Economics · General Awareness
Indian Taxation System
2,347 Questions
The Indian taxation system comprises direct and indirect levies including income tax, goods and services tax, and property tax. Understanding these tax structures is crucial for general awareness sections in banking and government exams. The practice set covers central and state tax collections, exemptions, and capital gains rules.
Goods and Services TaxIncome tax rulesProperty tax assessmentsTax exemptionsCentral versus state taxes
Indian Taxation System Questions
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Salary, allowances and pensions of the Judges of the Supreme Court
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Salary, allowances and pensions of the CAG
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Salaries and allowances of the Speaker and Deputy Speaker of Lok Sabha and Rajya Sabha
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Salaries and allowances of the Attorney General of India
D
Correct answer
Explanation
Salaries of the Attorney General are not charged on the Consolidated Fund of India; they are voted upon by Parliament.
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Income Tax
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Wealth Tax
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House Tax
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Gift Tax
C
Correct answer
Explanation
Municipal corporations and municipalities are local government bodies that primarily levy house tax (property tax) to generate revenue for local services.
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Income Tax
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Wealth Tax
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House Tax
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Professional Tax
D
Correct answer
Explanation
Professional tax is a tax levied by state governments on professions, trades, and callings, and the proceeds are often assigned to local bodies.
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Railways
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Excise Duty
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Sales Tax
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Direct Taxes
B
Correct answer
Explanation
Historically, excise duties have been a major source of revenue for the Indian government, though this can vary by fiscal year.
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Stamp Duty
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Excise Duty
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Income Tax
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Gift Tax
A
Correct answer
Explanation
Stamp duty is a tax levied by the Central Government but collected by the State Governments.
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Stamp Duty
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Excise Duty
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Sales Tax
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Income Tax
C
Correct answer
Explanation
State governments in India historically derived their largest share of tax revenue from Sales Tax (now largely subsumed under GST). Other options like Income Tax are central government revenue sources.
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Private warehouses
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Public warehouses
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Bonded warehouses
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Government warehouses
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Cooperative warehouses
C
Correct answer
Explanation
This is the correct answer. Bonded warehouses are licensed to accept imported goods prior to payment of tax and customs duty. These are goods that are not permitted to eave the docks or airport till customs duty is paid.
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Wealth Tax
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Gift Tax
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Sales Tax
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Corporation Tax
C
Correct answer
Explanation
Sales tax is a tax collected by an intermediary (the retailer) from the consumer, making it an indirect tax. Wealth, gift, and corporation taxes are direct taxes.
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Service tax
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Custom duty
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Excise duty
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Income tax
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Excise and Taxation Department
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EPFO Department
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Pollution Department
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Income Tax Department
A
Correct answer
Explanation
Right answer, because service tax is linked with Excise and Taxation Department. So, it is the right answer here.
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Sale Tax Department
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Excise Department
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Pollution Department
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Income Tax Department
D
Correct answer
Explanation
Pan Number is linked with Income Tax Department and issued by Income Tax Department.
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sale, purchase and taxable services
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taxable income
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taxable services only
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EPFO department
A
Correct answer
Explanation
Right answer, because excise is deducted on sale, purchase and Service Tax is already a part of Excise Department.
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Nuclear weapons
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Taxes
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Space research
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Railway goods
A
Correct answer
Explanation
CTBT stands for Comprehensive Nuclear-Test-Ban Treaty. It is a multilateral treaty that bans all nuclear explosions for both civilian and military purposes.
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Sales Tax
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Service Tax
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Income Tax
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Both (1) and (2)
C
Correct answer
Explanation
Right answer because Pan No. is required for payment of income tax.
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Value Added Tax
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Visit as Tourist
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Visitor Account Tax
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None of these
A
Correct answer
Explanation
Right answer because the full name of VAT is Value Added Tax.