Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some questions.
If you are earning an annual salary of Rs.15 lakh and above, chances are that you may need to get a mandatory authentication certificate from chartered accountants (CAs) while filing your income-tax returns (ITRs) from next year. In an attempt to tackle tax evasion and streamline revenue collections, the government is contemplating an enhancement in the role of CAs from the next fiscal year.
The objective of the proposal currently under consideration is to bring more transparency to the filing of tax returns by assesses or taxpayers in high salary brackets, in terms of declaring savings, earnings from investments and sale of properties, and claiming exemptions under the I-T Act.
At present, an assessing officer accepts an ITR (income tax return) at face value, which is common with more than 90% of the total returns. If this initiative gets applicable, it’ll provide some comfort to the assessing officer and will likely reduce chances of evasion of income, which may be due to errors, omissions or ignorance on the part of taxpayers.At present, it is not binding on salaried citizens to get an income tax return filed through a CA or get one’s return statement certified. One can either file it herself or get it done through a non-CA tax consultant or a Tax Return Preparer.
The I-T department has observed that a large number of returns filed by taxpayers are incomplete either due to a lack of required information or non-reporting of earnings from various sources. Misreporting or under-reporting, and the after effects of a scrutiny by the tax department in such cases has caused problem both for taxpayers and officers. With this measure, the errors in ITR filing will get reduced and compliances will substantially improve both for the taxmen and taxpayers.
1. Which of the following is called an assessee ?
(1) One who is assessed
(2) One who assesses somebody’s income tax return
(3) One who assesses one’s own income details
(4) One who does not need to file income tax return
(5) Cannot be understood in the passage
2. How will the role of CAs get enhanced, according to the new proposal?
(1) They will have to, constantly, upgrade their knowledge
(2) They will be liable to penal action if any error is found in their work
(3) To give certificate after filing someone’s income tax return
(4) People earning upto Rs. 15 lakh will ,also, have to get their ITR certified by a CA
(5) Their role will get reduced
3. Which of the following is FALSE according to the passage?
(1) An assessing officer accepts an ITR (income tax return) at above face value
(2) Getting an income tax return filed through a CA is compulsory
(3) The I-T department has observed that many taxpayers have filed incomplete ITR
(4) The new proposal is to be implemented from the next fiscal year
(5) All of the above
4. One can file income tax return-
(1) By himself
(2) Through a Tax Return Preparer
(3) Through a non-CA consultant
(4) All of the above
(5) Not mentioned in the passage
5. What will be the outcome once the new proposal is implemented?
(1) One can easily file ITR without declaring details of income
(2) The process of filing ITR will not remain mandatory for those with high income
(3) The option of submitting the concerned documents will remain available
(4) The process of ITR filing will get better and will, eventually, improve assessment
(5) Not mentioned in the passage
6. What kind of transparency is sought by the government by bringing the new proposal of filing ITR?
(1) In claiming exemptions under the I-T Act.
(2) In earnings from investments
(3) In declaring one’s belongings
(4) In declaring savings
(5) In earnings from sale of properties
7. For which of the following reasons, is the present system of filing ITR not appropriate?
(A) Taxpayers do not file the return in time
(B) Taxpayers tend to hide their income details
(C) Taxpayers commit errors due to omission or ignorance
(1) Only A
(2) Only B
(3) Only C
(4) Only A and B
(5) Only B and C
8. Choose the word which is most nearly the SAME in meaning as the word printed in bold as used in the passage.
9. Choose the word which is most nearly the SAME in meaning as the word printed in bold as used in the passage.
10. Choose the word which is most nearly the SAME in meaning as the word printed in bold as used in the passage.