1. Which tax is levied on the income of individuals and entities within India?
A) Value Added Tax (VAT)
B) Goods and Services Tax (GST)
C) Income Tax
D) Corporate Tax
2. Who is responsible for the administration of the income tax laws in India?
A) Ministry of Finance
B) Reserve Bank of India
C) Securities and Exchange Board of India (SEBI)
D) Central Board of Direct Taxes (CBDT)
3. What is the primary goal of a progressive tax system?
A) To tax all income at the same rate
B) To tax higher-income individuals at a higher rate
C) To tax lower-income individuals at a higher rate
D) To tax all income at a lower rate
4. Which tax is levied on the manufacturing and sale of goods within India?
A) Corporate Tax
B) Excise Duty
C) Service Tax
D) Capital Gains Tax
5. What is the primary objective of the Goods and Services Tax (GST) in India?
A) To simplify the taxation system
B) To increase tax rates on goods and services
C) To eliminate all indirect taxes
D) To promote international trade
6. Which entity is responsible for making recommendations on issues related to the Goods and Services Tax (GST) in India?
A) Reserve Bank of India (RBI)
B) Ministry of Finance
C) GST Council
D) Securities and Exchange Board of India (SEBI)
7. What is the purpose of the Fiscal Responsibility and Budget Management Act (FRBM Act) in India?
A) To increase government spending without restrictions
B) To reduce government debt and deficits
C) To eliminate taxation on essential goods and services
D) To provide subsidies to all sectors of the economy
8. Which tax is levied on the transfer of capital assets, such as property or investments?
A) Corporate Tax
B) Income Tax
C) Capital Gains Tax
D) Wealth Tax
9. Who has the authority to amend the tax rates and rules in India?
A) President of India
B) Prime Minister of India
C) Parliament of India
D) Supreme Court of India
10. Which type of tax is directly deducted from an individual's salary by the employer before paying the salary?
A) Value Added Tax (VAT)
B) Income Tax
C) Excise Duty
D) Service Tax
11. What is the maximum rate at which corporate tax is levied in India for domestic companies?
A) 15%
B) 25%
C) 30%
D) 35%
12. Which tax is levied on the value added at each stage of the production and distribution process?
A) Corporate Tax
B) Excise Duty
C) Capital Gains Tax
D) Wealth Tax
13. Which tax is levied on the income earned by individuals or businesses from investments?
A) Corporate Tax
B) Income Tax
C) Capital Gains Tax
D) Wealth Tax
14. Which entity is responsible for the collection of indirect taxes in India?
A) Central Board of Direct Taxes (CBDT)
B) Central Board of Indirect Taxes and Customs (CBIC)
C) Goods and Services Tax Network (GSTN)
D) Reserve Bank of India (RBI)
15. What is the primary objective of the Direct Tax Code (DTC) in India?
A) To simplify and consolidate the direct tax laws
B) To increase tax rates on individuals and businesses
C) To eliminate all indirect taxes
D) To promote tax evasion
16. Who is responsible for setting the monetary policy in India?
A) Ministry of Finance
B) Reserve Bank of India (RBI)
C) Securities and Exchange Board of India (SEBI)
D) Planning Commission of India
17. Which tax is levied on the profits earned by companies operating in India?
A) Corporate Tax
B) Income Tax
C) Capital Gains Tax
D) Wealth Tax
18. What is the primary purpose of fiscal prudential?
A) To increase government spending without restrictions
B) To reduce government debt and deficits
C) To promote tax evasion
D) To eliminate taxation on essential goods and services
19. Which entity is responsible for regulating the securities market in India?
A) Ministry of Finance
B) Reserve Bank of India (RBI)
C) Securities and Exchange Board of India (SEBI)
D) Planning Commission of India
20. Which tax is levied on the wealth owned by individuals and entities in India?
A) Corporate Tax
B) Income Tax
C) Capital Gains Tax
D) Wealth Tax
21. What is the primary purpose of government interventions in the economy?
A) To reduce government debt and deficits
B) To increase taxation on individuals and businesses
C) To correct market failures and promote economic stability
D) To eliminate all forms of taxation
22. Which tax is not included in the Goods and Services Tax (GST) system in India?
A) Central Excise Duty
B) Value Added Tax (VAT)
C) Service Tax
D) Corporate Tax
23. What is the primary objective of the Reserve Bank of India (RBI)?
A) To regulate the securities market
B) To set monetary policy and regulate the banking sector
C) To administer income tax laws
D) To collect indirect taxes
24. Which entity is responsible for formulating and implementing the monetary policy in India?
A) Ministry of Finance
B) Reserve Bank of India (RBI)
C) Securities and Exchange Board of India (SEBI)
D) Planning Commission of India
25. Which tax is levied on the purchase of goods and services in India?
A) Corporate Tax
B) Excise Duty
C) Value Added Tax (VAT)
D) Capital Gains Tax
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