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.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the basic exemption limit for individual income tax for the financial year 2024-25 under the new tax regime?
Under the new tax regime for FY 2024-25, the basic exemption limit is Rs. 3 lakh for all individual taxpayers irrespective of age.
What is the surcharge rate applicable on income tax for individuals with income exceeding Rs. 50 lakh but up to Rs. 1 crore?
Surcharge rate is 10% on income tax payable.
What does TDS stand for and what is its primary purpose?
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.
What is Health and Education Cess levied on income tax in India?
4% cess levied on income tax plus surcharge.
Under which section of the Income Tax Act is TDS on salary deducted?
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.
What is the TDS rate under Section 194C for payments to individual contractors?
TDS rate is 1% for individual/HUF contractors.
What is the TDS rate applicable on interest income from banks under Section 194A if the amount exceeds the threshold?
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.
What is the threshold limit for TDS deduction under Section 194C for a single transaction?
TDS applies when single payment exceeds Rs. 30,000.
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