One Mark Questions Answers

EXERCISE

I. Choose the correct answer

1. The three levels of governments in India are

a) Union, state and local

b) Central, state and village

c) Union, municipality and panchayat

d) None of the above

Ans: (a)

2. In India, taxes are including

a) Direct taxes

b) Indirect taxes.

c) Both (a) and (b)

d) None of these

Ans: (c)

3. Which is the role of government and development policies?

a) Defence

b) Foreign policy

c) Regulate the economy

d) all of above

Ans: (a)

4. The most common and important tax levied on an individual in India is

a) Service tax

b) Excise duty.

c) Income tax

d) Central sales tax

Ans: (c)

5. Under which tax one nation, one uniform tax is ensured

a) Value added tax (VAT)

b) Income tax

c) Goods and service tax

d) Sales tax

Ans: (c)

6. Income tax was introduced in india for the first time in the year __________ .

a) 1860

b) 1870

c) 1880

d) 1850

Ans: (a)

7. __________ tax is charged on the benefits derived from property ownership.

a) Income tax

b) Wealth tax

c) Corporate tax

d) Excise duty

Ans: (b)

8. What are identified as causes of black money?

a) Shortage of goods

b) High tax rate

c) Smuggling

d) All of above

Ans: (d)

II. Fill in the blanks

1. Tax is levied by government for the development of the state’s economy.

2. The origin of the word ‘tax’ is from the word Taxation.

3. The burden of the Direct tax cannot be shifted to others.

4. The Goods and Service Tax act came into effect on 1 July 2017.

5. The unaccounted money that is concealed from the tax administrator is called Black Money.

III. Choose the correct statement

1. Which of the following statement is correct about GST?

i) GST is the ‘one point tax’.

ii) This aims to replace all direct taxes levied on goods and services by the Central and State governments.

iii) It will be implemented from 1 July 2017 throughout the country.

iv) It will unified the tax structure in India.

a) (i) and (ii) are correct

b) (ii), (iii) and (iv) are correct

c) (i), (iii) and (iv) are correct

d) All are correct

Ans: (c)

IV. Match the following

1. Income Tax - Value added tax

2. Excise duty - 1 July 2017

3. VAT - Smuggling

4. GST - Direct tax

5. Black money - Indirect tax

Answer:

1. Income Tax - Direct tax

2. Excise duty - Indirect tax

3. VAT - Value added tax

4. GST - 1 July 2017

5. Black money - Smuggling