taxes types, methods & budgeting process section 3 MCQ Questions & Answers Detailed Explanation

Question : 1

The Kelkar proposals which were

a) recommendations for tax reforms

b) guidelines for the privatisation of public sector undertakings

c) recommendations for reforms in the power sector

d) guidelines for reducing vehicular pollution and the promotion of CNG use

Question : 2

Which of the following statements are true for the Income Tax in India?

1. It is a progressive tax
2. It is a direct tax
3. It is collected by the state Governments
4. It is a proportional tax

a) Only 1 and 2 are correct

b) 1, 2 and 3 are correct

c) Only 1 is correct

d) 2, 3 and 4 are correct

Question : 3

The "Internal and Extra Budgetary Resources" of Central Public Sector Undertakings (CPSUs) include which of the following:

1. Profit of the CPSUs
2. Domestic and foreign loans raised by the CPSUs

a) (ii) only

b) Both (i) & (i)

c) (i) only

d) Neither (i) nor (ii)

Question : 4

The objective of SEZ is

a) Promotion of Regional Trade

b) Promotion of MSME’s

c) Promotion of Goods and Services

d) Promotion of Government Schemes

Question : 5

What do you understand by ‘regressive taxation’?

a) Taxation where the tax rate increase with the increase of taxable income

b) Tax that takes a larger perentage from low-income people than from high income people.

c) Taxation where the tax rate increases irrespective of fall or rise in taxable incomes.

d) None of above

Question : 6

Which one of the following is the major source of gross tax revenue (GTR) for the Government of India?

a) Customs duty

b) Income tax

c) Corporation tax

d) Service tax