Indian Taxation System

This tax is not to be paid on transferring ownership of property. This tax is not to be paid on transferring ownership of property. But municipal tax is levied by the municipal corporate body of the city on the property owned by a person. It is not concerned with transferring ownership of property.

It is professional tax. The professional tax is paid by persons who are professionals like chartered accounts, advocates, and doctors. It is a direct tax and is paid on income earned through their profession and it cannot be shifted to any other person. Hence, the professional tax burden is felt by the person who pays it in the first instance.

It is not applicable on gift tax. The education cess is not to be paid on gift tax payable. The gift tax is to be paid on the gift received from another person, if it exceeds a certain limit.

It is an example of direct tax. The Securities Transaction Tax is the tax payable on the value of the taxable securities transaction. The tax is to be paid by the person who sells or purchases the securities and the burden of this tax cannot be shifted to any other person. Hence, it is an example of direct tax.

It is not levied by the Parliament. The Value Added Tax is the tax charged on the value added in goods and services at each stage. The Value Added Tax is the tax, which is levied by the respective state governments and hence it is not levied by the Parliament.

It is based on the length of the cigarettes. The excise duty, which is to be paid on cigarette, depends on its length. For instance, excise duty of Rs. 15 per 1000 cigarettes is levied on cigarettes up to length of 60 mm.

It is based on weight of sugar. The excise duty on sugar is based on the weight of sugar. It is charged according to the quintal, which is the weight of sugar.

Yes, all the above options are true. 

Statement 1 is wrong. GAAR is a step to contain the problem of tax avoidance, not to contain tax evasion. Tax avoidance is generally the legal exploitation of the tax regime to one's own advantage, to attempt to reduce the amount of tax that is payable by means that are within the law whilst making a full disclosure of the material information to the tax authorities. Statement 2 is perfectly correct: GAAR is a concept which generally empowers the Revenue Authorities in a country to deny the tax benefits of transactions or arrangements which do not have any commercial substance or consideration other than achieving the tax benefit.

Union Excise Duties are classified as tax revenue for the Central Government because they are compulsory levies on goods manufactured within the country. Tax revenue includes all direct and indirect taxes collected by the government, as opposed to non-tax revenue which comes from fees, interest, and dividends.

VAT (Value Added Tax) is imposed at every stage of production and distribution, unlike sales tax which is typically levied only at the final point of sale to consumers. The key feature of VAT is that each business in the supply chain pays tax on the 'value added' at their stage, and can claim credit for tax paid on inputs. This prevents tax cascading while ensuring tax revenue throughout the chain.

Tax on inherited property is classified as Wealth Tax (or inheritance/estate tax) because it's levied on the transfer of accumulated wealth from one generation to another. Unlike Income Tax (on earnings), Sales Tax (on transactions), or VAT (on value added), inheritance tax targets the stock of wealth rather than flows of income or consumption.

Taxes raised by the government are credited into the Consolidated Fund, which is the main government account under constitutional provisions. The Contingency Fund is for emergency expenses, Public Accounts handle trust money and debt, and there is no 'private accounts' category in government accounting. All tax revenue must flow through the Consolidated Fund.

It is progressive tax. When there is inflationary pressure due to increase in income and there is a need to contract it, the progressive tax comes to the rescue and contracts the surplus purchasing power from the economy. When the country is faced with falling income, the burden of tax automatically lessens. As the graduated rates apply on income automatically, the state has not to make any efforts on its own.

It is not an anti-social act. The indulging in luxuries by a person is not an anti-social act. The rich persons who have excess money can enjoy luxuries like travelling in expensive cars, going abroad etc. Just they have to pay the taxes on it, and indulging in luxuries is allowed by law.