Income Tax Law & Practice

The correct answer is Income Tax Return. ITR stands for Income Tax Return, which is the form used by taxpayers to file their income tax information with the tax authorities. It includes details of the taxpayer's income, deductions, and taxes paid or owed. The purpose of filing an ITR is to report one's income accurately and determine the tax liability or refund amount.

The statement is true because an assessee refers to a person who is liable to pay taxes or is subject to assessment by a tax authority. Therefore, every assessee is a person, but not every person is necessarily an assessee. Some individuals may not meet the criteria for being assessed or liable to pay taxes, hence they would not be considered as assessee.

In some cases, the assessment year and the previous year can be the same financial year. This means that the year in which the income is assessed for tax purposes can be the same as the previous year in which the income was earned. This can occur when there are no changes in the tax laws or regulations that would require a different assessment year. It is important to note that this is not always the case, as assessment years can change based on various factors such as changes in tax laws or individual circumstances.

The maximum amount of gratuity exempted for non-government employees who are not covered by the Payment of Gratuity Act 1972 is 2000000. This means that if a non-government employee who is not covered by the act receives gratuity up to this amount, it will be exempted from taxation.

The residential status of an individual is determined by their stay in India during the previous year. This means that the duration of their stay in India during the year preceding the assessment year is taken into account to determine their residential status for tax purposes.

Gross total income refers to the total income earned by an individual or entity before any deductions or exemptions. It includes income from all sources such as salary, business profits, rental income, capital gains, and any other income. By referring to it as "some of various heads," the question implies that there are multiple sources or categories of income that contribute to the gross total income.

Residential refers to the type of property or area where people live. It does not have any connection or relationship with nationality, which refers to a person's citizenship or country of origin. Residential is solely related to the place or type of dwelling, while nationality is about a person's identity and legal status in a particular country.

The assessment year for income earned till 15-11-2019 in this case shall be 2019-20 because the assessment year is the year in which the income is assessed and taxed. Since the person left India permanently on 15-11-2019, the income earned until that date would be assessed in the following year, which is 2019-20.

The correct answer is 6 because PAN stands for Permanent Account Number, which is a unique alphanumeric code issued by the Indian Income Tax Department. The code consists of a combination of 10 characters, including 5 letters and 4 numbers, and ends with a single letter. Therefore, the PAN contains 6 alphabets.

Income tax is levied on a yearly basis because it is calculated and collected based on an individual's or business's income over the course of a year. The tax authorities require taxpayers to report their annual income and expenses, and then determine the tax liability based on the applicable tax rates. By collecting income tax on a yearly basis, the government ensures a fair and consistent taxation system that takes into account the overall financial situation of the taxpayer throughout the year.