Income-tax: concepts, residential status, exempt incomes, agricultural income, computation under heads, deductions, assessment of individuals, clubbing - One Line Questions

1. What is the tax rate for short-term capital gains on sale of equity shares on which Securities Transaction Tax (STT) has been paid? — 15%
2. What is the standard deduction available for salary income? — Rs. 50,000 or the amount of salary, whichever is less
3. Long-term capital gains are gains arising from the sale of a capital asset held for a period exceeding: — 12 months
4. Which of the following is NOT a condition for an individual to be resident in India for tax purposes? — Visits India at least once in the previous year
5. Which of the following is NOT an 'Assessment Year'? — 2021-2021
6. What is the maximum amount of deduction allowed for donations to certain funds and charitable institutions under Section 80G? — 50% or 100% of the donated amount, subject to qualifying limits
7. If a person earns both agricultural income and non-agricultural income, and the agricultural income is above a certain threshold, how is the tax calculated? — The agricultural income is added to non-agricultural income to calculate tax, applying the slab rates of individuals, and then tax on agricultural income is calculated separately. Relief is given for tax on agricultural income.
8. Agricultural income is defined as rent or revenue derived from land situated in India and used for: — Agricultural purposes
9. Which of the following is NOT a basic concept in income tax? — Net Profit
10. Tax liability of an individual is calculated based on the rates applicable for: — Assessment Year
11. Which of the following is a tax-free allowance for an employee? — House Rent Allowance (subject to limits)
12. Income from other sources includes: — All of the above
13. An 'Assessee' under the Income-tax Act, 1961 includes: — Both (a) and (b)
14. The tax liability of an individual is computed on their: — Total income
15. If an individual is a 'Resident but Not Ordinarily Resident' (RNOR), their taxable income in India includes: — Only income accrued or arisen in India and income received in India
16. The taxability of income earned by a Resident and Ordinarily Resident (ROR) includes: — All of the above
17. Income earned by a 'Non-Resident' is generally taxed in India on: — Both (a) and (b)
18. Which of the following scenarios falls under the clubbing of income provisions? — Income of a minor child from a business set up by parents
19. Income from house property is computed after deducting: — Annual value of the property
20. What is the significance of 'Residential Status' for an individual? — It determines the taxability of income earned outside India
21. Deduction under Section 80C of the Income-tax Act is available for: — Repayment of principal amount of housing loan
22. Which of the following is a 'permissible deduction' when computing income under the head 'Profits and Gains of Business or Profession'? — Interest paid on capital borrowed for business purposes
23. An individual is considered 'Resident and Ordinarily Resident' (ROR) if they satisfy which of the following conditions? — Resident in India for at least 182 days in the previous year AND satisfies the two conditions relating to residency in India in previous years
24. What is the maximum deduction allowed for interest on housing loan for a self-occupied property? — Rs. 2,00,000
25. Which deduction is available for interest paid on a loan taken for acquiring a self-occupied house property? — Rs. 1,00,000
26. What is the threshold limit for agricultural income to be considered for aggregation with non-agricultural income for tax calculation purposes? — Rs. 10,000
27. What is the maximum limit for deduction under Section 80D for medical insurance premium for self, spouse, and dependent children? — Rs. 25,000
28. The exemption for gratuity received by government employees on retirement is: — Rs. 10,00,000
29. Which of the following is NOT considered a 'Head of Income' under the Income-tax Act? — Interest Income
30. Income from lottery is taxed under which head? — Income from Other Sources
31. The concept of 'deemed dividend' falls under which head of income? — Income from Other Sources
32. Which of the following incomes is generally exempt from income tax? — Agricultural income
33. Which section deals with the exemption of certain allowances received by an employee? — Section 10(13A)
34. Leave Travel Concession (LTC) exemption is available under which section? — Section 10(5)
35. Which section deals with the taxation of capital gains on sale of equity shares of a company listed on a recognized stock exchange? — Section 112A
36. Income from royalties, fees for technical services, or interest on securities received by a non-resident may be taxed at a special rate under: — Section 115A
37. Under which section can the Assessing Officer make a 'Best Judgment Assessment'? — Section 144
38. Which section deals with the taxation of income from undisclosed sources? — Section 68
39. Deduction for expenses incurred for treatment of specified diseases for a dependent is available under which section? — Section 80DDB
40. Deduction for interest paid on loan taken for higher education is available under which section? — Section 80E
41. Which section allows for deductions for rent paid by an employee in a metro city? — Section 80GG
42. Which of the following is NOT a mode of assessment? — Advance assessment
43. Which of the following is a deduction from 'Gross Total Income'? — Deduction under Chapter VI-A
44. Which of the following is a capital asset? — Personal jewellery
45. What is the tax treatment of short-term capital gains? — Taxed at slab rates
46. What is the primary legal framework governing income tax in India? — The Income-tax Act, 1961
47. What is the 'Previous Year' in the context of income tax? — The financial year in which the income is earned
48. Which of the following is NOT a condition for computing income under the head 'Profits and Gains of Business or Profession'? — The income must be received in India
49. Under the clubbing provisions, income from assets transferred to a spouse without adequate consideration is clubbed with the income of: — The transferor spouse
50. What is the primary purpose of 'Clubbing of Income' provisions? — To prevent tax evasion by transferring income to persons with lower tax liability
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