Question 1

It is difficult to evade:

Accepted Answer

Direct taxes are levied directly on individuals and organizations by the government, making them harder to evade compared to indirect taxes, which are collected by intermediaries (like businesses) from the consumer.

Question 2

The main source of revenue of federal government is:

Accepted Answer

D

Question 3

Who establishes the Finance Commission in India?

Accepted Answer

The Finance Commission in India is established by the President of India under Article 280 of the Constitution.

Question 4

How many Finance Commissions have been constituted so far?

Accepted Answer

The answer of How many Finance Commissions have been constituted...

Question 5

Which of the following statements is not correct?

Accepted Answer

The chairman of the first finance commission was K.C. Neogy, not Mr. Santhanam.

Question 6

Recommendations of first Finance Commission covered which of the following periods?

Accepted Answer

The answer of Recommendations of first Finance Commission covered which...

Question 7

Who was the Chairman of the Seventh Finance Commission of India?

Accepted Answer

J. M. Shelat was the Chairman of the Seventh Finance Commission of India.

Question 8

Interim budget is also known as....

Accepted Answer

An interim budget is also known as a mini budget and a vote on account. It is presented in an election year, allowing the government to cover expenses until a new government presents the full budget.

Question 9

What is the biggest source of Income for the Central Government in the Union Budget 2020-21?

Accepted Answer

Borrowings and other liabilities were projected as the biggest source of income for the Central Government in the Union Budget for 2020-21, reflecting the government's reliance on debt to fund its activities, especially in the context of the economic impact of the COVID-19 pandemic.

Question 10

Which of the following is not the rate of tax slab in the Union Budget 2020-21?

Accepted Answer

The Union Budget 2020-21 did not include a 40% tax slab. The tax slabs were structured around different percentages, but 40% was not one of them.

Quiz 7: Taxation, Public Goods, and Finance Commission in India