Interview Questions.

Question 1. What Is Residential Status?

Answer :

Residential repute refers to the status of someone vis a vis a specific country ie., whether or not he is a resident or non-resident for that precise u . S . A ..

Question 2. What Is The Importance Of Residential Status?

Answer :

Residential fame determines the taxability of numerous earning in a specific united states. The earnings this is taxable for a resident might not be taxable for a non resident. Thus it's miles essential to first decide the residential status.

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Question three. What Are The Different Residential Statuses Applicable In India?

Answer :

The distinctive residential statuses relevant in India are as follows:

ROR — Resident Ordinary Resident
RNOR — Resident Not Ordinary Resident
NR-Non Resident
Question 4. What Are The Different Residential Statuses Applicable In The Usa?

Answer :

The following are the residential reputation relevant in US:

US citizen — along with holders of dual citizenship
Resident alien
Non resident alien
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Question five. How Is The Residential Status In India Determined?

Answer :

The residential repute in India is determined broadly on the subsequent basis:

The wide variety of days of stay in India within the certain duration.
Whether the individual is an Indian citizen, man or woman of Indian origin, crew member of ship etc.
Additional situations to decide whether ‘normal’ or ‘not regular’ resident.
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Question 6. What Is The Relation Between Residential Status And Taxability Of Income In India?

Answer :

The relation among the taxability of income and residential reputation in India:

Status----taxable Income

ROR ---All Income
RNOR—All Income besides profits accruing or bobbing up out of doors India.
Note: Income from a enterprise managed from India etc is taxable.
NR----Only income acquired/deemed to be acquired/collected/deemed to be gathered in India is taxable
Question 7. How Is The Residential Status In The Usa Determined?

Answer :

The residential status inside the USA is decided with the aid of a series of tests:

US Residence Status Test
The big presence Test
Exemption from Substantial Presence Test
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Question eight. What Is The Relation Between The Taxability Of Income And Residential Status In The Us?

Answer :

The relation between the taxability of profits and residential repute in US:

Status--- taxable Income

Citizen---All Income
Resident Alien---A resident alien’s is typically concern to tax inside the same manner as a US citizen
Non resident Alien----A non resident alien is typically situation to tax simplest on US supply income.
Question nine. What Is A Double Taxation Avoidance Agreement (dtaa)?

Answer :

DTAA stands for Double Taxation Avoidance Agreement. It is an agreement entered into via two countries so that profits earned and taxed in a single usa isn't taxed once more within the 2d country and as a result double taxation is avoided.

The Provisions of DTAA override the general provisions of taxing statute of a selected country. A DTAA exists among India and USA which seeks to offer remedy in opposition to double taxation.

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Question 10. How Can Relief Against Double Taxation Provisions Be Claimed?

Answer :

As a DTAA exists between USA and India, alleviation can be claimed in India for the taxes paid in USA

In the united states, relief may be claimed by means of both of the following  methods:

Filing Form 2555
Filing Form 1116
Note: The above can be claimed only if the taxpayer is a citizen or a resident alien.

Question eleven. What Are Some Of The Important Incomes Covered Under The Indo-us Dtaa Agreement?

Answer :

Some of the relevant earning covered below the Indo-US DTAA settlement are:

Dividends
Interest
Royalties and costs for Included Services
Gains
Independent private services Ex: Independent activities of physicians, surgeons, legal professionals, engineers, accountants and many others
Dependent private offerings Ex: Salaries, wages and different similar remuneration in respect of employment.
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Question 12. Is There Any Requirement With Respect To The Bank Accounts In India For A Non-resident?

Answer :

The banker should be informed in case of exchange of residential fame. The financial institution will right now designate resident financial institution account as “Non-resident ordinary” (NRO) account. The account can be in any shape Saving, Current, Fixed Deposit or Recurring Deposit.

A returning NRI can open a Resident Foreign Currency (RFC) account. Funds in this account are free from all regulations concerning usage in India! Abroad together with funding (e.G. Immoveable belongings, shares) in any shape outdoor India.

However it is able to be referred to that the budget held within the RFC account offer a low return as compared to different funding avenues in India.

