taxes types, methods & budgeting process section 2 MCQ Questions & Answers Detailed Explanation

Question : 1

Which of the following taxes is levied by the Gram Panchayats?

a) Land Revenue Tax

b) Tax on local fairs

c) Sales Tax

d) None of the above

Question : 2

The representation of the relationship between possible rates of taxation and the resulting levels of government revenue is called

a) Philips curve

b) Laffer curve

c) Griffin curve

d) Gini’s curve

Question : 3

Which one of the following sets of sources of revenue belongs to the Union Government alone?

a) Sales tax, Income tax

b) Custom duties, Corporation tax

c) Gift tax, Holding tax

d) Wealth tax, Land revenue

Question : 4

Tax revenue collection in our country mainly depends on which of the following:

1. Nominal GDP
2. Real GDP

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 5

Consider the following statements regarding 'Contingency Fund of India'

1. The fund is at the disposal of the president of India
2. The fund is at the disposal of the Prime Minister of India
3. The funds spent shall ultimately be approved by the parliament
4. The funds spent are recouped from the Consolidated Fund of India

a) (ii) & (iv) only

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

c) (i) only

d) (i) & (iv) only

Question : 6

Which of the following is not a direct tax in India?

a) Wealth Tax

b) Estate duty

c) Income Tax

d) Sales Tax