CAF-2 · Chapter 4 · Question 9 of 15
Which of the following is a core characteristic of income falling under the Final Tax Regime (FTR)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) The tax deducted at source is considered the final tax liability, and no expenses are allowed as deductions.
Explanation
Under the FTR (Gross income basis), expenses related to earning the income cannot be deducted, tax credits cannot be applied, and losses are not considered. The tax deducted at source is treated as the final tax liability.
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