Q25. Mr. A receives a watch worth Rs. 75,000 from his cousin brother on the occasion of Mr. A's birthday. Determine its taxability
anonymous poll
a) 75,000 taxable as gift u/h other sources – 41
👍👍👍👍👍👍👍 53%
d) None of these – 32
👍👍👍👍👍 42%
b) 25,000 taxable as gift u/h other sources – 4
👍 5%
c) 75,000 taxable as PGBP Income
▫️ 0%
👥 77 people voted so far.
anonymous poll
a) 75,000 taxable as gift u/h other sources – 41
👍👍👍👍👍👍👍 53%
d) None of these – 32
👍👍👍👍👍 42%
b) 25,000 taxable as gift u/h other sources – 4
👍 5%
c) 75,000 taxable as PGBP Income
▫️ 0%
👥 77 people voted so far.
Answer to Q25 is (d) since "Watch" is not one of the assets covered under the scope of section 56(2)(x)
Q26. Which section in the Income Tax Act deals with tax audit?
anonymous poll
b) Section 44AB – 70
👍👍👍👍👍👍👍 91%
a) Section 44AA – 5
👍 6%
d) Section 44AD – 1
▫️ 1%
e) None of these – 1
▫️ 1%
c) Section 44AC
▫️ 0%
👥 77 people voted so far.
anonymous poll
b) Section 44AB – 70
👍👍👍👍👍👍👍 91%
a) Section 44AA – 5
👍 6%
d) Section 44AD – 1
▫️ 1%
e) None of these – 1
▫️ 1%
c) Section 44AC
▫️ 0%
👥 77 people voted so far.
Answer to Q26 is (b). Section 44AB deals with the provisions related to Tax Audit of an assessee
Q27. Pick the odd one out:-
anonymous poll
c) Section 145A – 50
👍👍👍👍👍👍👍 91%
a) Section 143(3) – 2
▫️ 4%
b) Section 144 – 1
▫️ 2%
d) Section 147 – 1
▫️ 2%
e) Section 153A – 1
▫️ 2%
👥 55 people voted so far.
anonymous poll
c) Section 145A – 50
👍👍👍👍👍👍👍 91%
a) Section 143(3) – 2
▫️ 4%
b) Section 144 – 1
▫️ 2%
d) Section 147 – 1
▫️ 2%
e) Section 153A – 1
▫️ 2%
👥 55 people voted so far.
Answer to Q27 is (c). While all other sections relate to assessments, section 145A tells incomes under different heads are taxed on accrual/cash basis
Q28. Mr. A, a chartered accountant, issues a certificate under the income tax act, to his client. He furnishes incorrect information in it. How much penalty is leviable for such mistake?
anonymous poll
c) 10,000 each certificate – 57
👍👍👍👍👍👍👍 86%
d) 10,000 for all incorrect certificates issued in a PY – 4
▫️ 6%
b) 1% of fee for every month or part thereof – 3
▫️ 5%
a) 2% of turnover – 2
▫️ 3%
👥 66 people voted so far.
anonymous poll
c) 10,000 each certificate – 57
👍👍👍👍👍👍👍 86%
d) 10,000 for all incorrect certificates issued in a PY – 4
▫️ 6%
b) 1% of fee for every month or part thereof – 3
▫️ 5%
a) 2% of turnover – 2
▫️ 3%
👥 66 people voted so far.
Answer to Q28 is (c). Penalty for furnishing such incorrect information, as per Section 271J, is 10,000 per certificate.
Q29. Mr. John has been living in Amsterdam since past 57 years. His current age is 67. He knows that slab rate is applicable to his incomes earned in India but wants to know which slab is applicable.
anonymous poll
b) Slab with exemption limit of 2.5 lacs – 58
👍👍👍👍👍👍👍 87%
e) None of these – 4
▫️ 6%
c) Slab with exemption limit of 3 lacs – 3
▫️ 4%
a) Slab with exemption limit of 2 lacs – 1
▫️ 1%
d) Slab with exemption limit of 5 lacs – 1
▫️ 1%
👥 67 people voted so far.
anonymous poll
b) Slab with exemption limit of 2.5 lacs – 58
👍👍👍👍👍👍👍 87%
e) None of these – 4
▫️ 6%
c) Slab with exemption limit of 3 lacs – 3
▫️ 4%
a) Slab with exemption limit of 2 lacs – 1
▫️ 1%
d) Slab with exemption limit of 5 lacs – 1
▫️ 1%
👥 67 people voted so far.
Answer to Q29 is (b) as Non-Resident Individuals are taxed at slab rate and the benefit of higher exemption of 3/5 lacs is not available to NR individuals
Q30. Mr. X celebrated his 25th Anniversary with a lavish function. Department found that he spent 4 crores on this function. If Mr. X is not able to explain the source of this 4 crores that he spent on function, at what rate will this amount be taxed?
anonymous poll
b) 4 Cr. taxed @ 60% – 57
👍👍👍👍👍👍👍 89%
a) 4 Cr. taxed @ 30% – 3
▫️ 5%
c) 4 Cr. taxed at the general rate applicable to the assessee – 2
▫️ 3%
d) 2.8 Cr. taxed @ 30% – 1
▫️ 2%
e) 2.8 Cr..taxed @ 60% – 1
▫️ 2%
👥 64 people voted so far.
anonymous poll
b) 4 Cr. taxed @ 60% – 57
👍👍👍👍👍👍👍 89%
a) 4 Cr. taxed @ 30% – 3
▫️ 5%
c) 4 Cr. taxed at the general rate applicable to the assessee – 2
▫️ 3%
d) 2.8 Cr. taxed @ 30% – 1
▫️ 2%
e) 2.8 Cr..taxed @ 60% – 1
▫️ 2%
👥 64 people voted so far.
Answer to Q30 is (b). As per section 115BBE, such unexplained expenditure is taxed at a flat rate of 60%
Q31. Mr. A files his income tax return without paying the self assessment tax due u/s 140A. Which of the following statements is not incorrect?
anonymous poll
b) Such a return is NOT deemed to be a Defective Return – 42
👍👍👍👍👍👍👍 70%
a) Such a return is deemed to be a Defective Return – 18
👍👍👍 30%
👥 60 people voted so far.
anonymous poll
b) Such a return is NOT deemed to be a Defective Return – 42
👍👍👍👍👍👍👍 70%
a) Such a return is deemed to be a Defective Return – 18
👍👍👍 30%
👥 60 people voted so far.
Answer to Q30 is (b). Refer the amended section 115BBE for details
Q31. Is "Provision for doubtful debts" an allowable expense under the PGBP head?
anonymous poll
c) Depends on who the assessee is – 62
👍👍👍👍👍👍👍 70%
b) No – 14
👍👍 16%
a) Yes – 13
👍 15%
d) None of these
▫️ 0%
👥 89 people voted so far.
anonymous poll
c) Depends on who the assessee is – 62
👍👍👍👍👍👍👍 70%
b) No – 14
👍👍 16%
a) Yes – 13
👍 15%
d) None of these
▫️ 0%
👥 89 people voted so far.
Answer to Q31 is c. While Prov. for Bad debts is generally disallowed, it is allowed by section 36(1)(viia) in case of some assessees like banks etc.
Q32. Mr. A got a demand notice from the Income Tax Department. Mr. A is not a professional but insists on fighting his case all by himself in CIT(A) forum. Is he allowed to do so?
Anonymous Poll
26%
a) No, only a Lawyer, CA etc. can fight such cases at such forums
74%
b) Yes, Mr. A can fight his case himself also