taxes types, methods & budgeting process section 5 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 6 EXERCISES
-
Top 500+ Indian Taxation System GK MCQ Quiz For SSC »
-
Top 500+ Taxes Types & Budgeting Process GK MCQ Quiz PDF »
-
499+ Tax Slab Types Benefits And Penalty GK MCQ Quiz PDF »
-
New 499+ Indian Taxation Laws Budget Current GK MCQ Quiz »
-
New 500+ Indian Income Tax Slab Laws Acts GK MCQ Quiz PDF »
-
1000+ Indian Tax System Types Concepts MCQ Quiz For IBPS »
The following question based on Taxes Types, Methods & Budgeting Process topic of indian economy mcq
(a) Consumption
(b) Inflation
(c) Taxation
(d) Money supply
The correct answers to the above question in:
Answer: (a)
Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are changes in the level and composition of taxation and government spending in various sectors.
Practice Taxes Types, Methods & Budgeting Process (taxes types, methods & budgeting process section 5) Online Quiz
Discuss Form
Read more taxes types methods budgeting process Based Indian Economy Questions and Answers
Question : 1
The most important source of revenue for Indian Government is
a) Indirect Tax
b) Deficit financing
c) Direct Tax
d) Loans from RBI
Answer »Answer: (c)
Question : 2
Consider the following statements regarding the "Composition Scheme" in GST:
- It exempts small taxpayers from payment of GST
- It allows small businesses to pay tax at a fixed per cent of their turnover
- It reduces the compliance cost for small businesses
a) (i) & (iii) only
b) (ii) only
c) (i) only
d) (ii) & (iii) only
Answer »Answer: (d)
Composition levy is an alternative method of levy of tax designed for small businesses whose turnover is up to Rs. 1.5 crore (and above 40 lacs). The objective of the composition scheme is to bring simplicity and to reduce the compliance cost for small businesses.
Moreover, it is optional and the eligible person opting to pay tax under this scheme can pay tax at a 1% flat rate, of his turnover, instead of paying tax at the normal GST rate.
Similarly, small service providers with a turnover of Rs. 50 lakhs can opt for a composition scheme and pay GST at 6%. In the case of a composition scheme, the businesses can’t claim an input tax credit.
Question : 3
Which among the following are true for Central Sales Tax?
- It is levied on interstate trade.
- It is levied in the Union Territories.
- It is levied in the SEZ.
a) Only 2
b) Only 2 and 3
c) Only 1 and 2
d) All of these
Answer »Answer: (c)
Question : 4
Consider the following statements regarding Forex Reserves:
- The country’s Forex Reserves fully covers the external debt
- The country’s Forex Reserves fully covers its one-year imports of goods and services
a) (ii) only
b) Both (i) & (ii)
c) (i) only
d) Neither (i) nor (ii)
Answer »Answer: (d)
The country’s forex reserves as of the end of Feb 2020 stood at $476 billion, but India’s external debt crossed 557 billion USD as of June 2019 (and it is still increasing with time).
So, at any point in time, if we want to pay off the complete external debt, it is not possible as forex reserve is only $476 billion.
(As all external debt is denominated in foreign currencies and hardly $1 billion is in rupee debt (Masala bonds), so it has to be paid only through our Forex reserve).
Since the ratio of Forex to External debt is $476/ 557 = 85%, that means our forex reserves don’t cover the external debt.
If it would have been greater than 100% then we say that our external debt is fully covered (with forex reserves).
The country’s one-year imports are around $630 billion (2018-19). So again, our forex reserves don’t fully cover imports also.
Question : 5
A redistribution of income in a country can be best brought through
a) Progressive taxation combined with regressive expenditure
b) Regressive taxation combined with regressive expenditure
c) Progressive taxation combined with progressive expenditure
d) Regressive taxation combined with progressive expenditure
Answer »Answer: (a)
Question : 6
Corporation tax in India is levied on income of a company. Which one of the following does not include Corporation tax?
a) Interest on securities
b) Profit from business
c) Capital gain
d) Sale proceed of assets
Answer »Answer: (d)
Generally, the income of a company falls under any of the following 4 heads of income:
- Profits or gains from the business
- Income from property, whether it is housing, commercial, self-occupied or let-out. If the property is used in the company’s business operations, it does not fall under this head.
- Capital gains
- Income from other sources including winnings from lotteries, races and interest on securities.
GET Taxes Types, Methods & Budgeting Process PRACTICE TEST EXERCISES
taxes types, methods & budgeting process section 1
taxes types, methods & budgeting process section 2
taxes types, methods & budgeting process section 3
taxes types, methods & budgeting process section 4
taxes types, methods & budgeting process section 5
taxes types, methods & budgeting process section 6
Taxes Types, Methods & Budgeting Process Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »