4 of 100 marks
AIBE 22: Taxation
This subject carries 4 marks of the 100-mark paper — a mid-weight subject. Section 45 has 32 questions on it, four times the official count.
What to carry, and where to tab
Bring the Income Tax Act 1961, unmarked. Blank index tabs only — anything written on a tab can get the book confiscated. These are the parts this subject actually draws from:
- Art. 366(12A); § 9 CGST Act
- Avoidance and Evasion
- Constitution, Part XI
- Constitution, Part XII
- IGST Act 2017
- Income Tax Act, Chapter I
- Income Tax Act, Chapter II
- Income Tax Act, Chapter III
- Income Tax Act, Chapter IV
- Income Tax Act, Chapter IV-C
- Income Tax Act, Chapter VI-A
- Income Tax Act, Chapter X-A
Provisions that recur
- § 3 Income Tax Act
- § 14 Income Tax Act
- § 6 Income Tax Act
- § 5 Income Tax Act
- § 24 Income Tax Act
- § 2(42A) Income Tax Act
- § 80C Income Tax Act
- § 10(1) Income Tax Act
- § 246A Income Tax Act
- § 260A Income Tax Act
- Art. 246A
- Art. 279A
- IGST Act 2017
- Art. 265
- § 192 Income Tax Act
- Chapter X-A, Income Tax Act
Sample questions
Three of the 32, with full explanations. The first ten are free in the app.
Under the Income Tax Act, 1961, 'previous year' means:
- The financial year immediately preceding the assessment year
- The year in which the income is actually received by the assessee
- The calendar year immediately preceding the assessment year
- Any twelve-month period the assessee chooses for its accounts
Answer & explanation
The financial year immediately preceding the assessment year
Section 3 defines previous year and Section 2(9) defines assessment year as the period of twelve months commencing on the first day of April every year. Income of the previous year is taxed in the assessment year.
How many heads of income are recognised under Section 14 of the Income Tax Act?
- Three
- Four
- Six
- Five
Answer & explanation
Five
The heads are salaries; income from house property; profits and gains of business or profession; capital gains; and income from other sources.
Residential status of an individual is determined under:
- Section 6
- Section 4
- Section 9
- Section 5
Answer & explanation
Section 6
An individual is resident if present in India for 182 days or more in the previous year, or for 60 days in that year and 365 days or more in the preceding four years, subject to specified exceptions.
Practise
Ten questions in Taxation free, no card. Each answer cited to both codes with a line telling you where to look in the bare act.
Practise Taxation