Tag: government budget and taxation

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Questions Related to government budget and taxation

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

Personal income tax is levied on income of ___________.

  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)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Personal income tax in India applies to individuals, HUFs, and various associations of persons (AOPs) or bodies of individuals (BOIs).

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

Estate duty was levied on _______.

  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.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Estate duty was a tax levied on the value of a deceased person's estate before it was distributed to heirs.

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

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:

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

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

  3. (i) & (ii) only

  4. (i) & (iii) only
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

VAT is indirect, custom duties have been reduced since 1991, and excise duty is on production. Agriculture tax is generally a state subject and not a main source of direct tax for the central government.

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

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

  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
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

Which among the following is a type of government budget?

  1. Balanced budget

  2. Unbalanced budget

  3. Family budget

  4. Both A & B
Reveal answer Fill a bubble to check yourself
D Correct answer
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.