
What is the maximum limit for set off of house property losses with other head of income?
200000, but if 115bac opted then 0
99
Which losses are allowed to c/f even if ROI not on time?
HP, Unabsorbed dep.
100
If there is change in shareholding of a closely held company, will the loss c/f allowed? And what if the company is eligible start up?
Only if 51% of the ESH are same.
For eligible startup - SH should continue irrespective of % of holding.
101
Can the loss suffered by firm be c/f by individual partner as sole proprietor?
No.
102
GAAR full form?
General Anti Avoidance rules
103
Penalty for filing late SFT (Statement of Financial Transactions)?
500 per day from 1 june till date of furnishing. 1000 per day from date of notice to date of furnishing.
104
Is excess application of money by trust or institution in the PY be available for c/f or set off in next year?
No
105
How much time is available to pay accreted income tax (exit tax) to CG byt trust?
14 days,
106
Penalty for non-compliance of sec 44AB - audit?
0.5% of GR/TO or 150000, whichever is lower.
107
Is discount and cash discount deducted from TO while computing for a tax audit?
Discount - yes.
Cash discount - No.
108
Section 270A?
Penalty on Under reporting and mis reporting of income.
109
