Case 1: In India, the government reduced the Goods and Services Tax from 12% to 5% on medicines and testing kits during the pandemic of COVID-19 in 2021.

Case 2: In India, a part of the tax from salaried people is collected at the time they receive salary.

Identify the canons of taxation in the above two cases.

Case 1: Canon of productivity
Case 2: Canon of convenience

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Case 1: Canon of elasticity
Case 2: Canon of productivity

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Case 1: Canon of elasticity
Case 2: Canon of convenience

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Case 1: Canon of convenience
Case 2: Canon of elasticity

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Case 1: Canon of elasticity
Case 2: Canon of convenience
The canon of elasticity states that the taxation system should be flexible. The government should be able to raise or lower the taxes as per the situation of the people and the country. And the canon of convenience states that the tax should be collected at the time a person gets enough money to pay the tax. This makes it convenient for the taxpayer to pay the tax from the salary just earned without any financial problems.

Suggest Corrections

Similar questions

Q. During the COVID-19 pandemic, the government reduced the Goods and Services Tax from 12% to 5% on medicines and testing kits. Identify the principle of taxation that is evident in this situation.

Q. The salary of a person is increased by Rs. 4800 and the rate of tax is decreased by 2% from 12% to 10% . The effect is such that he is now paying the same tax as before. If in both the cases, the standard tax deduction is fixed at 20% of the total income, find the increased salary ?

State Government imposes a monthly tax on the salary of all the employees. The tax amount varies according to the income slab. The Central Government also imposes tax on the same income, which is known as the income tax. This is against the theory of taxation.

Which of the following is a conclusion which can be drawn from the facts stated in the above paragraph?

Q. Goods and Services Tax (GST) is an indirect tax introduced in India in 2017 that is imposed on the supply of goods and services, and it subsumes all indirect taxes except few. It is a destination-based tax imposed on goods and services used, and it is not imposed at the point of origin from where goods come. GST also has a few components specific to state governments, central government and Union Territories (UTs).
Which one of the following statements can be inferred from the given passage?

Q. As we all know Govt of India collects tax revenue on various activities in the country. Which of the following is a part the tax revenue of the Govt?
A. Tax on Income
B. Tax on Expenditure
C. Tax on Property or Capital Asset
D. Tax on Goods and Services

Join BYJU'S Learning Program