Tag: indian taxation system

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Questions Related to indian taxation system

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.

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

Consider the following statements and identify the right ones.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.

ii. The constitution also provides for transferring certain tax revenues from union list to states.

  1. i only

  2. ii only

  3. both

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

Among the two options, only second one is true because first one says that only central government has exclusive powers to levy taxes which is not true. Taxes in India are levied by the Central Government and the state governments. The constitution also provides for transferring certain tax revenues from union list to states list.