DIRECT TAX – LAWS & PRACTICE

Tax planning is moral and legal practice

• True

• False

Tax Management includes Tax Planning

• True

• False

_____________ is the legal usage of tax regime to one’s own advantage,to reduce the amount of tax payable.

• Tax Planning

• Tax Avoidance

• Tax Evasion

• Tax Management

______________ involves deliberate misrepresentation of true state ofaffairs to the tax authorities and includes dishonest tax reporting, suchas declaring less income

• Tax Planning

• Tax Avoidance

• Tax Evasion

• Tax Management

To get the benefit of deduction under section 80-C, a person takes anInsurance policy. This practice to save tax is called

• Tax Management

• Tax Avoidance

• Tax Planning

• Tax Evasion

income tax Act,1961 came to effect in India

• 1st January, 1961

• 1st April, 1961

• 1st January, 1962

• 1st April, 1962

In which system poor are to bear more proportionately than rich?

• Progressive system

• Proportionate system

• Regressive system

The rates of income tax are specified in

• Income Tax Act,1961

• Income Tax Rules,1962

• Finance Act

• Circulars issued by CBDT

The apex body of Income Tax Department is

• Finance Ministry of Central Govt.

• Central Govt. of India

• Dept. of Revenue

• Central Board of Direct Taxes (CBDT)

Which of the following statement is correct?

• Income Tax is a direct Tax

• Wealth Tax is an indirect tax

• Custom duty is an example of direct tax

• Income tax is collected by respective state govt