AIBE Taxation Law PYQs: Most Repeated Questions

What is Taxation Law in AIBE 22 Exam?

Taxation Law constitutes almost 4 questions out of 100 in the AIBE 22 Exam 2026, which is about 4% of the whole paper. It is a scoring subject. The candidates are tested mainly on the basic tax concepts and statutory provisions.

Taxation Law is the legal system for the levy, collection and administration of taxes in India. Candidates should prepare important topics like Income Tax, Goods and Services Tax (GST), direct and indirect taxes, tax authorities and constitutional provisions related to taxation for AIBE. The questions are generally simple and are based on basic legal principles and statutory provisions.

Top Repeated Taxation Law PYQs

Given below are the Top Taxation Law PYQs based on the last 10 years AIBE exam trends and important topics for AIBE 22 2026 preparation.

1. Which of the following is a Direct Tax?

(a) Goods and Services Tax (GST)
(b) Customs Duty
(c) Income Tax
(d) Excise Duty

Answer: (c) Income Tax

Solution: A direct tax is imposed directly on the income or wealth of a person and is paid by the same person on whom it is levied. Income Tax is a classic example of a direct tax. GST, Customs Duty, and Excise Duty are indirect taxes.

2. Which Constitutional Article provides that no tax shall be levied or collected except by authority of law?

(a) Article 14
(b) Article 19
(c) Article 265
(d) Article 300A

Answer: (c) Article 265

Solution: Article 265 of the Constitution of India ensures that taxes can only be imposed through a valid law enacted by a competent legislature. This provision protects citizens from arbitrary taxation by executive authorities.

3. GST stands for:

(a) General Sales Tax
(b) Goods and Services Tax
(c) Government Service Tax
(d) Gross Service Tax

Answer: (b) Goods and Services Tax

Solution: GST is a comprehensive indirect tax introduced to replace multiple indirect taxes in India. It aims to create a unified national market by simplifying the taxation system and reducing cascading effects of taxes.

4. Which authority is empowered to levy Income Tax in India?

(a) State Governments only
(b) Municipal Authorities
(c) Central Government
(d) Gram Panchayats

Answer: (c) Central Government

Solution: Under the Constitution, the power to levy taxes on income (other than agricultural income) rests with the Union Government. Income Tax is administered by the Income Tax Department under the Ministry of Finance.

5. Which of the following taxes is generally classified as an Indirect Tax?

(a) Income Tax
(b) Corporate Tax
(c) GST
(d) Wealth Tax

Answer: (c) GST

Solution: Indirect taxes are collected from one person but ultimately borne by another, usually the consumer. GST is charged on the supply of goods and services and is ultimately paid by the end consumer.

6. The GST Council is constituted under which Article of the Constitution?

(a) Article 246A
(b) Article 279A
(c) Article 356
(d) Article 368

Answer: (b) Article 279A

Solution: Article 279A provides for the constitution of the GST Council. The Council recommends tax rates, exemptions, and other important matters relating to GST to ensure coordination between the Centre and States.

7. Which of the following is the primary objective of taxation?

(a) Punishing citizens
(b) Raising revenue for public purposes
(c) Restricting trade completely
(d) Regulating marriages

Answer: (b) Raising revenue for public purposes

Solution: The primary purpose of taxation is to generate revenue for the government to fund public services, infrastructure, welfare schemes, and administration. Taxes are essential for the functioning of the State.

8. Agricultural income is generally exempt from Income Tax under:

(a) State List
(b) Constitutional scheme relating to taxation
(c) Criminal Procedure Code
(d) Consumer Protection Act

Answer: (b) Constitutional scheme relating to taxation

Solution: Agricultural income is exempt from Central Income Tax. The Constitution grants States the power to tax agricultural income, distinguishing it from other forms of income taxable by the Union Government.

9. Input Tax Credit (ITC) under GST refers to:

(a) Tax paid by exporters only
(b) Credit available for tax already paid on inputs
(c) Refund of customs duty only
(d) Exemption from all taxes

Answer: (b) Credit available for tax already paid on inputs

Solution: Input Tax Credit allows businesses to reduce their tax liability by claiming credit for GST already paid on purchases used in business. This mechanism prevents the cascading effect of taxes.

10. Which of the following statements regarding tax evasion is correct?

(a) It is a lawful method of reducing tax liability
(b) It involves illegal non-payment or underpayment of tax
(c) It is encouraged under tax laws
(d) It has no legal consequences

Answer: (b) It involves illegal non-payment or underpayment of tax

Solution: Tax evasion involves deliberately concealing income or providing false information to avoid tax liability. It is illegal and may result in penalties, prosecution, and other legal consequences under tax laws.

Why Taxation Law Matters in AIBE 22?

• Taxation Law significance in AIBE 22 Carries Approx. 4 Marks: Taxation Law covers approx. 4 questions out of 100 questions in the AIBE 22 Examination 2026, making it an important scoring area.

• Popular Question Topics: Common questions have been seen in areas of Income Tax, GST, taxation (direct and indirect), constitutional provisions, and tax authorities. One can refer to the Top 10 Topics that Repeat in AIBE Question Papers.

• Easy to Understand: Questions on Taxation Law in AIBE 22 are mostly direct and can easily be solved by knowing the basics.

• Relevance for Practising Law: Taxation law is very important for commercial, corporate, and financial aspects and hence is quite relevant for future advocates.

• Easier Scoring with PYQs: Practising Taxation Law PYQs of AIBE will help aspirants find recurring topics and score easy marks.

Students can also check other AIBE 22 Most Repeated PYQs,

• AIBE 22 Evidence Act and Bhartiya Sakshya Adhiniyam PYQs.

• AIBE 22 Family Law PYQs

• AIBE 22 Criminal Law PYQs

• AIBE 22 Constitutional Law PYQs

• AIBE 22 Environmental Law PYQs

• AIBE 22 Company Law PYQs