GOVERNMENT BUDGET

FOLLOWING IS AN EXAMPLE OF DIRECT TAX

• GOODS AND SERVICE TAX

• VALUE ADDED TAX

• INCOME TAX

• EXCISE DUTY

FOLLOWING IS AN EXAMPLE OF INDIRECT TAX

• CORPORATION TAX

• GOODS AND SERVICE TAX

• WEALTH TAX

• NONE OF THESE

FINANCIAL YEAR IN INDIA IS

• APRIL 1 TO MARCH 31

• JANUARY 1 TO DECEMBER 31

• OCTOBER 1 TO SEPTEMBER 30

• NONE OF THE ABOVE

A TAX SYSTEM IN WHICH THE RATE OF TAX DECREASES AS THE TAX BASE INCREASES IS CALLED

• REGRESSIVE TAX SYSTEM

• PROPORTIONAL TAX SYSTEM

• PROGRESSIVE TAX SYSTEM

• NONE OF THE THESE

Following is the feature of direct taxes

• direct taxes are imposed on goods and services

• their burden can be shifted to others

• their impact and ultimate burden lie on the same person

• they tend to raise the price of goods

Identify the revenue receipts from the following

• receipt from sale of shares of a public sector undertaking

• borrowing from public

• loans from the world bank

• interest received on loans

Identify capital receipt from the following

• post office deposits

• recovery of loans

• disinvestment

• all of the above

Revenue expenditure

• does not create any asset for the government

• reduces liability of the government

• is non-recurring expenditure

• increases productive capacity of the economy

Which one of the following is correct

• indirect taxes are generally progressive in nature

• GST is an indirect tax

• Sales tax is a direct tax

• Income tax is an indirect tax

Fill in the blank

Fiscal deficit - Primary deficit =

• revenue deficit

• borrowings requirements of the government

• capital expenditure

• interest payments