SawaalBoxसवाल बॉक्स

Taxation

19 questions in Indian Economy.

Asked in 2025, 2022, 2018, 2017, 2016, 2014, 2012, 2011, 2010, 2009, 2006, 2004, 2003, 2001, 2000, 1997, 1995

2025 · Q5Indian EconomyTaxationmoderate

Consider the following statements : Statement I : In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax. Statement II : In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961. Which one of the following is correct in respect of the above statements?

  1. (a)Both Statement I and Statement II are correct and Statement II explains Statement I
  2. (b)Both Statement I and Statement II are correct but Statement II does not explain Statement I
  3. (c)Statement I is correct but Statement II is not correct
  4. (d)Statement I is not correct but Statement II is correct
Show answerHide answer

Official answer(d) Statement I is not correct but Statement II is correct

2022 · Q8Indian EconomyTaxationmoderate

Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India ?

  1. (a)An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment
  2. (b)A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment
  3. (c)An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India
  4. (d)A foreign company transfers shares and such shares derive their substantial value from assets located in India
Show answerHide answer

Official answer(d) A foreign company transfers shares and such shares derive their substantial value from assets located in India

2018 · Q8Indian EconomyTaxationmoderate

With reference to India's decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct ? 1. It is introduced as a part of the Income Tax Act. 2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the "Double Taxation Avoidance Agreements". Select the correct answer using the code given below :

  1. (a)1 only
  2. (b)2 only
  3. (c)Both 1 and 2
  4. (d)Neither 1 nor 2
Show answerHide answer

Official answer(d) Neither 1 nor 2

2017 · Q81Indian EconomyTaxationmoderate

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. Select the correct answer using the code given below :

  1. (a)1 only
  2. (b)2 and 3 only
  3. (c)1 and 3 only
  4. (d)1, 2 and 3
Show answerHide answer

Official answer(a) 1 only

2016 · Q60Indian EconomyTaxationeasy

The term 'Base Erosion and Profit Shifting' is sometimes seen in the news in the context of

  1. (a)mining operation by multinational companies in resource-rich but backward areas
  2. (b)curbing of the tax evasion by multinational companies
  3. (c)exploitation of genetic resources of a country by multinational companies
  4. (d)lack of consideration of environmental costs in the planning and implementation of developmental projects
Show answerHide answer

Official answer(b) curbing of the tax evasion by multinational companies

2011 · Q16Indian EconomyTaxationmoderate

Which one of the following is not a feature of “Value Added Tax”?

  1. (a)It is a multi-point destination-based system of taxation
  2. (b)It is a tax levied on value addition at each stage of transaction in the production-distribution chain
  3. (c)It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
  4. (d)It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation
Show answerHide answer

Official answer(d) It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation

2004 · Q36Indian EconomyTaxationmoderate

Which of the following is not a recommendation of the task force on direct taxes under the chairmanship of Dr. Vijay L. Kelkar in the year 2002?

  1. (a)Abolition of Wealth Tax
  2. (b)Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows
  3. (c)Elimination of standard deduction
  4. (d)Exemption from tax on dividends and capital gains from the listed equity
Show answerHide answer

Official answer(b) Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows

1995 · Q46Indian EconomyTaxationeasy

Corporation tax

  1. (a)is levied and appropriated by the States
  2. (b)is levied by the Union and collected and appropriated by the States
  3. (c)is levied by the Union and shared by the Union and the States
  4. (d)is levied by the Union and belongs to it exclusively
Show answerHide answer

Official answer(d) is levied by the Union and belongs to it exclusively