Direct Taxes at a Glance

Highest Administrative Authority for Income Tax in India is :

(A)Director of Income Tax

(B)Finance Minister

(C)Central Board of Direct Taxes

(D)President of India

Taxes and duties referred to in the Union list except those referred to in Articles 268 and 269, surcharge on taxes and duties and any cess levied by the _______ for specific purpose are to be collected by the Government of India and are to be distributed between the Union and the States.

(A)Parliament

(B)Central Board of Direct Taxes

(C)Finance Minister

(D)Revenue Administration Authority

The Income Tax Department is governed by the _________ and is a part of the ________ under the Ministry of Finance, Government of India.

(A)Central Board of Direct Taxes(CBDT), Taxation Cell

(B)Central Board of Direct Taxes(CBDT), Department of Revenue

(C)Department of Revenue , Central Board of Direct Taxes(CBDT)

(D)Department of Revenue, Revenue Administration Authority

Instructions issued by CBDT as per section 119 of the Act have statutory force and are equally binding on all concerned. State which out of the following is the false statement in this context:

(A)The instructions of the board are binding on the department and assessee both

(B)The instructions have to be followed by the department officers

(C)In the exercise of its power, the board cannot impose a burden or put the assessee in a worse position

(D)Instruction adverse to an assessee’s interest can be challenged by him

The Central Board of Direct Taxes (CBDT) is a statutory authority for providing essential inputs for policy and planning of direct taxes in India and is also responsible for administration of direct tax laws through Income Tax Department and is functioning under the :

(A)Income Tax Act, 1961

(B)Financial Action Task Force (FATF)

(C)Central Board of Revenue Act, 1924

(D)Central Board of Revenue Act, 1963

The Central Board of Direct Taxes (CBDT) is headed by Chairman and also comprises of six members. The Chairman and all the Members of the CBDT are being selected :

(A)By Finance Minister

(B)From IRS

(C)By Prime Minister

(D)By Chief Justice of India

The Central Board of Direct Taxes (CBDT) provides essential inputs for policy and planning of direct taxes in India and is a ...................... functioning under the Central Board of Revenue Act, 1963.

(A)Constituted Authority

(B)Revenue Administration Authority

(C)Statutory Authority

(D)Central Authority

Which of the following does not form part of the canons of taxation?

(A)Canon of convenience

(B)Canon of equity

(C)Canon of certainty

(D)Canon of simplicity

Which of the following is not a merits of Direct Taxes ?

(A)Equity

(B)Simplicity

(C)Evasion

(D)Certainty

Cannons of taxation as propounded by Adam Smith despite the modern development of economic sciences still apply and hold good. These cannons of taxation refer to administrative aspect of a tax. Find out from the following, which have been considered too under the Income Tax Act as being the fundamental cannons of taxation :

(i)Cannon of Equity; (ii) Cannon of Economy

(iii)Cannon of Uncertainty; (iv) Cannon of Non-convenience;

(v)Cannon of Certainty

(A)(i), (ii) & (v)

(B)(ii), (iv) & (v)

(C)(i), (iii) & (iv)

(D)All the five above