INCOME TAX LAW AND PRACTICE UNIT-1

Who introduced income tax in India for the first time?

• A) Lord Curzon

• B) Sir James Wilson

• C) Warren Hastings

• D) Lord Dalhousie

In which year was income tax first introduced in India?

• A) 1857

• B) 1860

• C) 1947

• D) 1956

The Income Tax Act, 1961 came into force on:

• • A) 1st January 1961

• B) 15th August 1947

• C) 1st April 1962

• D) 26th January 1950

One of the major objectives of taxation is:

• A) Population control

• B) Resource mobilization

• C) Employment generation

• D) Literacy improvement

Which of the following is not an objective of taxation?

• A) Redistribution of wealth

• B) Economic development

• C) Price destabilization

• D) Revenue generation

Income tax in India is

• A) Indirect

• B) Voluntary

• C) Progressive

• D) Regressive

Which of the following is a feature of income tax?

• A) Paid on expenditure

• B) Paid on consumption

• C) Paid on income

• D) Paid on exports

The authority to levy income tax in India lies with:

• A) State Governments

• • B) Municipal Bodies

• C) Central Government

• D) Panchayats

Income for tax purposes includes:

• A) Only salary

• B) Only business income

• C) All sources specified under the Act

• D) Only agricultural income

Which of the following is not a head of income under the Income Tax Act?

• A) Salary

• B) Income from house property

• C) Interest on savings

• D) Capital gains