UJA Global Advisory Private Limited CA Articleship Interview Questions and Answers

Emphasis on matter paragraph highlights significant matters in financial statements while key audit matter focuses on significant audit matters.

• Emphasis on matter paragraph is included in the auditor's report while key audit matter is a separate section.

• Emphasis on matter paragraph highlights significant matters in the financial statements such as going concern, related party transactions, and significant accounting po...read more

Provision is a liability that is uncertain in timing or amount, while reserve is a portion of profits set aside for a specific purpose.

• Provision is an estimated expense that a company sets aside in its accounts to cover a potential future liability.

• Reserve is a portion of profits that a company sets aside for a specific purpose, such as to fund future expansion or to pay dividends.

• Provision is recognized as an expense ...read more

Contingent assets and liabilities are potential future events that may or may not occur.

• Contingent assets are potential assets that may arise from past events, but their existence is uncertain and depends on future events.

• Contingent liabilities are potential obligations that may arise from past events, but their existence is uncertain and depends on future events.

• Contingent assets and liabilities are disclosed in the f...read more

Capital gains are calculated by subtracting the cost of acquisition from the sale price of an asset.

• Determine the sale price of the asset

• Determine the cost of acquisition of the asset

• Subtract the cost of acquisition from the sale price to get the capital gain

• Apply any applicable exemptions or deductions to arrive at the taxable capital gain

The government has introduced various updates in income tax laws in the recent years.

• The Finance Act, 2021 has introduced a new provision for tax deduction at source (TDS) on purchase of goods at 0.1% rate.

• The deadline for filing income tax returns for the financial year 2020-21 has been extended to September 30, 2021.

• The government has introduced a new tax regime with lower tax rates for individuals who are willing to...read more

TDS sections refer to the different sections under which tax is deducted at source.

• TDS sections are numbered from 192 to 196D.

• Each section specifies the rate at which TDS is to be deducted.

• Section 194C applies to payments made to contractors and specifies a TDS rate of 1% for individuals and HUFs, and 2% for others.

• Section 194J applies to professional or technical services and specifies a TDS rate of 10%.

• Section 195 ap...read more

The current prevailing GST rates in India vary from 0% to 28% depending on the goods or services.

• GST rates are divided into 4 slabs - 5%, 12%, 18%, and 28%

• Some goods and services are exempted from GST, such as healthcare and education

• Luxury items like cars and tobacco products have higher GST rates

• GST rates are subject to change based on government policies and economic conditions

The income tax basic limit in India for individuals is Rs. 2.5 lakhs per annum.

• Individuals earning up to Rs. 2.5 lakhs per annum are exempt from income tax.

• For senior citizens (age 60 years or above), the basic limit is Rs. 3 lakhs per annum.

• For super senior citizens (age 80 years or above), the basic limit is Rs. 5 lakhs per annum.

• Income tax rates increase with income levels above the basic limit.

• The basic limit is su...read more