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Bihar BSFC Taxation Questions and Answers: Having difficulty in answering questions related to the Taxation concept for Bihar BSFC Exam? then without any delay go through this article to get the Taxation Questions for Bihar BSFC. In this Bihar BSFC Taxation MCQ we have questions from topics like Payment of Advance tax, Monthly / Annually GST return filing, Data Preparation of TDS for TDS payment and return Filing, Data Preparation of GST for GST Payment and Return Filing, Department Audits, TDS liability, etc. Hence, candidates whoever having difficulty in the above concepts can practice them by using this Bihar BSFC Taxation Quiz.
Bihar BSFC Taxation MCQ
Check out this Bihar BSFC Taxation Questions and then know the remaining Bihar BSFC Syllabus to prepare well for the other sections in the exam.
Bihar BSFC Taxation Questions and Answers
1. What is a GST Return?
A GST return is a document containing details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability.
Under GST, a registered dealer has to file GST returns that broadly include:
● Purchases
● Sales
● Output GST (On sales)
● Input tax credit (GST paid on purchases)
To file GST returns or for GST filings, check out the Clear GST software that allows the import of data from various ERP systems such as Tally, Busy, custom Excel, to name a few. There is also the option to use the desktop app for Tally users to directly upload data and file.
2.Who should file GST Returns?
Under the GST regime, regular businesses having more than Rs.5 crore as annual aggregate turnover (and taxpayers who have not opted for the QRMP scheme) have to file two monthly returns and one annual return. This amounts to 25 returns each year.
Taxpayers with a turnover of up to Rs.5 crore have the option to file returns under the QRMP scheme. The number of GSTR filings for QRMP filers is 9 each year, which include 4 GSTR-1 and GSTR-3B returns each and an annual return. Note that QRMP filers have to pay tax on a monthly basis even though they are filing returns quarterly.
There are also separate statements/returns required to be filed in special cases such as composition dealers where the number of GSTR filings is 5 each year (4 statement-cum-challans in CMP-08 and 1 annual return GSTR-4).
3.How many returns are there under GST?
There are 13 returns under GST. They are the GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, GSTR-11, CMP-08, and ITC-04. However, all returns do not apply to all taxpayers. Taxpayers file returns based on the type of taxpayer/type of registration obtained.
Eligible taxpayers, i.e. with a turnover exceeding Rs.5 crore are also required to also file a self-certified reconciliation statement in Form GSTR-9C.
Besides the GST returns that are required to be filed, there are statements of input tax credit available to taxpayers, namely GSTR-2A (dynamic) and GSTR-2B (static). There is also an Invoice Furnishing Facility (IFF) available to small taxpayers who are registered under the QRMP scheme to furnish their Business to Business (B2B) sales for the first two months of the quarter. These small taxpayers will still need to pay taxes on a monthly basis using Form PMT-06.
We have explained the various GST returns, along with applicability and due dates in the section below.
4.What is Advance Tax?
Advance tax is the income tax that is paid in advance instead of lump sum payment at year end. It is the tax that you pay as you earn. These payments have to be made in instalments as per due dates provided by the income tax department. Watch this video to find out more.
5. Who Should Pay Advance Tax?
Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. The advance tax applies to all taxpayers, salaried, freelancers, and businesses.
Senior citizens– People aged 60 years or more, and do not run a business, are exempt from paying advance tax. So only senior citizens (60 years or more) having business income must pay advance tax
Presumptive income for businesses–The taxpayers who have opted for the presumptive taxation scheme under section 44AD have to pay the whole amount of their advance tax in one instalment on or before 15 March. They also have the option to pay all of their tax dues by 31 March.
Presumptive income for professionals– Independent professionals such as doctors, lawyers, architects, etc. come under the presumptive scheme under section 44ADA. They have to pay the whole of their advance tax liability in one instalment on or before 15 March. They can also pay the entire amount by 31 March.
6.How to Pay Advance Tax Online?
● Visit the Tax Information Network of the Income Tax Department of India
● Click on ‘Proceed’ under the CHALLAN NO./ITNS 280 option.
● Enter the tax applicable, types of payment, mode of payment, PAN, assessment year and other details mentioned in the challan.
● Ensure that once filled in, you double-check all the data that you have entered.
● You will then be redirected to the bank’s website to complete the payment.
● After completing the payment, you will get a tax receipt on the next screen, on which you can see the payment details. You can see the BSR code and challan serial number on the right side of the challan. Save a copy of this tax receipt for future reference. You will need to enter the BSR code and challan number in your tax return.
