Skip to content

CS Professional · Advanced Direct Tax Laws and Practice · Income Tax Implication on Specified Transactions

Which of the following is a matter on which rules may be made under section 533(2) of the Income-tax Act, 2025 (June 2027 session)?

Rules may prescribe the procedure for calculating interest payable by assessees or by the Government, including rounding off of periods with a fraction of a month. This is listed in section 533(2)(u); tax rates and constitutional matters are not rule-making subjects.

  1. AThe procedure for calculating interest payable by assessees or by the Government, including rounding off of periods involving a fraction of a monthCorrect
  2. BThe rate of income-tax on companies for each year
  3. CThe power to appoint the Chairperson of the Supreme Court
  4. DThe power to amend the Constitution of India

Explanation

Section 533(2)(u) lists the procedure for calculating interest payable by assessees or by the Government, including rounding off of fractions of a month and ignoring petty amounts. Tax rates are fixed by Parliament, and the other options are outside the rule-making power.

Did you get it right without looking?

One question tells you little. A timed set on Income Tax Implication on Specified Transactions shows your real accuracy, how long you take and where you lose marks.

Practise Income Tax Implication on Specified TransactionsFree diagnostic mock

More Income Tax Implication on Specified Transactions questions