Students get through the TN Board 11th Commerce Important Questions Chapter 32 Direct Taxes which is useful for their exam preparation.
TN State Board 11th Commerce Important Questions Chapter 32 Direct Taxes
Very short answer questions
Question 1.
What are 80C Deductions?
Answer:
80C Deductions; Contribution to Provident Fund, Life Insurance Premium, Children’s Tuition Fees, Health Insurance Premium, Investment in National Savings Certificate, interest paid for home loans, etc.
Question 2.
What is Applicability?
Answer:
Income Tax is applicable throughout India including the State of Jammu and Kashmir.
Question 3.
What is Annual tax?
Answer:
Income tax is an annual tax because it is the income of a particular year that is chargeable to tax.
Question 4.
What are the kinds of taxes?
Answer:
Direct taxes and Indirect taxes.
Question 5.
Examples of Indirect taxes.
Answer:
Excise duties, customs duties, sales tax, entertainment tax, service tax.
Question 6.
Mention the features of Income-tax in India.
Answer:
- Levied as per the constitution,
- Levied by the central government,
- Direct tax,
- Annual tax,
- Tax on the person,
- Tax on Income.
Short answer questions
Question 1.
Explain Income Tax is administered by the central government.
Answer:
Income tax is administered by the Central Government (Ministry of Finance) with the help of the ‘Income tax department’ with branches throughout the country. The Central Government has constituted the Central Board of Direct Taxes (CBDT) which exercises overall control over the Income-tax department by issuing guidelines for related matters.
Question 2.
Define Direct tax.
Answer:
Income tax is a direct tax. It is because the liability to deposit and ultimate burden are on the same person. The person earning income is liable to pay income tax out of his own pocket and cannot pass on the burden of tax to another person.
Question 3.
What are the names of Direct taxes?
Answer:
The names of direct taxes are:
- Income-Tax, Wealth Tax,
- Capital Gains Tax,
- Securities Transaction Tax,
- Fringe Benefits Tax (from 2005),
- Banking Cash Transaction Tax
(for Rs. 50,000 and above – from 2005), etc.
In India, all direct taxes are levied and administered by the Central Board of Direct Taxes.
Question 4.
As per the assessment year 2018 – 19. Tabulate/ the Income Tax slab rate for individuals.
Answer:
| Total Income | Income tax rate |
| Upto – 2,50,000 | Nil |
| 2,50,000 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Long answer questions
Question 1.
Difference between Direct tax and Indirect tax.
Answer:
| Direct tax | Indirect tax |
| Taxes on personal income, wealth, etc. | faxes on commodities and services. |
| This kind of tax is imposed on the person and collected from the same person. | This kind of tax is imposed on one person (producer) and collected from another person (consumer). |
| The money burden and real burden fall on the same person. | The money burden, as well as real burden, fall on the different person. |
| Direct taxes collected from the people directly. | indirect taxes are collected from the people indirectly through the price of goods. |
| Direct taxes are paid by rich people. | Indirect taxes are paid by the poor. |
Multiple-choice questions
1. There are …….. types of taxes:
(a) one
(b) two
(c) three
(d) four
Answer:
(b) two
2. In India all direct taxes are levied and administered by ……… of direct taxes
(a) central board
(b) person
(c) company
(d) creditors
Answer:
(a) central board
3. If a tax levied on the income or wealth of a person and is paid by that person directly to the government it is called
(a) direct tax
(b) indirect tax
(c) income tax
(d) capital tax
Answer:
(a) direct tax
4. Good services tax example:
(a) direct tax
(b) indirect tax
(c) wealth tax
(d) capital gains tax
Answer:
(b) indirect tax
5. Banking cash transaction tax and above ………. from 2005.
(a) Rs. 50000
(b) Rs. 40000
(c) Rs. 100000
(d) Rs. 80000
Answer:
(a) Rs. 50000
6. Income tax is charged by the central government on all incomes others than ……….. income.
(a) banking
(b) industries
(c) agricultural
(d) home loan
Answer:
(c) agricultural
7. Income tax is direct tax it is because the ………. to deposit and ultimate burden are on the same person.
(a) money
(b) asset
(c) capital
(d) liability
Answer:
(d) liability
8. Tax on long term capital gain:
(a) 30%
(b) 25%
(c) 20%
(d) 15%
Answer:
(c) 20%
9. Section IIIA tax on short term capital gain on shares covered under SST:
(a) 20%
(b) 15%
(c) 30%
(d) 40%
Answer:
(b) 15%
10. Tax on lottery income section 115BB
(a) 30%
(b) 20%
(c) 10%
(d) 15%
Answer:
(a) 30%
11. Income tax is applicable throughout India including the state of:
(a) Hariyana
(b) Tamilnadu
(c) Jammu & Kashmir
(d) Mumbai
Answer:
(c) Jammu & Kashmir
12. It normally consisting of a period of 12 months commencing on 1st April every year and ending on:
(a) 31st October
(b) 31st December
(c) 31st May
(d) 31st March
Answer:
(d) 31st March
13. Income from salaries sections:
(a) 15-17
(b) 16-17
(c) 17-18
(d) 19-20
Answer:
(a) 15-17
14. Income computed under these heads shall be aggregated after adjusting past and present losses and the total so arrived at is known as ……….. income.
(a) not total income
(b) gross total income
(c) total income
(d) income
Answer:
(b) gross total income
15. Gross total income, income tax Act:
(a) 1972
(b) 1971
(c) 1871
(d) 1961
Answer:
(d) 1961