Tag: black money and tax evasion

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Questions Related to black money and tax evasion

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

The term money held by public excludes money held by ________.

  1. RBI

  2. Commercial banks

  3. Central Government

  4. All the three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Money held by the public is a measure of money supply in an economy. It excludes money held by the central bank (RBI), commercial banks, and the government, as these are considered money creators or issuers rather than the public.

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

_______ is a compulsory contribution from a person to the expenses incurred by the State in common interest of all without reference to specific benefits conferred on any individual. 

  1. Tax

  2. Fees

  3. Rates

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A tax is defined as a compulsory financial charge or levy imposed by a government on an individual or entity to fund public expenditures, without a direct quid pro quo or specific benefit provided to the payer.

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

Which committee recommended simplification and rationalization of tax system in India?

  1. Chelliah

  2. Boothalingam

  3. Both (a) & (b)

  4. Urjit Patel
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Both the Chelliah Committee (1991) and the Boothalingam Committee (1968) were significant in recommending reforms for the simplification and rationalization of the Indian tax system.

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

As part of Banking Sector Reforms in 1991, Priority Sector was enlarged to include -

  1. Software

  2. Venture Capital

  3. Agro-Processing Industries

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

Following the 1991 banking sector reforms, the definition of priority sector lending was expanded to include various sectors like agro-processing, venture capital, and software to boost economic growth.

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

The most important source of public revenue is ____________.

  1. taxes

  2. interest

  3. dividend & profit

  4. license fees
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Public revenue is all the revenue receipts of the government. These revenue receipts consists of taxes, interest on loans etc. Majority of the revenue collected by the government is in the forms of taxes i.e. both direct taxes (income tax, wealth tax, property tax) and indirect taxes (GST, service tax). These taxes give revenue in huge quantity and hence it becomes the most important source of public revenue.

Multiple choice civics public expenditure and public revenue black money and tax evasion meaning of tax direct taxes

GDP at factor cost is equal to GDP at market price minus indirect taxes plus __________.

  1. depreciation

  2. direct taxes

  3. foreign investments

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

$GDP _{fc} = GDP _{mp} - Indirect\ taxes + Subsidies$.
This is because market prices is reached by adding indirect taxes to the cost of production, i.e., factors of production, and deduction of subsidies provided, if any.

Multiple choice civics public expenditure and public revenue black money and tax evasion meaning of tax direct taxes

Net national product at market price minus net indirect taxes is equal to _______.

  1. net foreign investment

  2. net foreign investment plus net domestic investment

  3. net national product at factor cost

  4. replacement expenditure
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$NNP _{mp} - Net Indirect Taxes = NNP _{fc}$.
This is because the market price is the cost of production, i.e, factor cost, plus the taxes payable on the product.