Tag: social science

Quizzes (684) Questions (1162)

Questions Related to social science

Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Income tax in India is :
1. Progressive and anti-rich
2. Proportional and pro-poor
3. Regressive and anti-poor
Select the answer using the code given below:

  1. Only 1

  2. Only 2

  3. 1 and 3

  4. 1,2 and 3
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Income tax in India is progressive, meaning higher income earners pay a higher percentage of their income as tax.

Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Which tax is not shared by the central government with the states?

  1. Union excise duties

  2. Customs duty

  3. Income tax

  4. Estate duty
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Customs and Central Excise duties are not shared by the Centre with the states directly. But indirectly, through allocations of Central funds to States even these are shared.
Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Corporate Tax is imposed by ________.

  1. state government

  2. local government

  3. central government

  4. both centre and state government
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Corporate tax is a kind of direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities. Corporate income tax rates are mandated by the central government.

Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Consider the following statements and identify the right ones.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.

ii. The constitution also provides for transferring certain tax revenues from union list to states.

  1. i only

  2. ii only

  3. both

  4. none
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Among the two options, only second one is true because first one says that only central government has exclusive powers to levy taxes which is not true. Taxes in India are levied by the Central Government and the state governments. The constitution also provides for transferring certain tax revenues from union list to states list.

Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

The war reparations paid by the defeated Central Powers after the First World War is a best example of _______.

  1. tax revenue

  2. non-tax revenue

  3. both A and B

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

The war reparations paid by the defeated Central Powers after the First World War is a best example of non-tax revenue which is revenue receipts that are not generated by taxing the public.

Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

The following is an example of commercial non-tax revenue ______. 

  1. Gifts and grants

  2. Fees

  3. Fines

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

Among the following options, the commercial non-tax revenue is the surpluses. For instance, the central government runs railways. Surplus from railway earnings can be normally contributed to the revenue budget of the central budget.

Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Which of the following is considered a capital receipt?

1. Loan recoveries

2. Provident funds deposits

3. Grants

  1. 1 and 2 only

  2. 1 and 3 only

  3. 2 and 3 only

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Capital receipts: This is the income flow from one of the following sources. Cash from the sale of fixed assets, Cash from the sale of shares in the business, Cash from the issuance of a debt instrument which includes loans and bonds and also grants. Among the given options, provident fund deposits are not included under capital receipts.

Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Entrance fee of Rs. 2000 received by social club is _____.

  1. capital expenditure

  2. capital receipts

  3. revenue expenditure

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

Entrance fee of Rs. 2000 received by social club is an example of capital receipt. This is the income flow from one of the following sources. 

1.  Cash from the sale of fixed assets
2. Cash from the sale of shares in the business
3. Cash from the issuance of a debt instrument which includes loans and bonds. 
This should result either the reduction in government assets (sale of share, disinvestment) or increase in some liability (government borrowings).