Indian Economy MCQ Set-9

Most Important Taxation System in India MCQ GK for competitive examinations in India such as UPSC CSE, State PSC, IBPS PO, SBI PO, IBPS SO, IBPS RRB, IBPS Clerk and various government & public sector undertaking jobs in India.

Q.1 For which of the following type of tax, union government impose it but the state governments collect it?

A. GST

B. Income Tax

C. Wealth Tax

D. Stamp Duty

Answer: D. Stamp Duty

Q.2 Which of the following is correct about “Tax Heaven”?

I. A country or place where wealthy individuals need to pay very less amount of tax.

II. A country or place where foreign investors have to pay very low effective rate of taxation.

III. A country or place where poor people are benefited from all types of direct or indirect taxes.

A. Only I

B. Only II

C. Only III

D. Both I & III

Answer: B. Only II

Q.3 In which of the following system of taxation, the tax rate decreases as the taxable amount increases?

A. Progressive Taxation

B. Regressive Taxation

C. Degressive Taxation

D. Proportional Taxation

Answer: B. Regressive Taxation.

Note: In progressive taxation, the tax rate increases with taxable amount.

Q.4 In which of the following taxation system, the tax rate is fixed irrespective of the taxable income?

A. Progressive Taxation

B. Regressive Taxation

C. Degressive Taxation

D. Proportional Taxation

Answer: D. Proportional Taxation

Q.5 What kind of income taxation system is present in India among the following?

A. Progressive Taxation

B. Regressive Taxation

C. Degressive Taxation

D. Proportional Taxation

Answer: C. Degressive Taxation

Note: There are four rates of  income tax  are applicable in India i.e. 5%, 10%, 20% and 30% which is progressive in nature initially but later on it becomes Proportional which is called degressive rate . Degressive tax is a mix of between the progressive tax and proportional tax.

Q.6 India has chosen model of dual GST of which of the following country?

A. Canada

B. Germany

C. France

D. China

Answer: A. Canada

Q.7 The term HUF is frequently found in taxation system in India, what does HUF stands for?

A. Hindu Undivided Family

B. Household Universal Frequency

C. Household Unit Factor

D. None of these

Answer: A. Hindu Undivided Family

Q.8 Which of the following is/are CORRECT about the “Gift Tax” in India?

I. The threshold for taxable amount for gift tax is Rs. 50000.00

II. It is exempted for cases such as gift from spouse, parents, blood relatives.

III. Gift tax is exempted for wills, inheritance, or gifts on marriage.

A. Only I

B. Only II

C. Only III

D. All, I, II and III

Answer: D. All, I, II and III

Q.9 The type of Income Tax levied on the gains after sale of investment or property is called as:

A. Capital Gains Tax

B. Securities Transaction Tax

C. Sales Tax

D. Wealth Tax

Answer: A. Capital Gains Tax

Q.10 What is the full form of UTGST?

A. Union Territory Goods and Service Tax

B. Unit Trust Goods and Service Tax

C. Unit Transaction Goods and Service Tax

D. None of these

Answer: A. Union Territory Goods and Service Tax

Note: UTGST means Union Territory Goods and Service Tax, and is an indirect tax that is collected when intra-state goods or services supplied, along with tax charged as under CGST ACT, 2017.

List of Indian Economy MCQ sets from GKLead.com

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