ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest paid on a loan.
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A paycheck.
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An allowance
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Birthday $ from grandma.
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Detailed explanation-1: -All interest income is taxable unless specifically excluded. tax-exempt interest income-interest income that is not subject to income tax. Tax-exempt interest income is earned from bonds issued by states, cities, or counties and the District of Columbia.
Detailed explanation-2: -Section 10(1) provides that agricultural income is not to be included in the total income of the assessee.
Detailed explanation-3: -Interest income is money earned by an individual or company for lending their funds, either by putting them into a deposit account in a bank or by purchasing certificates of deposits. Interest expense, on the other hand, is the opposite of interest income.
Detailed explanation-4: -Generally, personal loans are not taxable since the loan amount is not considered part of your income when filing income tax returns. This means that you won’t need to pay any income tax on personal loans.