Economics · General Awareness

Indian Taxation System

2,325 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 social science government and taxes types of tax types of taxes government budget and taxation

Which of the following is NOT true about indirect tax?

  1. Wealth tax is direct tax

  2. It is imposed by the central government but collected by the state government and handed over to central govt.

  3. In the budget of 2016-17, income tax collection was more than non tax revenue

  4. In the budget of 2016-17, income tax collection was 14% of total revenue of the central government
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

Which of the following are direct taxes?
I. Income tax
II. Goods & Service Tax
III. Gift Tax
IV. Custom Duty

 V. Wealth tax. 

  1. II, IV &V only

  2. I only

  3. I & III only

  4. I, III &V only
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Direct taxes are those where the incidence and impact fall on the same person. Income tax, Gift tax, and Wealth tax are direct taxes, while GST and Custom Duty are indirect taxes.

Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

Excise Duty, Customs Duty, Service Tax, Sales Tax, Purchase Tax, Entry Tax, etc. are examples of ______________.

  1. direct taxes

  2. indirect taxes

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

All the listed taxes (Excise, Customs, Service, Sales, etc.) are indirect taxes because they are levied on goods and services and their burden is shifted to the final consumer.

Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

Indirect Taxes are imposed on __________.

  1. income /wealth of the Taxpayer

  2. purchase / sale/ manufacture of goods and Provision of Services

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Indirect taxes are levied on transactions, such as the production, sale, or consumption of goods and services. They are not based on the income or wealth of the taxpayer.