CHARTERED ACCOUNTANTS

 FAQ's


1) How is income taxable under the Income Tax Act 1961?
: Income is taxed under five heads of income namely: • Income from salary • Income from house property • Income from business and profession • Income from capital gains • Income from other sources
2) Why is it necessary to determine the residential status of an individual?
3) How do you find out the residential status of an individual?
4) How do you charge income under the head Income from Salary?
5) What is Income from House property? How is it taxable in the hands of assessee?
6) How is tax charged under the head Business and Profession?
7) To what extent is depreciation available as a deduction under the Act?
8) When is a business subjected to Tax Audit?
9)What is a capital asset ?
10) Are there any exemptions or is there any way of reducing the burden of the Capital Gains Tax?
11) What is income taxable under the head Income from Other Sources?
12) Who is a relative under the Act?
13) What are deductions under the income tax Act?
14) When are the provisions of TDS applicable and when is TDS deducted?

2. Central Exercise Duty

1) What is the difference between direct taxes and indirect taxes?
No. Direct taxes Indirect taxes 1 They are imposed on persons. They are imposed on goods and services. 2 The amount of tax is determined directly on the basis of taxable income/wealth of an assessee. The amount of tax is determined indirectly. 3 There is no shifting of the tax burden. Hence, they are directly borne by the taxpayer. Tax burden is shifted to the subsequent user. 4 Tax collection is difficult. Tax collection is relatively easier.
2) What is excise duty?
3) What are the basic conditions for the levy of duty under Section 3 of the Central Excise Act, 1944?
4) Small scale units and exemption?
5) Due date of payment of duty?
6) Due date of filing of excise returns?

3. Service Tax

1) What is the meaning of Service?`
As per section 65B (44), Service means any activity carried out by a person for another for consideration and includes a declared service. Section 65B (44) provides that Service does not include: • Any activity that constitutes only a transfer in title of goods, immovable property by way of sale, gift or in any other manner • A transaction only in money or actionable claim • Any service provided by an employee to an employer in the course of employment • Fees payable to a court or tribunal set up under a law • Deemed sales
2) What is a taxable service?
3) What is taxable territory ?
4) Will I have to pay services provided in the taxable territory?
5) How do I know that the service provided by me is an exempt service?
6) Are all services provided by government or local authority covered in the negative list?
7) Are all services provided by the Reserve Bank of India in the negative list?
8) What is the significance of “location” of a service provider or receiver for determining taxing jurisdiction?
9) How is the value of service relevant for the purpose of payment of service tax?
10) What do you mean by the reverse charge mechanism?
11) What is the implication of Rule 3 - location of the receiver?
12) For whom, and when, is registration required?
13) What are the records to be maintained?
14) When and to whom service tax has to be paid?
15) What are the forms and when have to be filed?