CA ARTICLESHIP INTERVIEW Qs
PDF 3 – Tax Interview Question & Answers
REFER – PDF 1 for Non-Tech Qs, & PDF 2 for Statutory Audit Q&As
1. What is Direct Tax (DT), & Why is it called DT?
When liability to pay a tax and the burden of that tax (incidence) fall on the same person, the tax is known as DT.
It is called DT since the liability and burden of the tax fall on the same person.
2. What is the purpose of TDS?
The purpose of TDS is to reduce the tax burden by distributing it over time, minimising tax evasion, thereby ensuring tax
compliance
3. What is Indexation in Capital Gains? What is the logic behind it?
Indexation is an adjustment made to the purchase price of an asset to account for inflation. The logic behind it is to
adjust the original purchase price to reflect the decrease in the purchasing power of money over time due to inflation.
4. What is Stamp Duty Value (SDV)?
The value of the property as determined by the government for stamp duty purposes. This value is usually calculated
based on the property's location, size, and other factors.
5. Learn all the 5 Heads of income (PBGP & CG more important) & it’s Important topics. (For example, in PGBP, ensure to
mainly cover Presumptive income, Section 43B, Section 40A, Tax audit, etc)
6. What is the difference between TCS & TDS?
TCS is collected by the seller, while TDS is deducted by the payer. Both are tax collection mechanisms, but TCS focuses
on collection at the point of sale, whereas TDS focuses on deduction at the point of payment.
7. What is the difference between Advance Tax & TDS?
Advance Tax: A tax paid in installments by an individual or business on their estimated tax liability for the year.
TDS: A tax deducted by the payer from the payment made to the recipient and deposited into the government's
account.
8. Ensure you know the major changes in the Budget
9. What is Company taxation ? - Know the Corporate tax rates. Also, surcharge rates for companies. Learn Section
115BAA and Section 115BAB.
10. Ensure an overall idea of International taxation (IT) - IT deals with the taxation of income that crosses national borders.
11. What are your views on the direct tax code?
The direct tax code aims to simplify the existing tax structure by reducing the number of exemptions and deductions.
The elimination of complex rules and provisions ensures that taxpayers can file returns with greater clarity.
12. Who is liable to deduct TDS?
The entity making the payment is generally responsible for deducting TDS. The deductor must obtain a Permanent
Account Number (PAN) from the payee.
13. Questions on both TDS & TCS – Learn Rates and Limits well. They may ask scenario-based questions on TDS mostly.
Some important TDS sections- 192,194 J,194 Q,194,194 C,194 JB,194I,194IB,194IA,194O
14. What are the few professional expenses categorized under section 194J
15. Recently introduced TDS & TCS secs
16. What are the latest changes in the Capital gains rates?
17. Ensure you know CG exemptions as well
18. Latest Tax slabs in the New Tax regime and the Latest Increase in Rebate (Also remember Old regime rates)
19. Due date of Income Tax Return. Also, know the basic ITR forms
20. What is your Favourite section in PGBP (Profit and Gains of Business or Profession)?
21. What is the due date for filing the TDS Returns & depositing the TDS?
22. Questions on Deductions – Ensure you know the deductions chapter VI A - both the new tax regime & the old tax
regime.
23. Learn Advance tax dues dates, interest, applicability of advance tax & exemptions for senior citizens
24. Which section levies interest on late payment of advance tax - Section 234B
25. What is the recent tax collection for FY 24-25?- 25.86 lakh crores (As per the Clear Tax website)
26. Ensure basic knowledge on Finance Bill & CBDT Updates
27. Ensure basic knowledge on TP (Transfer Pricing)
28. What is Permanent Establishment (PE) in Transfer Pricing?
Permanent Establishment is a fixed place of business that constitutes a taxable presence in another country by a
foreign enterprise to conduct business.
29. Ensure Basic knowledge on current affairs relating to the economy & in general, like America’s tariff
30. What are Reciprocal tariffs?
Reciprocal tariffs are the tariff rate calculated to balance bilateral trade deficits between the U.S & its trading partners.
Be Confident during the interview. U can and U will do this! All the best!
This PDF covers maximum probable Questions. It took me days to prepare all 3 compilation Pdfs.
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