Income Tax Laws: Key Concepts

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Questions and Answers

What is a person liable for tax, interest, or penalty called?

a defaulter (correct)

a resident

an assessee (correct)

a citizen

Where are the rates of income tax established?

the Income tax Act

the Finance Act, 1994

the Finance Act passed by the parliament every year (correct)

the Income tax Rules

For which period are the income tax rates set?

for each assessment year (correct)

for each head of income

for each calendar year

for each previous year

In what year is the total income of a financial year taxed?

in the succeeding financial year Signup and view all the answers

What is defined as the financial year preceding the assessment year?

previous year Signup and view all the answers

How is a company joining with others in a joint venture treated for tax purposes?

Association of persons Signup and view all the answers

What is the tax implication for a charitable trust?

Artificial juridical person Signup and view all the answers

Which of the following individuals will not be taxed as an individual?

Registered charities Signup and view all the answers

How is the provision of a motor car to the wife of a managing director treated for tax purposes?

Perquisite Signup and view all the answers

What is the treatment of bad debt recovery for tax purposes?

Allowable deduction Signup and view all the answers

How is a gift from a patient to a doctor classified under income tax laws?

Taxable income from business Signup and view all the answers

What is the classification of a capital receipt?

Always exempt Signup and view all the answers

To which region does the Income-tax Act apply?

Whole of India Signup and view all the answers

How is a revenue receipt treated under income tax laws?

Always taxable Signup and view all the answers

Which of the following qualifies as a revenue receipt?

Interest from investments Signup and view all the answers

A.O.P consists of which types of entities?

Both individuals and entities other than individuals Signup and view all the answers

How is 'Body of Individuals' defined?

An individual only Signup and view all the answers

What is considered the first previous year for a business starting on 1-12-2023?

1-12-2023 to 31-3-2024 Signup and view all the answers

Which classification does Shivaji University fall under regarding income assessment?

An artificial juridical person Signup and view all the answers

In which year is income tax liability calculated?

Assessment Year Signup and view all the answers

Who is liable to pay income tax in India?

Any person earning income Signup and view all the answers

Study Notes

Income Tax Laws: Key Concepts and Definitions

Assessee: A person who is liable to pay tax, interest, penalty, or other dues under the Income Tax Act.
Tax Rates: These are determined by the Finance Act passed annually by Parliament. These rates are applicable for each assessment year.
Total Income: The income of a financial year is taxed in the succeeding financial year.
Previous Year: The financial year of 12 months immediately preceding the assessment year.
Assessment Year: The period of 12 months commencing on the 1st of April every year.

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Description

Test your understanding of key concepts and definitions pertaining to income tax laws. This quiz covers essential terminology such as assessee, tax rates, total income, previous year, and assessment year as outlined in the Income Tax Act. Prepare to evaluate your knowledge in this critical area of taxation.