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Do you have a strong desire to work in the government sector, but unable to track the exam? Then find your dream job at wisdom jobs online portal which guides and monitors you in achieving your goal. An income tax is a tax that government impose on financial income produced by all entities within their jurisdiction. Every year by law every person must file an income tax return. There are two taxes direct taxes and indirect taxes. The role of income tax officer is to specify organizational liabilities to tax authorities. They look over the staff that prepares local, federal, and state income taxes for the company. Candidates who are looking for respectable position in the government sector and who are interested to crack the exam can go through the below listed income tax job interview questions and answers and make your dream job successful by putting continuous efforts to become an income tax officer.
Section 80C to 80U provides certain deductions which can be claimed from Gross Total Income (GTI). After claiming these deductions from GTI, the income remaining is called as Total Income. In other words, GTI less Deductions (under section 80C to 80U) = Total Income (TI). Total income can also be understood as taxable income. Following table gives a better understanding of the difference between GTI and TI
Total income of a taxpayer from all the heads of income is referred to as Gross Total Income.
Rebate under section 87A is available only to an individual, hence, any person other than an individual cannot claim rebate under section 87A.
No, you cannot claim deduction of personal expenses while computing the taxable income.
While computing income under various heads, deduction can be claimed only for those expenses which are provided under the Income-tax Act.
An individual who is resident in India and whose total income does not exceed Rs. 5,00,000 is entitled to claim rebate under section 87A. Rebate under section 87A is available in the form of deduction from the tax liability. Rebate under section 87A will be lower of 100% of income-tax liability or Rs. 5,000. In other words, if the tax liability exceeds Rs. 5,000, rebate will be available to the extent of Rs. 5,000 only and no rebate will be available if the total income
As per section 288B, tax payable by the taxpayer or tax refundable to the taxpayer shall be rounded off to the nearest multiple of ten, following points should be kept in mind while rounding off the tax.
The concept of marginal relief is designed to provide relaxation from levy of surcharge to a taxpayer where the total income exceeds marginally above Rs. 1 crore or Rs. 10 crore, as the case may be. Thus, while computing surcharge, in case of taxpayers (i.e. Individuals/HUF/AOP/BOI/artificial juridical person) having total income of more than Rs. 1 crore, marginal relief shall be available in such a manner that the net amount payable as income-tax and surcharge shall not exceed the total amount Source
After ascertaining the total income, i.e., income liable to tax, the next step is to compute the tax liability for the year. Tax liability is to be computed by applying the rates prescribed in this regard. For rates of tax, refer "Tax Rate" section. Following table will help in understanding the manner of computation of the total tax liability of the taxpayer.
Computation of total income and tax liability for the year:-
Income from salary XXXXX
As per section 288A, total income computed in accordance with the provisions of the Income-tax Law, shall be rounded off to the nearest multiple of ten. Following points should be kept in mind while rounding off the total income First any part of rupee consisting of any paisa should be ignored.
Rebate under section 87A is available only to an individual who is resident in India, hence, non-residents cannot claim rebate under section 87A.
Section 14 of the Income-tax Act has classified the income of a taxpayer under five different heads of income, viz.:-
At this moment (i.e., for the financial year 2016-17) Individual, HUF, AOP, and BOI having income below Rs. 2,50,000 need not pay any Income-tax. In respect of resident individuals of the age of 60 years and above but below 80 years, the basic exemption limit is Rs. 3,00,000 and in respect of resident individuals of 80 years and above, the limit is Rs. 5,00,000. For other categories of persons such as co-operative societies, firms, companies and local authorities, no basic e Source.
Surcharge is an additional tax levied on the amount of income-tax. In case of individuals/HUF/AOP/BOI/artificial juridical person surcharge is levied @ 15% on the amount of income-tax where the total income of the taxpayer exceeds Rs. 1 crore.
In case of Firm, co-operative society and local authority surcharge is levied at 12% if total income exceeds Rs 1 crore.
In case of a domestic company surcharge is levied @ 7% on the amount of income-tax.
Income Tax Related Interview Questions
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Payroll Runs And Processes
Taxes And Social Insurance
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