Tag: civics

Questions Related to civics

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

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

  1. current transfers from the rest of the world

  2. net indirect taxes

  3. national debt interest

  4. it does not differ

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Correct Option: B

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

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

  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.

Show answer
Correct Option: D
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.

Which of the following statements is correct?

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

  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.

Show answer
Correct Option: B
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.

GNP at market price minus ________ is equal to GDP at market price.

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

  1. depreciation

  2. direct taxes

  3. subsidies

  4. net income from abroad

Show answer
Correct Option: D
Explanation:

$GNP _{mp} - NFIA = GDP _{mp}$.

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

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

  1. Direct tax

  2. Indirect tax

  3. VAT

  4. MODVAT

Show answer
Correct Option: A
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.

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

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

  1. 1911

  2. 1901

  3. 1921

  4. 1987

Show answer
Correct Option: C
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.

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

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

  1. Canon of economy

  2. Canon of equality

  3. Canon of certainty

  4. All of above

Show answer
Correct Option: D
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.

Income Tax in India was introduced in the year:

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

  1. 1860

  2. 1960

  3. 1880

  4. 1947

Show answer
Correct Option: A
Explanation:

The history of Income-Tax in modern India dates back to 1860 when the first Income Tax Act was introduced by James Wilson who became (British) India's first finance member. 

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

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

  1. 10 percent

  2. 15 percent

  3. 20 percent

  4. 25 percent

Show answer
Correct Option: C

Non-Tax revenue includes

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

  1. Currency and coinage

  2. Dividends and profits

  3. Grants-in-aid

  4. All of the above

Show answer
Correct Option: D
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.