taxes types, methods & budgeting process section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 21

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 : 22 [UPPCS (Pre) 2014]

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 : 23

Which of the following statements are true regarding FRBM Act 2003?

1. RBI can subscribe to the primary issues of Central government securities
2. RBI can fund Central government fiscal deficit
3. The central government can take advances from RBI in case there is a mismatch in cash disbursements and cash receipts

a) (i) & (iii) only

b) (ii) & (iii) only

c) (i) only

d) (iii) only

Question : 24 [UPSC (Pre) 2003]

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 : 25 [UPPCS (Mains) 2004]

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