Ernst & Young Tax Consultant Interview Questions and Answers

Questions releated to reasoning

Cash vs UPI time:-15 min members:-10,

Q1. Tell me about yourself
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Q2. What is financial statement
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A financial statement is a document that provides an overview of a company's financial performance and position.
• Financial statements include the balance sheet, income statement, and cash flow statement.

• They are prepared by companies to communicate their financial information to stakeholders.

• Financial statements help in assessing the profitability, liquidity, and solvency of a company.

• They are used by investors, credito...read more
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Q3. What is GAAP? and how its help us as a tax consultant
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GAAP stands for Generally Accepted Accounting Principles. It is a set of standard accounting rules and guidelines.
• GAAP provides a framework for preparing financial statements and ensures consistency and comparability in financial reporting.

• As a tax consultant, understanding GAAP helps in accurately interpreting financial statements and identifying taxable income.

• GAAP also helps in determining the appropriate tax treatm...read more
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Q1. What is Withholding tax?
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Withholding tax is a tax deducted at source by the payer of income, typically on interest, dividends, or wages.
• Withholding tax is deducted by the payer of income before it is paid to the recipient.

• It is commonly applied to interest, dividends, royalties, and wages.

• The withheld tax is then paid directly to the government on behalf of the recipient.

• The recipient may still need to report the income and withholding tax on ...read more
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Q2. How do you do income allocation in 704c method?
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Income allocation in 704c method involves assigning income or deductions to partners based on their share of partnership profits.
• Income allocation in 704c method is used to allocate income or deductions to partners in a partnership based on their share of partnership profits.

• This method is typically used when there is a substantial disparity between the book value and tax basis of partnership assets.

• The allocation is m...read more
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Q1. Section 35DA deduction
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Q2. Section 80JJAA deduction
Ans. 
Section 80JJAA deduction allows deduction for new employment generation in specified industries.
• Section 80JJAA of the Income Tax Act allows a deduction to employers for new employment generation in specified industries.

• The deduction is available for 30% of additional employee cost for 3 consecutive assessment years.

• The deduction is available to Indian companies engaged in manufacture or production of goods in specified...read more
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Q3. Section80Cdediction
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Q4. Riound tripping ofshares
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Q5. Go goa gone less
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It was basic aptitude test with communication section, which includes reading, listening, speaking and writing.

Q1. Basic questions on finance and tax were asked
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Q2. Do you know anything about Indian Tax?
Ans. 
Yes, Indian Tax system is complex and diverse with various taxes like income tax, GST, customs duty, etc.
• Indian tax system is governed by the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC)

• Income tax is levied on the income earned by individuals and businesses

• Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services

• Customs duty is levied...read more
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Q1. It was a normal HR round. All the basic HR questions were asked.
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