Daily Quiz: UPSC Prelims Marathon – May 15, 2018

A progressive tax is a tax rate applied to either income or profits, or spending, that increases as income/profits, or spending increases. It is a process through which as income of a person goes up, rate of tax goes down. Progressive taxation combined with regressive expenditure of income in a country.

Broad money (M3) in India Constitutes Currency with the public, Demand deposits with banks and time deposits with banks.

Industrial Sickness –  Omkar Goswami   

Tax Reforms – Rajah Chelliah in 1993

Reforms in Insurance Sector – R.N.Malhotra. in 1993

Disinvestment of shares in public Sector Enterprises – C. Rangarajan. in 1993

HDI report brought out annually by UNDP since 1990. It was propounded by Mahboob  ul-Huq, a Pakistani economist in 1990. It comprises of literacy rate, life expectancy at birth, National Income purchasing Power Parity Dollars (PPP$).

New methodology for 2011 data onwards

In its 2010 Human Development Report the UNDP began using a new method of calculating the HDI.

The following three indices are used:

1. Life Expectancy Index (LEI)=  

2. Education Index (EI)=

Mean Years of Schooling Index (MYSI)=

Expected Year of Schooling Index (EYSI)=

3. Income index (II)=

Finally, the HDI is the geometric mean of the previous three normalized indices : HDI =

LE : Life expectancy at birth

MYS : Mean year of schooling (Years that a 25-Year -old person or older has spent in Schools)

EYS : Expected years of schooling (Year that 5-year-old child will spend with his education in his whole life)

GNIpc : Gross national income at purchasing power parity per capita

It is the sum total of all factor incomes after adjustment for factor income from abroad has been made.

National Income can be defined as the money value of all final goods and services produced in an economy during a financial year.

N.I.=NNP at factor cost = NNP at market price – Indirect taxes + Subsidies.

National Income is the Net national product at the factor cost.

The purpose of preparing the balance sheet is to disclose the financial states of the organization in terms of his assets and liabilities at given point of time. A balance sheet is the gist of a company’s financial condition. As such, the balance sheet has two sides – Liabilities and Assets. Credit balance in all the personal and real accounts appear in Liabilities side while Debit balance in all personal and Real account appear on asset side.

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.