7. At the time of deduction of tax at source, surcharge and cess, is added in which of the following cases ?
a) Where the resident assessee receives any income in the nature of salary
b) Where the recipient is an Indian company
c) Both (A) and (B)
d) Neither (A) nor (B)
Answer: a) Where the resident assessee receives any income in the nature of salary
8. The proof obtained by an employer, from an employee in respect of deduction can be in respect of ___________
a) Prescribed claims
b) Set off of loss
c) Both (A) and (B)
d) Neither (A) nor (B)
Answer: c) Both (A) and (B)
9. Mr. Shyam has resigned from XYZ India Ltd. on September 30, 2022. He has drawn salary of Rs. 30,000 per month and TDS of Rs. 3,000 has been deducted from such income. He has a joined new company ABC India on October 01, 2022 at salary of Rs. 35,000 per month. ABC India should, subject to provision of details from Shyam, deduct tax at source after considering salary of ____________ during the PY 2023-24.
a) Rs. 2,10,000
b) Rs. 3,90,000
c) Rs. 3,60,000
d) None of the above
Answer: b) Rs. 3,90,000
10. Various types of quality audits are:
A. product
B. process
C. management (system)
D. registration (certification)
E) All of above
Answer: E
11. When the auditor is an employee of the organization being audited (auditee), the audit is classified as an …….. quality audit.
A. internal
B. external
C. compliance
D. Both A & B
Answer: A
12. Each of the three parties involved in an audit ……………………. plays a role that contributes to its success.
A. the client, the auditor, and the auditeer
B. the client, the auditor, and the audite
C. the client, the moderator, and the auditee
D. the client, the auditor, and the auditee
Answer: D
13. The audit final report should include, at a minimum, the following:
(choose the one NOT requireD.
1. Type of audit conducted
2. Characteristics of audit
3. Identification of involved parties: auditor, auditee, and third party
4. Audit team members
5. Critical nonconformities and other observations
6. Audit standards and reference documents used
7. Determination of proper corrective action(s)
8. Duration of audit
A. 1
B. 2
C. 4
D. 8
Answer: B
14. Any employer, who has provided non-monetary perquisites, is __________ deduct tax at source at the time of payment.
a) Mandatorily required to
b) Having an option to
Answer: b) Having an option to
15. Any person responsible for paying salaries shall be required to deduct tax at source at the average rate of income-tax computed on the basis of rates in force for the relevant financial year in which ___________
a) Payment is made
b) Account of employee is credited
c) (A) or (B), whichever is earlier
d) None of the above
Answer: a) Payment is made
16. Mr. Shyam has resigned from XYZ India Ltd. on September 30, 2022. He has drawn salary of Rs. 30,000 per month and TDS of Rs. 3,000 has been deducted from such income. He has a joined new company ABC India on October 01, 2022 at salary of Rs. 35,000 per month. ABC India should, subject to provision of details from Shyam, deduct tax at source after considering salary of ____________ during the PY 2023-24.
a) Rs. 2,10,000
b) Rs. 3,90,000
c) Rs. 3,60,000
d) None of the above
Answer: b) Rs. 3,90,000
17. TDS from salaries has to be deducted by which of the following ?
a) Individual and HUF
b) Firms and LLP’s
c) Companies
d) All of the above
Answer: d) All of the above
18. Which of the following securities of the Central Government are liable for deduction of tax at source u/s 193 ?
a) 7.75% Savings (Taxable) Bonds
b) 7.75% Savings (Non- Taxable) Bonds
c) 7.75% Investment (Taxable) Bonds
d) 7.75% Investment (Non- Taxable) Bonds
Answer: a) 7.75% Savings (Taxable) Bonds
19. Which of the following are not liable for deduction of tax at source u/s 193 ?
a) Interest on securities beneficially owned by an insurance company
b) Indian Railway Finance Corporation Limited 54ED Capital Gains Bond
c) Power Mortgage Corporation Ltd. 54EC Capital Gains Bond
d) All of the above
Answer: a) Interest on securities beneficially owned by an insurance company
20. On July 1, 2022, Mr. Bharat has made a fixed deposit of Rs. 2,40,000 with PQR Bank, which carries interest rate of 10% p.a. What would be the TDS amount to be deducted by bank on such interest payment ?
a) Rs. 1,800
b) Rs. 3,600
c) Rs. 900
d) Nil
Answer: a) Rs. 1,800