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

Question : 1

The term “Pump Priming” means:

1. It is a way to stimulate the economy by reducing tax
2. It is done in economic slowdown by increasing government spending
3. RBI prints extra money

a) (i) & (ii) only

b) (iii) only

c) (i) only

d) All of the above

Question : 2

Which of the following statements about Krishi Kalyan Cess (KKC) is/are correct ?

1. KKC is calculated in the same way as Service Tax is calculated.
2. The current rate of KKC is 0.50%
3. KKC is similar to the KKS (Krishi Kalyan Surcharge).

a) 2 and 3 only

b) 1, 2 and 3

c) 1 and 2 only

d) 1 only

Question : 3

With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)’, consider the following statements:

1. A property transaction is not treated as a Benami transaction if the owner of the property is not aware of the transaction.
2. Properties held by Benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.

a) 1 and 3 only

b) 1 only

c) 2 only

d) 2 and 3 only

Question : 4

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 : 5

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 : 6

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