Podcast
Questions and Answers
Which of the following best represents the primary purpose of Circulars issued by the CBDT?
Which of the following best represents the primary purpose of Circulars issued by the CBDT?
- To grant exemptions to specific taxpayers.
- To create exceptions to existing tax laws.
- To introduce entirely new tax legislation.
- To provide clarity on existing tax laws and ensure proper administration. (correct)
Which of the following options provides the most comprehensive definition of an 'Assessee' under the Income Tax Act?
Which of the following options provides the most comprehensive definition of an 'Assessee' under the Income Tax Act?
- An individual who has filed an income tax return.
- Any person by whom any tax or other sum of money is payable under the Act.
- A person against whom any proceeding has been taken under the Act.
- All of the above. (correct)
Under what category would XYZ LLP (Limited Liability Partnership) be classified for income tax purposes?
Under what category would XYZ LLP (Limited Liability Partnership) be classified for income tax purposes?
- Association of persons
- Company
- Individual
- Partnership firm (correct)
When did the Income Tax Act officially come into force in India?
When did the Income Tax Act officially come into force in India?
According to the Income Tax Act, what is the minimum age required for an individual to be classified as a 'super senior citizen'?
According to the Income Tax Act, what is the minimum age required for an individual to be classified as a 'super senior citizen'?
Which section of the Income Tax Act pertains to the Rebate of Income Tax?
Which section of the Income Tax Act pertains to the Rebate of Income Tax?
In the context of income tax, what does the term 'Body of Individuals' (BOI) refer to?
In the context of income tax, what does the term 'Body of Individuals' (BOI) refer to?
If a company's total income exceeds a certain limit, it becomes liable to pay a surcharge on income tax. Which of the following represents a potential threshold for this surcharge to apply?
If a company's total income exceeds a certain limit, it becomes liable to pay a surcharge on income tax. Which of the following represents a potential threshold for this surcharge to apply?
What is the rate of Health and Education Cess levied on income tax?
What is the rate of Health and Education Cess levied on income tax?
Under which section of the Income Tax Act is the residential status of a company determined?
Under which section of the Income Tax Act is the residential status of a company determined?
An individual leaves India for employment purposes. To qualify as a resident for income tax purposes in that year, how many days must they stay in India?
An individual leaves India for employment purposes. To qualify as a resident for income tax purposes in that year, how many days must they stay in India?
What conditions must be met for an individual to be considered an 'Ordinarily Resident' in India?
What conditions must be met for an individual to be considered an 'Ordinarily Resident' in India?
What is the taxability of income that is received in India during the relevant previous year, irrespective of when it was earned?
What is the taxability of income that is received in India during the relevant previous year, irrespective of when it was earned?
How is dividend income from an Indian company generally treated for tax purposes?
How is dividend income from an Indian company generally treated for tax purposes?
How is Association of Persons (AOP) taxed?
How is Association of Persons (AOP) taxed?
What is the tax treatment of income derived from the sale of saplings and seedlings grown in a nursery?
What is the tax treatment of income derived from the sale of saplings and seedlings grown in a nursery?
How are incomes from tea, coffee and rubber generally taxed?
How are incomes from tea, coffee and rubber generally taxed?
What is the typical tax rate applicable to Long Term Capital Gains (LTCG)?
What is the typical tax rate applicable to Long Term Capital Gains (LTCG)?
Which of the following is considered for determining the Residential status?
Which of the following is considered for determining the Residential status?
If the person becomes Non-ordinarily resident in India, he needs to fulfill which of the following additional conditions?
If the person becomes Non-ordinarily resident in India, he needs to fulfill which of the following additional conditions?
Flashcards
Purpose of CBDT Circulars
Purpose of CBDT Circulars
Circulars issued by the CBDT serve to clarify doubts, provide exceptions, ensure proper administration, and outline exemptions related to income tax regulations.
Meaning of Assessee
Meaning of Assessee
An assessee is a person by whom any tax or other sum of money is payable under the Income Tax Act, including those against whom proceedings have been taken or who are deemed to be an assessee in default.
Category of LLP
Category of LLP
A limited liability partnership (LLP) is treated as a partnership firm for income tax purposes, not as an individual, company, or association of persons.
Income Tax Act Effective Date
Income Tax Act Effective Date
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Age of Super Senior Citizen
Age of Super Senior Citizen
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Rebate of Income Tax Act
Rebate of Income Tax Act
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Meaning of Body of Individuals
Meaning of Body of Individuals
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Exceeding Limit of Surcharge
Exceeding Limit of Surcharge
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Rate of Health & Education Cess
Rate of Health & Education Cess
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Residential Status of Company (Section)
Residential Status of Company (Section)
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Minimum Stay for Residency
Minimum Stay for Residency
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Conditions for Ordinarily Resident
Conditions for Ordinarily Resident
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Taxability of Income in India
Taxability of Income in India
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Taxability of Dividend
Taxability of Dividend
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Taxability of Association of Persons
Taxability of Association of Persons
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Taxability of Nursery Income
Taxability of Nursery Income
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Taxability of Tea, Coffee, Rubber
Taxability of Tea, Coffee, Rubber
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Tax Rate of Long Term Capital Gains
Tax Rate of Long Term Capital Gains
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Study Notes
- CBDT issues circulars to:
- Clarify any doubts about the provisions of the Income Tax Act.
- Provide exceptions to certain rules or regulations.
- Ensure proper administration of the Income Tax Act.
- Grant exemptions from certain provisions of the Income Tax Act.
- An assessee is someone:
- By whom any tax or other sum of money is payable under the Income Tax Act.
- Against whom any proceeding has been taken under the Income Tax Act.
- Who is deemed to be an assessee in default under the Income Tax Act.
- XYZ LLP is a Partnership firm.
- The Income Tax Act came into force on April 1, 1962.
- A super senior citizen, as per the Income Tax Act, is 80 years or older.
- Rebate of Income Tax is covered under Section 87A of the Income Tax Act.
Classification & Computation
- A Body of Individuals (BOI) can be any kind of person (Individuals, Company etc).
- Surcharge applies if income exceeds 5 Crore.
- The rate of Health & Education cess is 4%.
Residential Status
- The section for the residential status of a company is 6(3).
- To become a resident, one must stay in India for 182 days, even if going abroad for employment.
- To become an Ordinarily Resident in India, one must satisfy one basic condition and both additional conditions.
Income Taxability
- Income received in India during the previous year is taxable for all (ROR, RNOR, and NR).
- Dividend income from an Indian company is fully taxable.
- The taxability of Association of Persons is any kind of person.
Agricultural & Capital Gains
- Income from saplings and seedlings grown in a nursery is taxable under business.
- Income from Tea, Coffee, and Rubber is partially agricultural and partially business income.
- The taxability rate for Long Term Capital Gains (LTCG) is 20%.
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