FREE Bachelor of Commerce: Income Tax Laws Questions and Answers
Gains in sort include
"Gains in sort" typically refer to gains or benefits received in the form of non-monetary items or assets rather than in cash. "Perquisites," often abbreviated as "perks," are indeed one type of gains in kind or non-monetary benefits. Perquisites are additional benefits or advantages that employees receive from their employers in addition to their regular salary or wages. These can include things like company cars, housing allowances, stock options, and other non-cash benefits.
Income that is directly received in India but accrues or arises outside of India is taxable in the following scenarios:
Income earned by a non-resident individual in India is typically subject to taxation. Additionally, for a resident and ordinarily resident individual, their global income is taxable in India, including income that is directly received in India but accrues or arises outside of India. However, for a resident but not ordinarily resident individual, only income that is earned or received in India, or income that accrues or arises in India, is taxable.
According to the Income Tax Act of 1961, which of the following heads is the head of income?
The Income Tax Act of 1961 categorizes income into different heads for taxation purposes. These heads include Income from House Property, Capital Gains, Income from Salary, Income from Business or Profession, and Income from Other Sources. Each head encompasses specific types of income, and the Act provides guidelines for calculating and taxing income within each category.
A non-cash benefit that an employer provides to an employee.
A pension is indeed a form of financial arrangement in which an employee receives regular payments from an employer or a pension fund after their retirement. It's a type of retirement benefit that provides employees with a source of income during their retirement years. Pensions are considered a valuable form of non-cash benefit provided to employees as part of their compensation package.
What is the law's incidence section?
The term "law's incidence section" is not commonly recognized as a specific concept or term in general contexts. If you can provide more context or information about what you are referring to, I'd be happy to help you understand or provide information on the topic you have in mind.
R Ltd. is an Indian business with its headquarters outside of the country. R Limited shall be:
Based on the information provided, if "R Ltd." is an Indian business with its headquarters outside of the country, it will be considered non-resident in India for tax purposes. The residence status of a company is determined by its place of incorporation and management control. Since the company's headquarters are outside of India, it would generally be treated as a non-resident entity in India.
The Company's residential status might be described as
The residential status of a company might indeed be described as Resident and non-resident. This description indicates that a company can have different residential statuses for different assessment years based on its place of incorporation and management control. A company can be a resident company in India if its place of control and management is situated wholly or partially in India during the relevant financial year. If the control and management are located entirely outside India, the company would be considered a non-resident company for that assessment year.
Unpaid wages would be taxed on a basis.
Unpaid wages would be taxed on a due basis. In the context of taxation, income is generally taxed when it becomes due or is actually received, whichever is earlier. This means that even if wages are unpaid but they have become due to the individual, they may still be subject to taxation in the respective assessment year.
Compared to the revenue or profit for that specific year.
Set off refers to the adjustment of losses against the profits or gains of a particular financial year. When an individual or a business entity incurs losses in one source of income during a financial year, those losses can be set off against the profits or gains earned from other sources of income in the same financial year. This helps to reduce the overall taxable income for that year and may result in lower tax liability. Set off is a mechanism that allows taxpayers to offset losses against profits, reducing their tax burden.
A salary advance would be taxable.
A salary advance would indeed be taxable when it is received. In the context of income tax, any amount received by an employee, including a salary advance, is generally considered taxable income in the year of receipt. This means that if an employee receives a salary advance, that amount would be subject to taxation in the same assessment year in which it is received.
The term "previous year" refers to the fiscal year that
The term "previous year" refers to the fiscal year that precedes the "assessment year." In the context of income tax, the assessment year is the year in which you file your income tax return for the income earned during the previous year. The previous year is the financial year in which you actually earn the income that will be assessed and taxed in the subsequent assessment year.
Allowances for Supreme Court and High Court judges (Subject to certain conditions)
Allowances for Supreme Court and High Court judges are not taxable subject to certain conditions. In many countries, judges are provided with various allowances to support their role and ensure their financial well-being. These allowances can include housing allowances, travel allowances, and others. However, the tax treatment of these allowances varies and is often subject to specific conditions and regulations outlined in the relevant laws and regulations of the country. In the case of judges, certain allowances may be exempt from taxation to recognize the unique nature of their roles and responsibilities.
_______ is a pension benefit provided by the employer to the employee in recognition of previous service.
A pension benefit provided by the employer to the employee in recognition of previous service is known as Gratuity. Gratuity is a form of financial appreciation or reward given by an employer to an employee as a token of gratitude for their long and faithful service. It is typically paid upon retirement, resignation, or at the end of employment tenure, and it's calculated based on factors like the employee's salary and years of service with the organization.
Government of the nation
It seems like you provided two separate phrases, "government of the nation" and "tax." If you're looking for information about the role of taxes in the functioning of a government, I'd be happy to help. Taxes are financial charges imposed by governments on individuals, businesses, or other entities to generate revenue for public expenditures. Taxes are a primary source of income for governments and play a crucial role in funding public services, infrastructure, social programs, defense, and other essential functions of a nation. They are used to support various government activities and initiatives that benefit the citizens and the country as a whole.
Which of the following individuals falls under Section 2? (A)
In Indian income tax law, Section 2 of the Income Tax Act, 1961 defines various terms used in the Act. The terms listed in your question, "body of person," "individual," and "firm," are all defined under Section 2 of the Income Tax Act. Therefore, the correct answer is All of the above.
The HUF is considered to be an Indian resident if
The Hindu Undivided Family (HUF) is considered to be an Indian resident if the control and management of its affairs is situated wholly or partially in India during the financial year. In other words, if the key decisions and management of the HUF's affairs are primarily conducted in India, it would be considered an Indian resident for income tax purposes. This determination is important for assessing the taxability of the HUF's income and other related matters.