Intro

Question 1

NRA-ETB stay

Answer 1

More than 180 days less than 1 yr

Based on taxable yr

Question 2

Non resident citizen stay abroad

Answer 2

At least 183 days

Based on taxable yr

Question 3

Resident Alien

Answer 3

More than 1 yr

Question 4

Predominance test for RFC rule

Answer 4

At least 50% gross income is within = find within ratio, prorate dividends

Less than 50% = entire without

Question 5

Deadline of filing ITR

Answer 5

May 15

Question 6

Who can avail installment method of gross income?

Answer 6

Dealers of personal prop on sale of prop they regularly sell

Dealers of real prop only if their initial payment does not exceed 25% of selling price

Casual sale of non-dealers when price exceed 1000 and their initial payment does not exceed 25% of selling price

Question 7

Contract price

Answer 7

Selling price - mortgage assumed by buyer

Question 8

Surcharge

Answer 8

25% failure to file or pay
50% willful neglect

interest 20% per annum

Question 9

How to pay tax if revenue is recognized under installment method?

Answer 9

Tax payable every quarter

= Collection / Contract price x tax

Question 10

Formula for gross sales

Answer 10

Sales - sales returns - allowances - discounts

The tax concept of “gross sales” is the accounting concept of “net sales”