Income Tax

What form did you complete at the beginning of your employment that determined how much was taken out in taxes (based on your marital status and dependents)?

• I-9

• W-2

• W-4

• 1040

What can be deducted from your taxable income?

• Interest on student loans

• Interest on credit card debt

• Interest on car loans

• Food expenses

What form is used to actually file a tax return (the form where all information is transferred to)?

• W-4

• W-2

• 1099

• 1040

What form is used by independent contractors and the self-employed to report income?

• I-9

• 1099

• W-2

• W-4

Explain the concept of Progressive Taxation.

• It is a tax system where the tax rate increases as the taxable amount increases

• It is a tax system where the tax rate decreases as the taxable amount increases

• It is a tax system where the tax rate remains constant regardless of the taxable amount

• It is a tax system where the tax rate is determined by the taxpayer's age

Income tax was introduced for the first time in India in the year

• 1857

• 1860

• 1961

• 1950

A non resident Indian is not liable to pay tax on his income received in India.

• True

• False

Income Tax Act was passed in the year

• 1924

• 1961

• 1962

• 1988

What is the primary purpose of income tax in a modern economy?

• A) To fund government services and infrastructure

• B) To penalize high earners

• C) To encourage savings

• D) To control inflation

Which of the following is a progressive tax system?

• A) A system where everyone pays the same percentage of their income

• B) A system where tax rates increase as income increases

• C) A system where tax rates decrease as income increases

• D) A system where tax rates are fixed for all