What is the key difference between 'paying income tax' and 'filing income tax returns'? Option: "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' 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 annually, while 'filing income tax returns' can be done at any time during the financial year.

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

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

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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 support visa applications"

"To avoid legal penalties"

"To claim tax deductions and refunds"

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What does the term 'FY' represent in the context of income tax in India?

"Fiscal Year"

"Fund Year"

"Filing Year"

"Financial Year"

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How can filing an ITR benefit someone who has had TDS deducted from their income?

"It provides proof of income for loan applications"

"It reduces their tax liability for the following year"

"It allows them to claim a refund of excess TDS deducted"

"It exempts them from paying further income tax"

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What percentage of the Indian population files income tax returns?

"Approximately 45%"

"Approximately 90%"

"Approximately 5%"

"Approximately 1.5%"

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Which of these is a key term related to income tax in India?

Value Added Tax (VAT)

Goods and Services Tax (GST)

Securities and Exchange Board of India (SEBI)

Financial Year (FY)