- World's Largest Collection of Interview Questions & Answers, FAQs, queries, sample papers, exam papers, dumps, what, why, how, where, when questions
Our Services
Get 9,000 Interview Questions & Answers in an eBook.

Get it now !!
Send your Resume to 6000 Companies
Income Tax Interview Questions & Answers - Learning Mode

Income Tax Interview Questions & Answers - Learning Mode

An income tax is a tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. An income tax is a tax imposed on individuals or entities (taxpayers) that varies with the income or profits (taxable income) of the taxpayer. Details vary widely by jurisdiction. Many jurisdictions refer to income tax on business entities as companies tax or corporate tax. Income tax is an annual tax on income. The Indian Income Tax Act (Section 4) provides that in respect of the total income of the previous year of every person, income tax shall be charged for the corresponding assessment year at the rates laid down by the Finance Act for that assessment year.

Try Income Tax Interview Questions & Answers - Exam Mode
Subcategories for Income Tax Interview Questions & Answers - Learning Mode

Following are sub categories for which Interview Questions & Answers are available under Income Tax Interview Questions & Answers - Learning Mode. Please select the appropriate sub-category:-

Assessments under the Income-tax Law Interview Questions & Answers (18) Learning Mode | Exam Mode

Computation Of Income Tax Interview Questions & Answers (15) Learning Mode | Exam Mode

Income Tax for House Property / Rental Income Interview Questions & Answers (31) Learning Mode | Exam Mode

Income Tax for Salaried People Interview Questions & Answers (14) Learning Mode | Exam Mode

Income Tax for Senior Citizens Interview Questions & Answers (9) Learning Mode | Exam Mode

Presumptive Taxation for Businesses Interview Questions & Answers (42) Learning Mode | Exam Mode

Set Off and Carry Forward of Losses Interview Questions & Answers (14) Learning Mode | Exam Mode

1 2 3 4 5 6 Next

Sort By : Latest First | Oldest First | By Rating

Income Tax Interview Questions & Answers - Learning Mode
Try Income Tax Interview Questions & Answers - Exam Mode
Question: ​From where can I take the help of any expert on Income-tax related matters?

Answer: You can take the help of tax professionals or the help of Public Relations Officer [PRO] in the local office of the Income-tax Department. You may also take assistance from Tax Return Preparers [TRPs]. You can locate your nearest TRP at Source:
Question: What is assessment year? What is the difference between assessment year and previous year?

Answer: In simple terms, assessment year means the current year and previous year means the last or financial year. For example, if you are filing your tax now, year 2007-08 will be considered as previous year and 2008-09 will be considered as assessment year. Source:
Question: Who all can be considered as my relatives for income tax purposes?

Answer: ? Your wife or husband
? Your brother or sister
? Your wife or husband's brother or sister
? Your parents
? Your wife or husband's parents
? Your parents' brothers and sisters
? Your wife or husband's parents' brothers and sisters
? Legal heir, if any. Source:
Question: ​Do I need to insist on some proof of payment from the Banker to whom I have submitted the challan?

Answer: The filled-up taxpayer?s counterfoil will be stamped and returned to you by the bank. Please ensure that the bank?s stamp contains BSR Code [Bankers Serial Number Code], Challan Identification Number [CIN], and the date of payment. In case of e-payment a computer generated copy will be issued. Source:
Question: ​Who cannot use ITR - 6?

Answer: ​​​​​Form ITR ? 6 cannot be used by a company claiming exemption under section 11​ (charitable/religious trust can claim exemption under section 11).​ Source:
Question: ​Am I required to keep a copy of the return filed as proof and for how long?

Answer: ​​Yes, since legal proceedings under the Income-tax Act can be initiated up to four or six years (as the case may be) prior to the current financial year, you must maintain such documents at least for this period. However, in certain cases the proceedings can be initiated even after 6 years, hence, it is advised to preserve the copy of return as long as possible. Further, after introduction of the e-filing facility, it is very easy and simple to maintain the copy of return of income. Source:
Question: ​How to deposit Self Assessment Tax or Advance tax to the credit of Government?​

Answer: Self ? Assessment Tax or Advance Tax is to be deposited to the credit of Government by using the challan prescribed in this behalf, i.e., ITNS 280. The Challan can be downloaded from Tax can be paid in the designated banks through two modes, viz., physical mode, i.e., cash/cheque or e-payment mode. Source:
Question: ​Who can use ITR ? 1 (SAHAJ)?

