Tag: social science

Questions Related to social science

Income tax in India is :
1. Progressive and anti-rich
2. Proportional and pro-poor
3. Regressive and anti-poor
Select the answer using the code given below:

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. Only 1

  2. Only 2

  3. 1 and 3

  4. 1,2 and 3

Show answer
Correct Option: A

Which tax is not shared by the central government with the states?

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. Union excise duties

  2. Customs duty

  3. Income tax

  4. Estate duty

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Correct Option: B
Explanation:
Customs and Central Excise duties are not shared by the Centre with the states directly. But indirectly, through allocations of Central funds to States even these are shared.

SEBI was established in _______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. 1993

  2. 1992

  3. 1988

  4. 1990

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Correct Option: B
Explanation:

The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It was established in the year 1992 and given statutory powers on 12 April 1992 through the SEBI Act, 1992.

Corporate Tax is imposed by ________.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. state government

  2. local government

  3. central government

  4. both centre and state government

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Correct Option: C
Explanation:

Corporate tax is a kind of direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities. Corporate income tax rates are mandated by the central government.

Consider the following statements and identify the right ones.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.

ii. The constitution also provides for transferring certain tax revenues from union list to states.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. i only

  2. ii only

  3. both

  4. none

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Correct Option: B
Explanation:

Among the two options, only second one is true because first one says that only central government has exclusive powers to levy taxes which is not true. Taxes in India are levied by the Central Government and the state governments. The constitution also provides for transferring certain tax revenues from union list to states list.

Aid from abroad is a _______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. Tax revenue

  2. Non-tax revenue

  3. National income

  4. None

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Correct Option: B
Explanation:

Aid from abroad is a non-tax revenue.

The war reparations paid by the defeated Central Powers after the First World War is a best example of _______.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. tax revenue

  2. non-tax revenue

  3. both A and B

  4. none of the above

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Correct Option: B
Explanation:

The war reparations paid by the defeated Central Powers after the First World War is a best example of non-tax revenue which is revenue receipts that are not generated by taxing the public.

The following is an example of commercial non-tax revenue ______. 

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. Gifts and grants

  2. Fees

  3. Fines

  4. Surpluses

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Correct Option: D
Explanation:

Among the following options, the commercial non-tax revenue is the surpluses. For instance, the central government runs railways. Surplus from railway earnings can be normally contributed to the revenue budget of the central budget.

Which of the following is considered a capital receipt?

1. Loan recoveries

2. Provident funds deposits

3. Grants

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. 1 and 2 only

  2. 1 and 3 only

  3. 2 and 3 only

  4. 1, 2 and 3

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Correct Option: B
Explanation:

Capital receipts: This is the income flow from one of the following sources. Cash from the sale of fixed assets, Cash from the sale of shares in the business, Cash from the issuance of a debt instrument which includes loans and bonds and also grants. Among the given options, provident fund deposits are not included under capital receipts.

Entrance fee of Rs. 2000 received by social club is _____.

social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

  1. capital expenditure

  2. capital receipts

  3. revenue expenditure

  4. revenue deficit

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Correct Option: B
Explanation:

Entrance fee of Rs. 2000 received by social club is an example of capital receipt. This is the income flow from one of the following sources. 

1.  Cash from the sale of fixed assets
2. Cash from the sale of shares in the business
3. Cash from the issuance of a debt instrument which includes loans and bonds. 
This should result either the reduction in government assets (sale of share, disinvestment) or increase in some liability (government borrowings).