Tag: government and taxes

Questions Related to government and taxes

Find the correct statement.

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

  1. Share of direct is more than indirect tax in total tax revenue of Government

  2. Share of indirect is more than direct tax in total tax revenue of Government

  3. GST is direct tax

  4. None of the above

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Correct Option: B

At present, Direct Taxes in India consist of ______________.

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

  1. Income Tax

  2. Wealth Tax

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C

Whether the registered person will get immunity from interest & late fee leviable if assessment order passed u/s 62(1) is withdrawn?

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

  1. Taxable person will get immunity only from late fee u/s 47.

  2. No, taxable person will still be liable for interest u/s Section 50 and late fee u/s Section 47. Therefore, no immunity has been provided for the same.

  3. Taxable person will get immunity from late fee u/s 47 as well as interest u/s 50.

  4. Taxable person will get immunity only from interest u/s 50.

Show answer
Correct Option: D
Explanation:

The Taxable person will get immunity only from interest u/s 45. No, the taxable person will still be liable for interest under section Sec 45 and late fee under section Sec 42. Therefore, no immunity has been provided for the same. 

Where the taxable person is incapable to conclude the value of goods or services or both or establish the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a temporary basis and the proper officer shall pass an order, within a period not later than ninety days from the date of receiving of such request, allow the expense of tax on temporary basis at such rate or on such value as may be particular by him.

 Thus, the correct option is D.

From when will the period of one or three years be calculated under Section 143?

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

  1. The day when such inputs and/or capital goods sent to job-worker

  2. The day when the job-worker receives the said goods, in case the job-worker receives the goods directly

  3. Option (a) and (b)

  4. None of the above

Show answer
Correct Option: C
Explanation:

An income tax return can be either file willingly under Section 139 or on-demand by the income tax department under Section 142(1). It is essential to understand what happened after the taxpayer has filed the return of profits. Income tax subdivision carries out an initial appraisal of all the income filed and informs taxpayers of the result of such initial assessment. 

This evaluation primarily includes arithmetical errors, internal inconsistency, tax calculation and verification of tax payment. Such communication to the taxpayer post the initial appraisal is called intimation under Section 143(1).

Thus, the correct option is C.

Select the production taxes imposed in India from the list give below, using the code:
1. Goods and Services Tax
2. Land Revenue
3. Profession Tax 

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

  1. Only 1

  2. Only 2

  3. 1 and 2

  4. Neither 1 nor 2

Show answer
Correct Option: C
Explanation:

Goods and Services Tax is a 'product tax'.

Recently, India shifted to a new method for measuring its national income. The new method classifies taxes into 'product' and 'production'. Select the statements given below which are correct about these taxes. using the code—
1. Both of the taxes arc imposed on the producers.
2. While product taxes are variable, the production taxes are fixed.
3. Land revenue. profession tax, stamps and registration fees are some of the examples of production taxes in India.
4. Sales tax, excise duty, service tax, export and import taxes are the examples of product taxes in India.

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

  1. 1 and 2

  2. 1,2 and 3

  3. 2,3 and 4

  4. 1,2,3 and 4

Show answer
Correct Option: D
Explanation:
While the product taxes are imposed on the producers they are ultimately paid by the consumers of the goods and sen icesthese taxes are linked to the production volumes of the producers (so they are variable). Production taxes are paid by producers are not linked to the volume of their productions that is why they are 'fixed cost- of production.

Revenue of the state governments is raised from the following sources, except ____________.

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

  1. entertainment tax

  2. expenditure tax

  3. agricultural income tax

  4. land revenue

Show answer
Correct Option: C
Explanation:

In India, agriculture is not considered as commercial activity, it is considered as activity of subsistence from hundreds of years. Other areas such as entertainment, expenditure, and land revenue can be seen as business activities for purpose of profit making. This is the main reason for being exclusion of agricultural revenue out side taxation.

Excise duty tax is levied on the _______.

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

  1. import of goods

  2. export of goods

  3. production of goods

  4. sale of goods

Show answer
Correct Option: C
Explanation:

  • Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol and narcotic substances is collected by the State Government and is called State Excise duty. The Excise duty on rest of goods is called Central Excise duty.
  • Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods.

Among the tax revenues of the Central government, the leading source is _____.

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

  1. income tax

  2. corporation tax

  3. union excise tax

  4. custom duty

Show answer
Correct Option: C
Explanation:

  • The Union excise duties are the leading source of revenue for the Central Government and are levied on commo­dities produced within the country (exclu­ding those commodities on which State excise is levied e.g. liquors and narcotic drugs).
  • The most important commodities from the revenue point of view are sugar, cotton, mill cloth, tobacco, motor spirit, matches and cement.

Which types of tax helps in reducing disparities of income?

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

  1. Proportionate tax

  2. Progressive tax

  3. Regressive tax

  4. All of the above

Show answer
Correct Option: B
Explanation:

A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate.