Direct TAX MCQ Question with Answer

Direct TAX MCQ with detailed explanation for interview, entrance and competitive exams. Explanation are given for understanding.

Question No : 15
Which one of the following taxes is not levied by the State Government?

Entertainment tax

VAT

Professional tax

None of the above.

Question No : 16
The first income tax act was introduced in the year

1918

1861

1860

1886

Question No : 17
The apex body of Income Tax Department. is

Finance Ministry of Central Govt.

Central Govt. of India.

CBDT

Dept. of Revenue

Question No : 18
The Income Tax Act 1961 came into force on

13th Oct. 1961

1st April 1961

13th Sept 1961

13th Dec 1961

Question No : 19
The rates of income tax are specified in

Income Tax Act 1961

Income Tax Rule 1961

Finance Act

Circular of CBDT

Question No : 20
Income Tax Act 1922 is a "milestone" because

This Act introduced first the concept of aggregating incomes under different
Heads

It introduced the concept of "resident but not ordinarily resident"

This Act is still in force in India

Under this Act the administration was shifted completely from the provincial
Govt to the Central govt.

Question No : 21
The Income Tax Act, which is still in force in India, was enforced in

1922

1961

1860

None of the above