{"id":49880,"date":"2024-04-15T23:02:15","date_gmt":"2024-04-15T23:02:15","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=49880"},"modified":"2024-04-15T23:02:15","modified_gmt":"2024-04-15T23:02:15","slug":"what-is-the-threshold-limit-of-turnover-in-the-preceding-financial-year-for-opting-to-pay-tax-under-composition-scheme","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-threshold-limit-of-turnover-in-the-preceding-financial-year-for-opting-to-pay-tax-under-composition-scheme\/","title":{"rendered":"What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9700c10b375\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Rs.75 lacs                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Rs.1 crore                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Rs.1.5 crore                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    None of the above                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>A. Rs.75 lacs<\/strong><\/p>\n<p>The composition scheme is a simplified tax regime for small businesses. Under this scheme, businesses can pay a fixed tax rate on their turnover, instead of having to calculate and pay tax on their profits. The threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme is Rs.75 lacs.<\/p>\n<p>The composition scheme is available to businesses that are engaged in the following activities:<\/p>\n<ul>\n<li>Sale of goods<\/li>\n<li>Supply of services<\/li>\n<li>Works contract<\/li>\n<\/ul>\n<p>Businesses <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> that are eligible for the composition scheme must file an annual return with the Income Tax Department. The annual return must be filed on or before the 31st of March of the following financial year.<\/p>\n<p>The composition scheme is a beneficial option for small businesses as it allows them to save time and money on compliance. However, businesses should carefully consider whether the composition scheme is right for them, as there are some restrictions on the activities that businesses can undertake under the scheme.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Rs.75 lacs. This is the correct answer. The threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme is Rs.75 lacs.<\/li>\n<li>Option B: Rs.1 crore. This is incorrect. The threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme is Rs.75 lacs.<\/li>\n<li>Option C: Rs.1.5 crore. This is incorrect. The threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme is Rs.75 lacs.<\/li>\n<li>Option D: None of the above. This is incorrect. The correct answer is Option A.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[969],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the threshold limit of turnover in the preceding financial year for opting to pay tax under composition scheme?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-threshold-limit-of-turnover-in-the-preceding-financial-year-for-opting-to-pay-tax-under-composition-scheme\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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