Income Tax Concepts and Regulations

The video tutorial provides an overview of taxation, explaining its purpose in funding government development plans. It distinguishes between direct and indirect taxes, with examples of each. The focus then shifts to income tax in India, detailing the Income Tax Act, financial and assessment years, and the role of the PAN. The tutorial explains how to compute income tax, including deductions and exemptions. Finally, it outlines tax rates for different income slabs and exemptions available under various sections of the Income Tax Act.

What is the primary purpose of taxation according to the video?

• To fund government development schemes

• To encourage foreign investment

• To reduce income inequality

• To control inflation

Which of the following is an example of a direct tax?

• Excise duty

• Income tax

• Service tax

• Customs duty

Under which act is income tax levied in India?

• Revenue Act 1975

• Finance Act 2020

• Income Tax Act 1961

• Central Tax Act 1956

What is the assessment year for the financial year 2017-2018?

• 2019-2020

• 2018-2019

• 2017-2018

• 2016-2017

What is the purpose of a Permanent Account Number (PAN)?

• To track bank transactions

• To register for GST

• To serve as a proof of identity

• To calculate property tax

Which of the following is NOT a source of income for tax computation?

• Income from salary

• Income from house property

• Income from foreign investments

• Income from capital gains

Under which section are donations to the Prime Minister's Relief Fund exempt from taxation?

• Section 80D

• Section 80C

• Section 80G

• Section 80E

What is the maximum permissible deduction under Section 80C?

• Rs. 2 lakh

• Rs. 1.5 lakh

• Rs. 2.5 lakh

• Rs. 1 lakh

What is the income tax rate for individuals earning between Rs. 2.5 lakh and Rs. 5 lakh?

• 20%

• 10%

• 5%

• Nil

What surcharge is applicable for individuals with an annual income greater than Rs. 1 crore?

• 15%

• 10%

• 5%

• 20%