10 Questions
Which of the following is a direct tax according to the text?
Incometax
What is the purpose of levying taxes according to the text?
To meet the common welfare expenditure of the society
What does Article 366(28) of the Constitution of India define as taxation?
Imposition of any tax or impost
What is the main difference between direct and indirect taxes according to the text?
Direct taxes cannot be recovered from someone else, while indirect taxes can be shifted to another person
What is the reason for the levy of taxes according to the text?
To meet the expenses of the Government like defense, education, health-care, and infrastructure facilities
Which type of tax is levied directly on individuals or entities?
Income Tax
What is the main purpose of computing total income for the purpose of levy of income tax?
To ensure compliance with tax regulations
In the context of the Income-tax Act, 1961, what is an important term used to define income chargeable to tax?
Agricultural Income
What does the term 'assessment year' refer to in the context of computing income chargeable to tax?
The year following the previous year for which income is assessed to tax
What is the main reason for distinguishing between agricultural and nonagricultural operations in computing income for tax purposes?
To identify the scope of agricultural income chargeable to tax
Test your understanding of the basic concepts of taxation including types of taxes, direct and indirect taxes, components of income-tax law, computation of total income, and important terms used in the Income-tax Act, 1961.
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