INDIAN ECONOMY MOCK TEST – CHAPTER 25

Consider the following statements regarding incidence of tax –

1. It would fall upon the consumer if the price is inelastic.
2. It would fall upon the producer if the price is elastic.

Which of the above statements is/are CORRECT ?

Consider the following statements –

1. Progressive taxation is intended at income redistribution.
2. Regressive taxation is intended to promote certain specific sectors.

Which of the above statements is/are CORRECT ?

In the context of Indian taxation system, which of the following statements is INCORRECT ?

Which of the following would be subject to capital gains tax in India ?

Consider the followings statements about the Goods and Services Tax (GST) in India –

1. It was introduced by 101^st Constitutional Amendment Act.
2. It is based on the recommendations of Kelkar Committee Report, 2006.
3. It is not applicable to items mentioned in Essential Commodities Act, 1955.

Which of the following would constitute non tax revenues of the government of India ?

1. Loan recoveries
2. Interest on loans granted
3. Disinvestments in PSUs
4. External Aid

Consider the following statements about tax expenditure in India –

1. Tax expenditure is the portion of the tax revenue that is spent by the government.
2. Tax expenditure as a percentage of GDP has been reducing in India.

Which of the above statements is/are CORRECT ?

For the FY2019-20, which of the following statements regarding Gross Tax Revenue (GTR) in India is/are CORRECT ?

1. It stood at more than 10 percent of India’s GDP.
2. Direct taxes constituted less than 50 percent of it.

Consider the following statements –

In India, taxes on transactions in stock exchanges and futures markets are

1. levied by the Union
2. collected by the states

Which of the statements given above is/are correct ?

Consider the following actions by the government-

1. Cutting the tax rates
2. Increasing the government spending
3. Abolishing the subsidies in the context of economic recession

Which of the above actions can be considered a part of the physical stimulus package ?

Consider the following statements –

1. Tax revenue as a percentage of GDP of India has steadily increased in the last five years.
2. Fiscal deficit as a percentage of GDP of India has steadily increased in the last five years.

Which of the statements given above is/are correct ?

What is/are the most likely advantages of implementing Goods and Services Tax (GST) ?

1. It will replace multiple taxes collected by multiple authorities, and will thus create a single market in India.
2. It will drastically reduce the Current Account Deficit of India, and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of economy of India, and will enable it to overtake China in the near future.