Under the Train Law, choose the best answer

I. Personal and additional exemptions have been removed.

II. Lotto winnings and all PCSO prizes are tax-exempt if more than P15,000,000
III. The donor’s tax was revised to a flat rate of 6% if the donation was to a stranger.
IV. Deadline for filing of annual Income Tax Return before is May 15

A. Three statements are true.

B. Three Statements are false
C. Only one statement is true
D. Two Statements are false

ANS: D

True S1 and 3

False S2 and 4

Statement I: Under the train law, the donor’s tax rate is fixed at 7% based on total gifts in excess of Php
250,000 exempt made during the calendar year.

Statement II:

A. True, false
B. True, true
C. False, true
D. False, false
Answer: D

Which of the following statement/s is/are true:

I. An individual whose taxable income does not exceed P250,000 is exempted from filing income
tax return including a citizen or alien engaged in business or practice of profession.
II. II. Under the train law, General Professional Partnership and its partners may avail of the
Optional Standard Deductions (OSD) only once.

A.Neither I or II
B.Both I and II
C. I only
D. II only

1. Under the TRAIN law, which of the following is true?

I. The taxpayer is exempted from paying personal income tax (PIT) as long as he /she is earning less
than P31, 000 a month.
II. Self-employed and professional taxpayers whose annual taxable incomes are P250, 000 and
below or less than P21, 000 a month is exempted from the personal income tax (PIT).
A. I only C. Both I and II
B. II only D. Neither I and II
ANS: B.

Under the TRAIN LAW, all of the following are correct about personal income tax, exept:

a. Deductible 13th month pay is P90,000

b. Additional personal exemption is P25,000 for each qualified dependent
c. There is no basic personal exemption
d. No premium on HHIP

Answer: b.