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CA Final Income Tax Department — practice questions

Explore 88 free Income Tax Department questions in CA Final Taxation. Open each question or exercise to read its content, reference answers and available explanation.

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Income Tax Department questions and exercises with answers

Showing questions 1–30 of 88.

The Central Board of Direct Taxes functions as part of which department?Read the answer and worked solution →In which year was the CBDT constituted?Read the answer and worked solution →Besides its chairman, how many members make up the CBDT?Read the answer and worked solution →From which service are the chairman and members of the CBDT selected?Read the answer and worked solution →Before the split of 1964, which single body administered both direct and indirect taxes?Read the answer and worked solution →Who introduced the first Income-tax Act in British India in February 1860?Read the answer and worked solution →From which date did the Income Tax Act, 1961 come into force?Read the answer and worked solution →The Income Tax Act, 1961 replaced which earlier Act?Read the answer and worked solution →The first Income-tax Act of 1860 was divided into 21 parts. How many sections did it have?Read the answer and worked solution →Which was NOT one of the four schedules of the 1860 Act?Read the answer and worked solution →What share of income did the king receive as tax according to the Bodhayana Dharmasutras?Read the answer and worked solution →Sevottam is a certification of the quality of what?Read the answer and worked solution →Which two Hindi words give the term Sevottam?Read the answer and worked solution →What does the Ayakar Seva Kendra provide?Read the answer and worked solution →The eNivaran facility lets taxpayers do what?Read the answer and worked solution →Which ITD facility lets taxpayers reply by email when errors are detected in their filings?Read the answer and worked solution →In which year was the Tax Return Preparer Scheme launched?Read the answer and worked solution →What maximum fee could a Tax Return Preparer charge under the scheme?Read the answer and worked solution →Which of these can be used to e-verify an income-tax return?Read the answer and worked solution →Where are most returns processed automatically on the basis of the information the taxpayer provides?Read the answer and worked solution →Summary assessment of a return is carried out under which provision?Read the answer and worked solution →A notice under section 143(2) asks the taxpayer to do what?Read the answer and worked solution →Which section's notice can require a return of income that has not been filed yet?Read the answer and worked solution →Once the notices are complied with, a scrutiny assessment is made under which section?Read the answer and worked solution →If the taxpayer ignores the officer's notices, assessment is made under which section?Read the answer and worked solution →Which action under the Income-tax Act can involve serving jail time?Read the answer and worked solution →Wilful tax evasion is treated as a criminal offence because it is an offence against whom?Read the answer and worked solution →Which section lets the department conduct a survey of business premises?Read the answer and worked solution →Which section gives the department power of search and seizure?Read the answer and worked solution →A survey of business premises can be carried out when?Read the answer and worked solution →

Worked practice questions

The Central Board of Direct Taxes functions as part of which department?

  1. Dept of Economic Affairs
  2. Dept of Financial Services
  3. Department of Revenue
  4. Dept of Expenditure
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Correct answer: C. Department of Revenue

The CBDT sits within the Department of Revenue of the Ministry of Finance and runs direct tax administration through the Income Tax Department.

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In which year was the CBDT constituted?

  1. 1924
  2. 1947
  3. 1961
  4. 1964
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Correct answer: D. 1964

The Board was constituted in 1964 after the earlier Central Board of Revenue was bifurcated on 1 January 1964.

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Besides its chairman, how many members make up the CBDT?

  1. Four
  2. Six
  3. Eight
  4. Ten
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Correct answer: B. Six

The CBDT is headed by a chairman and has six members, all ex officio special secretaries to the Government of India.

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