Residential status under the Income Tax Act depends primarily on:
A. Citizenship of the individual
B. Physical presence (number of days) in India during the previous year
C. Place of birth
D. Location of assets owned
Answer: Option B
Solution (By JKSSB Mock Tests)
An individual's residential status for tax purposes is determined by their period of stay in India during the relevant financial year, irrespective of citizenship.
S1: In marginal costing, the Margin of Safety can be calculated as (Profit / P/V Ratio). S2: If the P/V ratio is 40% and the Margin of Safety is ₹50,000, the profit is ₹20,000. Which statement(s) is/are correct?
Explanation:
Margin of Safety = Profit / P/V Ratio. If MOS is 50,000 and P/V is 40%, Profit = 50,000 * 0.40 = ₹20,000. Both statements are mathematically and conceptually correct.
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