10+ Tax Consultant Interview Questions and Answers for Freshers

The 5 heads of income are salary, house property, business/profession, capital gains, and other sources.

• Salary income includes income from employment

• House property income includes rental income

• Business/profession income includes income from self-employment

• Capital gains income includes profits from sale of assets

• Other sources income includes income from sources not covered under the other heads

• Depreciation is the decrease in value of an asset over time

• Types of depreciation inc...read more

Tax is a mandatory financial charge imposed by the government on individuals and businesses.

• Tax is used to fund public services and infrastructure

• There are different types of taxes such as income tax, sales tax, property tax, etc.

• Tax laws and regulations vary by country and jurisdiction

• Cost accounting is focused on determining the cost of producing a product or service

• Managerial accounting is focused on providing financial information to help managers make business decisions

• B...read more

Tax is calculated based on gross distribution and cost basis. Gross distribution is the total amount received and cost basis is the original investment.

• Tax is calculated based on the difference between gross distribution and cost basis

• Gross distribution is the total amount received from an investment, including dividends and capital gains

• Cost basis is the original investment amount, including any fees or commissions

• Tax is calculated on the net gain, which is the difference be...read more

1099 forms are tax forms used to report income received from sources other than an employer.

• There are several types of 1099 forms, including 1099-MISC, 1099-INT, and 1099-DIV.

• 1099-MISC is used to report income earned as an independent contractor or freelancer.

• 1099-INT is used to report interest income earned from bank accounts or investments.

• 1099-DIV is used to report dividend income earned from investments.

• As a tax consultant, I have worked extensively with 1099 forms, ensur...read more

Investment banking involves providing financial services to corporations and governments, while corporate actions refer to events that affect a company's stock price.

• Investment banking involves underwriting securities, providing financial advice, and facilitating mergers and acquisitions.

• Corporate actions include stock splits, dividends, and mergers and acquisitions.

• Investment bankers work with corporations and governments to raise capital through the issuance of stocks and b...read more

Income from house property can be competed by claiming deductions and ensuring proper maintenance.

• Claim deductions such as interest on home loan and property taxes paid

• Ensure proper maintenance of the property to avoid any penalties

• Rent out the property to generate additional income

• Consider investing in a second property to diversify income sources

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 on goods imported into India

• There are also other taxes li...read more

Tax rates for the present financial year vary based on income levels and filing status.

• Tax rates range from 10% to 37% for individuals based on income levels

• Different tax brackets apply for single filers, married couples filing jointly, and heads of household

• Long-term capital gains tax rates range from 0% to 20% depending on income

• Standard deduction amounts have increased for the current year

Shaktikanta Das is the current RBI Governor.

• Shaktikanta Das was appointed as the 25th Governor of the Reserve Bank of India in December 2018.

• He has previously served as the Economic Affairs Secretary and Revenue Secretary of India.

• As RBI Governor, he has focused on maintaining financial stability and supporting economic growth.

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions.

• Accounting involves recording financial transactions accurately and in a timely manner.

• It includes summarizing the financial data to create financial statements like balance sheets and income statements.

• Analyzing the financial information to provide insights for decision-making.

• Reporting the financial results to stakeholders such as investors, creditors, and management.

• Account...read more

Types of accounts include asset accounts, liability accounts, equity accounts, revenue accounts, and expense accounts.

• Asset accounts represent items of value owned by a business, such as cash, inventory, and equipment.

• Liability accounts represent debts or obligations owed by a business, such as loans and accounts payable.

• Equity accounts represent the owner's stake in the business.

• Revenue accounts track income generated by the business, such as sales revenue.

• Expense accounts t...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It reflects the wear and tear, age, and obsolescence of the asset.

• Common methods of calculating depreciation include straight-line, double-declining balance, and units of production.

• Example: A company buys a delivery truck for $50,000 with a useful life of 5 years. Using straight-line depreciation, the annual depre...read more

Form 1040 is the standard tax form used by individuals to file their annual income tax return with the IRS.

• Form 1040 is used by individuals to report their income, deductions, and credits for the year.

• It is the most common tax form used by taxpayers in the United States.

• Taxpayers may need to attach additional schedules or forms depending on their specific tax situation.

• The form must be filed by the tax deadline, usually April 15th.

• Examples of information reported on Form 1040...read more