Government and Taxes

Samacheer Book Back Questions And Answers For Economy Standard 10 Full Book “Government and Taxes“

I. Choose the correct answer:
1. The three levels of governments in India are _____
(a) Union, state and local
(b) Central, state and village
(c) Union, municipality and panchayat
(d) None of the above

2. In India, taxes are including:
(a) Direct taxes
(b) Indirect taxes.
(c) Both (a) and (b)
(d) None of these

3. Which is the role of government and development policies?
(a) Defence
(b) Foreign policy
(c) Regulate the economy
(d) all the above

4. The most common and important tax levied on an individual in India is:
(a) Service tax
(b) Excise duty.
(c) Income tax
(d) Central sales tax

5. Under which tax one nation, one uniform tax is ensured _____
(a) Value added tax (VAT)
(b) Income tax
(c) Goods and service tax
(d) Sales tax

6. Income tax was introduced in India for the first time in the year:
(a) 1860
(b) 1870
(c) 1880
(d) 1850

7. _____ tax is charged on the benefits derived from property ownership.
(a) Income tax
(b) Wealth tax
(c) Corporate tax
(d) Excise duty

8. What are identified as causes of black money?
(a) Shortage of goods
(b) High tax rate
(c) Smuggling
(d) All of above

9. Tax evasion is the illegal evasion of taxes by _____
(a) Individuals
(b) Corporations
(c) Trusts
(d) All of the above

10. Payments are:
(a) Fees and fines
(b) Penalities and forfeitures
(c) None of the above
(d) Both (a) and (b)

II. Fill in the blanks:
1. _____ is levied by the government for the development of the state’s economy.
2. The origin of the word ‘tax’ is from the word _____
3. The burden of the _____ tax cannot be shifted to others.
4. _____ tax is levied on companies that exist as separate entities from their shareholders.
5. The Goods and Service Tax act came into effect on _____
6. The unaccounted money that is concealed from the tax administrator is called _____

Answers:
1. Tax
2. Taxation
3. Direct
4. Corporate
5. 1 July 2017
6. Black money

III. Which of the following statement is correct about GST?
1. (i) GST is the ‘one-point tax’.
(ii) This aims to replace all direct taxes levied on goods and services by the Central and State governments.
(iii) It will be implemented from 1 July 2017 throughout the country.
(iv) It will unified the tax structure in India.
(a) i and ii are correct
(b) ii, iii and iv are correct
(c) i, iii and iv are correct
(d) All are correct

2. Choose the incorrect statements.
(i) Shortage of goods, whether natural or artificial, is the root cause of black money.
(ii) Industrial sector has been the major contributor to black money.
(iii) Smuggling is one of the major sources of black money.
(iv) When the tax rate is low, more black money is generated.
(a) i and ii
(b) iv
(c) i
(d) ii and iii

IV. Match the following:
1. Income Tax         A. Value added tax
2. Excise Tax            B. 1 July 2017
3. VAT                     C. Smuggling
4. GST                     D. Direct tax
5. Black money       E. Indirect tax

Answers:
1. D
2. E
3. A
4. B
5. C

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