Direct Taxes

Q.

Define an indirect tax

Q. The burden of tax cannot be shifted from one person to another. What type of tax is this?

1. Indirect tax
2. Goods and services tax
3. Direct tax
4. Entertainment tax

Q. What is a professional tax?

1. It is an indirect tax on the income of all earning individuals.
2. It is an indirect tax on the profits of companies and corporates.
3. It is a direct tax on the income of all earning individuals.
4. It is a direct tax on the profits of companies and corporates.

Q. The government used to charge a wealth tax which was levied on properties owned by the richer sections of the society. But the government stopped collecting this tax. Identify the reason for this.

1. The cost of collecting this tax was less than the tax collected.
2. The income from these taxes was not sufficient.
3. The number of wealthy people was less.
4. The cost of collecting this tax was more than the tax collected.

Q. Which of the following authority collects property tax?

1. Local government
2. State government
3. Union government
4. Both Union and state governments

Q. Which of the following statements is correct regarding the collection of income and corporate tax in India?

1. Both income and corporate tax are collected by the central government.
2. Both income and corporate tax are collected by the state governments.
3. Income tax is collected by the central government, while the corporate tax is collected by the state governments.
4. Income tax is collected by the state governments, while the corporate tax is collected by the central government.

Q. Which of the following is a tax on tax?

1. GST
2. Income tax
3. Sales tax
4. Surcharge

Q. Which of the following is a tax imposed on the profits of companies?

1. Income tax
2. Corporate tax
3. Professional tax
4. Property tax

Q. cannot be shifted to another individual. It has to be paid by the one on whom it is imposed.

1. Corporate tax
2. Stamp duty
3. GST
4. Excise duty

Q. Income tax and corprate tax are examples of ______________.

1. direct taxes
2. indirect taxes
3. goods and services taxes
4. individual taxes

Q. Suppose you are an advisor to the Government of Karnataka. The state plans to reconstruct houses for the poor who lost their homes in a flood. However, the government needs to obtain extra money for that. Which of the following would be the correct measure to suggest to the government?

1. Increase GST
2. Increase surcharge
3. Introduce cess
4. Decrease income tax

Q. Analyse the following situation and select the suitable option.

A earns an income.
B spends the income.

1. A pays direct tax and B pays indirect tax.
2. A pays indirect tax and B pays direct tax.
3. A does not pay any tax and B pays direct tax.
4. B does not pay any tax and A pays indirect tax.