Topic: Budget and Taxes (17 Questions)

Consider the following statements:

• Statement I.In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax.
• Statement II.In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961.

Which one of the following is correct in respect of the above statements?

Consider the following statements:

• I.Capital receipts create a liability or cause a reduction in the assets of the Government.
• II.Borrowings and disinvestment are capital receipts.
• III.Interest received on loans creates a liability of the Government.

Which of the statements given above are correct?

Consider the following activities:

• I.Production of crude oil
• II.Refining, storage and distribution of petroleum
• III.Marketing and sale of petroleum products
• IV.Production of natural gas

How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

Suppose the revenue expenditure is ₹ 80,000 crores and the revenue receipts of the Government are ₹ 60,000 crores. The Government budget also shows borrowings of ₹ 10,000 crores and interest payments of ₹ 6,000 crores.

Which of the following statements are correct?

• I.Revenue deficit is ₹ 20,000 crores.
• II.Fiscal deficit is ₹ 10,000 crores.
• III.Primary deficit is ₹ 4,000 crores.

A country's fiscal deficit stands at ₹ 50,000 crores. It is receiving ₹ 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹ 1,500 crores. What is the gross primary deficit?