taxes types, methods & budgeting process section 6 MCQ Questions & Answers Detailed Explanation

Answer: (c)

The government of India is disinvesting its share from public sector undertakings. Most of the government undertakings were incurring losses during the pre liberalization period.

Hence, after the introduction of new economic policy in 1991, the government started downsizing its share in PSU. But the process of disinvestment is very slow due to a host of legal and political hurdles.

Answer: (d)

Basel III is basically a regulatory accord designed specifically for the banking sector. It aims to improve the supervision, regulation and risk management within the sector. It also targets at strengthening the transparency of the banks.

Answer: (d)

As per the FRBM Act 2003, Central Government debt includes the following:

Total outstanding liabilities of the Central Government on the security of Consolidated Fund of India, including external debt. (This is also called Public Debt)

The outstanding liabilities in the Public Account of India

Such financial liabilities of any corporate or other entity owned or controlled by the Central Government, which the government is to repay or service from the Annual Financial Statement.

(This is also called off-budget liabilities, explained later)

Answer: (d)

Answer: (d)

Bihar is the first state to impose agricultural income tax in India. Agricultural income tax is levied on the income from Agriculture. At present agriculture is subjected to two direct taxes and they are Agricultural Income-tax and Land Tax.

Agricultural Income-tax treatment: It is characterised as a valid source of income from sources that comprise Agriculture land, buildings on or related to Agricultural land card commercial product from an Agriculture land.

Answer: (c)