BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Wages, salaries, bonuses, commissions and tips are all taxable
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -When a bonus is declared by the employer, it is considered taxable in the financial year in which it is declared even though you might receive it in the next financial year.
Detailed explanation-2: -Taxable income or gross income or adjusted gross income includes salaries, wages, bonuses, etc. along with unearned income and investment income. It is the amount that will be used to determine your tax liability.
Detailed explanation-3: -Exceptions-Remuneration, bonus or commission received by a partner from the firm is not taxable under the head Salaries rather it would be taxable under the head business or profession.
There is 1 question to complete.