Tag: tax and its importance

Questions Related to tax and its importance

An income tax system is said to be progressive ________________.

social science tax and its importance taxation : need, principles and importance main feature of tax public revenue and taxation

  1. if the rate of increase of the tax liability for a tax paying unit is less than the rate of increase of its income

  2. if the rate of increase of the tax liability for the tax paying unit is greater than the rate of increase of its income

  3. if the rate of increase of the tax liability for tax paying unit is equal to the rate of increase of its income

  4. if the rate of increase of the tax bears a multiplicative relation with rate of increase in income of tax paying unit

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Correct Option: B

Identify the non-tax revenue from the following statement: "It refers to claim of the government on the property of a person who dies without leaving behind any legal heir or a will".

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

  1. Special Assessment

  2. Escheats

  3. Forfeitures

  4. Fees

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Correct Option: B

Under which of the following tax system, more tax is imposed on the lower income group?

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

  1. Regressive

  2. Progressive

  3. Value Added Tax

  4. Proportional Tax

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Correct Option: A

Which of the following tax have been abolished?

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

  1. Income tax

  2. Goods & service tax

  3. Gift tax

  4. Indirect tax

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Correct Option: C

GST is payable on _________.

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

  1. sale of goods

  2. providing services

  3. both (A) and (B)

  4. manufacture of goods

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Correct Option: C

 Non-Tax Revenues of the states can be increased by improving the working of the
 1. State Road Transport Corporations and the state electricity boards
2. irrigation projects and the tax collections
3. divesting the state public sector companies

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

  1. Only 1

  2. I and 2

  3. 1 and 3

  4. None of the above

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Correct Option: A
Explanation:

Taxes belong to 'Tax Revenue'.

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

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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.