Question 1

Income Tax Act, 1961 came into force on:

Accepted Answer

The Income Tax Act, 1961 came into force on 1st April 1962.

Question 2

Income tax was levied in India first time in:

Accepted Answer

Income tax was first introduced in India in 1860 by James Wilson to overcome the financial crises resulting from the Revolt of 1857.

Question 3

The rate of income tax is fixed under:

Accepted Answer

The rate of income tax is fixed annually by the Finance Act, which is passed by Parliament during the budget session each year.

Question 4

The total of various heads of income is called:

Accepted Answer

Gross Total Income is the sum of income under various heads before allowing deductions under Sections 80C to 80U of the Income Tax Act.

Question 5

Income tax was introduced in India for the first time by:

Accepted Answer

Income tax was introduced in India for the first time by Sir James Wilson in 1860 to overcome the financial crises that arose after the First War of Independence in 1857.

Question 6

According to Income Tax Act, there are.................heads of income.

Accepted Answer

The Income Tax Act classifies income into five heads: Salary, House Property, Business or Profession, Capital Gains, and Other Sources.

Question 7

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

Accepted Answer

Income tax is a direct tax because it is levied directly on the income of individuals or organizations.

Question 8

Under Income Tax Act, which of the following entities comes under the term "Person":

Accepted Answer

Under the Income Tax Act, the term "Person" includes individuals, Hindu Undivided Families (HUF), and Bodies of Individuals/Associations of Persons (BOI/AOP), among others.

Question 9

Income Tax Department works under:

Accepted Answer

The answer of Income Tax Department works under:
...

Question 10

For Income Tax purpose, a senior citizen is an individual who the age of :

Accepted Answer

The answer of For Income Tax purpose, a senior citizen...

Question 11

The income tax rate for short term capital gains specified in Sec.111A is:

Accepted Answer

The income tax rate for short term capital gains covered under Section 111A is 15%. This section specifically deals with the taxation of short term capital gains arising from the transfer of equity shares or units of an equity-oriented fund or units of a business trust, which are subject to securities transaction tax.

Question 12

Which of the following section of Income Tax Act is termed as "Charging Section":

Accepted Answer

Section 4 of the Income Tax Act is known as the Charging Section because it is the provision that levies tax on the total income of the previous year of every person.

Question 13

For the A.Y , the tax exemption limit of income for BOI is:

Accepted Answer

The tax exemption limit of income for Body of Individuals (BOI) is Rs: 2,50,000, aligning with the general exemption limit for individuals below the age of 60 in India.

Question 14

For the A.Y 2019-20, an individual who is resident in India, is eligible for rebate if his total income does not exceed:

Accepted Answer

The answer of For the A.Y 2019-20, an individual who...

Question 15

The income tax rate for long term capital gains is:

Accepted Answer

The answer of The income tax rate for long term...

Question 16

Health and education Cess is charged on the amount of:

Accepted Answer

Health and Education Cess is charged on the amount of Income Tax and Surcharge, not directly on the income or gross total income of an individual or entity.

Question 17

Which among the following is included in income?

Accepted Answer

The sum received under a Key man Insurance Policy is considered income as it is a benefit received by the employer or company, often taxable.

Question 18

A citizen of India who goes abroad for the purpose of employment, must stay in India for a period of at least ..................... days during the P.Y. to become ordinarily resident.

Accepted Answer

For an Indian citizen who goes abroad for employment, the requirement to be considered as an ordinarily resident in India for tax purposes is to stay in India for at least 182 days during the financial year.

Question 19

Income accruing in India is assessable for :

Accepted Answer

Income accruing in India is assessable for all categories of individuals, including ordinarily resident, not ordinarily resident, and non-resident, as per the Income Tax Act of India.

Question 20

Agricultural income from China is assessable for:

Accepted Answer

The answer of Agricultural income from China is assessable for:
...

Quiz 1: Income Tax Act, 1961