Define Assessment year and Previous Year.
Assessment Year is the period of 12 months which starts from 1st April and ends on 31st March.
Previous Year is the financial year immediately preceding assessment year.
What does the term Person includes?
According to Section 2(31), the term Personal includes:
What are the five heads of income to calculate Total Income of the Assessee?
Who is a Resident and Ordinarily Resident (ROR)?
An individual is treated as Resident and Ordinarily Resident if he satisfies any one of the basic conditions and both the following additional conditions –
What is Incidence of Tax in the case of Resident but Not-ordinarily Resident?
A Resident but Not-ordinarily Resident is taxable in respect of
Which incomes are deemed to have accrued or arisen in India, even if they accrue or arise outside India?
Which incomes are exempt under sec. 10 of the Act?
Which are the main items included in Salary?
Gratuity is the amount payable by the employer to the employee as recognition for the long term association of the employee with the employer.
It may be payable by the employer in two ways:
But in both the cases the treatment will be different. The amount paid by the employer to the employee on his retirement is taxed as ‘Income from Salaries’ while the amount paid by the employer on the death of the employee is taxed as ‘Income from Other Sources’.
Pension is a periodical payment received by the employee from the employer after he ceases to be the employee. It is taxed as Salary.
Calculation of pension is done in two forms:
Uncommuted Pension – is regular periodical pension to employee which is taxable to all kinds of employees.
If such pension is received by government employee then it is wholly exempt.
Which employers are covered under Voluntary Retirement Scheme?
What is Provident Fund Scheme and what are its types?
Provident Fund Scheme is an employee welfare scheme. According to this a certain amount is deducted from the salary of the employee which is referred to a Employee’s Contribution to PF. In some cases, the employer also contributes as equal amount which is referred as Employer’s Contribution to PF. Both employees’ contribution as well as employer’s contribution is invested. The interest earned on such investment is credited to the PF Account of the employee.
Types of Provident Fund:
1. Statutory Provident Fund – maintained by Government organizations, local authorities, universities and educational institutions.
What do you understand by Superannuation Fund? How is it taxed?
Superannuation fund is an employee welfare scheme which is usually applicable in case of very senior employees. When the employee ceases to be the employee, employee’s contribution, employer’s contribution and the interest thereon is paid to the employee and in case of death of the employee to the legal heirs of the employee.
The tax treatment in case of an Approved Superannuation Fund is as below:
List down the allowances that are fully taxable.
What are the special allowances which are exempt to the extent amount received or the amount spent?
What is the criterion for exemption of H.R.A?
Exemption of H.R.A depends upon the following:
Which perequisites are exempt from tax in the hands of employees?
On what conditions deductions will be allowed from Income from other sources?
Any expenditure incurred for earning the income which is included under the head income from other sources will be allowed as a deduction from such income provided that the following conditions are satisfied:
What type of income is included under the head of Income from other sources?
Differential between Short term Capital asset and Long term Capital asset.
Short term capital assets are those assets which are held by an assessee for not more than 36 months, immediately prior to its date of transfer. But in the following cases an asset help for not more than 12 months is treated as short term capital asset:
Long term capital assets are those assets which are held by an assessee for more than 36 months.
1. What are the roles and responsibilities of a CA in a firm or an organization?
2. Explain the accounts payable cycle.
3. On which side of the balance sheet TDS received should be shown?
4. What do you understand by inactive accounts and dormant account?
5. Explain Perpetual and Periodic Inventory systems?
6. Currently how many accounting standards are published?
7. Explain fictitious assets with an example?
8. What accounting entries you need to pass in branch accounts?
9. What are the mandatory disclosers that a company needs to make to the market regulator?
10. What will you do to control ineffective spending on an activity?
11. Do the responsibilities of a CA vary between industries and departments?
12. What do you consider to be the biggest challenge facing the accounting profession today?
13. How is accounting different from auditing?
14. What is marginal cost?
15. What do you mean by material facts in accounting?
16. Define offset accounting?
17. What is the difference between provision and reserve?
18. What is Use of statistics in accounting?
19. What are cost accounting and its applications?
20. How to prepare finalization accounts?
21. What is meant by partitioning?
22. Explain the accounts payable cycle.
23. What are accounting ethics which a CA should practice?
24. What is accounting chart of accounts?
25. What is definition of a cash float in accounting?
26. What is fair value accounting?
27. What is balance sheet and off balance sheet?
28. What is depreciation? How many types of depreciation do you know?
29. What are trade bills?
30. What are the disadvantages of back-flush accounting?
31. What is the TDS effect in balance sheet if TDS is received?
32. What is dividend warrants?
33. What is an operative accounts?
34. What is fiduciary accounting?
35. What is Letter of Credit?
36. How can you do credit control?
37. What does it mean to do accounting training outside of public practice?
38. What is Capital Budget?
39. What is budgeting?
40. What is difference between forecast and budget?
41. What is the best way to code expenses like Coding license agreements, service contracts and maintenance contracts to a GL?
42. What do you mean by DOA?
43. How is a PO (purchase order created)?
44. How does the payment mechanism work?
45. What is debit and credit from the banks point of view?
46. What is debit and credit from the customer point of view?
47. What is the pay roll system?
48. What is FBT (fringe benefit tax)?
49. What is interest on capital, how it is calculated?
50. What are the types of purchase order status and what is their relevance?
51. What is Account payable audit?
52. What is an IFA?
53. What is the difference between EFT & wire?
54. What is accumulated loss?
55. What is the meaning of TDS? How it is charged?
56. What do you mean by financial instruments?
57. What is a NAFCO?
58. What is SLA?
59. Why are accounting firms needed?
60. What are the differences between Indian accounting standards and international accounting standards?