Indian Taxation System

Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961 and the taxation of individual's income is dependent on income tax authority.

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.

Tax Deduction Account Number or Tax Collection Account Number is a 10-digit alphanumeric number issued by the Income Tax Department (we will refer to it as TAN). TAN is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source.

Excise duty paid on input goods, service tax paid on input services and excise duty paid on capital goods make them eligible for Cenvat Credit. Thus, option 2 is correct.

Yes, all the options are correct. Stamp duty, luxury tax, customs duty,  advertisement tax are all indirect taxes. 

The government considered a 5-year tax holiday for new cement manufacturing units to boost infrastructure development. Cement is crucial for construction, and tax incentives encourage capacity expansion in this sector.

Yes, it is the right answer. If the tax rate increases with the higher level of income, it is called progressive tax.

This is levied by the state government on various forms of entertainment like cinema halls / movie theaters, ticketed exhibitions, amusement parks, etc.

The concept of presumptive tax covers a wide variety of alternative means for determining the tax base, ranging from methods of reconstructing income based on administrative practice, which can be rebutted by the taxpayer, to true minimum taxes with tax bases specified in legislation. Statement 1: It is correct. An indirect attack through presumptive taxation may become more successful than direct attempts to reduce concessions. Such indirect methods also reduce tax evasion. Further, transfer pricing practices by multinationals to optimise on cross-country differences in corporate tax rates become less profitable. A minimum alternate tax (MAT) that targets the average tax liability across tax payers is a method that allows keeping the marginal tax rate low. Statements 2 and 3: They are correct. As per Dr. Kelkar Committee's report, the Finance Minister has introduced two controversial provisions levying separate tax on Fringe Benefits to employees and Banking Cash Transactions. Statement 4: VAT is not a presumptive tax. Hence, the correct option is 3.

A garnishee order is issued by a court of competent jurisdiction to direct a third party (garnishee) to pay debt recovery money to the judgment creditor instead of the debtor. It's a legal remedy for debt recovery, not an administrative action by tax authorities or government departments. The court must have jurisdiction over both parties.

This is the correct option as tax was imposed on all of the above items.

CBDT stands for Central Board of Direct Taxes. The Central Board of Direct Taxes or CBDT comes under the control of the Ministry of Finance, under the Department of Revenue. It gives inputs for making policies, as well as in the planning of the direct taxes in the country.

Option (2) is the correct answer.

Corporation tax is a direct tax levied, collected and appropriated by the Union or the central government. No part of this tax can be assigned to the states.