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

Question : 1

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 : 2

The tax on Import and Export is known as

a) Trade Tax

b) Custom Duty

c) Income Tax

d) None of the above

Question : 3

Which one of the following is correctly matched?

a) Custom Duty - Indirect Tax

b) Excise Duty - Highest source of tax revenue to the centre

c) Income Tax - Indirect Tax

d) Entertainment Tax - Highest source of tax to revenue states

Question : 4

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 : 5

Consider the following items.

1. Cereal grains hulled
2. Chicken eggs cooked
3. Fish processed and canned
4. Newspapers containing advertising material

a) Only 2 and 3

b) Only 1, 2 and 4

c) Only 1

d) 1, 2, 3 and 4

Question : 6

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)