The Indian tax system, a labyrinth of regulations and provisions, plays a crucial role in the nation’s economic landscape. Aspirants preparing for competitive exams such as OSSSC RI, ARI, Amin, SFS, and ICDS Supervisor must grasp the intricacies of this system. Here, we delve into the top 30 multiple-choice questions (MCQs) that encapsulate the diverse facets of India’s tax structure.
Top 30 Tax System in India MCQS For OSSSC RI,ARI, Amin, SFS, ICDS Supervisor
Mastering the top 30 MCQs on India’s tax system is pivotal for aspirants aiming to navigate the complex landscape of financial regulations. From direct and indirect taxes to corporate and international taxation, a comprehensive understanding is essential. Aspirants must delve into the details, keeping abreast of updates and amendments, to tackle the challenging questions that may appear in OSSSC RI, ARI, Amin, SFS, and ICDS Supervisor exams. With a solid foundation in taxation, aspirants can not only ace their exams but also contribute meaningfully to the country’s financial ecosystem.
- What is the main characteristic of a direct tax?
- a) It is paid indirectly through an intermediary.
- b) It is collected by an organization on behalf of the government.
- c) It cannot be shifted to another individual or entity.
- d) It is imposed only on goods and services.
- Answer: c) It cannot be shifted to another individual or entity.
- Which government body in India deals with matters related to levying and collecting Direct Taxes?
- a) Central Board of Indirect Taxes and Customs (CBIC)
- b) Central Board of Direct Taxes (CBDT)
- c) Goods and Services Tax Network (GSTN)
- d) Securities and Exchange Board of India (SEBI)
- Answer: b) Central Board of Direct Taxes (CBDT)
- Which of the following is an example of a direct tax?
- a) Goods and Services Tax (GST)
- b) Sales Tax
- c) Income Tax
- d) Value Added Tax (VAT)
- Answer: c) Income Tax
- What is the ultimate economic burden of an indirect tax?
- a) Government
- b) Taxpayer
- c) Intermediary
- d) Consumer
- Answer: d) Consumer
- Who bears the ultimate economic burden of an indirect tax?
- a) Government
- b) Intermediary
- c) Taxpayer
- d) Consumer
- Answer: d) Consumer
- What is the purpose of Fringe Benefit Tax (FBT) in India?
- a) To tax individuals directly on their income.
- b) To tax companies on the benefits provided to their employees.
- c) To tax goods and services sold in retail stores.
- d) To tax imports and exports.
- Answer: b) To tax companies on the benefits provided to their employees.
- When was Fringe Benefit Tax (FBT) introduced in India?
- a) 2005
- b) 2009
- c) 2010
- d) 2015
- Answer: a) 2005
- What was the rate of Fringe Benefit Tax (FBT) in India?
- a) 10%
- b) 20%
- c) 30%
- d) 40%
- Answer: c) 30%
- Who was liable to pay Fringe Benefit Tax (FBT) in India?
- a) Employees
- b) Consumers
- c) Employers
- d) Government
- Answer: c) Employers
- What types of benefits were subject to Fringe Benefit Tax (FBT) in India?
- a) Only monetary benefits
- b) Only non-monetary benefits
- c) Both monetary and non-monetary benefits
- d) None of the above
- Answer: c) Both monetary and non-monetary benefits
- When was Fringe Benefit Tax (FBT) abolished in India?
- a) 2005
- b) 2009
- c) 2010
- d) 2015
- Answer: b) 2009
- What was the reason for abolishing Fringe Benefit Tax (FBT) in India?
- a) To simplify the tax structure
- b) To encourage companies to provide more benefits to employees
- c) To reduce the tax burden on employers
- d) All of the above
- Answer: d) All of the above
- Which of the following is NOT an example of a direct tax?
- a) Property Tax
- b) Wealth Tax
- c) Excise Duty
- d) Corporate Tax
- Answer: c) Excise Duty
- Which entity is responsible for collecting Goods and Services Tax (GST) in India?
