Tag: black money and tax evasion

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Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

Public revenue includes which of the following _______.

  1. tax revenue

  2. non-tax revenue

  3. capital receipts

  4. all the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Public revenue includes all the following:

  • Tax revenue: revenue earned by the government by taxing people is called tax-revenue. It is of two types:

  1. Direct tax: tax paid to the government directly. Examples include income tax, gift tax, wealth tax, property tax, etc.
  2. Indirect tax: this tax is collected by an intermediary person from the person who ultimately bears the burden. Examples are sales tax, value-added tax (VAT), goods and services tax (GST), etc.

  • Non-tax Revenue: Non Tax Revenue Receipts are those revenue receipts which are not generated by taxing the public. Examples of non-tax revenue includes revenue from power distribution, irrigation, banking services, insurance, and community services, etc. which make the part of Government business.

  • Capital receipts: this is the income flow from one of the following sources. Cash from the sale of fixed assets, Cash from the sale of shares in the business, Cash from the issuance of a debt instrument which includes loans and bonds.

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

Income earned by government from the sources other than taxes is called ______.

  1. private funds

  2. non-tax revenue

  3. public funds

  4. none
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Non Tax Revenue receipts are those revenue receipts which are not generated by taxing the public. Example of a non-tax revenue includes revenue from power distribution, irrigation, banking services, insurance, and community services etc. which make the part of the Government business.

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

Which of the following is a non-tax revenue?

  1. loans or other borrowing from monetary funds 

  2. aid from abroad

  3. revenue from state-owned enterprises

  4. all the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Non Tax Revenue Receipts are those revenue receipts that are not generated by taxing the public. Example of non-tax revenue includes revenue from power distribution, irrigation, banking services, insurance, and community services, etc. which make them part of the Government business. Other examples include loans or other borrowings from monetary funds or other governments that are included under, aid from abroad, revenue from state-owned enterprises, etc.

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

Amount received from which of the following is not a capital receipt?

  1. sale of assets

  2. sale of shares

  3. sale of goods and services

  4. all the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital receipts: This is the income flow from the sale of fixed assets, cash from the sale of shares in the business, cash from the issuance of a debt instrument which includes loans and bonds. The sale of goods and services is not a capital receipt.

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

Which of the following public revenue is a major contributor to the total central revenue?

  1. Tax revenue

  2. Non-tax revenue

  3. Both A and B have equal contribution

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Public revenue which is a major contributor to the total central revenue is tax revenue. Revenue earned by government by taxing people is called tax-revenue. It is of two types:

  • Direct tax: tax payed to the government directly. Examples include income tax, gift tax, wealth tax, property tax etc.
  • Indirect tax: this tax is collected by an intermediary person from the person who ultimately bears the burden. Examples are sales tax, value added tax (VAT), goods and services tax (GST) etc. 

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

The difference between total expenditure and total receipts is _____.

  1. fiscal deficit

  2. budget deficit

  3. primary deficit

  4. revenue deficit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A status in which government’s expenditure exceeds more than its revenue is called budget deficit. The term budget deficit is most commonly used to refer to government spending rather than business or individual spending, but can be applied to all of these entities.