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

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

Which of the following is a 'business practice' towards Government?

  1. Ensure safety of their money and timely payment of interest

  2. Rules and regulations regarding taxes, duties, restrictive and monopolistic trade

  3. Unscrupulous tactics and methods should be avoided while handling them

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

business practice towards government:-

1. rules and regulations regarding taxes.
2.follow environmental regulations.
3. abide by labor laws.
4. avoid restrictive trade practices.

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

Which of the following is a 'business practice' towards Government ? 

  1. Ensure safety of their money and timely payment of interest

  2. Rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices should be adhered to

  3. Unscrupulous tactics and methods should be avoided while handling them.

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Every business is required to perform some practices towards government like filing of taxes. It includes rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices. Business needs to do all these activities to survive in the market for longer period of time.

Multiple choice organization of commerce and management social responsibility of management and csr concept of social responsibility social responsibility social responsibility - concept corporate social responsibility

Enterprise must pay taxes _____.

  1. In advance

  2. More

  3. Regularly

  4. In cash
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Enterprises must pay taxes regularly. They should not indulge in the activity of tax evasion. regular tax payment contributes in development of economy.

Multiple choice political science local self-government-urban local self - government - urban local self government - urban local self government- urban

Choose the correct option to complete the statement given below.
People who own homes pay _______.

  1. Water tax

  2. General tax

  3. Education tax

  4. Property tax.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

People who own homes have to pay a property tax. The larger the house the more the tax. Property tax, however, forms only 25-30% of the money that a Municipal Corporation earns.

Multiple choice political science local self-government-urban local self - government - urban local self government - urban local self government- urban

Which of the following is not a source of income to a municipality ?

  1. House tax and water tax

  2. Taxes on cycle rickshaw and other vehicles

  3. Grant from the State Government

  4. Income tax
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
  • Sources of income to a municipality are
Water tax
House tax
Cycle rickshaw tax
Vehicle tax
Grant from state government
Market tax
Entertainment tax
  • Income tax is a Union list subject and doesn't come under local body subjects.
Multiple choice political science local self-government-urban local self - government - urban local self government - urban local self government- urban

Which one of the following is not a source of income of a Municipal Council?

  1. Income Tax

  2. Water Tax

  3. House Tax

  4. Education Tax
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A Municipal Corporation, City Corporation, Mahanagar Palika or Mahanagar Nigam is a local government in India that administers urban areas with a population of more than one million. The growing population and urbanization in various cities of India were in need of a local governing body that can work for providing necessary community services like healthcare, educational institution, housing, transport etc. by collecting property tax and fixed grant from the State Government. Its sources of income are taxes on water, houses, markets, entertainment, and vehicles paid by residents of the town and grants from the state government.

Multiple choice political science local self-government-urban local self - government - urban local self government - urban local self government- urban

The sources of revenue of the Municipal Council include property tax, grants from State Government, ________________.

  1. Water tax

  2. Education tax

  3. Tax on markets

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The source of revenue of the Municipal Council are mentioned below:

1. Taxes on water, houses, markets, and vehicles.
2. Grants from State Government.
3. Taxes on education.
4. Taxes on agricultural land for the specific purpose.
5. Professional taxes.

Multiple choice history magadh empire and india during the period of kingdoms administration during mahajanapada emergence of kingdoms and republics mahajanapada age

Why taxes were needed by rulers?

  1. For building huge forts

  2. To maintain big armies

  3. Both A and B

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

As the rulers of the mahajanapadas were, building huge forts, maintaining big armies, they needed more resources. And they needed officials to collect these. So, instead of depending on occasional gifts brought by people, as in the case of the raja of the janapadas, they started collecting regular taxes.

Multiple choice history the industrial revolution industrialization and the growth of democracy china: two different phases industrial revolution industrial revolution and its effects

Taille was a/an _____.

  1. Indirect tax

  2. Direct tax

  3. Agricultural produce

  4. Situation of extreme poverty
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The taille was a direct land tax on the peasantry and non-nobles in pre-revolutionary France. It was a primary source of revenue for the French monarchy.

Multiple choice commerce international trade types of foreign trade exports and imports import and export procedure

Which of the following do not form part of duty drawback scheme?

  1. Refund of excise duties

  2. Refund of customs duties

  3. Refund of export duties

  4. Refund of income dock charges at the port of shipment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Major duty drawbacks include refund of excess duties paid on goods meant for export, refund of custom duties paid on raw materials and machines imported for export production.

Multiple choice pastoral nomand and their movements pastoralists in the modern world history

The British levied tax on the Pastoralists who had to pay tax on ______.

  1. every animal they grazed on the pastures

  2. the houses they were living in

  3. number of animals they had

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Grazing tax in India was introduced by the colonial government in the mid-nineteenth century. The pastoralists had to pay tax on every animal they grazed on the pastures. The tax per head of cattle went up rapidly and the system of the collection was made increasingly efficient.

Multiple choice legal studies arbitration, tribunal adjudication and alternate dispute resolution public debt public debt main feature of tax

Which one of the following is the main source of revenue in the states?

  1. Property Tax

  2. Excise Duty

  3. Sales Tax

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

States collect revenue within its territory on the subjects under List II or State List of Seventh schedule of the Constitution. Excise duty comes under Union List  whereas Property tax is generally levied by local authorities and not state government. So, the main source of revenue in the states is the sales tax which is a consumption tax imposed by the government on the sale of goods and services.  It is the tax imposed on the sale and purchase of goods within the state and different states have different sales tax laws for their states.

 It is levied by the Government. Sales tax is charged at both the levels of Legislation, Central and State. The tax imposed by the Central Government is known as the Central Sales Tax, whereas tax imposed by the states is called Sales Tax.