JAIIB · RBWM · Chapter 3

Tax Planning

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.

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One-liners from this chapter

Free sample — 8 of 66 rapid-fire Q&A cards.

Q

What determines the residential status of an individual for income tax purposes in India?

A

Residential status is determined based on the number of days spent in India during the financial year, as per the Income Tax Act.

Q

For an Indian citizen leaving India for employment abroad, what is the minimum number of days of stay in India required to qualify as a resident under the basic condition?

A

182 days (the 60-day limb is replaced by 182 days for such citizens)

Q

When does an individual qualify as a Resident and Ordinarily Resident (ROR) in India?

A

An individual is ROR if they have been a resident in India for at least 2 out of 10 preceding years and have stayed in India for 730 days or more in the 7 preceding years.

Q

What is the income threshold above which the 'deemed resident' status applies to an Indian citizen not taxable elsewhere?

A

Indian income above Rs. 15 lakh

Q

What is the basic condition to be treated as a resident individual under the Income Tax Act?

A

An individual must have stayed in India for 182 days or more during the financial year, or 60 days during the year and 365 days in the preceding 4 years.

Q

Under the New Tax Regime for FY 2025-26, up to what net taxable income is the tax liability Nil due to the Section 87A rebate?

A

Rs. 12,00,000

Q

On what basis is income tax levied on a Resident and Ordinarily Resident (ROR) individual?

A

A ROR individual is taxed on their global income, i.e., income earned both in India and abroad.

Q

Is the Section 87A benefit under the New Tax Regime an exemption or a rebate?

A

It is a rebate — tax is computed on slabs first, then the full amount is rebated

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