May 23, 2010

Money Teaser (# 5): Income Tax

Photo by Rajesh Kunnath

I’m the parliamentary draftsman
I compose the country’s law
And of half the litigation
I’m undoubtedly the cause

Enough of life insurance, now let’s do some mental exercise to test your understanding of Income Tax Law and Direct Tax Code.

Tax Riddle

Q-1: What’s the difference between Delhi and Noida / Gurgaon from tax point of view?

Q-2: Why females are allowed more basic exemption limit compared to males?

Q-3: Why the government doesn’t increase the
limit of Rs 800 p.m. for transport allowance?

Q-4: Why the tax laws are so complex?

Q-5: Why the government has introduced the DTC to replace existing IT Act, 1961?

Q-6: Why this new version of direct tax is named Code instead of the Act?

Q-7: How’s the DTC going to benefit the individuals?

Q-8: What is the major benefit of DTC for the Companies?

Q-9: Why the government is indirectly encouraging investment in life insurance through DTC?

Q-10: Most interesting aspect of DTC for business & professionals?

Wait for the Answers!

Also see:

1. Money Teaser #4
2. Money Teaser #3


  1. Why does the Financial Year start from 1st April and not from 1st Jan ????

  2. Nice post and very nice blog. Since last few days i have been reading around for posts on financial planning and that's how i stumbled upon your blog.
    Little un-related question though. Can you refer me to a CFP in Bangalore? The more i read about finance the more i realize the need for professional help :)
    So, please help.



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