What is the key difference between an investment declaration and Form 12BB? Option: An investment declaration is a simple statement, while Form 12BB is a detailed form with specific fields, An investment declaration is for tax deductions, while Form 12BB is for claiming tax refunds, An investment declaration is submitted at the start of the financial year, while Form 12BB is submitted at the end, An investment declaration is mandatory for all employees, while Form 12BB is only for those claiming deductions

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What is the key difference between an investment declaration and Form 12BB?

An investment declaration is a simple statement, while Form 12BB is a detailed form with specific fields

An investment declaration is for tax deductions, while Form 12BB is for claiming tax refunds

An investment declaration is submitted at the start of the financial year, while Form 12BB is submitted at the end

An investment declaration is mandatory for all employees, while Form 12BB is only for those claiming deductions

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What is the primary purpose of an investment declaration?

To help the employer determine the correct TDS to deduct from an employee's salary

To declare all sources of income, including those unrelated to employment

To inform the employer about an employee's investment strategies

To calculate the exact amount of income tax an employee owes

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What is the key difference between 'paying income tax' and 'filing income tax returns'?

"Paying income tax' refers to the act of settling the tax liability, while 'filing income tax returns' involves declaring all sources of income to the IT department.

"Paying income tax' is done through banks, while 'filing income tax returns' is done through the employer.

"Paying income tax' is mandatory for all citizens, while 'filing income tax returns' is only required for those with income exceeding a certain threshold.

"Paying income tax' is done annually, while 'filing income tax returns' can be done at any time during the financial year.

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Which form must be submitted to claim credit for taxes paid on foreign investments in India?

Form 26AS

Form 16

Form 67

Form 15CA

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What is the significance of 'Form 16' in the Indian income tax system?

"It is a declaration of foreign assets and income"

"It is a registration form for new businesses"

"It is a tax invoice for goods and services"

"It is a proof of tax deduction at source by the employer"

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What is the primary purpose of filing an Income Tax Return (ITR)?

"To declare income and expenses for a financial year"

"To claim tax deductions and refunds"

"To support visa applications"

"To avoid legal penalties"