A) Personal income tax is levied on individuals and proceeds are used by central government
B) Personal income tax is levied on individuals and proceeds are shared between states and central government
C) Personal income tax has to be levied from all individuals
D) Personal income tax is levied on individuals and proceeds are used by central government and local bodies
Correct Answer: B
Solution :
[b] An income tax is a government levy (tax) imposed on individuals or entities (taxpayers) that varies with the income or profits (taxable income) of the taxpayer. The Central Government has been empowered by Entry 82 of the Union List of Schedule VII of the Constitution of India to levy tax on all income other than agricultural income. The government of on taxable income of all persons including individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961. The Indian Income Tax Department is governed by CBDT and is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund its activities and serve the public. The Income Tax Department is the biggest revenue mobilizer for the Government.
You need to login to perform this action.
You will be redirected in
3 sec
