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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.

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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

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Income Tax Interview Questions & Answers - Learning Mode
Try Income Tax Interview Questions & Answers - Exam Mode
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: ​Am I liable for any criminal prosecution [arrest/imprisonment, etc.] if I don?t file my Income-tax return, even though my income is taxable?

Answer: Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).​​ Source:
Question: ​Who cannot use ITR - 3?

Answer: Form ITR ? 3 cannot be used by an individual or HUF whose total income for the year includes income from Business or Profession under any proprietorship.​ Source:
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: ​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: Under the Income-tax Law is income from animal husbandry conside​​red as an agricultural income?​

Answer: No, under the Income-tax Law, income from animal husbandry is not conside​​red as an agricultural income. Source:
Question: Can anyone else sign the tax return form on my behalf?

Answer: Yes, in certain situations. For instance, if you have been away from India and want to file your tax returns, somebody else can sign on your behalf provided you have authorized him (or her) to do so. Source:
Question: What are receipts? Are all receipts considered as income?

Answer: A receipt is your entire income before tax deductions. Not all receipts are considered as income. Basically, they are of two kinds:

1. Capital receipt: This is the income earned by selling the source or asset. For example, income earned from selling a property, gold, etc.

2. Revenue receipt: Income from source such as salary, interest accrued on deposits, rent from property is termed as revenue receipt. Source:
Question: ​Who cannot use ITR - 7?

Answer: ​​​​​Form ITR ? 7 cannot be used by a person who is not required to furnish return under section 139(4A) or section 139(4B)​ or section 139(4C) or section 139(4D) or section 139(4E​)​ or section 139(4F​)​ (i.e., trusts, political party, institutions, colleges, investment fund, ​etc.). Source:
Question: What documents do I need to file my income tax return?

Answer: Form 16: Your employer will give you this form. It has information about the income earned and the tax deducted from your salary during the year.

Form 16A: This form is also called a TDS certificate and is for tax deducted at source on other income such as interest on bank deposit. It is given to you by financial institutions such as banks or companies, which deduct tax at source every month or year.

Summary of all bank accounts or passbooks: You need a summary of all bank transact 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: ​If I have paid Excess Tax how will it be refunded to me?

Answer: ​​​The excess tax can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through ECS transfer. The department has been making efforts to settle refund claims at the earliest.​​ 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: 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: ​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 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: ​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 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: ​What is e-filing utility provided by the Income-tax Department?

Answer: The Income-tax Department has provided free e-filing utility (i.e., software) to generate e-return and furnishing of return electronically. The e-filing utility provided by Department is simple, easy to use and also contains instructions on how to use it. By using the e-filing utility, the taxpayers can easily file their returns of income. Utility can be downloaded from​. Source:
Question: Do I need to maintain any records or proof of earnings?

Answer: For every source of income you have to maintain proof of earning and the records specified under the Income-tax Act. In case no such records are prescribed, you should maintain reasonable records with which you can support the claim of income. Source:

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