Daily Quiz: UPSC Prelims Marathon – March 19, 2019

Personal income tax is lived on incomes of individuals, Hindu families, unregistered firms and other association of people. For taxation purpose, income from all sources is added. however, apart from the deduction of necessary professional expenditure, rebate on account of life insurance premium, provident fund, etc. is allowed. India has a progressive income tax like other countries. Income tax is lived and collected by union government and distributed between itself and states.

India Is a preferred destination due to its culture, monuments and handicrafts. However, tourism is quite small in India compared to many other countries because of inadequacy of infrastructure in India.  

Boom  – Business activity at high level with increasing income , output and employment at macro level

Recession   – Gradual fall income , output and employment with business activity in a low gear

Depression  – Unprecedented level of under employment and unemployment , drastic fall in income, output and employment

Recovery     – Steady rise in the general level of prices income, output, employment.

The passage relates to Community Development programme ,started in 1952 for overall development of rural areas.

The Gift-edged market means the market for government and semi-government securities which carry fixed interest rates rate. Where it is a way of least risk of default in repayment.

Internal debt is that part of the total debt that is owed to lenders within the country. It is the money the government borrows from its own citizens. The government borrows by issuing the Government Bonds and T-Bills (Treasury Bills). It also includes the Market borrowings by the government. The government bonds and T-Bills are traded in the market which is also known as Gilt Market.Please note that when government borrows from the domestic sources, the increase in inflation is less in comparison to simply printing the money and increased the more liquid forms of wealth (i.e., the money supply).

The major component of internal debt are market, Bonda, treasury Bills, special floating  and other advance , securities against small saving ,small saving provident funds other accounts which include postal insurances , life annuity fund , Hindu family annuity funds, borrowings against compulsory deposit income tax annuity deposits special deposits of Non-Government provident fund and reserve funds and deposit

Indirect taxes include – Excise duty , customs duty , service tax, securities and transaction taxes etc. property tax , corporation tax and wealth tax are included in direct tax.