Practice Taxation Related Questions and Answers

• An example of Casual Income is
• Residential Status of a Person is determined for
• Salary received by the Partner of a Firm is charged under the head
• Salary paid to MLAs and MPs are charged under the head
• Schedule II in the context of Goods and Service Tax deals with?
• Which of the following inventory methods would reduce tax liability during inflationary period?
• A taxpayer may file an updated return for FY2023-24 till what date?
• A registered dealer sells goods worth ₹5,00,000 with GST @18%. He has input tax credit (ITC) of ₹70,000. What is his net GST payable in cash?
• A company earns ₹15 lakh net profit before tax. It donates ₹1 lakh to PM CARES Fund and claims depreciation of ₹2 lakh. What is taxable income under ...
• A trader crosses the threshold limit for GST registration in June. He registers on July 10. He raises a taxable invoice on July 5. Is GST applicable?
• A dealer supplies goods worth ₹1 lakh within state and charges GST. Which taxes will apply, and who will collect them?
• Mr. Raj, a salaried employee, earns ₹12 lakh salary and ₹1.5 lakh interest income. He claims ₹1.5 lakh under Section 80C and ₹50,000 under Section ...
• A registered dealer purchased inputs worth ₹1 lakh + GST @18% and sold goods for ₹1.5 lakh + GST @18%. What is the net GST payable?
• A domestic company reports ₹2 crore as book profit. As per section 115JB, if its normal tax liability is ₹12 lakh, what is the Minimum Alternate Tax (M...
• Mr. A transfers fixed deposit of ₹5 lakh to his wife without consideration. Interest of ₹50,000 is earned in her name. How will it be taxed?
• A company incurs a loss of ₹5 lakhs in the current financial year. As per Income Tax Act, how is this treated?
• A company avails ITC (Input Tax Credit) on office furniture purchase. Later, GST auditor disallows it. Is he right to do so, support your answer with relev...
• A company receives rent of ₹6 lakh in FY2024–25. It has to deduct TDS under which section?
• An employee receives gratuity of ₹12 lakhs on retirement. What is the maximum tax-exempt amount under the Income Tax Act?
• A salaried employee earns ₹18 lakhs annually. In FY 2024–25, she contributes ₹1.5 lakh to PPF, ₹50,000 to NPS (u/s 80CCD(1B)), and pays ₹2 lakh a...
• Mr. Raj, a salaried individual, claims HRA, standard deduction, and 80C deductions under the old regime. He is considering switching to the new tax regime ...
• An employee receives gratuity of ₹12 lakhs on retirement. What is the maximum tax-exempt amount under the Income Tax Act?
• Mr. X, an Indian citizen, stayed in India for 130 days during FY 2024-25. In the four preceding years, his total stay in India was 480 days. Determine his ...
• A firm pays Rs. 3,00,000 as salary to partners, allowed as per deed. Book profit is Rs. 10,00,000. What is the maximum allowable deduction for partner’s ...
• Mr. Y sold listed equity shares during the Financial Year 2024-25 after holding them for 18 months. The sale consideration amounted to ₹8,00,000, while t...
• A company owns a block of assets with the following details for the Financial Year 2024-25: • Opening Written Down Value (WDV) of the block: ₹10,00,000...
• A company has book profit of ₹20,00,000 for FY 2024-25. Its normal tax liability computed under the Income Tax Act is ₹3,50,000. During computation of ...
• Mr. Arjun earns ₹12 lakh as salary and has invested ₹1.5 lakh in PPF. He also pays ₹30,000 as health insurance premium for himself and ₹50,000 for ...
• Which section of the Income Tax Act, 1961 deals with the income from "Salaries"?
• Mr. X's gross total income is ₹12,00,000. He has made a deduction of ₹1,50,000 under Chapter VI-A. What is his total income?
• Which of the following is a capital gain?
• Mr. A (age 35) has a total income of ₹14,00,000. What is his tax liability for A.Y. 2024-25? (Assume no deductions)
• Under the Income Tax Act, 1961, which section deals with deduction of tax at source (TDS) on salary?
• Which of the following incomes is fully exempt under Section 10 of the Income Tax Act?
• For an individual resident in India aged below 60 years, the basic exemption limit for the Financial Year 2025-26 (Assessment Year 2026-27) is:
• Under the Income Tax Act, the maximum amount of deduction allowed under Section 80C for investments/expenditures (for FY 2025-26) is:
• Which section of the Income Tax Act provides for a deduction of interest on a home loan for a self-occupied property?
• As per the Finance Act 2025, what is the revised tax rate for individuals opting for the new tax regime with income between ₹12 lakhs and ₹15 lakhs?
• Which ITR form is applicable for individuals having income from salary and house property?
• Mr. A (age 45) has income from business ₹8,00,000 and capital gains (LTCG) ₹1,50,000. What is his tax liability? (Assume no deductions)