Income Tax Ordinance 2001 MCQs

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Topic Notes: Income Tax Ordinance 2001

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Which strategic considerations should be evaluated when deciding between repairing or replacing an asset to optimize tax liability?

A There are some conditions to carry-forward and set-off of business losses B As far as possible a part of the asset should be replaced and not the entire asset. In case of replacement of a part of asset, the cost of replacement is allowed as a deduction in computing the income for tax purpose C All of the above D If in the relevant previous year less income is expected, it will be better to slow down the pace of repair and renewal of a part of asset in such a manner that it is spread over a number of years. On the other hand, if the income is increased, the repair work can be increased

Regular assessment in respect of any income is to be made in a later assessment year, but . . . . . . . . on such income is payable in the previous year itself.

When a Karta of a Hindu Undivided Family (HUF) gifts money to his wife from HUF funds, how is this action classified in terms of tax planning?

If a taxpayer's payment is insufficient to cover both the tax liability and accrued interest, how should the payment be prioritized?

A firstly by balance and then the interest payable, if any B proportioned amount of interest and balance C interest first and then with balance or vice versa rest at the discretion of the assessing officer D firstly by interest payable, then the balance, if any

Under which section of the Income Tax Act is a 'regular assessment' conducted?

What is considered the primary advantage of a unilateral transfer pricing agreement compared to a multilateral one?

Regarding the alternative tax regime, which of the following statements accurately describes the conditions for an individual assessee?

How does the 'exemption method' function in the context of international double taxation relief?

A income is taxed in one country and exempt from tax in the other country B income is taxed in country of source and country of source and country of residence and deduction is provided in other country C Both A and B D None of the above

Under which section of the Income Tax Act is agricultural income specifically exempted from taxation?

What is the statutory time limit for rectifying a mistake that is apparent from the record as passed by the tax authority?

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