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Question thirteen. What Are The Responsibilities Vis A Vis Investments In Shares, Debentures Etc For A Non Resident Indian?

Answer :

Companies in which the non- resident is protecting investments in shares, debenture bonds or other securities have to be knowledgeable about the alternate of residential repute and new remote places address. Income on such investments can be freely repatriated outside India net of Indian taxes.

Question 14. What Are The Filing Requirements In India For A Non Resident Indian?

Answer :

A nonresident assessee is liable to record Return of Income most effective if the taxable income in India inside the applicable Financial Year (April —March) exceeds the primary exemption restrict

However, a Non Resident Indian (NRI) earning beneath mentioned income will be at risk of report returns in India, irrespective of their Total Income being much less than the Basic Exemption restriction.

Income from Short Term Capital Gains on fairness shares or devices of equity oriented mutual fund.
Income from Long Term Capital Gains, which might be chargeable to tax.
Question 15. What Are The Various Income Heads Under The Indian Taxation Laws?

Answer :

The following are a list of the numerous income heads below the taxation legal guidelines in India:

Income from salary
Income from residence assets
Income from enterprise or profession
Income from capital profits
Income from different assets.
It may be accordingly be noted that the assessee has to music all the above forms of earnings apart from the ordinary profits obtained.

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Question sixteen. What Is The General Information Required For An Individual Tax Filing?

Answer :

General Information required for man or woman tax payer consists of however no longer limited to-

A copy of recent / previous yr tax return
Bank Statement
TDS certificate
Savings certificate / Deductions to be claimed u.S.80C and so forth.
Interest statement displaying hobby paid to the man or woman during the year
Question 17. What Is E-filing Of Returns?

Answer :

E-submitting as the name connotes refers back to the electronic paperless submitting of the go back through the Income Tax web portal.

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Question 18. What Are The General Methods Of Filing Returns Electronically?

Answer :

There are commonly  ways to document returns electronically
Option 1: Use digital signature in which case no paper return is required to be submitted
Option 2: File without virtual signature wherein case ITR-V form is to be filed with the branch. This is a unmarried web page receipt cum verification shape.
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Question 19. Which Method Would Be Followed At Gkm And What Would Be The Procedure?

Answer :

GKM could be following the second one alternative as a common practice because the virtual signature could now not be available with maximum of the assessees below consideration.
GKM could be importing the e-go back and generating the acknowledgment forms to be filed.
These would be then despatched to the assessees at their mailing addresses.
The assessee has to sign and document this Form ITR-V with the Income Tax department within 15 days of thee-submitting.
Question 20. What Is The Due Date For The Filing Of Tax Returns In India?

Answer :

The due date of submitting the returns in India is July 31st of the relevant assessment 12 months.

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Question 21. What Is The Due Date For The Filing Of Tax Returns In Usa?

Answer :

The remaining date of the submitting of the tax return for individuals is April 15 of the relevant 12 months.

Question 22. What Are The Provisions Regarding The Taxability Of Per Diem Allowances Received During The Stay In The Usa?

Answer :

Per Diem allowance granted while on deputation is not taxable inside the taxpayer’s arms so long as the allowance was certainly spent with the aid of him on deputation and of route satisfies the circumstance of ‘reasonableness’.

Question 23. What Are The Provisions Regarding The Applicability Of Social Security And Medicare Taxes For Those Who Go Abroad On Temporary Visas?

Answer :

Compensation for services achieved within the U.S. By a nonresident alien character briefly in the U.S. In F-i, J-i, M-1, or Q-i status is handiest exempt from FICA and Medicare taxes so long as the offerings finished are in connection with the reason for which the character entered the usa.

Before leaving the United States, extraterrestrial beings usually must acquire a certificate of compliance. This file, also popularly called the sailing allow or the departure permit, is part of the income tax form to be filed before leaving.

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Question 24. What Are The Form W-4 And The Important Provisions Regarding The Same?

Answer :

The W4 — This is a form that shows numerous taxpayer info which include:

Name and deal with
Sex, Age
Names of dependents
The US tax laws allow for exemptions primarily based at the number of dependents a taxpayer has. It is consequently critical to offer the correct details with respect to the W4 data in an effort to permit the tax instruction method.

