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The illegal non – payment of taxes is generally called as tax evasion, either by individuals corporations and trusts.

(d) All are correct

Tax is levied by the government for the development of the state’s economy. The revenue of the government depends on direct and indirect taxes.

Both the Union and state governments enact numerous laws to protect our rights, properties and to regulate our economy and society. To settle disputes, the Union government has a vibrant judicial system consisting of courts at the national state and lower levels and the state government take the responsibility for administrating the police force in respective states.

Income tax was introduced in india for the first time in the year 1860.

It is charged on the benefits derived from property ownership. The same property will be taxed every year on its current market value. The tax is levied on the individuals and companies alike.

A. (iv) 

B. (v)

C. (i) 

D. (ii) 

E. (iii)

Correct Answer is: (b) (iv)

(b) (i), (ii) are correct

A. (v)

B. (iii) 

C. (i) 

D. (ii) 

E. (iv)

Tax evasion resulting in black money prevents the resource mobilisation efforts of the Union government. Shortage of funds distorts the implementation of developmental plans and forces the government to resort to deficit financing in case public expenditure is inelastic.

Tax evasion interferes with the declared economic policies of the government by distorting saving and investment patterns and availability of resources for various sectors of the economy.

The tax evasion activities include:

1. Under reporting income 

2. Inflating deductions (or) expenses 

3. Hiding money 

4. Hiding interest in off-shore accounts 

5. Dishonest tax reporting 

6. Overstating deductions.

Wealth tax tax is charged on the benefits derived from property ownership.

(c) Goods and service tax

A. (iii) 

B. (v) 

C. (i) 

D. (ii) 

E. (iv)

Corporate tax is levied on companies that exist as seperate entities from their shareholders. 

(d) All of the above

(d) All of above

Structure of GST 

SGST (State Goods and Services Tax):

Levied Intra-state (or) within the state

Eg:

1. VAT / sales tax, purchase tax 

2. Entertainment tax, luxury tax 

3. Lottery tax 

4. State surcharges and cesses.

Payable to state Government.

CGST (Central Goods and Service Tax): 

Levied Intra state (or) within the state.

Eg:

1. Central Excise Duty, services tax 

2. Customs duty, surcharges 

3. Education and sec. Hr. sec. cess.

Payable to Central Government.

IGST (Integrated Goods and Services Tax)

Levied Inter State (or) between States.

Payable to Central Government.

Four major GST rates are

5%, 12%, 18%, 28%

An Excise tax is a duty on manufactured goods levied at the movement of manufacture.

The structure of GST in India consists of 3 forms.

(c) Income tax

(b) Canon of elasticity

Black money is funds earned on the black market on which income and other taxes have not been paid. The unaccounted money that is concealed from the tax administrator is called black money.

(d) all of these

Black Money: Black money is funds earned on the black market on which income and other taxes have not been paid. The unaccounted money that is concealed from the tax administrator is called black money.

Causes of Black Money: Shortage of goods: Shortage of goods, whether natural or artificial, is the root cause of black money. Controls are often introduced to check black money.

Licensing proceeding: It is firmly believed that the system of controls permits, quotes and licences are associated with maldistribution of commodities in short supply, which results in the generation of black money.

Contribution of the industrial sector: Industrial sector has been the major contributor to black money. 

For example, the Controller of Public Limited Companies tries to buy commodities at low prices and get them billed at high amounts and pockets the difference personally.

Smuggling: Smuggling is one of the major sources of black money. When India had rigid system of exchange controls, precious metals like gold and silver, textiles and electronics goods were levied a heavy excise duty. Bringing these goods by evading the authorities is smuggling.

Tax structure: When the tax rate is high, more black money is generated.

In the case of Indirect taxes, the tax can be shifted to the others. That is the impact is on one person while the incidence is on the other person. Therefore, in the case of indirect taxes, the tax payer is not the tax bearer.

Types of Taxes: 

Direct Taxes: A tax imposed on an individual or organisation, which is paid directly, is a direct tax. The burden of a direct tax cannot be shifted to others. J.S. Mill defines a direct tax as “one which is demanded from the very persons who it is intended or desired should pay it.” Some direct taxes are income tax, wealth tax and corporation tax.

Income tax: Income tax is the most common and most important tax levied on an individual in India. It is charged directly based on the income of a person. The rate at which it is charged varies, depending on the level of income.

Corporate tax: This tax is levied on companies that exist as separate entities fronl their shareholders. It is charged on royalties, interest gains from sale of capital assets located in India and fees for a technical services and dividends. Foreign companies are taxed on income that arises or is deemed to arise in India.

Wealth tax: Wealth tax is charged on the benefits derived from property ownership. The same property will be taxed every year on its current market value. The tax is levied on the individuals and companies alike.

Indirect Taxes: If the burden of the tax can be shifted to others, it is an indirect tax. The impact is on one person while the incidence is on the another person. Therefore, in the case of indirect taxes, the tax payer is not the tax bearer. Some indirect taxes are stamp duty, entertainment tax, excise duty and goods and service tax (GST).

Stamp duty: Stamp duty is a tax that is paid on official documents like marriage registration or documents related to a property and in some contractual agreements.

Entertainment tax: Entertainment tax is a duty that is charged by the government on any source of entertainment provided. This tax can be charged on movie tickets, tickets to amusement parks, exhibitions and even sports events.

Excise duty: An excise tax is any duty on manufactured goods levied at the movement of manufacture, rather than at sale. Excise is typically imposed in addition to an indirect tax such as a sales tax.

(a) Customs duty

(d) all of above

(a) Union Government

Earning money through:

1. Income Tax, Corporation tax 

2. Customs 

3. Union excise duties 

4. GST 

5. Borrowing and other liabilities 

6. Non – dept capital assets 

7. Non – Tax Revenues

Money goes to:

1. Interest payments 

2. Central sector schemes 

3. Centrally sponsored scheme 

4. Pension and other expenditure 

5. State share of duties and taxes

6. Defence 

7. Subsidies 

8. Finance commission and 

9. Other transfers.

(c) Both (a) and (b)

(a) Union, State and local

Correct option is B) 2, 6

A steam engine is a machine that does mechanical work by using heat as its the main ingredient. The new model of the steam engine was made by James Watt and Mathew Boulton. They both worked hard and opened a mill that was called the Boulton and Watt in Birmingham, England in the 18th century.

Correct option is A) valency

Correct option is B) octet

B) Profit and Private property

D) Trails on captured Nazi generals

A cotton mill is a machinery that is usually set up inside the building. It does the work of weaving and spinning and produces cotton yarn or basically cotton cloth. This machine was created in 1771. The cotton mill was created by Richard Arkwright.

A) Agriculturists

Correct option is B) octet

C) repulsive force

C) Formation of Comintern – 1925