Multiple choice

The income of a person called assessee is taxed on the basis of

  1. calendar year

  2. assessment year

  3. financial year

  4. any of the above, at the choice of the assessee
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An entity whose income exceeds the "maximum amount", which is not chargeable to the income tax, is an assessee, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the relevant assessment year. Thus, option 2 is the correct answer.

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