ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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exemptions
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a tax credit
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donations to charitable organizations
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all are true
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Detailed explanation-1: -Claiming tax deductions on your savings account interest is one of the easiest ways to reduce taxable income. Under section 80TTA, interest on the savings account is tax-exempted up to Rs 10, 000. The limit is Rs 50, 000 for senior citizens under section 80 TTB.
Detailed explanation-2: -By donating money for social or charity purposes or by making contributions to the National Relief Fund, citizens of India can save money on tax by claiming deductions on the amount they spent on donations. An individual can claim 50% of the donated amount to the NGOs and 10% of the adjusted total income.
Detailed explanation-3: -What is a Tax Deduction? Tax deduction lowers a person’s tax liability by reducing their taxable income Because a deduction lowers your taxable income, it lowers the amount of tax you owe, but by decreasing your taxable income-not by directly lowering your tax. The benefit of a tax deduction depends on your tax rate.
Detailed explanation-4: -Reducing tax rates. Make more simplified laws and simplified system. Design a well-organized tax administration structure. Strengthen anti-corruption policies. Increase awareness among taxpayers by conducting seminars, conferences and through media. Design a permanent tax structure. More items