taxes types, methods & budgeting process section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (a)

Answer: (b)

Answer: (a)

The following are the various expenditure of Govt. of India out of the total expenditure of Rs. 27 lakh crores in 2019-20.

Salary and Pension Rs. 3.1 lakh crore

Interest payment Rs. 6.6 lakh crore

Capital Expenditure Rs. 3.5 lakh crore

Explicit subsidies Rs. 3 lakh crore

Answer: (b)

The ‘Vivad se Vishwas’ Scheme was announced during the Union Budget, 2020-21, to provide for dispute resolution in respect of pending income tax litigation. Pursuant to the Budget announcement, the Direct Tax Vivad se Vishwas Bill, 2020 (hereinafter called Vivad se Vishwas) was introduced in the Lok Sabha on the 5th of February, 2020 and passed by it on 4th of March, 2020.

The objective of Vivad se Vishwas is to inter alia reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process.

As per the scheme, the taxpayer is required to pay only the amount of the disputed taxes and will get a complete waiver of interest and penalty provided he pays by March 31, 2020. Those who avail of this scheme after 31st March 2020 will have to pay some additional amount. The scheme will remain open till June 30, 2020.

This scheme covers taxpayers whose case appeals are pending at any level.

Answer: (a)