23 Questions
Which type of tax is levied directly on individuals or entities?
Income tax
What is the main focus of the Income-tax Act, 1961?
Tax computation procedures
What is the term used for the circumstances when income of the previous year would be assessed to tax in the previous year itself?
Retroactive assessment
Which tax is levied on the sale of goods within a country?
Sales tax
In the context of income taxation, what does 'assessment year' refer to?
Year in which income is assessed for tax purposes
What is the basic source of revenue to the Government?
Tax constitutes the basic source of revenue to the Government.
Which type of tax is Incometax considered as?
Direct tax
What does the Constitution of India lay down in Article 265?
No tax shall be levied or collected except by authority of law.
What is the power given to the Parliament and State Legislatures in terms of making laws for the purpose of levy of taxes?
They are empowered to make laws on the matters enumerated in the Seventh Schedule.
What does Union List contain in terms of powers to make laws?
Parliament has the exclusive power to make laws on matters contained in Union List.
What does 'previous year' refer to in the context of computing income chargeable to tax under the Income-tax Act, 1961?
It refers to the financial year in which the income is earned and assessed for tax purposes.
Which component of total income determines the tax liability of a person under the Income-tax Act, 1961?
Income from business or profession
What is the difference between direct and indirect taxes?
Direct taxes are paid directly by individuals or entities to the government, while indirect taxes are paid by intermediaries and passed on to consumers.
What does 'assessment year' refer to in the context of income taxation?
It refers to the financial year in which the tax liability is determined and paid.
What is the primary purpose of taxes as mentioned in the text?
To meet the common welfare expenditure of the society
What is the distinguishing characteristic of direct taxes?
The burden of tax cannot be shifted to another person
Which article of the Indian Constitution lays down the principle that 'No tax shall be levied or collected except by authority of law'?
Article 265
Who has the exclusive power to make laws on the matters contained in the State List according to the Indian Constitution?
State Legislatures
What power is given to the Parliament and State Legislatures for making laws for the purpose of levy of taxes?
Concurrent power
Which list contains matters under which the Parliament has exclusive power to make laws in terms of levy of taxes?
(i) Union List
In what way does indirect tax differ from direct tax?
Indirect tax can be shifted to another person
What does the Seventh Schedule to Article 246 contain?
(i) Union List, (ii) State List, (iii) Concurrent List
What is the key feature of indirect taxes?
'The person who pays the tax can recover it from somebody else'
This quiz covers the fundamental concepts of tax, including the types of taxes, direct and indirect taxes, and components of income-tax law. It also explores the computation of total income for income-tax purposes and the important terms in the Income-tax Act, 1961.
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