Multiple Choice Questions and Answers on Income Tax Rate & Basic Concept of Income Tax | Income Tax Rate & Basic Concept of Income Tax MCQs

Questions
1 The Central Government has been empowered by entry ________________ of the Union list of schedule VII of the constitution of India to levy tax on income other than agricultural income.
A 84
B 82
C 81
D 85

Answer:82
2 The Income tax act, 1961 came into force w.e.f. __________ _
A 1st April, 1962
B 31st March, 1961
C 1st April, 1961
D None of above

Answer: 1st April, 1962
3 Amongst the following _________________ is empowered to levy tax on agricultural income.
A Central Government
B State Government
C Commissioner
D President

Answer:State Government
4 Circulars and Notifications are binding on the
A Central Board of Direct Taxes (CBDT)
B Assessee
C Income Tax Appellate Tribunal (ITAT)
D Income Tax Authorities

Answer: Income Tax Authorities
5 Supreme Courts precedent in binding on
A Courts
B Appellate Tribunals
C Income Tax Authorities
D All of the above.

Answer:All of the above.
6 High Court's precedents are not binding on
A Tribunal
B Income Tax Authorities
C Assessee
D None of the above.

Answer: None of the above.
7 Wherever in the Act the phrase as prescribed appears it means that -
A Regulations are to be framed is in this respect.
B Rules have been framed in this respect.
C Regulations were earlier framed in this respect.
D Regulations are framed in this respect.

Answer:Regulations are framed in this respect.
8 Who amongst the following confers on the power to issue circulars and clarifications?
A ITAT
B Central Government
C CBDT
D State Government

Answer:CBDT
9 Amendments by the finance act are made applicable from
A First day of next financial year
B First day of same financial year
C Last day of same Accounting year
D None of the above.

Answer: First day of next financial year
10 Income Tax is charged in -
A Financial Year
B Assessment Year
C Previous Year
D Accounting Year

Answer:Assessment Year
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