CAF-2 · Chapter 10 · Question 9 of 15
Mr. Bashir, a resident individual, earned a profit on debt of Rs. 4,500,000 from his savings account in a commercial bank. He has no other source of income. How will this profit on debt be taxed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Taxable as a separate block of income at a flat rate of 15%.
Explanation
For individuals and AOPs, profit on debt up to Rs. 5 million received from prescribed persons (like banks) is taxable as a separate block at the rate of 15% under section 7B.
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