• Indian Culture for Prelims Preparation
  • Environment and Ecology
  • Economics
  • Geography
  • Science & Technology
  • Indian History
  • Current Affairs

Tax Structure

Two major concepts that have found favor in this section is Indirect taxes and Finance Commission. The questions are rather straightforward here and applied knowledge is rarely tested. The GST is very much in news for few years and one must be thorough with its provisions. Since the 14th FC recommendations have been already asked, we wouldn’t suggest you spending too much time on it.

  1. Constitutional Provisions on Taxation
  2. Progressive and Regressive Tax
  3. Direct And Indirect Tax
  4. Laffer curve
  5. Tax Authorities
  6. CBEC
  7. CBDT
  8. Income Tax Authority
  9. Value Added Tax
  10. GST
  11. Direct Tax Code
  12. CTT
  13. STT
  14. DDT
  15. MAT
  16. VAT
  17. Tax Deduction at Source
  18. Capital Gains Tax
  19. 14th Finance Commission Recommendations
  20. Income Taxation slabs for Individuals for the FY2015-16
  21. Budgetary proposals.
  22. Retrospective Tax Amendment: Latest judgments.
  23. Evaluation of Indian Tax Structure
  24. Black Money
  25. Ways to curb Black money
  • Constitutional provisions can be learnt from Laxmikant on Indian Polity
  • Sanjeev Verma – Unique Publishers –Chapter 11
  • Introduction to Macroeconomics- NCERT Class XII- Chapter 5
  • Ramesh Singh 5th edition –Chapter 17   
  • Read Union Budget and Relevant Chapters of Economic Survey Volume 1 and 2
  • Read Business line /Business Standard for other current developments.
  • Online paper livemint gives analytical articles.

[2011 Prelims]

1)Which of the following is not a feature of ‘Value Added Tax’?

  1. It is a multi-point destination-based system of taxation.
  2. It is a tax levied on value addition at each stage of transaction in the production-distribution chain
  3. It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer.
  4. It is basically a subject of the Central government and the State governments are only a facilitator for its successful implementation.

[2012 Prelims]

1)Which of the following is/are among the noticeable features of the recommendations of the 13th finance Commission?

  1. A design for the Goods and Services Tax, and a comprehensive package linked to adherence of the proposed design.
  2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’ demographic dividend.
  3. Devolution of a specified share of central taxes to local bodies as grants

Select the correct answer using the codes given below.

  1. 1 only
  2. 2,3
  3. 1,3
  4. 1,2,3

2)Under which of the following circumstances may capital gains arise?

  1. When there is an increase in sales of a product.
  2. When there is a natural increase in the value  of the property owned.
  3. When you purchase a painting and there is growth in its value due to increase in its popularity.

Select the correct answer using the codes given below.

  1. 1 only
  2. 2,3
  3. 2 only
  4. 1,2,3

[2014 Prelims]

1)The sales tax you pay while purchasing a toothpaste is a

  1. Tax imposed by the Central government
  2. Tax imposed by the Central government but collected by the state govt.
  3. Tax imposed by the state government but collected by the Central govt.
  4. tax imposed and collected by State govt.

[2015 Prelims]

1)With reference to the 14th finance Commission, which of the following statements is/are correct?

  1. It has increased the share of States in the Central divisible pool from 32% to 42 % percent.
  2. It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

  1. 1 only
  2. 2 only
  3. Both
  4. None

[2017 Prelims]

1) What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

  1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
  2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
  3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: A

2) Consider the following statements :

  1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.
  2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.

Which of the statements given above is/are correct ?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: D