JAIIB · AFM

TAXATION (INCOME TAX _ TDS _ DEFFERED TAX)

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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Q

What is the basic exemption limit for individual income tax for the financial year 2024-25 under the new tax regime?

A

Under the new tax regime for FY 2024-25, the basic exemption limit is Rs. 3 lakh for all individual taxpayers irrespective of age.

Q

What is the surcharge rate applicable on income tax for individuals with income exceeding Rs. 50 lakh but up to Rs. 1 crore?

A

Surcharge rate is 10% on income tax payable.

Q

What does TDS stand for and what is its primary purpose?

A

TDS stands for Tax Deducted at Source; its primary purpose is to collect tax at the point of income generation, ensuring regular tax flow to the government and minimizing tax evasion.

Q

What is Health and Education Cess levied on income tax in India?

A

4% cess levied on income tax plus surcharge.

Q

Under which section of the Income Tax Act is TDS on salary deducted?

A

TDS on salary is deducted under Section 192 of the Income Tax Act, 1961, based on the estimated income of the employee for the financial year.

Q

What is the TDS rate under Section 194C for payments to individual contractors?

A

TDS rate is 1% for individual/HUF contractors.

Q

What is the TDS rate applicable on interest income from banks under Section 194A if the amount exceeds the threshold?

A

The TDS rate under Section 194A on interest income from banks (other than cooperative banks) is 10%, applicable when the interest exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year.

Q

What is the threshold limit for TDS deduction under Section 194C for a single transaction?

A

TDS applies when single payment exceeds Rs. 30,000.

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