Tag: public revenue : direct and indirect taxes

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Questions Related to public revenue : direct and indirect taxes

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Which of the following is direct tax?

  1. Excise duty

  2. Sales tax

  3. Income tax

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

Direct taxes are those which are those which are paid directly to the government by the taxpayer.These taxes are not paid deducted and paid on behalf of the taxpayer.Key examples of direct taxes are Income tax, Wealth tax and Corporation tax.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Find the tax which is Direct Tax among the following 

  1. Personal income tax

  2. Excise Duty

  3. Sales Tax

  4. Service Tax
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A direct tax is paid by a person upon whom it is legally imposed; its effect is borne by the tax payer, for example, income tax. Income tax is paid by an individual, a Hindu undivided family, a company, a firm, and local bodies etc. on their incomes. The effect of this tax is borne by these tax payers themselves, the tax payer cannot shift the incidence of the tax upon somebody else. In other words a direct tax is demanded from the very person who it is intended or devised for.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Which of the following is treated as a direct tax?

  1. Sales Tax

  2. VAT

  3. Income Tax

  4. All of these
Reveal answer Fill a bubble to check yourself
B,C Correct answer
Explanation

A direct tax is paid by an individual or organization to the entity that levied the tax. 


Direct taxes include income tax, property tax, corporate tax, estate tax, gift tax, value-added tax (VAT), sin tax, and taxes on assets.
Sales tax is paid by the seller or retailer which is nothing but an intermediary between customer and government and that is why sales tax is an indirect tax. 

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

According to the income tax rule in India depreciation is to be charged on the basis of which one of these.

  1. Written down value method

  2. Accounting book-value method

  3. Discounted cash flow method

  4. Pay back method
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to the income tax rule, 1961 depreciation is to be charged on the basis of written down value method in India which meant depreciation percentage charge would be applied on the written down value that came after all such depreciation from previous years. 

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

National income differs from net national product at market price by the amount of ____________.

  1. current transfers from the rest of the world

  2. net indirect taxes

  3. national debt interest

  4. it does not differ
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Net National Product (NNP) at market price includes indirect taxes. National Income (NI) is equivalent to NNP at factor cost. To get from NNP at market price to NNP at factor cost, one must subtract net indirect taxes.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Which one of the following is not a merit of direct taxes?

  1. They are imposed according to the ability of the person to pay.

  2. These taxes create civil consciousness.

  3. The revenue is income elastic.

  4. They do not require maintenance of accounts.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Direct taxes do need maintenance of accounts. For example for filing Income Tax returns, there needs to be proper maintenance of accounts so that the figures mentioned is proper and the tax calculated is error free.

Multiple choice civics direct taxes black money and tax evasion meaning of tax public revenue : direct and indirect taxes income tax

Which of the following statements is correct?

  1. Excise duty is levied on sales volume.

  2. Custom duties have been drastically cut down since $1991$.

  3. VAT has been adopted by only 3 states in India.

  4. Agriculture contributes the maximum to the direct tax revenues in India.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The correct statement is that custom duties have been drastically cut down since 1991. Others are wrong because excise duty is levied on production, VAT has been adopted by some states in India and agriculture contributes nil to the direct tax revenues in India.