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

Question : 1

Service Tax in India was introduced in the year

a) 1996-97

b) 1998-99

c) 1994-95

d) 1991-92

Question : 2

Fiscal Policy in India is formulated by

a) the Finance Ministry

b) the Reserve Bank of India

c) the Planning Commission

d) the Securities and Exchange Board of India

Question : 3

Consider the following statements. In India, Stamp duties on financial transactions are

1. Levied and collected by the state
2. Appropriated by the Union Government

a) Only 2

b) Both 1 and 2

c) Only 1

d) Neither 1 nor 2

Question : 4

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 : 5

Which department decides the outlay for Centrally Sponsored Scheme (CSS)

a) Public Finance Division under department of Expenditure

b) Economic Division under department of Economic Affairs

c) NITI Aayog

d) None of the above

Question : 6

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