Tag: social science

Questions Related to social science

Revenue of the state governments is raised from the following sources, except ____________.

social science government and taxes types of tax types of taxes government budget and taxation

  1. entertainment tax

  2. expenditure tax

  3. agricultural income tax

  4. land revenue

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Correct Option: C
Explanation:

In India, agriculture is not considered as commercial activity, it is considered as activity of subsistence from hundreds of years. Other areas such as entertainment, expenditure, and land revenue can be seen as business activities for purpose of profit making. This is the main reason for being exclusion of agricultural revenue out side taxation.

Excise duty tax is levied on the _______.

social science government and taxes types of tax types of taxes government budget and taxation

  1. import of goods

  2. export of goods

  3. production of goods

  4. sale of goods

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Correct Option: C
Explanation:

  • Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol and narcotic substances is collected by the State Government and is called State Excise duty. The Excise duty on rest of goods is called Central Excise duty.
  • Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods.

Among the tax revenues of the Central government, the leading source is _____.

social science government and taxes types of tax types of taxes government budget and taxation

  1. income tax

  2. corporation tax

  3. union excise tax

  4. custom duty

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Correct Option: C
Explanation:

  • The Union excise duties are the leading source of revenue for the Central Government and are levied on commo­dities produced within the country (exclu­ding those commodities on which State excise is levied e.g. liquors and narcotic drugs).
  • The most important commodities from the revenue point of view are sugar, cotton, mill cloth, tobacco, motor spirit, matches and cement.

Which types of tax helps in reducing disparities of income?

social science government and taxes types of tax types of taxes government budget and taxation

  1. Proportionate tax

  2. Progressive tax

  3. Regressive tax

  4. All of the above

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Correct Option: B
Explanation:

A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate.

Which of the following holds true for an indirect tax _____.

social science government and taxes types of tax types of taxes government budget and taxation

  1. the tax is levied on wealth

  2. the tax is levied on all kinds of income

  3. point of impact and incidence are different

  4. the tax is levied on property

Show answer
Correct Option: C
Explanation:

Indirect tax is a type that is paid to government indirectly  i.e tax on goods and services rather than on income and profits. Examples of indirect tax include VAT, excise duty, service tax, customs duty etc. Point of impact and incidence is different for example we buy a commodity from shopkeeper(point of impact) and tax levied goes to government ( point of incidence).

Consider the following statements and identify the right one:
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 and taxes types of tax types of taxes government budget and taxation

  1. Only I

  2. Only II

  3. Both

  4. None of these

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Correct Option: B
Explanation:

Central government has exclusive power to impose tax which is not mentioned in state or concurrent list.

The tax levied on the interstate trade of goods is _____.

social science government and taxes types of tax types of taxes government budget and taxation

  1. sales tax

  2. excise tax

  3. service tax

  4. central sales tax

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Correct Option: D
Explanation:

The tax levied on the interstate trade of goods is the central sales tax.

Consider the following statements and identify the right ones.
I- Wealth tax is collected from productive as well as unproductive assets
II- Estate duty was a type of large estates

social science government and taxes types of tax types of taxes government budget and taxation

  1. Only I

  2. Only II

  3. Both

  4. None

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Correct Option: B
Explanation:

Wealth tax is collected from unproductive assets only. Estate duty was abolished in 1985.

The tax on net income of companies is _______.

social science government and taxes types of tax types of taxes government budget and taxation

  1. personal income tax

  2. interest tax

  3. wealth tax

  4. corporation tax

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Correct Option: D
Explanation:

The tax on net income of companies is corporate. Tax rates are uniform for categories of companies.

Which of the following taxes is/are withdrawn or abolished?

social science government and taxes types of tax types of taxes government budget and taxation

  1. Interest tax

  2. Estate duty

  3. Gift tax

  4. All the above

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Correct Option: D
Explanation:

Interest tax was withdrawn in 2000-01, estate duty abolished in 1985 and gift tax in 1998-99.