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

The incidence of taxes refers to ___________.

  1. the level and rate of taxation

  2. who ultimately bears the money burden of the tax.

  3. the growth of taxation

  4. the way in which a tax is collected.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Tax incidence refers to the economic burden of a tax, specifically who ultimately pays it, regardless of who is legally responsible for remitting it.

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

Personal income tax is levied on income of ___________.

  1. individual only

  2. individual & hindu undivided families (HUF) only.

  3. individual, HUF, registered firms as AOP (Association of Person)

  4. individual, HUF, unregistered firm & other Association of Person (AOP)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Personal income tax in India applies to individuals, HUFs, and various associations of persons (AOPs) or bodies of individuals (BOIs).

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

Estate duty was levied on _______.

  1. the total property

  2. the total wealth

  3. the total capital introduced in a company

  4. the total property passing to the heirs on the death of a person.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Estate duty was a tax levied on the value of a deceased person's estate before it was distributed to heirs.

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

Which of the following statement is correct with regards to tax system in India?
(i) VAT is a system of indirect taxation.
(ii) Custom duties have been cut down -since 1991
(iii) Excise duty is levied on production
(iv) Agriculture tax is a main source of direct tax.
Select the correct answer:

  1. (i) (ii) & (iii)

  2. (i), (ii), (iii) & (iv)

  3. (i) & (ii) only

  4. (i) & (iii) only
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

VAT is indirect, custom duties have been reduced since 1991, and excise duty is on production. Agriculture tax is generally a state subject and not a main source of direct tax for the central government.

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 capital receipt in government budget?

  1. Interest receipts on loans given by the Government to other parties

  2. Dividends and profits from public sector undertakings

  3. Borrowing of the Government from public

  4. Property tax receipts
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$Capital\ Receipts\ in\ Government\ Budget$: The main items of capital receipts are loans of the government by the public borrowings through the RBI by the sale of treasury bills, loans received from foreign governments and bodies. Main items are:
(i)  Recoveries of loans

(ii) Market borrowing and other loans
(iii) External assistance
(iv) Disinvestment.