Income Tax Basics and Tax Rates

The video tutorial explains the basics of income tax, including its governance under the Income Tax Act 1961. It covers key terminologies such as assessee, person, and residential status, and explains the financial and assessment years. The tutorial details the tax rates and slabs for individuals and Hindu Undivided Families (HUFs) under both old and new regimes, highlighting the differences in deductions. It also discusses the taxation of domestic companies, partnerships, and foreign entities, including surcharges and cess. The video concludes with a summary and encourages further reading of the Income Tax Act for comprehensive understanding.

Why is your elder brother not required to pay income tax?

• His annual salary is below the basic exemption limit.

• His salary is above the basic exemption limit.

• He is not a resident of India.

• He is a student.

What does the term 'assessee' refer to in income tax?

• A company that pays dividends.

• A government official.

• A person or entity liable to pay tax under the Income Tax Act.

• A person who receives a salary.

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

• By their place of birth.

• By their employment status.

• By their nationality.

• 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?

• ₹5,00,000

• ₹2,50,000

• ₹3,00,000

• ₹1,50,000

What is a key difference between the old and new tax regimes?

• The old regime is mandatory for all taxpayers.

• The old regime has a higher basic exemption limit.

• The new regime allows more deductions.

• The new regime does not allow many deductions.

What is the flat tax rate for partnership firms?

• 35%

• 30%

• 25%

• 20%

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

• 3%

• 2%

• 5%

• 4%