Top 50 Interview Questions On The Income Tax Act, 1961

The Income-tax Act, 1961 is the charging statute of Income Tax in India. It provides for levy, administration, collection and recovery of Income Tax. The Government of India brought a draft statute called the “Direct Taxes Code” intended to replace the Income Tax Act, 1961 and the Wealth Tax Act, 1957.

In this article, Team YLCC brings you the Top 50 Questions on the Income Tax Act,1961. Read on!

1. What does the word advance tax mean under this Act?
2. What are agricultural incomes?
3. Who is an additional commissioner?
4. What is an annual value?
5. Who is an assessing officer?
6. Who is the deputy commissioner under this Act?
7. Who is an assistant director mentioned under this Act?
8. What does the word board mean under this Act?
9. What is a business trust? How is it different from firm?
10. What is a capital asset?

1. What does the word company mean under this Act?
2. What is a dividend?
3. What is a domestic company and how is it different from a firm?
4. What is the difference between a firm and a trust?
5. What is the charge of income tax?
6. How is the scope of total income calculated?
7. Which are the incomes not included in total income?
8. Why are all incomes not calculated under total income?
9. How is total income different from actual income?
10. How are free trade zones established?
11. How income from property held for charitable or religious purposes is held?
12. What are the conditions required for applicability of Section 11 and 12?
13. What is the procedure for registration?
14. When will Section 11 not apply?

1. What is the word salary meant under Section 15 of this Act?
2. How were the heads of income calculated?
3. Which is a special provision that deals with the income of political parties?
4. How is salary different from wages?
5. How is the income being accessed from a house property?
6. How is the annual value determined?
7. Who are the owners of house property?
8. How are the profits and gains of business or profession calculated?
9. What are defined as rent rates, tax repairs and insurance for buildings?
10. What is depreciation?

1. What is an investment allowance?
2. What is an investment deposit account?
3. How investment in new plants or machinery takes place?
4. How is development rebatable?
5. What are tea development accounts?
6. What is a site restoration fund?
7. What is tax credit for alternative minimum tax?
8. How does conversion of an Indian branch of foreign company take place into a subsidiary Indian company?
9. How do foreign companies set up a resident in India?
10. What are the special provisions for computation of income?
11. How tax is distributed upon the profits of domestic companies?
12. What is defined as income from other sources under Section 56 of this Act?
13. Which are the amounts nondeductible under Section 58 of this Act?
14. What revocable transfer of assets?
15. How does the word transfer and revocable transfer different?
16. Does the income of an individual include the income of a spouse and minor child? If not, why?

YLCC would like to thank Anurag Mondal for her valuable insights in this article.