Income Tax Questions and Answers Part-1

1. Income Tax Act was passed in the year ……….
a) 1934
b) 1956
c) 1961
d) 1972

Answer: c

2. Income Tax Act came into force on …………
a) 1st April 1935
b) 1st April 1961
c) 1st April 1962
d) 1st April 1956

Answer: c

3. Income tax is a ………………….
a) Professional tax
b) Direct tax
c) Indirect tax
d) Service tax

Answer: b

4. Income tax rates are fixed in …………….
a) Income tax Act
b) Finance Act
c) Income tax rules
d) Finance rules

Answer: b

5. There are …………… heads of income
a) 3
b) 4
c) 5
d) 2

Answer: c

6. A person with the age of ………… or more is considered as a super senior citizen as per Income tax Act.
a) 56
b) 60
c) 80
d) 85

Answer: c

7. The minimum exceptional limit of income is ……………….
a) 250,000
b) 200,000
c) 300,000
d) 500,000

Answer: c

8. Rebate of Income tax is defined as per section …………….
a) 81A
b) 87A
c) 81C
d) 87C

Answer: b

9. Section 2(9) of Income tax deals with ………….
a) Person
b) Assessee
c) Previous Year
d) Assessment Year

Answer: d

10. Assessment year is the period of 12 months commencing from …………… Every year.
a) 1st March
b) 31st March
c) 1st April
d) 30th April

Answer: c