Answer: Return Form ITR - 1 (SAHAJ) can be used by an individual whose total income includes:

(1) Income from salary/pension; or

(2) Income from one house property (excluding cases where loss is brought forward from previous years); or

(3) Income from other sources (excluding winnings from lottery and income from race horses).

Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return for Source:
Question: ​Who cannot use ITR - 4?

Answer: ​​Form ITR ? 4 cannot be used by any person other than an individual or a HUF. Further, an individual or a HUF not having income from business or profession cannot use ITR ? 4.​​ Source:
Question: ​What are the different modes of filing the return of income?

Answer: The Return Form can be filed with the Income-tax Department in any of the following ways:-

(i) by furnishing the return in a paper form;

(ii) by furnishing the return electronically under digital signature;

(iii) by transmitting the data in the return electronically under electronic verification code;

(iv) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;


Where th Source:
Question: ​How does the Government collect Income-tax?

Answer: Taxes are collected by the Government through three means: a) voluntary payment by taxpayers into various designated Banks. For example, Advance Tax and Self Assessment Tax paid by the taxpayers, b) Taxes deducted at source [TDS] from the income of the receiver, and c) Taxes collected at source [TCS]. It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly.​ Source:
Question: ​Can income from assets transferred to son?s wife without adequate consideration be clubbed with the income of transferor, i.e., father-in-law/mother-in-law?

Answer: As per section 64(1)(vi)​​, if an individual transfers (directly or indirectly) his/her asset to his/ her son's wife otherwise than for adequate consideration, then income from such asset will be clubbed with the income of the individual (i.e., transferor being father-in-law/mother-in-law). The provisions of clubbing will apply even if the form of asset is changed by the transferee-daughter-in-law.

If the asset is transferred before marriage of son, no income will be clubb Source:
Question: ​Where and how am I supposed to file my return?

Answer: ​Return of income can be filed either in hard copy at the local office of the Income-tax Department or can be electronically filed at
In the case of certain persons, e-filing is mandatory.​ Source:
Question: Is the income tax act applicable only to residents?

Answer: It is applicable to both residents and non-residents. If you earn income in India then you would have to pay more taxes even if you are a non-resident of the country. Source:
Question: ​How will I know how much Income-tax I have to pay?

Answer: The rates of Income-tax and corporate taxes are available in the Finance Act passed by the Parliament every year. You can also check your tax liability by using the free online tax calculator available at Source:
Question: Who is a resident of India, for the purpose of Income Tax Return Filling?

Answer: If you have spent more than 182 days in India then you are considered as a resident irrespective of your citizenship. Source:
Question: ​Who can not use ITR-2A?

Answer: ​​​​Return Form - ITR 2A cannot be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2016-17 includes,-

(a) Income from Capital Gains; or

(b) Income from Business or Profession; or

(c) Any claim of relief/deduction under section 90, 90A​ or 91; or

(d) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located ou Source:
Question: What are the main components of Transaction-based Systems?

Answer: ​​In case of queries on e-filing of return, the taxpayer can contact 1800 4250 0025.​​ Source:
Question: Who can use ITR-2A?​​

Answer: ​​Return Form ITR - 2A can be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2016-17​ includes:-

(a) Income from Salary / Pension; or

(b) Income from House Property; or

(c) Income from Other Sources (including Winning from Lottery and Income from Race Horses).

Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Retu Source:
Question: ​What are the benefits of e-filing the Return of Income?

Answer: E-filing can be done from any place at any time and it saves time and efforts. It is simple, easy and faster. The e-filed returns are generally processed faster as compared to returns filed manually.​​ Source:

1 2 3 4 5 6 Next

India News Network
Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal
Cache = 0.03125 Seconds