Basic Concepts of Income Tax MCQ | 50 Free MCQs

11. The act provides for …………….. of the assessee.
a. determination of income
b. determination of total income
c. None of the above

12. The ……………….. on the total income is decided every year by passing the finance act.
a. rate of tax
b. Amount of tax
c. Tax
d. None of the above

13. The constitution of India empowers …………….. to levy tax on income.
a) State Government
b) Central Government
c) Parliament
d) Finance Minister

14. Income Tax is a tax on ……………. .
a) Income
b) Profit
c) Turnover
d) Expenditure

15. The Income Tax Act, 1961 has 298 ………………… .
a) Sections
b) Sub-sections
c) Clauses
d) Sub-clauses

16. The ………… makes the amendment in the form of omission, insertions and substitutions in the Income Tax Act.
a) Finance Bill
b) Finance Minister
c) Finance Act
d) Parliament

17. The Income Tax Act extends to ……………….. of India.
a) States
b) Union Territories
c) Citizens
d) Whole

18. Gross Tax Liability is calculated on …………… .
a) Gross Total Income
b) Net Taxable Income
c) Income
d) Salary

19. Shivaji University is assessable under the Income Tax Act as
a. An Individual
b. An artificial juridical person
c. A local authority
d. None of these

20. AOP should cosists of :
a. Individual only
b. Person other than individual only
c. Both the above
d. None of these

Answers: 11)determination of total income 12)rate of tax 13)Central Government 14)Income 15)Sections 16)Finance Act 17)Whole 18)Net Taxable Income 19)An artificial juridical person 20)Both the above