MCQs
Total Questions : 163
| Page 6 of 17 pages
Answer: Option C. -> Corporation tax
Answer: (c)Corporation tax in India is the major source of Gross Tax Revenue (GTR) for the Government of India. It provides higher tax collection in comparison to income tax, custom duty and service tax.
Answer: (c)Corporation tax in India is the major source of Gross Tax Revenue (GTR) for the Government of India. It provides higher tax collection in comparison to income tax, custom duty and service tax.
Answer: Option C. -> Only 1
Answer: (c)
Answer: (c)
Answer: Option C. -> Selling new bonds and using proceeds to pay off holders of maturity bonds
Answer: (c)Refinancing means replacing an existing loan with a new loan that pays off the debt of the old loan. So, when a governments debt (public debt) is due, to refinance it, the govt can issue/sell new bonds to raise money. Alternative definition of refinance: A refinance occurs when an individual or business revises the interest rate, payment schedule, and terms of a previous credit agreement. Debtors will often choose to refinance a loan agreement when the interest rate environment has substantially changed, causing potential savings on debt payments from a new agreement. A refinance involves the re-evaluation of a person or business's credit terms and credit status.
Answer: (c)Refinancing means replacing an existing loan with a new loan that pays off the debt of the old loan. So, when a governments debt (public debt) is due, to refinance it, the govt can issue/sell new bonds to raise money. Alternative definition of refinance: A refinance occurs when an individual or business revises the interest rate, payment schedule, and terms of a previous credit agreement. Debtors will often choose to refinance a loan agreement when the interest rate environment has substantially changed, causing potential savings on debt payments from a new agreement. A refinance involves the re-evaluation of a person or business's credit terms and credit status.
Answer: Option B. -> Tax that takes a larger perentage from low-income people than from high income people.
Answer: (b)
A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder.
The regressive tax imposes a greater burden (relative to resources) on the poor than on the rich — there is an inverse relationship between the tax rate and the taxpayer’s ability to pay as measured by assets, consumption, or income.
Answer: (b)
A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder.
The regressive tax imposes a greater burden (relative to resources) on the poor than on the rich — there is an inverse relationship between the tax rate and the taxpayer’s ability to pay as measured by assets, consumption, or income.
Answer: Option A. -> Only 1 and 2 are correct
Answer: (a)
Answer: (a)
Answer: Option C. -> Promotion of Goods and Services
Answer: (c)
Answer: (c)
Answer: Option A. -> recommendations for tax reforms
Answer: (a)
Answer: (a)
Question 58. Which of the following statements are true regarding FRBM Act 2003?
Select the correct answer using the code given below:
- RBI can subscribe to the primary issues of Central government securities
- RBI can fund Central government fiscal deficit
- The central government can take advances from RBI in case there is a mismatch in cash disbursements and cash receipts
Select the correct answer using the code given below:
Answer: Option D. -> (iii) only
Answer: (d)
As per the Fiscal Responsibility and Budget Management (FRBM) Act 2003, RBI has been prohibited from subscribing to Central government securities in the primary market.
This has been done so that government should raise money from the market at market interest rate rather than from RBI at a cheaper rate.
The central government is not allowed to borrow from RBI to fund its fiscal deficit but if there is a temporary mismatch in the government’s cash disbursement and cash receipts then, the government can take advance (called ways and means advance) from RBI.
Answer: (d)
As per the Fiscal Responsibility and Budget Management (FRBM) Act 2003, RBI has been prohibited from subscribing to Central government securities in the primary market.
This has been done so that government should raise money from the market at market interest rate rather than from RBI at a cheaper rate.
The central government is not allowed to borrow from RBI to fund its fiscal deficit but if there is a temporary mismatch in the government’s cash disbursement and cash receipts then, the government can take advance (called ways and means advance) from RBI.
Answer: Option A. -> Minimum alternate tax
Answer: (a)
Answer: (a)
Answer: Option B. -> Both (i) & (ii)
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: (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.
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