Tag: indian taxation system

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

Insurance claim received on account of machinery damaged completely by fire is called _________.

  1. Capital receipt

  2. Revenue receipt

  3. Capital expenditures

  4. Revenue expenditures
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Insurance claim received on account of machinery damaged completely by fire is called capital receipt. As this is a receipt that deals with fixed assets, it falls under capital receipt.

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

Money spent by a student on buying an application form adds to ______.

  1. tax revenue

  2. non-tax revenue

  3. profit

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

Money spent by a student on buying an application form adds to non-tax revenue. Non Tax Revenue Receipts are those revenue receipts which are not generated by taxing the public.

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

Capital receipts are credited to _______.

  1. respective account of capital nature

  2. trading and profit and loss account

  3. both a and b

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

Capital receipt includes cash from the sale of fixed assets (either tangible or intangible), cash from the sale of shares in the business, cash from the issuance of a debt instrument. The receipts are directly credited to the respective account which is capital in nature.

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

According to 2009-10 data, the percentage contribution of non-tax revenue to the total revenue of the central and GDP was ______.

  1. 22% and 3% respectively

  2. 22% and 2% respectively

  3. 2% and 22% respectively

  4. 3% and 22% respectively
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to 2009-10 data, the percentage contribution of non-tax revenue to the total revenue of the central is 22%. Contribution of non-tax revenue to the total GDP is 3%. 

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

In the statement of financial position we record.

1. Capital receipts

2. Revenue expenditure

3. Deferred revenue expenditure

Which of the above statement is true?

  1. Only 1

  2. 1 and 2

  3. 1 and 3

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

Capital receipts and deferred revenue expenditure are recorded in the statement of financial position.

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

The revenue generated by the government through internal and external loans is ___________.

  1. capital receipts

  2. non-tax revenue

  3. private revenue

  4. public revenue
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  • The budget consists of capital receipts and capital payments. The capital receipts are loans raised by the Government from the general public and the foreign governments.
Multiple choice social science government budget and taxation indian taxation system taxation : need, principles and importance tax and its importance

Which one of the following is a source of non-tax revenue for governments?

  1. Import duty on cars

  2. Octroi at check points on roads

  3. Entrance fee to museums

  4. Excise duty on beverages
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Non-tax revenue is collected by the government from other sources, except through taxation, The sources of non-tax revenue(NTR) are:
(i) Fees and charges for various facilities like museums, license offices, etc
(ii) Dividend/profits from public sector units (PSUs)
(iii) Income from radio/TV broadcasting, etc