Match each item of income-tax law in List I with its treatment in List II under the Income-tax Act,…
The correct matching is 1-c, 2-d, 3-a, 4-b. An individual's residential status depends on the days of stay in India: 182 days or more in the tax year, or 60 days in the year…
Choose your answer
Match each item of income-tax law in List I with its treatment in List II under the Income-tax Act, 2025.
| List I | List II |
|---|---|
| 1. Residential status of an individual | a. Exempt, but counted for the rate of tax on other income |
| 2. Encashment of leave salary | b. Exempt for two journeys in a block of four calendar years |
| 3. Agricultural income | c. Decided by the number of days spent in India |
| 4. Leave travel concession | d. Exempt at retirement, up to set limits for private employees |
Answer and explanation
Correct answer C
The correct matching is 1-c, 2-d, 3-a, 4-b. An individual's residential status depends on the days of stay in India: 182 days or more in the tax year, or 60 days in the year together with 365 days in the four preceding years (subject to special rules for some persons). Leave salary encashed at retirement is fully exempt for government employees, while for other employees the exemption is limited to the least of the specified amounts. Agricultural income is exempt, yet for individuals and similar taxpayers it is added to other income only to fix the rate of tax on that other income. The value of leave travel concession for travel within India is exempt for two journeys in a block of four calendar years. Matchings that tie residence to anything other than days of stay, or give the two-journey rule to leave salary, mix up these provisions.
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Gujarat SET (GSET)