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Taxation and Revenue: An Overview

Description: This quiz is designed to assess your understanding of the fundamental concepts related to taxation and revenue in the context of Indian Economics.
Number of Questions: 15
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Tags: taxation revenue indian economy
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Which of the following is NOT a direct tax in India?

  1. Income Tax

  2. Goods and Services Tax (GST)

  3. Corporate Tax

  4. Wealth Tax


Correct Option: B
Explanation:

GST is an indirect tax, while Income Tax, Corporate Tax, and Wealth Tax are all direct taxes.

The primary objective of taxation in India is to:

  1. Generate revenue for the government

  2. Control inflation

  3. Promote economic growth

  4. Reduce poverty


Correct Option: A
Explanation:

The primary objective of taxation is to raise revenue for the government to fund public expenditures.

Which of the following is NOT a source of revenue for the Indian government?

  1. Tax revenue

  2. Non-tax revenue

  3. Borrowing

  4. Printing money


Correct Option: D
Explanation:

Printing money is not a source of revenue for the government, as it leads to inflation.

The Goods and Services Tax (GST) in India is a:

  1. Value-added tax

  2. Sales tax

  3. Excise duty

  4. Customs duty


Correct Option: A
Explanation:

GST is a comprehensive indirect tax levied on the value added at each stage of the production and distribution process.

The tax levied on the income of individuals and Hindu Undivided Families (HUFs) in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Capital Gains Tax


Correct Option: A
Explanation:

Income Tax is levied on the income of individuals and HUFs.

The tax levied on the profits of companies and other legal entities in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Capital Gains Tax


Correct Option: B
Explanation:

Corporate Tax is levied on the profits of companies and other legal entities.

The tax levied on the transfer of ownership of assets in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Capital Gains Tax


Correct Option: D
Explanation:

Capital Gains Tax is levied on the profit arising from the transfer of ownership of assets.

The tax levied on the wealth of individuals and HUFs in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Capital Gains Tax


Correct Option: C
Explanation:

Wealth Tax is levied on the wealth of individuals and HUFs.

The tax levied on the import and export of goods in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Customs Duty


Correct Option: D
Explanation:

Customs Duty is levied on the import and export of goods.

The tax levied on the sale of goods and services in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Sales Tax


Correct Option: D
Explanation:

Sales Tax is levied on the sale of goods and services.

The tax levied on the use of land and buildings in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Property Tax


Correct Option: D
Explanation:

Property Tax is levied on the use of land and buildings.

The tax levied on the transfer of ownership of land and buildings in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Stamp Duty


Correct Option: D
Explanation:

Stamp Duty is levied on the transfer of ownership of land and buildings.

The tax levied on the use of vehicles in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Road Tax


Correct Option: D
Explanation:

Road Tax is levied on the use of vehicles.

The tax levied on the use of electricity in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Electricity Duty


Correct Option: D
Explanation:

Electricity Duty is levied on the use of electricity.

The tax levied on the use of water in India is called:

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax

  4. Water Cess


Correct Option: D
Explanation:

Water Cess is levied on the use of water.

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