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 geography kerala, from eighth to eighteenth century kerala during medieval period in the land of kerala study of kerala

___________ was a kind of tax rebate. According to this, all the plants which had not yet started yielding were exempted, when the pattam was calculated by Janmis.

  1. Kettezhuthu

  2. Kuzhikanam

  3. Kandezhuthu

  4. Verumpattam
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Kuzhikanam was a kind of tax rebate that existed during the 12th and 18th centuries CE. According to this, all the plants which had not yet started yielding were exempted, when the pattam was calculated by the Janmis who had ownership of the Janmam Lands.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following is a correct statement?

  1. Goods and Service Tax (GST) is a consolidation of many indirect taxes already levied in India

  2. In India, Excise duty and Service tax are levied by the Central Government

  3. VAT is levied by the State Governments

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

GST consolidated various indirect taxes, the Central Government levies excise and service tax (pre-GST context), and VAT was historically a state-level tax. All these statements are accurate descriptions of the Indian tax landscape.

Multiple choice history the development of regional culture development of regional culture during medieval period india in 18th century rise of independent states kings and kingdoms of the early medieval period

What does Mohatarfa mean during Maratha rule?

  1. Tax on trades and profession

  2. Tax on sales and purchase

  3. Tax on production

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

Mohatarfa was the duties imposed on traders and professionals, and it was treated as the income tax.  The tax varied from place to place, shop to shop and profession to profession. It depended on the earning of each trader. 

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

Besides the level of income, the taxation policies of the government also affect the ability to save.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Even when the income of person is high , he is left with less real income after paying the high taxes levied by the government this then affects both the level of consumption and savings of the person.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

When the rates of income tax and sales tax are high, the major portion of the earnings of people goes to the government exchequer and very little remains with people to save and invest.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When high rate of taxes (income tax and sales tax)  are imposed by the government ,the real income of the consumers go down and hence the purchasing power falls so in turn savings of the people falls accordingly.

Multiple choice commercial studies concept of market and marketer meaning and importance of marketing meaning and definition of market introduction to marketing marketing environment meaning and definition of marketer role of marketing

Which of the following persons can opt for composition scheme?

  1. Person making any supply of goods which are not leviable to tax under this Act

  2. Person making any inter-State outward supplies of goods

  3. Person effecting supply of goods through an e-commerce operator liable to collect tax at source

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

The composition scheme under GST (in India) has specific restrictions, such as prohibiting inter-state supplies and supplies through e-commerce operators liable for TCS. Therefore, none of the listed persons are eligible.

Multiple choice

Which one of these is a government service?

  1. Internet Banking

  2. Train Timetables

  3. Online Auction Sites

  4. Online Tax Returns
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Online tax returns are a service provided by government agencies for citizens to fulfill their fiscal obligations. Banking, travel, and auctions are typically private sector services.

Multiple choice

How was Akbar's tax system unique?

  1. he took 50% of people's harvests

  2. average tax over 10 years

  3. did not ever tax the people

  4. stole from the rich and gave to the poor
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Akbar's revenue minister, Raja Todar Mal, introduced the Dahsala system. This system calculated the average produce and prices of crops over the previous ten years to determine the tax rate.

Multiple choice

How did Akbar change the taxation system?

  1. he made everyone pay 30% of profits only.

  2. Imposed a mansion tax on the rich.

  3. He made landlords pay a bedroom tax.

  4. He made everyone pay 40% of their profits only.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Akbar's land revenue system, known as the Zabt system, was based on the average produce and prices of the previous ten years. He generally fixed the tax at one-third of the average produce, which is often represented as 33% or roughly 30% in simplified historical contexts.

Multiple choice

Which two stakeholders might have a conflict if a VAT is increased?

  1. Owners and Employees

  2. Owners and Government

  3. Owners and Local Community

  4. Employees and Customers
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An increase in Value Added Tax (VAT) is decided by the government, which can increase prices for customers and reduce sales and profits for business owners. This creates a direct conflict of interest between the owners (who want to maximize profit) and the government (which wants to raise tax revenue).

Multiple choice

Responsibility towards the government is

  1. Pay taxes regularly and honestly

  2. None of these

  3. Supply of goods at a reasonable price to consumers

  4. Safety of investment provided by shareholders
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A business has a legal and social responsibility to comply with government regulations, which includes the regular and honest payment of taxes. Other options relate to consumers or shareholders.

Multiple choice

Businesses and Consumers do this

  1. Complain

  2. Buy Goods and Services

  3. Pay Taxes at the same rate

  4. None

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Both businesses and consumers participate in the economy by purchasing goods and services to satisfy their needs and operations.