Test Your Knowledge of Taxes & Savings

Improve your tax knowledge with this quiz. Learn about tax deductions, rebates, TDS, PAN, capital gains, and investments that help you save on taxes.

Question 1 of 12

Q1. Which investment offers tax savings?

A Bank savings account

B Public Provident Fund (PPF)

C Fixed Deposit with no tax benefit

D Stocks in secondary market

Q1. Difference between short-term & long-term capital gains?

A Short-term = assets held <1 year, Long-term = >1 year

B Short-term = taxed at flat rate, Long-term = not taxed

C Short-term = taxed at higher rate, Long-term = taxed at lower rate or exempt for some investments

D No difference

Q1. What is a tax deduction?

A Reduction in salary

B Amount subtracted from taxable income

C Refund after tax filing

D Penalty for late payment

Q1. What is standard deduction?

A Deduction only for business income

B Deduction only for senior citizens

C Flat deduction allowed from salary for tax purposes

D Deduction for investment in stocks

Q1. Which income is taxable?

A Salary only

B Lottery winnings only

C All income including salary, business profits, and interest

D Only income above ₹10 lakh

Q1. Are capital gains taxable?

A No, never

B Only for real estate

C Yes, both short-term and long-term capital gains are taxable

D Only for foreign investments

Q1. What is PAN?

A Personal Account Number

B Permanent Account Name

C Permanent Account Number for tax identification

D Personal Audit Number

Q1. What is TDS?

A Total Deposit Scheme

B Tax Deduction Statement

C Tax Deducted at Source

D Tax Declaration Summary

Q1. Should one keep track of tax documents?

A No, just remember verbally

B Only for high-income earners

C Only for salaried employees

D Yes, to file returns accurately and claim deductions

Q1. Can donation reduce tax liability?

A No, donations are not eligible

B Only donations to private companies

C Only donations above ₹1 lakh

D Yes, donations to approved charities reduce taxable income

Q1. Difference between tax deduction and tax rebate?

A Deduction increases tax, rebate decreases tax

B Deduction is paid later, rebate is paid immediately

C Deduction reduces taxable income, rebate reduces tax liability directly

D No difference

Q1. Can EMI interest be tax-deductible?

A No, never

B Only for personal loans

C Yes, for home loan principal and interest

D Only for car loans

Quiz Complete

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Correct Answer

Accuracy Rate 50%

Wrong Answers 5/8

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Test Your Knowledge of Taxes & Savings

Result

Quiz Complete

6/8