Title ITR 2 marks Q&A.pdf ✅

Bcom VI sem Assessment of Non-individuals and Filing of ITRs 2 Marks Questions and Answers 1. What is depreciation? Depreciation means a diminution in the value of assets by wear and tear, passage of time, obsolescence, exhaustion etc,. 2. What is book profit? It means the net profit as shown in the profit and Loss account as per sec 28 to 44D of the act, disallowed expenses are added to P & L A/c and less allowed expenses is called book profit. 3. What is a tax credit? The excess of MAT over tax under normal provisions is available as tax credit. 4. State the meaning of ITR? It means an assessee whose income is more than the exempted income has to provide the detailed information about the computation of income. 5. Expand ITR, TAN and PAN. ITR- Income Tax Return TAN- Tax Deduction and Collection Account Number PAN- Permanent Account Number 6. Who is liable to pay advance tax? As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more. 7. What is SAHAJ and Sugam? ITR-1 or SAHAJ This return form is a resident individual whose total income for the AY. Sugam or ITR-4 The current ITR 4 applies to individuals and HUFs, partnership firms other than LLPs. 8. What amendment is made to section 87A Rebate? A resident individual with taxable income up to Rs. 7,00,000 will receive a Rs. 25,000 tax relief. The former tax regime remains the same, i.e. 12,500 for income up to Rs. 5,00,000. 9. What do you mean by balance charge? If exceeds the WDV then the excess of the extent of the depreciation already allowed shall be assessable as balancing charge. 10. State the provisions of section 40 (b). a. Remuneration to working partners in the form of salary, bonus and commission allowable. b. Remuneration should be paid only to working partners. c. Non-working partners' remuneration is disallowed. 11. What is a domestic company? The company which in respect of its income is liable to tax under the Indian Income Tax Act has made a prescribed arrangement for the declaration and payment of the dividends within India.