Answers to the Quiz


    I hope the five questions quiz was liked by you. Here is the answer in details

    Quiz 1:FBT is applicable all over India except J & K

    Answer : False. Unlike, Banking Cash Transaction law which was not applicable for J & K, the FBT was introduced in whole country including J & K.
    Quiz2: All matured LIC payments are tax free.
    Answer: False. There are three types of payments under life insurance policy that are not tax free . These are :
    • (a) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA; or
    • (b) any sum received under a Keyman insurance policy; or
    • (c) any sum received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured
    Quiz 3: Trustees of a discretionary trust is assessed in status of Individual
    Answer : True.
    Quiz4: Bar Council is assessable as Artificial juridical person
    Answer: True. All person ,who does not fall under any other categories,having juridical character ,are assessed under the status of Artificial Juridical Person. For example any university, or any other committee managing god or temple etc.
    Quiz5: Tax Rates are fixed under Income Tax Act
    Answer: False. The tax rates are fixed by Finance Act and not by Income Tax Act. The Budget contains the Finance Bill which after getting the assent of parliament and the President becomes Finance Act.