Income Tax Basics and Tax Rates

The video tutorial explains the basics of income tax, including key terminologies, tax rates for individuals and companies, and the differences between the old and new tax regimes. It covers the concept of the basic exemption limit, the importance of residential status, and the calculation of taxes with surcharges and cess. The tutorial concludes with a suggestion to refer to the Income Tax Act for a comprehensive understanding.

What is the term used for a person or entity that is liable to pay tax under the Income Tax Act?

• Payer

• Contributor

• Assessee

• Taxpayer

How is the residential status of an individual determined for tax purposes?

• By their employment status

• By their place of birth

• By their citizenship

• By the duration of their stay in India during the financial year

What is the basic exemption limit for individuals under the old tax regime for the financial year 2023-24?

• ₹1,50,000

• ₹3,00,000

• ₹5,00,000

• ₹2,50,000

Which of the following is NOT allowed under the new tax regime?

• Surcharge on income tax

• Flat tax rates

• Deductions that reduce taxable income

• Higher exemption limits

What is the flat tax rate for domestic companies?

• Depends on turnover

• 40%

• 25%

• 30%

At what rate is the health and education cess levied on the income tax amount?

• 4%

• 5%

• 3%

• 2%

What is the flat tax rate for foreign companies?

• 40%

• 30%

• 35%

• 45%