Direct Taxes

Q. Which of the following incomes is exempted from income tax?

1. Salaries or profits from work
2. Interest earned from various investments
3. Rent obtained from property owned
4. Income from agriculture

Q. is a compulsory payment made to the government by the citizens of the nation.

1. Tax
2. Penalty
3. Service fee
4. Fine

Q. Personal income tax and corporate tax are two types of that are imposed on the income of individuals or of companies.

1. direct taxes
2. revenues
3. indirect taxes
4. profits

Q. Who collects the direct taxes in India?

1. State government
2. Central government
3. Ministry of Finance
4. Reserve Bank of India

Q. In which type of tax does the burden fall directly on the tax payer?

1. Direct tax
2. Indirect tax
3. Sales tax
4. Goods and services tax

Q.

Do sole proprietorship owners need to pay income tax on behalf of their businesses?

Q. Which of the following are categories into which taxes are categorised?

1. Direct taxes
2. Goods and services taxes
3. Indirect taxes
4. Sales taxes

Q. Assertion (A): Companies pay tax on the revenue earned from selling goods and services.

Reasoning (R): The government imposes direct tax on individuals and companies.

Choose the correct option.

1. Both A and R are true, and R is the correct explanation of A.
2. Both A and R are true, but R is not the correct explanation of A.
3. A is true, but R is false.
4. A is false, but R is true.

Q. Companies pay corporate tax on the total sales of the year.

1. False
2. True

Q. Which of the following statement(s) is/are wrong?

1. Tax is a voluntary payment made to the government by the citizens of the nation.
2. Only a citizen who is a taxpayer can utilise public facilities.
3. Tax is one of the primary sources of revenue for the government.
4. The government uses tax money to meet the expenditure for welfare and developmental activities.