Income Tax Quiz

What is the primary objective of taxation?

• To punish the rich

• To collect fines

• To generate revenue for the government

• To reduce employment

Which year was income tax first introduced in India?

• 1860

• 1947

• 1956

• 1900

Who introduced income tax in India?

• Lord Ripon

• James Wilson

• Lord Mountbatten

• Warren Hastings

The Income Tax Act currently in force in India is of which year?

• 1956

• 1961

• 1972

• 1986

Income tax is what type of tax?

• Indirect

• Property tax

• Direct

• Sales tax

Income tax is levied by:

• State Government

• Central Government

• Local Authorities

• Municipal Corporation

Which of the following is NOT a feature of Income Tax?

• It is a direct tax

• It is progressive in nature

• It is charged on income of individuals only

• It is a single-rate tax

Which section of the Income Tax Act deals with definitions?

• Section 10

• Section 2

• Section 5

• Section 14

Which of the following is NOT considered as income?

• Salary

• Lottery winnings

• Loan taken from bank

• Capital gains

How many heads of income are defined under the Income Tax Act?

• 3

• 5

• 7

• 4