Audit and Taxation Intern Interview Questions and Answers

TDS stands for Tax Deducted at Source. It is a tax collection mechanism in India.

• TDS is deducted by the payer at the time of making payment to the payee.

• It is calculated as a percentage of the payment amount.

• The rate of TDS varies depending on the type of payment and the payee's status.

• The deducted TDS amount is deposited with the government.

• The payee can claim credit for the TDS amount while filing their income tax return.

Taxation refers to the process of levying taxes on individuals, businesses, and other entities by the government.

• Taxation is the means by which governments finance their expenditure by imposing charges on citizens and corporate entities.

• It involves the collection of taxes from individuals, businesses, and other entities based on their income, profits, or property.

• Taxation can be direct or indirect, depending on the type of tax being levied.

• Examples of direct taxes include inc...read more

Types of tax include income tax, sales tax, property tax, excise tax, and estate tax.

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

• Sales tax is a tax on goods and services purchased by consumers.

• Property tax is a tax on the value of real estate and other property.

• Excise tax is a tax on specific goods such as gasoline, tobacco, and alcohol.

• Estate tax is a tax on the transfer of property after a person's death.