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

Question : 1

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 : 2

Which of the following are part of Capital Budget of Govt. of India?

1. Proceeds received in the public account of India
2. PSUs purchasing capital equipment
3. Establishment of “India Post Payment Bank”

a) (ii) & (iii) only

b) (i) & (iii) only

c) (i) only

d) None of the above

Question : 3

Which of the following tax is levied by Union but collected and appropriated by States?

a) Passenger & Goods Tax

b) Taxes on Newspapers

c) Stamp Duties

d) None of the above/More than one of the above

Question : 4

Service Tax in India was introduced in the year

a) 1996-97

b) 1998-99

c) 1994-95

d) 1991-92

Question : 5

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 : 6

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