Tag: taxation : need, principles and importance

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Multiple choice social science tax and its importance taxation : need, principles and importance main feature of tax public revenue and taxation

An income tax system is said to be progressive ________________.

  1. if the rate of increase of the tax liability for a tax paying unit is less than the rate of increase of its income

  2. if the rate of increase of the tax liability for the tax paying unit is greater than the rate of increase of its income

  3. if the rate of increase of the tax liability for tax paying unit is equal to the rate of increase of its income

  4. if the rate of increase of the tax bears a multiplicative relation with rate of increase in income of tax paying unit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A progressive tax system is defined by the tax rate increasing as the tax base (income) increases. This means the tax liability grows at a faster percentage rate than the income itself.

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

Identify the non-tax revenue from the following statement: "It refers to claim of the government on the property of a person who dies without leaving behind any legal heir or a will".

  1. Special Assessment

  2. Escheats

  3. Forfeitures

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

Escheats refers to the reversion of property to the state when a person dies without a will or legal heirs.

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

 Non-Tax Revenues of the states can be increased by improving the working of the
 1. State Road Transport Corporations and the state electricity boards
2. irrigation projects and the tax collections
3. divesting the state public sector companies

  1. Only 1

  2. I and 2

  3. 1 and 3

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

Taxes belong to 'Tax Revenue'.

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

Income tax in India is :
1. Progressive and anti-rich
2. Proportional and pro-poor
3. Regressive and anti-poor
Select the answer using the code given below:

  1. Only 1

  2. Only 2

  3. 1 and 3

  4. 1,2 and 3
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Income tax in India is progressive, meaning higher income earners pay a higher percentage of their income as tax.

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

Which tax is not shared by the central government with the states?

  1. Union excise duties

  2. Customs duty

  3. Income tax

  4. Estate duty
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Customs and Central Excise duties are not shared by the Centre with the states directly. But indirectly, through allocations of Central funds to States even these are shared.
Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Corporate Tax is imposed by ________.

  1. state government

  2. local government

  3. central government

  4. both centre and state government
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Corporate tax is a kind of direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities. Corporate income tax rates are mandated by the central government.