taxes types, methods & budgeting process section 1 MCQ Questions & Answers Detailed Explanation

Question : 1

Of the following taxes which one is not levied by State Governments?

a) State Excise Duty

b) Agricultural Income Tax

c) Entertainment Tax

d) Corporation Tax

Question : 2

Agricultural Income Tax is assigned to the State Government by

a) The National Development Council

b) The Inter-State Council

c) The Finance Commission

d) The Constitution of India

Question : 3

Service Tax in India was introduced in the year

a) 1996-97

b) 1998-99

c) 1994-95

d) 1991-92

Question : 4

The Public Debt of the Government of India includes which of the following:

1. Treasury Bills
2. External Commercial Borrowing (ECB)
3. NRI deposits
4. Foreign Direct Investment in India (FDI)

a) (i) & (iii) only

b) (i), (ii) & (iii) only

c) (i) only

d) (ii) & (iv) only

Question : 5

Which of the following statements are true regarding “Deficit Financing”?

1. It raises aggregate demand in the economy
2. It may result in inflation in the economy
3. It is used as a developmental tool by developing countries
4. It is done by issuing government bonds

a) (i), (ii) & (iii) only

b) (iii) & (iv) only

c) (i) & (ii) only

d) All of the above

Question : 6

Which of the following taxes fall under the state list of Indian Constitution?

1. Entertainment tax
2. Luxury tax
3. Stamp Duty
4. Custom Duty

a) 2, 4 and 5

b) 1 and 2

c) 1, 3 and 4

d) 1, 2 and 4