Basics
What is income tax?
A direct tax levied by the government on the income earned by individuals, businesses, or other entities during a financial year
How much does one have to earn to not pay taxes in India?
12 LPA
What are the benefits of the new tax regime? At least 2
Healthcare benefits, Security and defense
Full form of ITR
Income Tax Return
What is the difference between gross income and taxable income?
Gross income is total earnings before deductions, while taxable income is the income after applying exemptions and deductions.
How many income tax slabs are there under the old regime?
Three (5%, 20%, 30%)
What is the Economic Impact Prediction for the year 2025
What is HRA?
House Rent Allowance
Give 2 examples of Direct and Indirect Tax each
Indirect - VAT, GST
Name one merit and one demerit of progressive taxes
Merit - proper distribution of tax burden
Demerit - disincentive to getting jobs with higher wages
Name at least three key features of the new tax regime.
Lower tax rates with fewer deductions, Standard deduction of ₹50,000 for salaried individuals, No major exemptions (Section 80C, 80D, HRA)
Unemployement Benefits in India and Germany
Germany - upto 67 percent of salary
India - limited unemployement support (MNREGA exists tho)
What is the Act that governs provisions related to income tax in India?
Income Tax Act of 1961
What is the basic exemption limit in FY 2024-2025?
₹3,00,000
Give any 3 features of the income tax bill 2025
What is the difference between the percentage of tax paid by a person earning 20LPA in 2024 and 2025?
30% (tax in 2024) - 25% (tax in 2025) = 5%