WorksheetsINCOME TAX LAW AND PRACTICE UNIT-1
Total questions: 25
Worksheet time: 13mins
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
How many heads of income are there under the Income Tax Act?
A) 4
B) 5
C) 6
D) 7
Income includes:
A) Gifts
B) Winnings from lotteries
C) Salary and wages
D) All of the above
As per the Income Tax Act, the term “person” includes:
A) Individual
B) Hindu Undivided Family
C) Company
D) All of the above
A “previous year” refers to:
A) The financial year in which income is assessed
B) The year before the assessment year
C) The current calendar year
D) Any year as per taxpayer's choice
The year in which income is taxed is called:
A) Assessment year
B) Previous year
C) Calendar year
D) Financial year
An "assessee" means:
A) A person who pays tax
B) A person against whom proceedings are initiated
C) A person who is liable to pay tax or refund
D) All of the above
Which of the following is a type of assessee?
A) Individual
B) Company
C) Firm
D) All of the above
Deemed assessee refers to:
A) Only individuals
B) A person who is treated as an assessee by law
C) A voluntary taxpayer
D) None of the above
Who is considered a 'representative assessee'?
A) A person representing another for tax purposes
B) A salaried employee
C) A business owner
D) A casual taxpayer
Which section of the Income Tax Act deals with income exemptions?
A) Section 80C
B) Section 24
C) Section 10
D) Section 44
Agricultural income is:
A) Fully taxable
B) Fully exempt under Section 10(1)
C) Partially exempt
D) Exempt only for farmers
Income of a minor child is exempt up to:
A) ₹1,000
B) ₹1,500 per child
C) ₹2,000 per child
D) ₹2,500 per child
Gratuity received by a government employee is:
A) Fully taxable
B) Fully exempt under Section 10(10)
C) Partially exempt
D) Not considered income
House Rent Allowance (HRA) is exempt:
A) Fully
B) Not at all
C) Subject to limits under Section 10(13A)
D) Only in metro cities
Income received from a registered provident fund is:
A) Fully exempt
B) Partially exempt
C) Taxable in all cases
D) Taxable after 10 years
