CAIIB · Banking Regulations & Business Laws · Module C — Important Acts/Laws & Legal Aspects of Banking Operations, Part B
CAIIB BRBL Unit 24 — Tax Laws: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper IV of the December 2026 cycle (Sunday 20 December 2026)
This is the free practice page for CAIIB BRBL Unit 24 — Tax Laws (Module C — Important Acts/Laws & Legal Aspects of Banking Operations, Part B). The CAIIB Mock Centre holds 200 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
BRBL · Module C200 MCQs in the Mock Centre5 free belowPaper on 20 December
Key facts examiners test from this unit
Income, years and residence — income of a year is taxed by residence and source; the 1961 Act's previous year and assessment year became one 'tax year' under the 2025 Act from 1 April 2026.
Computation, returns and advance tax — five heads make gross total income; deductions give taxable income; the new regime is the default; returns, assessments, demands and advance tax follow fixed dates.
Tax deduction at source — banks deduct 10% on deposit interest above ₹50,000 (₹1 lakh for seniors), deposit it by the 7th, file quarterly statements, and face interest, disallowance, fees and prosecution for defaults.
Changed since the textbook
Income-tax Act, 2025 in force (1 Apr 2026). The Income-tax Act, 2025 (Act 30 of 2025; assented 21 August 2025) replaced the Income-tax Act, 1961 from 1 April 2026. It has 536 sections, 23 chapters and 16 schedules, replaces 'previous year' and 'assessment year' with a single 'tax year', and gathers TDS in Section 392 (salary) and Section 393 (other payments, in tables), with TCS in Section 394. Source: Wikipedia
New PAN rules and Forms 97 and 98 (1 Apr 2026). The Income-tax Rules, 2026 replaced the 1962 Rules from 1 April 2026. Forms 60 and 61 gave way to Forms 97 (declaration by a person without PAN) and 98 (the bank's statement of such declarations). PAN, with authentication, remains required for cash deposits or withdrawals aggregating ₹20 lakh or more in a financial year and for opening a current or cash credit account; several per-day cash tests in the textbook were replaced by annual aggregates. Source: Outlook Money
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 200 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
How is a sum received under a Keyman insurance policy treated for income tax?
Why (d): The definition of income includes any sum received under a Keyman insurance policy, including bonus, so it is taxable in the hands of the recipient. (a) is wrong: Keyman policies are carved out of the life-policy exemption. (b) is wrong: It is treated as income, not capital. (c) is wrong: Taxability does not depend on the premium's treatment.
Question 2 of 5
Which of these must file an income-tax return even in a year with no income?
Why (b): Companies and firms must file a return every year, whether they make a profit or a loss; individuals below the limit generally need not, unless other conditions apply. (a) is wrong: A bank account alone does not require a return. (c) is wrong: A minor's income is generally clubbed with a parent's. (d) is wrong: Income below the limit does not by itself require a return.
Question 3 of 5
TDS statements are filed:
Why (a): Deductors file quarterly TDS statements for salaries, other payments and non-residents. (b) is wrong: They are filed every quarter. (c) is wrong: They are quarterly. (d) is wrong: They are quarterly, not monthly.
Question 4 of 5
A customer has deposited ₹11 lakh in cash in his savings account this year. Is this unlawful?
Why (c): ₹10 lakh is only the threshold for reporting cash deposits in the Statement of Financial Transactions; the deposits are lawful. (a) is wrong: Spreading the days is not the reason. (b) is wrong: There is no yearly cap. (d) is wrong: Nothing is returned.
Question 5 of 5
CTT on selling an option with a premium of ₹4 lakh is:
Why (a): 0.05% of the ₹4 lakh premium is ₹200. (b) is wrong: That applies the futures rate. (c) is wrong: That is 0.5%. (d) is wrong: That is 0.1%.
0 of 5 answered.
Traps in this unit
Calling the year of earning the assessment year.
Taxing a non-resident's foreign income.
Applying advance tax dates only to companies.
Practise all 200 questions on Unit 24. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the BRBL Online Mock Centre unlocks all 5,800+ BRBL questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.