Interview Questions.

Top 100+ Income Tax Interview Questions And Answers

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Top 100+ Income Tax Interview Questions And Answers

Question 1. What Is The Difference Between Gross Total Income And Total Income?

Answer :

Section 80C to 80U gives certain deductions which can be claimed from Gross Total Income (GTI). After claiming these deductions from GTI, the profits closing is known as as Total Income. In other words, GTI much less Deductions (underneath segment 80C to 80U) = Total Income (TI). Total income also can be understood as taxable earnings. Following desk gives a higher knowledge of the distinction between GTI and TI

Question 2. ?what Is Gross Total Income?

Answer :

Total earnings of a taxpayer from all the heads of profits is known as Gross Total Income.

General Accounting Interview Questions
Question 3. ?can A Partnership Firm Or Huf Claim Rebate Under Section 87a??

Answer :

???Rebate below phase 87A is available simplest to an character, subsequently, any man or woman aside from an man or woman can't declare rebate beneath section 87A.

Question 4. ?can I Claim Deduction For My Personal And Household Expenditure While Calculating My Taxable Income Or Profit??

Answer :

No, you can not claim deduction of private fees even as computing the taxable profits.
While computing earnings under various heads, deduction can be claimed best for the ones charges which might be provided under the Income-tax Act.

Question 5. ?what Is Rebate Under Section 87a And Who Can Claim It?

Answer :

An person who is resident in India and whose general profits does no longer exceed Rs. Five,00,000 is entitled to claim rebate underneath phase 87A. Rebate below phase 87A is to be had inside the form of deduction from the tax legal responsibility. Rebate beneath phase 87A might be decrease of 100% of earnings-tax liability or Rs. Five,000. In different phrases, if the tax liability exceeds Rs. 5,000, rebate can be to be had to the quantity of Rs. 5,000 handiest and no rebate could be to be had if the full income

Financial Accounting Interview Questions
Question 6. ?how To Round Off The Tax Liability?

Answer :

????As consistent with segment 288B?, tax payable by way of the taxpayer or tax refundable to the taxpayer will be rounded off to the nearest a couple of of ten, following factors should be kept in thoughts at the same time as rounding off the tax.

Question 7. What Is Marginal Relief And How It Is Computed?

Answer :

The concept of marginal alleviation is designed to provide relaxation from levy of surcharge to a taxpayer where the total earnings exceeds marginally above Rs. 1 crore or Rs. 10 crore, because the case may be. Thus, at the same time as computing surcharge, in case of taxpayers (i.E. Individuals/HUF/AOP/BOI/artificial juridical person) having total earnings of more than Rs. 1 crore, marginal relief shall be available in one of these way that the net amount payable as income-tax and surcharge shall no longer exceed the whole amount Source

Auditing Interview Questions
Question eight. How To Compute The Total Tax Liability?

Answer :

After ascertaining the total profits, i.E., income prone to tax, the following step is to compute the tax legal responsibility for the yr. Tax liability is to be computed with the aid of applying the fees prescribed on this regard. For costs of tax, refer "Tax Rate" phase. Following desk will assist in expertise the manner of computation of the full tax legal responsibility of the taxpayer. 

Computation of total earnings and tax legal responsibility for the 12 months:-

Particulars Amount

Income from earnings XXXXX

Question 9. ?how To Round Off Total Income Before Computing Tax Liability?

Answer :

???As per phase 288A??, general earnings computed according with the provisions of the Income-tax Law, shall be rounded off to the closest more than one of ten. Following points ought to be kept in thoughts even as rounding off the overall income First any part of rupee together with any paisa ought to be not noted.

Management Accounting Interview Questions
Question 10. ?can A Non-resident Claim Rebate Under Section 87a?

Answer :

Rebate below phase 87A is available handiest to an man or woman who is resident in India, for this reason, non-residents can't declare rebate beneath segment 87A?.?

Question eleven. Under How Many Heads The Income Of A Taxpayer Is Classified??

Answer :

S?ection 14? of the Income-tax Act has classified the earnings of a taxpayer underneath 5 extraordinary heads of profits, viz.:-

Salaries
Income from residence property
Profits and gains of business or profession
Capital gains
Income from different resources?.
Taxation Interview Questions
Question 12. Is There Any Limit Of Income Below Which I Need Not Pay Tax??

Answer :

?At this moment (i.E., for the economic 12 months 2016-17?) Individual, HUF, AOP, and BOI having earnings beneath Rs. 2,50,000 want no longer pay any Income-tax. In appreciate of resident individuals of the age of 60 years and above but under eighty years, the fundamental exemption restrict is Rs. Three,00,000 and in recognize of resident individuals of 80 years ?and above, the limit is Rs. 5,00,000. For other categories of men and women which include co-operative societies, firms, groups and nearby authorities, no basic e Source.

General Accounting Interview Questions
Question 13. ?what Is Surcharge And How It Is Computed?

Answer :

Surcharge is an extra tax levied on the amount of income-tax. In case of people/HUF/AOP/BOI/synthetic juridical man or woman surcharge is levied @ 15% on the amount of earnings-tax wherein the whole income of the taxpayer exceeds Rs. 1 crore.

In case of Firm, co-operative society and nearby authority surcharge is levied at 12% if overall profits exceeds Rs 1 crore.?

In case of a home company surcharge is levied @ 7% on the quantity of income-tax.




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