Basic Concepts of Income Tax

Income Tax Act came into force as on

• 1-4 -1961

• 1-3 -1961

• 1-4 -1962

• 31-3-1962

Income earned during the ______ is to be assessed in _______.

• Previous year, Assessment Year

• Assessment year, Previous Year

• Assessment year, Financial Year

• Calendar Year, Previous Year.

Previous year starts from

• 1st April every year

• In the case of newly started business- from the date of commencement

• In the case of newly started business- from the date of commencement. In any other case - 1st April of the year

• 1st January every year

Income under the Income-Tax Act, 1961, is to be computed under -

• Five heads

• Six heads

• Four heads

• Seven heads

Income tax is a .......................... tax

• Direct

• Indirect

• Consumption

• Local

Income Tax is imposed by..................

• State Government

• Central Government

• Both of the above

• Constitution of India

Parliament has the power to levy tax on incomes other than......................

• Exempt Incomes

• Income of poor people

• Agricultural Income

• All incomes are taxable

Highest Administrative Authority for Income Tax in India is

• Finance Minister

• CBDT

• President of India

• Director of Income Tax

As per Section 2(7),“Assesses” means a person

• By whom any tax or other sum of money is payable

• Against whom proceeding has been taken under the act

• A person deemed to be assessee in default

• All of the above

Which of the following income is not included in the term ‘income’ ?

• Profit & gains

• Dividend

• Profit in lieu of salary

• Reimbursement of travelling expenses