INDIAN ECONOMY TEST - 3-Indian Economy-Quiz

Civil Services Exams-INDIAN ECONOMY TEST - 3

Q 1.
From the calculation of income tax, if 2021-22 is the financial year in which an income is accrued and entered for tax purposes, the assessment year will be:

a.)
2019-20
b.)
2020-21
c.)
2022-23
d.)
None of these

Q 2.
Which of the following is a tax that has to be paid by the foreign investors in India; if they make a profit in the form of an increased value of assets held in the country?

a.)
Capital gains tax
b.)
Minimum alternative tax
c.)
Wealth tax
d.)
Corporate income tax

Q 3.
Which of the following has adverse trends are existing in fertilizer use in India? Choose the correct answer using the codes given below.

1. Comparatively low price of urea has caused its excess use

2. Import dependence

3. Fertilizer subsidy scheme has produced adverse effects on soil balance.

Codes:

a.)
Only 2 is correct
b.)
Only 1 and 3 are correct
c.)
2 and 3 are correct
d.)
1, 2 and 3 are correct

Q 4.
Consider the following budgetary items of 2021-22 union budget:

1. Fiscal Deficit

2. Revenue Deficit

3. Effective Revenue Deficit

4. Primary Deficit

The correct descending order of these deficit identities in terms of their size is:

a.)
1, 2, 3 and 4
b.)
1, 4, 3 and 2
c.)
1, 2, 4 and 3
d.)
1, 4, 2 and 3

Q 5.
Consider the following statements about India's fertilizer subsidy scheme:

1. Under the fertilizer subsidy programme, money is transferred to the producers than to the farmers; whereas the farmers get the benefit of low prices.

2. Nutrient Based Subsidy scheme has been launched for P&K fertilizers whereas a separate subsidy scheme runs for urea.

Of these;

a.)
1 and 2 are correct
b.)
Neither 1 nor 2 is correct
c.)
Only 1 is correct
d.)
Only 2 is correct

Q 6.
The most subsidized fertilizer in India in terms of gross budgetary support is:

a.)
Phosphorus
b.)
Nitrogen
c.)
Entire Phosphorus and Potash fertilizers
d.)
Urea

Q 7.
The basic income tax rate for domestic companies in India is:

a.)
25%
b.)
22%
c.)
30%
d.)
40%

Q 8.
The current exemption limit from personal income tax for senior citizens and very senior citizens are:

a.)
Rs 300000 and 400000 respectively
b.)
Rs 250000 and 300000 respectively
c.)
Rs 400000 and Rs 500000 respectively
d.)
Rs 300000 and Rs 500000 respectively

Q 9.
Tax Expenditures are:

a.)
Taxes evaded by taxpayers
b.)
Tax avoided by taxpayers
c.)
Tax revenue foregone
d.)
Administrative expenses

Q 10.
Tax that depends upon the value of an asset over time is:

a.)
Progressive tax
b.)
Indirect tax
c.)
Direct tax
d.)
Capital gains tax

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