Tag: main feature of tax

Questions Related to main feature of tax

If a government is unable to pass the budget in Lok Sabha, then ______.

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

  1. a totally new budget is presented

  2. the budget is revised and presented again

  3. the government has to resign

  4. none of the above

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Correct Option: C
Explanation:

If a government is unable to pass the budget in Lok Sabha, then the government has to resign.

The Economic Survey is compiled by ______.

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

  1. office of economic advisor

  2. central statistical office (CSO)

  3. national sample survey organization (NSSO)

  4. department of economic affairs

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Correct Option: D
Explanation:

The Economic Survey is compiled by Department of Economic Affairs, Ministry of Finance. Office of economic advisor publishes WPI, while CSO publishes IIP and CPI.

Income Tax is rounded off to ________________.

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

  1. Nearest one rupee

  2. Nearest ten rupees

  3. Nearest hundred rupees

  4. Nearest thousand rupees

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Correct Option: B
Explanation:

An income tax is a tax that governments enforce on income generated by businesses and individuals within their authority. By law, taxpayers must file an income tax return yearly to determine their tax obligations Income taxes are a source of revenue for governments. 

As per Section 288 B of the income tax act, the total tax computed shall be curved off to the nearest Rs 10. The income tax is rounding off would be done on the total tax payable or refundable and not to various dissimilar sub-heads of taxes like income tax, education cess, a surcharge etc.

Thus, the correct option is B.

A tax that takes away a higher proportion of one's income as the income rises is termed as ___________.

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

  1. proportional tax

  2. progressive tax

  3. regressive tax

  4. indirect tax

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Correct Option: B

Income Tax is ____________ in nature.

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

  1. progressive

  2. regressive

  3. indifferent

  4. substantial

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Correct Option: A

Marginal Rate of Tax refers to ____________.

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

  1. lowest rate of Income Tax

  2. highest rate of Income Tax

  3. average rate of Income Tax

  4. nil rate of Income Tax

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Correct Option: B

To remove inequalities, the Government uses ___________.

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

  1. indirect taxes

  2. regressive taxes

  3. progressive taxes

  4. proportional taxes

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Correct Option: C

The reasons for high tax incidence in India are____________.

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

  1. increase in expenditure on development planning

  2. rise in expenditure on defence and other non-developmental activities

  3. high cost of collection

  4. all of the above

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Correct Option: D

Tax reform committee (TRC) was constituted for comprehensive reform of _________.

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

  1. direct tax laws

  2. indirect tax laws

  3. both direct and indirect tax laws

  4. none of the above

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Correct Option: C

Which of the following is a progressive tax?

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

  1. Income tax

  2. Sales tax

  3. Custom duty

  4. Excise duty

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Correct Option: A