Quiz Questions 24 February 2023

Explanation: Statement 1 is not correct: MAT is a tax levied on “zero tax” companies. In order to bring such companies under the I-T net, Section 115JA (Minimum Alternate Tax) was added to the Income Tax Act in year 1997-98.Statement 2 is correct: Zero tax companies are those companies that show book profits and distribute dividends to share holders but don’t pay taxes. This happens because although the profit and loss of a corporation are calculated as per provisions of Companies Act, the income tax is calculated on the basis of provisions of Income Tax Act. The companies take advantage of various exemptions given in IT Act to show their disposable income as nil. Therefore, MAT is levied on book profits (calculated as per provisions of Companies Act) and not on disposable income. As per The Finance Act, 2016, Minimum alternate tax (MAT) won’t be applicable foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) as they normally don’t have a place of business in India. This was applied retrospectively from 2001.

Explanation:

A Pigovian tax is a government cost on activities that create socially harmful externalities. A negative externality is an activity that creates a negative effect on others. For example, pollution is an externality. This negative externality might be corrected, by levying taxes equal to the externalized costs.

Explanation:

Statement 1 is correct. DadabhaiNaoroji is known as the Grand Old Man of India.

Statement 2 is incorrect. DadabhaiNaoroji laid down the goal of Indian national movement as ” Self Government or Swaraj” as president of Indian National Congress in 1906 at calcutta and not in 1905. Also 1905 INC session was held at Banaras and not at lahore.

Explanation:

Central Board of Direct Taxes (CBDT), a department under the Ministry of Finance has launched a new app known as AaykarSetu. The app is part of the Digital India initiative to help users understand the various nuances of direct taxes, file income tax, apply for PAN, check TDS statement, and even share grievances with the right authorities. It also lets users to link their Aadhaar to their PAN.

Explanation:

The Swaran Singh Committee suggested inclusion of duty to pay taxes under fundamental duties, but it was not agreed upon.

As per the Direct taxation laws; income and other kinds of taxes are a legal obligation for an Indian citizen as he uses public services, receives social and political security from the state etc.

Explanation:

The first president of Indian National Congress was Womesh Chandra Banerji.

The first session of the INC was held in 1885 in Mumbai.

Mahatma Gandhi presided over the Belgaum session of INC in 1924. So, 2 is wrong.

The first woman president of INC was Mrs Annie Besant.

The first Indian woman president of the INC was Mrs Sarojini Naidu

The first Englishman to become the president of INC was George Yule. So, 3 is wrong.

The first Muslim president of the INC was Badruddin Tayabji.

The president of INC at the time of India’s independence was Acharya JB Kriplani. So, 4 is wrong.

Explanation:

Goods and Services Tax (GST) refers to the single unified tax created by amalgamating a large number of Central and State taxes presently applicable in India.

The salient features of GST are as under:

GST comes under the broad spectrum of what is known as Value Added Tax which provides for input credits and taxes only the value addition that happened in the process of production / provision of service.

GST would be applicable on supply of goods or services as against the present concept of tax on the manufacture or on sale of goods or on provision of services.

GST would be a destination based tax as against the present concept of origin based tax. i.e, tax is imposed at the point of consumption.

It would be a dual GST with the Centre and the States simultaneously levying it on a common base.

The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States.

Import of goods or services would be treated as inter-State supplies and therefore, would be subject to IGST in addition to the applicable customs duties. In other words, all imported goods will be charged integrated tax (IGST) which is equivalent to Central GST State GST. This will bring equality with taxation on local products.

Explanation:

Through the Swadeshi movement of 1905-07 it had greatly broadened its appeal among the middle classes. That movement had thrown up some towering leaders – among them Bal Gangadhar Tilak of Maharashtra, Bipin Chandra Pal of Bengal, and Lala Lajpat Rai of Punjab. The three were known as “Lal, Bal and Pal”, the alliteration conveying the all-India character of their struggle, since their native provinces were very distant from one another. Where these leaders advocated militant opposition to colonial rule, there was a group of “Moderates” who preferred a more gradual and persuasive approach. Among these Moderates was Gandhiji’s acknowledged political mentor, Gopal Krishna Gokhale, as well as Mohammad Ali Jinnah, who, like Gandhiji, was a lawyer of Gujarati extraction trained in London.

Explanation:

Aims and Objectives of the Congress

These were to—

(i) found a democratic, nationalist movement;

(ii) politicise and politically educate people;

(iii) establish the headquarters for a ‘movement;

(iv) promote friendly relations among nationalist political workers from different parts of the country;

(v) develop and propagate an anti-colonial nationalist ideology;

(vi) formulate and present popular demands before the Government with a view to unifying the people over a common economic and political programme;

(vii) develop and consolidate a feeling of national unity among people irrespective of religion, caste or province.

(viii) carefully promote and nurture Indian nationhood.

So except statement 4 (Congress was not to take up questions of social reform) , all the statements are true.

Explanation:

Various campaigns before the first all- India association—the Indian National Congress appeared on the scene.

These campaigns were—

(i) for imposition of import duty on cotton (1875)

(ii) for Indianisation of government service (1878-79)

(iii) against Lytton’s Afghan adventure

(iv) against Arms Act (1878)

(v) against Vernacular Press Act (1878)

(vi) for right to join volunteer corps

(vii) against plantation labour and against Inland Emigration Act

(viii) in support of Ilbert Bill

(ix) for an All India Fund for Political Agitation

(x) campaign in Britain to vote for pro-India party

(ii) against reduction in maximum age for appearing in Indian Civil Service; the Indian Association took up this question and organized an all-India agitation against it, popularly known as the Indian Civil Service agitation.

The Defence of civil rights was mainly a feature of Congress demands of 1890s.

Hence, option (b) is the correct answer.