1) Source rule of taxation provides that income is to be taxed :-
a. In the country of residence of taxpayer
b. In the country in which such income originates
c. Both A and B
d. None of the above
2) Residence rule provides that income is to be taxed in the country:-
a. Where the recipient of income is a resident
b. Where it originates
c. Both A and B
d. None of the above
3) Double taxation relief could be :-
a. Bilateral Relief
b. Unilateral Relief
c. Multilateral Relief
d. Both A and B
4) Bilateral relief means a relief in which :-
a. Home country of the taxpayer provides tax relief, where no mutual agreement has been entered into by the two countries for providing relief from double taxation
b. Governments of two countries, enter into an agreement to provide relief against double taxation on mutually agreed basis
c. Both A and B
d. None of the above
5) Unilateral relief means a method of providing relief from double taxation in which :-
a. Home country of the taxpayer provides tax relief, where no mutual agreement has been entered into by the two countries for providing relief from double taxation
b. Governments of two countries, enter into an agreement to provide relief against double taxation on mutually agreed basis
c. Both A and B
d. None of the above
6) Bilateral relief could be provided by way of :-
a. Credit Method
b. Exemption Method
c. Both A and B
d. None of the above
7) In Exemption Method :-
a. Income is taxed in the Country of source and Country of Residence and deduction is provided in other Country
b. Income is taxed in one Country and exempt from tax in the other Country
c. Both A and B
d. None of the above
8) In Tax Credit method :-
a. Income is taxed in Country of source and Country of Residence deduction is provided in other Country
b. Income is taxed in one Country and exempt from tax in the other Country
c. Both A and B
d. None of the above
9) Central Government may enter into an agreement, with the Government of any country outside India u/s 90 for grating relief in respect of :-
a. Income, where income-tax has been paid both in India and in country of residence of taxpayer
b. Income on which Income-tax is chargeable under the IT Act and under the corresponding law in force in that country
c. Both A and B
d. None of the above
10) Where an assessee is eligible to claim the DTAA benefit :-
a. Provisions of DTAA shall apply to the assessee
b. Provisions of Income-Tax Act shall apply to the assessee
c. Provisions of DTAA or Income-Tax Act, whichever is more beneficial, shall apply to the assessee
d. None of the above
Answers
1) b. In the country in which such income originates
2) a. Where the recipient of income is a resident
3) d. Both A and B
4) b. Governments of two countries, enter into an agreement to provide relief against double taxation on mutually agreed basis
5) a. Home country of the taxpayer provides tax relief, where no mutual agreement has been entered into by the two countries for providing relief from double taxation
6) c. Both A and B
7) b. Income is taxed in one Country and exempt from tax in the other Country
8) a. Income is taxed in Country of source and Country of Residence deduction is provided in other Country
9) c. Both A and B
10) c. Provisions of DTAA or Income-Tax Act, whichever is more beneficial, shall apply to the assessee