The Income Tax Act, 1961 is the main legislation governing the taxation of income in India. The Act was enacted by the Parliament of India and came into force on 1st April 1962.
The Act defines income, provides for the computation of taxable income, and prescribes the rates of taxation. The Act also provides for the collection of taxes, the administration of the Act, and the appeals and revisions of assessments.
Here are some MCQs on Income Tax Act India:
- What is the maximum marginal rate of income tax in India?
- 30%
- 35%
- 42%
- 45%
- The correct answer is 42%. The maximum marginal rate of income tax in India is 42% for individuals with taxable income exceeding Rs. 15 lakhs.
- What is the basic exemption limit for individuals in India?
- Rs. 2.5 lakhs
- Rs. 3 lakhs
- Rs. 3.5 lakhs
- Rs. 4 lakhs
- The correct answer is Rs. 2.5 lakhs. The basic exemption limit for individuals in India is Rs. 2.5 lakhs for the financial year 2022-23.
- What are the deductions available under the Income Tax Act?
- There are many deductions available under the Income Tax Act, such as the deduction for medical expenses, the deduction for interest on home loan, and the deduction for charitable donations.