TAX LAWS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
Under the Income Tax Act, 1961, what is the threshold limit for Tax Deducted at Source (TDS) on interest income from bank deposits for a non-senior citizen?
TDS is deducted at 10% when interest income from bank deposits exceeds Rs. 40,000 per financial year for a non-senior citizen. Senior citizens enjoy a higher threshold of Rs. 50,000.
What is the rate of surcharge applicable on income tax for domestic companies with taxable income exceeding Rs. 10 crore?
12% surcharge is levied on income tax payable.
What is the purpose of Form 15G and Form 15H submitted to banks by depositors?
Form 15G (for individuals below 60 years) and Form 15H (for senior citizens) are self-declarations submitted to banks requesting that TDS not be deducted, provided the depositor's total income is below the taxable limit.
Under which section of the Income Tax Act are banks allowed to claim deduction for interest on bad or doubtful debts?
Section 43D allows recognition of income on cash basis for bad debts.
Under GST, at what rate is banking and financial services generally taxed?
Banking and financial services are generally taxed at 18% GST under the Goods and Services Tax regime. This applies to services like processing fees, locker charges, and fund management fees.
What is the minimum alternate tax (MAT) rate applicable to banks and financial institutions in India?
MAT is levied at 15% of book profit under Section 115JB.
What is the meaning of 'Tax Deducted at Source' (TDS) in the context of banking operations?
TDS is a mechanism where the bank deducts a specified percentage of tax from payments like interest before crediting the amount to the customer's account and deposits it with the government on their behalf.
Under the GST Act, what is the taxability of services provided by banks to the Reserve Bank of India?
Services provided by banks to RBI are exempt from GST.
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