The question asks to identify the specific Entry in the Union List of the Seventh Schedule of the Indian Constitution that grants the Central Government the power to levy tax on income other than agricultural income. This requires knowledge of the distribution of legislative powers, particularly taxation, between the Union and the States as outlined in the Seventh Schedule.
D) Entry 82 — This entry explicitly grants the Union Government the power to levy taxes on income, with the specific exclusion of agricultural income, which falls under the State's purview.
The question asks to identify a distinguishing feature between direct and indirect taxes. We need to understand the fundamental characteristics of each type of tax, particularly regarding who bears the final burden.
C) The burden of a direct tax cannot be shifted to another person — This is the defining characteristic of a direct tax. The person or entity on whom the tax is levied is the one who ultimately bears the financial burden, and they cannot legally or practically pass this burden on to someone else.
The question asks about the administrative affiliation of the Central Board of Direct Taxes (CBDT). To answer this, one needs to know the organizational structure of the Indian government, particularly concerning financial administration and tax collection.
Correct Option: D) Ministry of Finance
The Central Board of Direct Taxes (CBDT) is a part of the Department of Revenue under the Ministry of Finance. It provides essential inputs for policy and planning of direct taxes in India and is also responsible for the administration of direct tax laws through the Income Tax Department.
The question asks to identify the body responsible for administering indirect taxes like GST and customs duty in India. This requires knowledge of the administrative structure of India's tax system.
The Central Board of Indirect Taxes and Customs (CBIC) is the nodal national agency responsible for administering customs, GST, central excise, service tax, and narcotics in India. It is part of the Department of Revenue under the Ministry of Finance, Government of India.
C) Central Board of Indirect Taxes and Customs (CBIC) — The CBIC is indeed the apex body responsible for the administration of indirect taxes, including GST and customs duty, in India. Its mandate specifically covers these types of taxes.
The question asks to identify the pair that correctly matches a Direct Tax with its description. We need to understand the fundamental difference between direct and indirect taxes.
Correct Option: D) Corporate tax — tax on company profits
The question asks for the year when income tax was first introduced in India. This is a factual question related to the history of taxation in British India. Recalling key historical economic reforms is crucial.
Correct Option: D) 1860 — Income tax was introduced in India for the first time in 1860 by Sir James Wilson to recover from the financial losses incurred due to the Revolt of 1857.