1. Senior Citizens of what age have been exempted from filing the Income Tax Return?
a) 60 years or above
b) 65 years or above
c) 70 years or above
d) 75 years or above
Answer (d) 75 years or above
The Finance Minister in the Budget 2021 has exempted the senior citizens of 75 years or above from receiving the pension income, from filing the income tax return. The Union Minister also informed that the paying bank will have to deduct the necessary tax from their income.
2. The Government has increased the tax audit limit to how much in Budget 2021 for those who use digital transaction mode?
a) 7 crores
b) 10 crores
c) 15 crores
d) 20 crores
Answer (b) 10 crores
The government has doubled the tax audit limit from 5 crores to 10 crores for those who use digital transaction mode. Earlier in the budget of February 2020, the Finance Minister had increased the limit for taxation audit to 5 crores. However, to further promote digital transactions, the limits have been increased to 10 crores.
3. The time limit for reopening the tax assessment cases has been reduced to how many years from 6 years?
a) 4 years
b) 3 years
c) 2 years
d) 1 year
Answer (b) 3 years
As per the latest announcement, the time limit has been reduced for reopening the assessment cases from 6 years to 3 years. Currently, tax assessment can be reopened for up to 6 years and in serious tax fraud cases up to 10 years. However, in the serious tax fraud cases too, only if there is evidence of concealment of Rs. 50 lakh income or more, the assessment can be reopened for up to 10 years.
4. The customs duty on the imported solar inverters has been increased from 5 percent to how much?
Answer (a) 20%
The government decided to increase the customs duty on solar inverters from 5% to 20% with the purpose of increasing domestic manufacturing of solar power. The duty on solar lanterns has also been increased from 5% to 15%.
5. The government has introduced how much customs duty on cotton?
Answer (a) 10%
In order to benefit the farmers of India, the central government has decided to raise the customs duty on cotton from 0% to 10%. This will facilitate the income of the farmers and will hugely benefit the farmers involved in the production of cotton.