Important Questions from Union Budget 2019 - Part 1

Questions

Question.1:

Which statement is correct in terms of PAN and Aadhaar interchangeability, as introduced in union Budget 2019?
a. The person filing IT returns by quoting Aadhaar number doesn’t need to make PAN card
b. The Aadhaar number can be used for a cash transaction of more than Rs 50,000
c. Aadhaar can substitute PAN, only in cases of IT returns

d. A person can’t file ITR by using Aadhaar if he already has a PAN card

Question.2:

The faceless e-assessment introduced by the government, is to eliminate face to face interaction between whom?
a. The Government and the beneficiary receiving govt. subsidies
b. The Police and the trafficked female victim
c. Taxpayer and the IT department officer
d. Seller and buyer on e-commerce platform

Question.3:

For what amount of cash withdrawal from the bank account in a financial year, the budget 2019 has allowed 2% TDS (tax deduction at source) on cash withdrawals?
a. Cash withdrawal of Rs 1 lakh and above
b. Cash withdrawal of Rs 1 crore and above

c. Cash withdrawal of Rs 50 lakh and above
d. Cash withdrawal of Rs 2 crore and above

Question.4:

Mega Investment in Sunrise and Advanced Technology Areas is a new initiative announced in the Budget 2019 for what purpose?
a. To invite global companies to set up IT companies in India
b. To invite global companies to invest in water purification technology in India
c. To invite global companies to invest in solar energy production in India
d. To invite global companies to set up mega-manufacturing plants in India

Question.5:

In Union Budget 2019, minimum public shareholding in the listed companies has been increased from 25% to _____.
a. 30%

b. 35%

c. 40%
d. 45%

Explanations

Answer 1: (B)

a. According to the proposed rules, the Income Tax Department shall suo moto allot PAN to such person on the basis of Aadhaar after obtaining demographic data from the Unique Identification Authority of India (UIDAI). Both the I-T department and the UIDAI have linked their PAN and Aadhaar databases. It means the person shall have to create PAN
b. Aadhaar can be quoted for cash transactions of more than Rs 50,000 and all other purposes where traditionally income tax PAN number was a must ex. ITR, Banks and other institutions
c. Same explanation as b
d. If a taxpayer has already linked his Aadhaar with his PAN, he or she has the choice to use Aadhaar instead of PAN under the Income Tax Act.

Answer 2: (C)

Faceless e-assessment is to eliminate human interface to avoid face to face interaction between the taxpayer and the IT department officer. The central cell will be the only point of contact between the taxpayer and the department to avoid any harassment to the taxpayer by the IT officer.

Answer 3: (B)

Budget 2019 has proposed to levy tax deduction at source (TDS) of 2 per cent on the cash withdrawal of more than Rs 1 crore from a bank account in one financial year to discourage business payments in cash.
Former finance minister, P. Chidambaram, had introduced a banking cash transaction tax in the 2005 budget. The tax was payable by individuals and Hindu Undivided Family (HUF) if they withdrew cash over Rs 50,000 on a single day from a bank account other than savings bank account. It was fixed at 0.1 per cent on cash withdrawals from bank. For entities other than individuals and HUF, tax was levied on withdrawal of Rs 1 lakh and above on a single day.

Answer 4: (D)

Mega Investment in Sunrise and Advanced Technology Areas is a scheme to invite global companies to set up mega-manufacturing plants in areas such as Semi-conductor Fabrication (FAB), Solar Photo Voltaic cells, Computer Servers, Laptops, Lithium storage batteries, etc.

Answer 5: (B)

SEBI to consider raising the threshold from 25% to 35% for minimum public Shareholdings in the listed companies.

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