Tax Structure In India PYQs — 12 UPSC CSE Previous Year Questions

Question 1

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?

Accepted Answer

D. Statement I is not correct but Statement II is correct

Question 2

Consider the following : Demographic performance Forest and ecology Governance reforms Stable government Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?

Accepted Answer

B. Only three

Question 3

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 ? It is introduced as a part of the Income Tax Act. 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 :

Accepted Answer

D. Neither 1 nor 2

Question 4

Consider the following items : Cereal grains hulled Chicken eggs cooked Fish processed and canned Newspapers containing advertising material Which of the above items is/are exempted under GST (Goods and Services Tax) ?

Accepted Answer

C. 1, 2 and 4 only

Question 5

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

Accepted Answer

B. curbing of the tax evasion by multinational companies

Question 6

The sales tax you pay while purchasing a toothpaste is a

Accepted Answer

D. tax imposed and collected by the State Government

Question 7

Under which of the following circumstances may 'capital gains' arise? When there is an increase in the sales of a product When there is a natural increase in the value of the property owned When you purchase a painting and there is a growth in its value due to increase in its popularity Select the correct answer using the codes given below:

Accepted Answer

B. 2 and 3 only

Question 8

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

Accepted Answer

D. It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation

Question 9

Consider the following statements: In India, taxes on transactions in Stock Exchanges and Futures Markets are:

Levied by the Union
Collected by the States

Which of the statements given above is/are correct?

Accepted Answer

A. 1 only

Question 10

Consider the following: Fringe Benefit Tax Interest Tax Securities Transaction Tax Which of the above is/are Direct Tax/Taxes?

Accepted Answer

D. 1, 2 & 3

Question 11

Which one of the following is the correct statement? Service tax is a/an:

Accepted Answer

B. Indirect tax levied by the Central Government

Question 12

Consider the following taxes: Corporation Tax Customs Duty Wealth Tax Excise Duty Which of these is/are indirect taxes?

Accepted Answer

B. 2 & 4