1. Who is Individual? Ans. An individual is liable to tax if has total income exceeds Rs.50,000 2. Who is Commissioner(Appeals)? Ans.

Commissioner(Appeals):They include additional commissioners. A person may file an appeal against certain orders of the assessing officer assistant commissioner and deputy commissioner. 3. What is Income? Ans.1. Profits and gains. 2.Dividend 3.Voluntary contributions received by a trust or institution 4.The value of any perquisite or profit in lieu of salary to the extent it is tazable u/s. 17(2) & (3). 5.The allowance granted to an assesse either to meet his personal expenses at the place where the duites. 6.The value of any benefit or perquisite obtained from a company either by a director or by a person who has a substantial interest in the company. 4. What is Agriculture Income:Sec.2(1A) Ans. Agriculture income means rent or revenue derived from land which is situated in india and is used for agricultural purpose. It means that(A)rent or revenue should be derived from land.Rent is a receipt in cash or in kind for grant of right to use land. Revenue is any yield or income from land.(B)the land should be situated in india. 5. Who is Assessing Officer:Sec(7A) Ans. The assistant commissioner or deputy commissioner or assistant director or deputy director or the incime tax officer who is vested with the relevant jurisdiction. 6. Who is Assessee:Sec2 (7) Ans. A person by whom any tax or any other sum of maney us payable under this act and also includes. 1.a person on whom any proceeding under the act has been taken for the assessment 2.a person who is deemed to be an assessee. 3.a person who is deemed to an assessee in default. 7. What is Assessment :Sec.2(8) Ans. I)computation of total income II)determination of the tax payable on the total income 8. What is Assessement year : Sec 2 (9)? Ans. The period of 12 months commencing on the 1 day of april every year and ending on the 31 march next following.this is also called income tax year. 9. What is previous year : sec 2(34) & 3?

ans.the financial year ending on 31 march immediately preceding the assessment year will be from 1-4-2004 to 31-3-2005. 10. What is total income : sec 2(45)&5? Ans. A)income which is received person in particular year includes the year, or b)income which accrues or arises or is deemed to accrue or arise to him in india during such year, or c)incime which accrues ir arises to him outside india during such year. 11. What is charitable purpose? Ans. Includes relief or the poor, education, medical relief and the advancement of any other object of general public utility like promotion of sports, games etc.

12. Who is resident:sec 6(1)? Ans. An individual is said to be resident in india in any pervious year, if: 1.he has been in india in the pervious year for period or periods amount in all to 182 days or more 2.he has been in india for a period or periods amounting in all 365 days or more during the 4 years preceding the previous year and he has beenin india for a period or periods amounting in all 60 days or more during the previous year. 13. Who is not ordinarily resident:sec6(6)? Ans. An individual after satisfying at least one of the basic conditions if he does not staisy both the subsequent conditions, he becomes not ordinarily resident in india. 14. Who is non-resident:sec2(30)? Ans. If an individual does not satisfy any of the basic conditions, he is said to be non-resident in india. 15. Who is hindu undivided families? Ans. A hindu undivided family is said to be resident in india in any previous year, if the control and management of its affairs is situated in india either wholly or partly in that year. 16. What is maximum marginal rate sec2(29c)? Ans. Maximum marginal rate means the rate of income tax applicable to the highest slab of income in the case of an individual, association of persons or body of individuals as specified in the finance act of the relevant year.

17. What is average rate of income tax :sec 2(10)? Ans. The rate arrived at b dividing the amount of tax calculated on the total incime by such total income by such total income. 18. What do you mean by salaries

Ans. Salaries u/s 15. 1.any salary due from apresent or former employer to an assessee in the previous year whether paid or not. 2.any salary paid or allowed to him to the pervious year by or on behalf of a present or former employer. 3.any arrears of salary paid or allowed to him. 19. What is basic salary? Ans.it is also called as basic pay and is included in the income from salary. 20. What is dearness pay? Ans. This is as part of the basic salary and is taxable. 21. What is D.A (dearness allowance)? Ans. This is an additional payment made by an employer to his amployees over and above the basic salary for meeting the increased cost of living. 22. What is city compensatory allowance? Ans. This type of allowance is generally granted to the employees who are working in the cities. 23. What is bonus? Ans. Bonus is a payment made by an employer to his employees under any legal obligation or otherwise. 24. What is commission? Ans. Some of the employers are making payment of commission also to their employees. Such commission paid my be as fised percentage based on the turnover. 25. Define salary? Ans. Salary sec17(1) The ordinary meaning of salary is a periodic payment received for services rendered. Salary includes. 1.wages. 2.annuity or pension 3.gratuity 4.fees,commission,perquisites or profits in lieu of or in addition to salary or wages. 5.advance salary 6.any payment received by an employee in respect of any period of leave not availed of by him. 26. What is perquisites: Sec17 (2)? Ans. Salary includes perquisites. Perquisites means any casual emolument, fee or profit attached to an office in addition to salary or wages.

27. What is specified assesses? Ans. 28. What is profit in lieu of salary: Sec17(3)? 29. What is provident funds explain? 30. What is annual value Sec23(1)? 31. What is unrealised rent? 32. What is business? 33. What speculation business? 34. Who are working partner? 35. What is depreciation? 36. Explain assets and block of assets? 37. What is know-how? 38. Explain written down value :Sec43(6)? 39. What is block asset: Sec2(1)? 40. What is capital asset : sec2(14)? 41. What is short term capital asset: Sec 2 (42A)? 42. What is long term asset : Sec 2(29A)? 43. Explain fair market value: Sec 2(22B)? 44. What is capital gain : Sec 45? 45. What is securities: Sec 2(28B)? 46. What is tax free Govt. Securities? 47. What is Govt. Securities? 48. What is less tax commercial Securities? 49. What is bond washing transactions? 50. What are tax free commercial securities? 51. What is join Hindu Family? 52. Explain Mitakshare school? 53. Explain Dayabhaga school? 54. What is Partnership? 55. What is Book-Profit? 56. Who was working partner? 57. What is Company? 58. What is Indian Company? 59. What is Domestic Company? 60. What is industrial company? 61. What is central Board of Direct Taxes(CBDT)? 62. What is Directors General (DGIT) of Commissioners (CCIT)? 63. What is Directors(DIT) commissioners (CIT) or Commissioners(Appeals)? 64. What is joint Directors (JDIT) or Joint Commissioners (JCIT)? 65. Assistant Directors(ADIT) or Assistant Commissioners(ACIT) 66. Who Income-tas officers(ITO) 67. Who is tas recovery officers(TRO) 68. What is return of income 69. What permanent account number 70. What is self assessment

71. 72. 73. 74. 75. 76.

What are the judgment assessment What is reassessment What is the time limit for notice Rectification of mistake Person entitled to claim refund