Public Finance-Online Practice Exam 8
Public Finance-Online Practice Exam 8

Public Finance-Online Practice Exam 8

NET / SET Online Practice Exams

Public Finance

Test

Multi-choice 8

Question

1. Which of the following pairs’ terms are positively correlated to each other?

Answers

Money Laundering – Terror financing

Unaccounted money – Black money

Tax gap in corporate sector- Black money

All of the above

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Question

2. Government of India has taken certain steps to control the expansion of black money

  1. Set up a Supreme court monitored Special Investigation Team

  2. Regeneration of tax treaties with tax haven countries 

  3. Crackdown on Shell companies

  4. Penalty on real estate transaction exceeding ₹20,000

  5. Cash donation to political parties restricted to ₹2,000

Answers

I, II and IV

I, II and III

III and IV

All of these

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Question

3. FATCA is an effective tool to control black income in which country ?

Answers

UK

USA

Italy

Egypt

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Question

4. Government of India has taken following initiatives to unearth black money.

  1. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force on May 27, 2015
  2. Pradhan Mantri Garib Kalyan Deposit Scheme, 2016

Answers

Only I

Only II

I and II both

Neither I nor II

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Question

5. A NIPFP study suggested a four point action plan to curb the generation of unaccounted income in real estate sector. Which of the following is not among them?

Answers

The ITD should create its own system of notifying area rates of urban immoveable properties,

The Income Tax Act (ITA) should be amended to provide that the value mentioned in the area rates should be deemed to be the transfer value for taxation purposes in cases where the transfer of property has taken place at a lower value.

The difference between the area rate of a property and the actual consideration received for the transfer should be treated as income of the purchaser under the law.

Establishment of Directorate General of Income Tax (Exemptions) (DGITE)

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Question

6. Which of the following is/are regarded as the safe hideouts of unaccounted wealth in India?

Answers

Gold, Silver and diamonds

Real Estate

(A) and (B) both

Neither (A) nor (B)

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Question

7. A study report of National Institute of Public Finance and Policy has identified certain sectors as the key sources of unaccounted income?

  1. Professionals

  2. Education

  3. Health

  4. Mining

  5. Marketing of petroleum products

Answers

I and V Only

I, IV and V Only

II and III only

All of these

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Question

8. Which of the following scheme has not been started with an objective of unearthing the black money?

  1. Pradhan Mantri Garib Kalyan Deposit Yojana

  2. Demonetisation of 500 and 1000

  3. Income Declaration Scheme

  4. Voluntary Income Disclosure Scheme

Answers

Only I

I and II

All of these

None of these

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Question

9. Who among the following is associated with the theory of optional taxation ?

Answers

G. Mankind

H. Dalton

R. A. Musgrave

U.K. Hicks

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Question

10. Agriculture income in India is

Answers

Taxable

Not Taxable

Taxable with certain riders

Nothing is specific

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