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Income Tax Quiz: 10 Basic Questions with Answers (India)

Written by the Quizzeela team · Reviewed by Utsav Raj
Last checked · 10 questions · Easy

Tax words confuse a lot of people. These 10 questions explain the basics in plain English. Rules and limits change, so always check the latest before filing.

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1What does PAN stand for?

  1. Permanent Account Number
  2. Personal Account Number
  3. Public Allowance Number
  4. Payment Authority Number
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Answer: A. Permanent Account Number. PAN is the Permanent Account Number, a 10-character ID issued by the Income Tax Department.

2ITR stands for:

  1. Income Tax Return
  2. Indian Tax Receipt
  3. Income Transfer Record
  4. Interest Tax Rate
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Answer: A. Income Tax Return. An Income Tax Return is the form you file to report your income and the tax paid on it.

3TDS means:

  1. Tax Deducted at Source
  2. Tax Declaration Statement
  3. Total Due Sum
  4. Tax Deposit Scheme
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Answer: A. Tax Deducted at Source. Tax Deducted at Source is tax cut by the payer, like an employer or bank, before paying you.

4India's financial year runs from:

  1. 1 April to 31 March
  2. 1 October to 30 September
  3. 1 January to 31 December
  4. 1 July to 30 June
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Answer: A. 1 April to 31 March. The financial year (FY) runs from 1 April to 31 March.

5From 1 April 2026, the new Income-tax Act uses which single term for the 1 April to 31 March year?

  1. Assessment month
  2. Calendar year
  3. Tax year
  4. Birth year
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Answer: C. Tax year. The Income-tax Act, 2025 replaced the old "previous year" and "assessment year" pair with one "tax year".

6Who usually gives you the salary TDS certificate (Form 16, renamed Form 130 from tax year 2026-27)?

  1. Your landlord
  2. Your bank
  3. The post office
  4. Your employer
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Answer: D. Your employer. Employers issue it, showing your salary and the TDS they deducted. Under the new rules Form 16 is renumbered Form 130.

7Which statement on the tax portal shows tax credited against your PAN, such as TDS?

  1. Bank passbook
  2. Aadhaar card
  3. Annual Information Statement (AIS) / Form 26AS
  4. Electricity bill
Show answer
Answer: C. Annual Information Statement (AIS) / Form 26AS. The AIS and Form 26AS (renumbered Form 168 under the new rules) list TDS and other details linked to your PAN.

8Under the old tax regime, the popular deduction long known as section 80C covers:

  1. Shopping bills
  2. Mobile recharges
  3. Car loans
  4. PPF, ELSS and life insurance premium
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Answer: D. PPF, ELSS and life insurance premium. It allows deductions for things like PPF, ELSS funds and life insurance premiums under the old regime. The new Act renumbered the sections, but the idea is the same.

9Which body looks after direct taxes like income tax?

  1. RBI
  2. CBDT
  3. GST Council
  4. SEBI
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Answer: B. CBDT. The Central Board of Direct Taxes (CBDT) administers direct taxes in India.

10Since FY 2023-24, which tax regime is the default for individuals?

  1. There is no default
  2. The new regime
  3. The GST regime
  4. The old regime
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Answer: B. The new regime. The Finance Act 2023 made the new regime the default. You can still choose the old one if you are eligible.
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Sources: Income Tax Department of India (incometaxindia.gov.in) and CBDT. For learning only, not financial, tax or insurance advice. Found a mistake? Use "Report a mistake" in the timed quiz.