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

Question : 1

Which one of the following is not related with income from corporate sector in India?

a) Minimum alternate tax

b) Capital Gain tax

c) Fringe Benefit tax

d) Tax on company profit

Question : 2

Corporation Tax is on

a) sale of goods

b) income of a company

c) production of a company

d) stock of goods

Question : 3

Which of the following items had the highest share of expenditure in the overall budget of GoI in 2019-20?

a) Interest payment

b) Capital Expenditure

c) Salary and Pension

d) Explicit Subsidies

Question : 4

Consider the following statements:

1. States and UTs combined expenditure is more than Central government expenditure
2. States and UTs combined borrowing is more than Central government borrowing

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 5

What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

a) 1 and 3 only

b) 1 only

c) 2 and 3 only

d) 1, 2 and 3

Question : 6

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

a) Estate Duty

b) Stamp Duties

c) Passenger and Goods Tax

d) Taxes on Newspapers