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Question 25. What Are The Return Filing Procedures In The Usa?

Answer :

In the USA also, the go back may be filed electronically or the physical copy mailed to the IRS. As a uniform practice, 6KM would put together the go back and the PDF copy of america tax go back would be mailed to the taxpayer at the side of filing instructions.
The taxpayer would then take a printout of the tax go back, affirm and sign the equal and mail it to the IRS.
The refund if any could be normally transmitted to the required financial institution account immediately or to mailing deal with relying on element supplied.
The taxpayer has to track the repute of the refund in case the equal isn't obtained within a reasonable time frame.
Question 26. How Do We Send The Source Documents & Information To Ckm?

Answer :

All you want to do is to experiment the requisite documents, store it after which ship it to us through electronic mail or placed it up on our server. The process is easy and does not require employing technical staff.

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Question 27. What Is The Response Time Per Return?

Answer :

GKM’s average turn round time is two to 3 commercial enterprise days.

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Question 28. How Is My Client’s Personal Data Secured?

Answer :

GKM values and respects the privateness and confidentiality of all facts transmitted.
The information transmitted is constantly encrypted and then despatched through cozy channels on the internet.
Question 29. What Is The Training Mechanism In Place?

Answer :

GKM has CPA5, Chartered Accountants and MBA5 who're educated extensive in US tax legal guidelines. GKM has non-stop gaining knowledge of and upgrading programs and CPA5 from america are assigned to frequently teach our preparers placed offshore, the use of case research and different developmental gear.

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Question 30. How Do I Keep Track Of Information Sent And Ensure The Quality Of The Return?

Answer :

The facts we receive from you is despatched electronically and the hard copy of documents stays to your workplace.
Once we complete the returns and transmit it to you, we can now not keep any statistics sent until in particular informed by you to do so.
You will review and approve the returns previous to e-filing / sending the prepared returns on your consumer.
Question 31. What Is The Final Product That Gkm Will Transmit Back To Us?

Answer :

GKM will use the supply documents sent by means of you to prepare a federal and nation tax go back.
Once the return is completed, we are able to send you an e-mail and you may down load the files and the returns after decrypting the equal. More data on the safety protocol is to be had on request.
In the case of tax returns, we might be sending you Form 1040 and State go back with the relevant schedules and work papers showing our calculation.
In case of bookkeeping all of the information that comes to us is published to the overall ledger and coupled in opposition to the wide variety of entries sent by you.
Question 32. How Do I Deal With Any Changes Required Without Losing Time?

Answer :

We can put in force any changes which you require folks with out dropping a good deal time. We are in the procedure of setting up a machine to make certain that you'll be capable of monitor the technique.

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Question 33. Would I Need Technical Staff To Carry Out This Process?

Answer :

The entire reason of outsourcing is to keep value. All this is required is to apply an administrative character to experiment documents, store it and then ship the saved document to us in an e-mail or positioned it up on our server. We method the information for you and ship it across to you. We will provide considered necessary technical help to help facilitate the method.

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Question 34. What Are The Benefits Of Outsourcing Certain Finance Functions Of Your Clients?

Answer :

Outsourcing will help you in

Obtaining timely and accurate records
Getting the pleasant of the modern era
Reducing prices
Focusing to your middle talents and freeing assets to concentrate investment in core regions.
Obtaining get right of entry to to a bigger wide variety of skilled employees at decreased value
Question 35. What Are The Key Benefits Of Associating With Gkm?

Answer :

We offer you Cost Savings with the same stage of first-class. Your prices will reduce by means of 40% to 60%. It permits you to lessen seasonal hiring and training of employees.
We offer a fast turnaround time because of time quarter variations.
We make certain safety of facts and provide you the advantages of the today's simplified net primarily based era.
Our services can help you procedure a larger wide variety of returns in lesser time.
Our offerings make sure that your experts are freed as much as dedicate their time and innovative power to different strategic regions of your commercial enterprise.
Our public accounting experience coupled with our BPO unit offers us the right heritage to acquire/faucet the pool of assets abundantly to be had right here.
Our services assist you set up a system of tests and balances, which might not were possible in-house.