Money Matters Tax quiz

Income Tax

Paid on money a business or someone earns

Sales Tax / VAT

• Added to the price of goods and services

• Paid by customers but sent to the government by businesses

Corporate Tax

Paid by companies on their earnings

Payroll Tax

• Paid on workers’ wages.

• Helps fund pensions and health services.

Excise Tax

• Paid on special goods like:

  • Cigarettes

  • Alcohol

  • Fuel

Tax Slab

A tax slab is a range of income on which a specific tax rate is applied.

Assessment Year

• Financial Year (FY): Year in which income is earned

• Assessment Year (AY): Year in which tax is calculated and paid

Tax Saving

The government allows certain deductions and exemptions to reduce tax burden.

Examples:

• Investments

• Insurance premiums

• Savings schemes

Taxable Income

income on which tax is charged

Direct Tax

paid directly to the government

Sales Tax Rate

• The sales tax rate is the amount of tax charged.

• It is usually shown as a percentage (%).

• The rate can be different in different places.

Tax-Free Items

• Basic food items

• Medicines

• Educational materials
  (This depends on local laws.)