Tag: government and taxes

Questions Related to government and taxes

Tax payments to the government do not provide any direct benefit to the tax payer. 

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

  1. True

  2. False

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Correct Option: A
Explanation:

Government spends tax receipts for common benefit of the society. Tax payer cannot expect that the tax amount will be used for his direct benefit.

Indirect taxes cannot be avoided in any circumstances.

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

  1. True

  2. False

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Correct Option: B
Explanation:

Indirect taxes can be avoided in certain circumstances, by not entering into those transactions, which call for such taxes. 

Direct taxes have limited reach as compared to indirect taxes. 

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

  1. True

  2. False

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Correct Option: A

Direct tax is called direct because it is collected directly from __________________.

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

  1. The producers on goods produced

  2. The sellers on goods sold

  3. The buyers of goods

  4. The income earners

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Correct Option: D
Explanation:

A direct tax is the tax, the final burden of which is borne by the person on whom it is imposed. For example: Income tax is a direct tax. Thus, direct tax is called direct tax as it is collected directly from the income earners and the burden of the tax cannot be shifted to different persons.

The tax levied by the union government on income of individuals is known as _____.

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

  1. personal income tax

  2. interest tax

  3. wealth tax

  4. corporation tax

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Correct Option: A
Explanation:

 Personal Income Tax (PIT) is a direct tax levied on income of a person. A person means an individual, an ordinary partnership, a non-juristic body of person and an undivided estate. In general, a person liable to PIT has to compute his tax liability, file tax return and pay tax, if any, accordingly on a calendar year basis.

Which of the following is a union tax?

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

  1. Corporation tax

  2. Taxes on agricultural income

  3. Capitation taxes

  4. Land revenues

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Correct Option: A
Explanation:

Union taxes are given in the list of 7th schedule in the constitution.

Which one of the following is an indirect tax?

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

  1. Income tax

  2. Wealth tax

  3. Excise duty

  4. Corporation tax

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Correct Option: C
Explanation:

Excise tax is an inland tax on the sale, or production for sale, of specific goods. Excises are distinguished from customs duties, which are taxes on imports.

Which of the following is a direct tax?

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

  1. Corporation Tax

  2. Custom duty

  3. Excise duty

  4. Service tax

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Correct Option: A

Which of the following is/are indirect tax(es)?

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

  1. Customs duty

  2. Excise duty

  3. Corporation tax

  4. Both (A) & (B)

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Correct Option: D

__________ is a direct tax; _________ is an indirect tax.

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

  1. Sales tax ; Gift tax

  2. Income tax; Service tax

  3. Gift tax ; Wealth tax

  4. Excise duty ; Sales tax

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Correct Option: B