1. Rates of Income tax are fixed under ....................... 

 A. An Ordinance 
B. The Income Tax Act 
C. The Finance Act 
D. Notification of CBDT



2. __________ is / are empowered to levy and collect income tax. 

 A. State governments 
B. Central Government 
C. RBI 
D. local self government department



3. In which year Income Tax was levied in India for the first time? 

 A. 1960 
B. 1961 
C. 1860 
D. 1857



4. Income Tax Act was passed in the year_____________. 

 A. 1955 
B. 1961 
C. 1956 
D. 1962



5. CBDT is control by ______________. 

 A. Central Government 
B. State Government 
C. both (A) and (b) 
D. none of this above


6. previous year started from ______________. 

 A. April 
B. March 
C. January 
D. September


7. Who is Tax payer? 

 A. Assessee 
B. Businessman 
C. Trust 
D. Govt. employee


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

 A. business tax 
B. profession tax 
C. Direct tax 
D. Indirect tax



9. A person is said to be an ordinarily Resident when the person is satisfying ...................

 A. both basic and additional conditions 
B. only basic conditions 
C. only additional conditions 
D. not basic and additional conditions


10. Salary received by a Member of Parliament is taxable under the head......................... 

 A. Income from salary 
B. Capital gains 
C. Profits and gains of business or profession 
D. Income from other sources




More MCQs on Income Tax Act