Tag: black money and tax evasion

Questions Related to black money and tax evasion

The operating leverage is related to

income tax direct taxes commerce black money and tax evasion meaning of tax

  1. Variable costs

  2. Average costs

  3. Total costs

  4. Fixed costs

Show answer
Correct Option: D

Public revenue includes which of the following _______.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. tax revenue

  2. non-tax revenue

  3. capital receipts

  4. all the above

Show answer
Correct Option: D
Explanation:

Public revenue includes all the following:

  • Tax revenue: revenue earned by the government by taxing people is called tax-revenue. It is of two types:

  1. Direct tax: tax paid to the government directly. Examples include income tax, gift tax, wealth tax, property tax, etc.
  2. Indirect tax: this tax is collected by an intermediary person from the person who ultimately bears the burden. Examples are sales tax, value-added tax (VAT), goods and services tax (GST), etc.

  • Non-tax Revenue: Non Tax Revenue Receipts are those revenue receipts which are not generated by taxing the public. Examples of non-tax revenue includes revenue from power distribution, irrigation, banking services, insurance, and community services, etc. which make the part of Government business.

  • 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.

Income earned by government from the sources other than taxes is called ______.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. private funds

  2. non-tax revenue

  3. public funds

  4. none

Show answer
Correct Option: B
Explanation:

Non Tax Revenue receipts are those revenue receipts which are not generated by taxing the public. Example of a non-tax revenue includes revenue from power distribution, irrigation, banking services, insurance, and community services etc. which make the part of the Government business.

Which of the following is a non-tax revenue?

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. loans or other borrowing from monetary funds 

  2. aid from abroad

  3. revenue from state-owned enterprises

  4. all the above

Show answer
Correct Option: D
Explanation:

Non Tax Revenue Receipts are those revenue receipts that are not generated by taxing the public. Example of non-tax revenue includes revenue from power distribution, irrigation, banking services, insurance, and community services, etc. which make them part of the Government business. Other examples include loans or other borrowings from monetary funds or other governments that are included under, aid from abroad, revenue from state-owned enterprises, etc.

Amount received from which of the following is not a capital receipt?

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. sale of assets

  2. sale of shares

  3. sale of goods and services

  4. all the above

Show answer
Correct Option: C
Explanation:

Capital receipts: This is the income flow 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. The sale of goods and services is not a capital receipt.

Which of the following public revenue is a major contributor to the total central revenue?

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. Tax revenue

  2. Non-tax revenue

  3. Both A and B have equal contribution

  4. None of the above

Show answer
Correct Option: A
Explanation:

Public revenue which is a major contributor to the total central revenue is tax revenue. Revenue earned by government by taxing people is called tax-revenue. It is of two types:

  • Direct tax: tax payed to the government directly. Examples include income tax, gift tax, wealth tax, property tax etc.
  • Indirect tax: this tax is collected by an intermediary person from the person who ultimately bears the burden. Examples are sales tax, value added tax (VAT), goods and services tax (GST) etc. 

The difference between total expenditure and total receipts is _____.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. fiscal deficit

  2. budget deficit

  3. primary deficit

  4. revenue deficit

Show answer
Correct Option: B
Explanation:

A status in which government’s expenditure exceeds more than its revenue is called budget deficit. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities. 

The tax levied by the Union Government on income of individuals is known as ______.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. personal income tax

  2. interest tax

  3. wealth tax

  4. corporate tax

Show answer
Correct Option: A
Explanation:

Personal income tax- it is based on the principle of ability to pay. The tax levied by the union government on income of individuals is known as income tax.

The difference between revenue expenditure and revenue receipts is ______.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. revenue deficit

  2. fiscal deficit

  3. budget deficit

  4. primary deficit

Show answer
Correct Option: A
Explanation:

Revenue deficit=revenue expenditure & revenue receipts

The major source of revenue for the government is _____.

economics public finance and budget black money and tax evasion meaning of tax direct taxes

  1. loans

  2. fines

  3. taxes

  4. fees

Show answer
Correct Option: C
Explanation:

The individual income tax has been the largest single source of federal revenue since 1950, amounting to 46 percent of the total and 8 percent of gross domestic product (GDP) in 2014.