- a) Central Board of Direct Taxes (CBDT)
- b) Central Board of Indirect Taxes and Customs (CBIC)
- c) Reserve Bank of India (RBI)
- d) Securities and Exchange Board of India (SEBI)
- Answer: b) Central Board of Indirect Taxes and Customs (CBIC)
- Which type of tax is typically paid directly by an individual or organization to the government?
- a) Indirect Tax
- b) Direct Tax
- c) Progressive Tax
- d) Regressive Tax
- Answer: b) Direct Tax
-
hich of the following taxes is considered a direct tax in India?
-
- a) Goods and Services Tax (GST)
- b) Excise Duty
- c) Corporate Tax
- d) Customs Duty
- Answer: c) Corporate Tax
17. Which category of taxes includes taxes like Value Added Tax (VAT) and Goods and Services Tax (GST)?
-
- a) Direct Taxes
- b) Indirect Taxes
- c) Progressive Taxes
- d) Regressive Taxes
- Answer: b) Indirect Taxes
18. When was the Fringe Benefits Tax (FBT) abolished in India?
- a) 2005
- b) 2009
- c) 2010
- d) 2015
- Answer: b) 2009
-
19. What was the purpose of introducing the Minimum Alternate Tax (MAT) in India?
-
- a) To discourage companies from making profits
- b) To ensure companies pay a fixed percentage of book profit as tax
- c) To encourage companies to maximize profits
- d) To exempt profitable companies from paying taxes
- Answer: b) To ensure companies pay a fixed percentage of book profit as tax
20. What is the current rate of Minimum Alternate Tax (MAT) in India?
-
- a) 15%
- b) 18.5%
- c) 20%
- d) 25%
- Answer: b) 18.5%
21. Who is liable to pay Alternate Minimum Tax (AMT) in India?
-
- a) Companies
- b) Limited Liability Partnerships (LLPs)
- c) Other forms of business organizations excluding companies and LLPs
- d) Individuals
- Answer: c) Other forms of business organizations excluding companies and LLPs
22. What is the proposed rate of tax for Alternate Minimum Tax (AMT) in India?
-
- a) 15%
- b) 18.5%
- c) 20%
- d) 25%
- Answer: b) 18.5%
23. What is the main objective of introducing Alternate Minimum Tax (AMT)?
-
- a) To discourage profit-linked deductions
- b) To encourage more companies to convert to LLPs
- c) To exempt certain business organizations from paying taxes
- d) To simplify the tax system for companies
- Answer: a) To discourage profit-linked deductions
24. Which form of tax is Minimum Alternate Tax (MAT)?
-
- a) Direct Tax
- b) Indirect Tax
- c) Progressive Tax
- d) Regressive Tax
- Answer: a) Direct Tax
25. Which organization deals with matters related to levying and collecting Direct Taxes in India?
-
- a) Central Board of Direct Taxes (CBDT)
- b) Reserve Bank of India (RBI)
- c) Securities and Exchange Board of India (SEBI)
- d) Goods and Services Tax Network (GSTN)
- Answer: a) Central Board of Direct Taxes (CBDT)
26. Which tax cannot be shifted to another individual or entity?
-
- a) Indirect Tax
- b) Direct Tax
- c) Progressive Tax
- d) Regressive Tax
- Answer: b) Direct Tax
27. What is the purpose of levying Fringe Benefits Tax (FBT)?
-
- a) To tax employee salaries directly
- b) To tax company profits
- c) To tax benefits provided by employers to employees
- d) To tax investments made by companies
- Answer: c) To tax benefits provided by employers to employees
28. What is the duration for which a National Emergency can be in force without parliamentary approval?
-
- a) 3 months
- b) 6 months
- c) 1 year
- d) 2 years
- Answer: b) 6 months
29. Which branch of government continues to function during a State of Emergency?
-
- a) Executive
- b) Legislative
- c) Judicial
- d) Administrative
- Answer: b) Legislative
30. Which fundamental rights cannot be suspended even during a National Emergency?
-
- a) Right to Freedom of Speech
- b) Right to Equality
- c) Right to Life and Personal Liberty
- d) Right to Property
- Answer: c) Right to Life and Personal Liberty
