JAIIB · AFM

TAXATION, TDS, DEFERRED TAX, INCOME 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 in India for FY 2024-25 under the old tax regime?

A

The basic exemption limit is Rs. 2,50,000 for individuals below 60 years under the old tax regime.

Q

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

A

Surcharge of 10% on income tax is applicable.

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 to ensure a steady revenue flow to the government and reduce tax evasion.

Q

What is the health and education cess levied on income tax and surcharge in India?

A

Health and education cess is levied at 4%.

Q

Under which section of the Income Tax Act is TDS on salaries governed?

A

TDS on salaries is governed under Section 192 of the Income Tax Act, 1961, requiring employers to deduct tax at the average rate of income tax on estimated salary income.

Q

Under which Section of Income Tax Act is TDS on commission or brokerage governed?

A

Section 194H governs TDS on commission or brokerage.

Q

What is the TDS threshold limit for interest on bank fixed deposits under Section 194A?

A

TDS is deducted under Section 194A if interest paid by a bank on FDs exceeds Rs. 40,000 per year (Rs. 50,000 for senior citizens) in a financial year.

Q

What is the TDS threshold for commission payments under Section 194H?

A

TDS is deducted when commission exceeds Rs. 15,000.

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