Tag: civics

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Questions Related to civics

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

National income differs from net national product at market price by the amount of ____________.

  1. current transfers from the rest of the world

  2. net indirect taxes

  3. national debt interest

  4. it does not differ
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Net National Product (NNP) at market price includes indirect taxes. National Income (NI) is equivalent to NNP at factor cost. To get from NNP at market price to NNP at factor cost, one must subtract net indirect taxes.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Which one of the following is not a merit of direct taxes?

  1. They are imposed according to the ability of the person to pay.

  2. These taxes create civil consciousness.

  3. The revenue is income elastic.

  4. They do not require maintenance of accounts.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Direct taxes do need maintenance of accounts. For example for filing Income Tax returns, there needs to be proper maintenance of accounts so that the figures mentioned is proper and the tax calculated is error free.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Which of the following statements is correct?

  1. Excise duty is levied on sales volume.
  2. Custom duties have been drastically cut down since $1991$.

  3. VAT has been adopted by only 3 states in India.

  4. Agriculture contributes the maximum to the direct tax revenues in India.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The correct statement is that custom duties have been drastically cut down since 1991. Others are wrong because excise duty is levied on production, VAT has been adopted by some states in India and agriculture contributes nil to the direct tax revenues in India.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

When the burden of the tax falls on the person on whom the tax is imposed, it is called__________.

  1. Direct tax

  2. Indirect tax

  3. VAT

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

When the burden of the tax falls on the person on whom the tax is imposed, it is called Direct Tax. The effect of this tax is borne by these tax payers themselves, the tax payer cannot shift the incidence of the tax upon somebody else. In other words a direct tax is demanded from the very person who it is intended or devised for.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

The year which is known as the year of great divide:

  1. 1911

  2. 1901

  3. 1921

  4. 1987
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Prior to 1921, the course of population growth was undulating (several ups and downs, mainly because of mortality differentials). During 1911–1921, India experienced negative growth rate in her population.

After 1921, Mortality has started declining as a result of improvement in public heath measures while, fertility remain unchanged. Which caused a continuous and rapid increase in population growth rate in upcoming decades.

Hence, 1921 was the year when India moved from stage 1 to stage 2 of demographic transition.
Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

A dam Smith gave the following cannons of a good tax system:

  1. Canon of economy

  2. Canon of equality

  3. Canon of certainty

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Adam smith proposed the canons of a good tax system for effective revenue generation and maintaining social objectives as well.
The four canons are of

(1) Equality,

(2) Certainty,

(3) Convenience, and

(4) Economy.
Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Under Sec 107(A) the Central Board of Direct Taxes in Consideration of an application by a company may reduce the amount of minimum distribution upto a maximum amount not exceeding _____ of the statutory percentage

  1. 10 percent

  2. 15 percent

  3. 20 percent

  4. 25 percent
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the relevant tax provisions, the Board may reduce the minimum distribution requirement by up to 20 percent of the statutory percentage.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Non-Tax revenue includes

  1. Currency and coinage

  2. Dividends and profits

  3. Grants-in-aid

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

Non Tax Revenue Receipts are those revenue receipts which are not generated by Taxing the public. 

  • Money which the Government earns as “Dividends and profits” from its profit making public enterprises (PSUs).
  • Interest which the Government earns on the money lent by it to external or internal borrowers. Thus this revenue receipts may be in foreign currency as well as Indian Rupees.
  • The money which the government receives out of its fiscal services such as stamp printing, currency printing, medal printing etc.
  • Money which the Government earns from its “General Services” such as power distribution, irrigation, banking services, insurance, and community services etc. which make the part of the Government business.
  • Money which the government accrues as fees, fines, penalties etc.
  • Grants the Government of India receives from the external sources. In case of the state Governments, it may be the internal grant from the central Government.