Tag: government budget and taxation

Questions Related to government budget and taxation

Which of the following statement is correct about Indian tax system?

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

  1. Estate duty was abolished in 1995.

  2. Income tax was abolished in 1998

  3. Gift tax was abolished in 1998

  4. VAT is a system of indirect taxation adopted by all the states.

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Correct Option: C

VAT was first proposed in 1999 and was implemented in ______ in some states of India.

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

  1. April 2000

  2. April 2002

  3. April 2005

  4. April 2006.

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Correct Option: C

Corporate tax is levied on the incomes of ___________.

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

  1. registered companies

  2. registered companies & corporations

  3. AOP, BOI, companies & corporation

  4. none of the above

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Correct Option: B

Personal income tax is levied on income of ___________.

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

  1. individual only

  2. individual & hindu undivided families (HUF) only.

  3. individual, HUF, registered firms as AOP (Association of Person)

  4. individual, HUF, unregistered firm & other Association of Person (AOP)

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Correct Option: D

Estate duty was levied on _______.

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

  1. the total property

  2. the total wealth

  3. the total capital introduced in a company

  4. the total property passing to the heirs on the death of a person.

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Correct Option: D

Which of the following statement is correct with regards to tax system in India?
(i) VAT is a system of indirect taxation.
(ii) Custom duties have been cut down -since 1991
(iii) Excise duty is levied on production
(iv) Agriculture tax is a main source of direct tax.
Select the correct answer:

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

  1. (i) (ii) & (iii)

  2. (i), (ii), (iii) & (iv)

  3. (i) & (ii) only

  4. (i) & (iii) only

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Correct Option: A

Which one of the following is a capital receipt in government budget?

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

  1. Interest receipts on loans given by the Government to other parties

  2. Dividends and profits from public sector undertakings

  3. Borrowing of the Government from public

  4. Property tax receipts

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Correct Option: A
Explanation:

$Capital\ Receipts\ in\ Government\ Budget$: The main items of capital receipts are loans of the government by the public borrowings through the RBI by the sale of treasury bills, loans received from foreign governments and bodies. Main items are:
(i)  Recoveries of loans

(ii) Market borrowing and other loans
(iii) External assistance
(iv) Disinvestment.

Estate duty was introduced in India in _________.

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

  1. 1953

  2. 1960

  3. 1985

  4. 1990

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Correct Option: A

Estate duty was abolished in ______.

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

  1. 1947

  2. 1953

  3. 1990

  4. 1985

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Correct Option: D

Which among the following is a type of government budget?

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  1. Balanced budget

  2. Unbalanced budget

  3. Family budget

  4. Both A & B

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Correct Option: D
Explanation:

There are two types of budget in general. 

1. Balanced Budget: In this type of budget, government expenditure is equal to government revenue. 

2. Unbalanced budget: In this type of budget, government expenditure is not equal to government revenue. 

 (i) Surplus Budget: In this type of budget, government revenue is greater than government expenditure due to which there is a surplus in the budget. 

 (ii) Deficit budget: In this type of budget, government expenditure is greater than government revenue due to which there is a deficit in the budget.