Question

Q. In the context of the taxation system in India, Tax expenditure means:

• A. Total expenditure incurred in collecting taxes.
• B. It is the ratio of the total tax collection and expenditure made by the government.
• C. It is the tax revenue foregone by the government as a result of exemptions, rebates etc, provided by the government.
• D. None of the above

Answer 1

The correct option is C It is the tax revenue foregone by the government as a result of exemptions, rebates etc, provided by the government.

Explanation:

A tax expenditure is the tax revenue foregone by the government as a result of exemptions, rebates, etc, provided by the government.