Tax Systems in India

Q. Identify the tax system in which the tax rate decreases with increase in income.

1. Proportional taxation system
2. Regressive taxation system
3. Progressive taxation system
4. Indirect taxation system

Q. India follows the taxation system.

1. progressive
2. proportional
3. regressive
4. flat

Q. The taxes on the profits of companies and corporates having businesses in India are called as corporate tax. Even foreign companies are charged tax on the income they earn in India.

The corporate tax rates for these companies are as follows:

Turnover	Indian companies	Foreign companies
Less than ₹50 crore	25%	40%
More than ₹50 crore	30%	40%

Identify the taxation system followed for the corporate tax.

1. Progressive taxation system for Indian companies
2. Progressive taxation system for foreign companies
3. Proportional taxation system for Indian companies
4. Proportional taxation system for foreign companies

Q. In a proportional taxation system, the burden of tax is more on the people who have a high income.

1. False
2. True

Q. Vikram earns ₹1, 00, 000 and Kumar earns ₹5, 00, 000. But both are expected to pay 20% of their income as tax. Identify the type of taxation system.

1. Proportional taxation system
2. Progressive taxation system
3. Regressive taxation system
4. Rational taxation system

Q. Identify the tax system that India follows for taxing the Indian companies.

1. Proportional taxation system
2. Progressive taxation system
3. Regressive taxation system
4. Goods and services taxation system

Q. Identify the tax system in the following situation.

Kumar earns ₹5 lakh and Rani earns ₹10 lakh. Kumar pays more income tax than Rani.

1. Proportional taxation system
2. Regressive taxation system
3. Progressive taxation system
4. Flat taxation system