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

(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

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(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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